Third Party/Aftermarket Warranties... WORST!

[mspecperformance]

I see more and more of these terrible warranties everyday! Its so hard to do business and explain to customers that they practically have gotten scammed. They seemingly don't understand the business of these warranties and how difficult it is to actually get them to pay, how long they will be out of a car while an inspector comes to see the vehicle and what small percentage these crooks are willing to pay. I am so sick and tired of these companies and how they make us, the repairers the bad guys! How do you guys deal with this even after you give your customers all the warnings??

 

I am in it with this one customer that replaced his wheels and springs with aftermarket parts and is now trying to get the warranty company to pay for his shocks and springs. They are most likely going to deny his claim and I am already bracing myself for the backlash.

 

I am almost at the end of my patience with dealing with these companies and really ready to say we are not dealing with them anymore. Problem is I feel it will turn potential customers away even the ones who have the warranties but understand the items they do and don't cover.

[mmotley]

I had my first customer yesterday that mentioned extended warranty when I told him about an oil leak. He had no paper work in his glove box or anything for it, so he said he would get back with me when he finds it... Hearing your story, I'm dreading having to deal with it now.

[Jeff]

The contract is between the warrenty company and the customer. I tell contract holders that I will contact the warrenty company on their behalf and deal with them. ANYTHING THE WARRENTY COMPANY DOES NOT COVER THEY ARE RESPOSIBLE FOR PERIOD. The problem is these people are lead to belive the contract covers EVERYTHING. Some pay well and some dont. Just dont let the warrenty company dicate to you what is right and wrong. We are the repair profesionals.

[mspecperformance]

I had my first customer yesterday that mentioned extended warranty when I told him about an oil leak. He had no paper work in his glove box or anything for it, so he said he would get back with me when he finds it... Hearing your story, I'm dreading having to deal with it now.

 

Brace yourself and don't take what these warranty jackasses to heart. I'd make it as crystal clear to the customer that there is no guarantee of anything and these companies are about not approving claims since it hurts their bottom line (how else are they suppose to make money!). Also you might want to think about charging an administration fee because between the phone conversations, faxes, waiting for inspectors, more phone conversations, negotiations, etc it can eat a lot of your time.

 

 

The contract is between the warrenty company and the customer. I tell contract holders that I will contact the warrenty company on their behalf and deal with them. ANYTHING THE WARRENTY COMPANY DOES NOT COVER THEY ARE RESPOSIBLE FOR PERIOD. The problem is these people are lead to belive the contract covers EVERYTHING. Some pay well and some dont. Just dont let the warrenty company dicate to you what is right and wrong. We are the repair profesionals.

 

 

The general customer doesn't understand how the whole system works. These are not face to face businesses nor are they altruistic. I pose this question to my warranty contract customers, "If you pay $3000 for a warranty and expect the warranty company to pay out $4000 worth or work, how do they make money? Does it make sense to you that their goal is to deny your claims?" I usually get either blank faces or the "yeah I know..." responses. Then why did you buy the warranty you dummy!!

 

The genius customer I am dealing with now says to me yesterday, "Why didn't you sharpie the H&R sign so they wouldn't know my springs are aftermarket???" and "I don't care if they won't pay, I want to use the warranty. If they won't pay I'll get another company!" The best was when he said in an agitated voice, "You should have told me that they would deny my claim if I had aftermarket parts on my car!" My response was, "It was your responsibility to read through your policy, I buy and sign for the policy and neglect to understand the warranty would be voided if you installed performance parts, you did." The response I got was, "... Your suppose to give me suggestions! You should have told me to swap out the springs, I would have brought you the old ones!" My reply, "...So just to get this straight, you want me to tell you how to scam the warranty company?" All I heard was dial tone after that

 

Customers that have been dumb enough to get suckered into these warranties are generally going to be #1 Stupid as all hell and/or #2 cheap as all hell.

[xrac]

Some companies are pure gold on extended warranties (AUL, GE, GM, Toyota, etc.) and some are almost worthless.

[mspecperformance]

I have to say I am not in favor of dealing with any. It is a colossal waste of time and it gives motorists a false sense of security. When claims get denied, we look like the bad guys. Even if they understand its not our fault, it still puts them in a negative mood which is never good.

[xrac]

Here is one that wasn't fun to deal with Interstate National Dealer Services.

[RWI]

I have a simple philosophy on this, I simply tell the customer that I am going to bill them and they may seek reimbursement from the warranty company if they wish, I have tried to work with a few of these clowns and it was a disaster, my time is simply to valuable to be wasted on this.