You pull into the lot of the dealership and find the perfect car at the perfect price…but it is outside of the factory warranty coverage. The salesman says…”it ok, we offer an extended service warranty that will cover you if anything goes wrong on your vehicle. It is very reasonably priced and you can pick the amount of coverage you want to carry.” This sounds great! Right! What you are not told is that the dealership has no connection to the company that is selling that service warranty…aside from the fact that they are probably being paid to offer it to you. There is a large deductible for repairs. They hardly ever cover the components that break on the vehicle. Most do not pay taxes, they only pay a lower labor rate, no diagnostic fees, no machining fees, no shop supplies, no hazerdous material fees, etc. Wait…there is more.
Most shops where you bring your vehicle will even refuse it if you have a warranty company contract. It has became so difficult for businesses in this industry to deal with these companies, that most find it is not even worth the business. Many companies will require you to call, wait on the line, tell them what is wrong, and they will call you back to authorize repairs. The call back usually comes hours later. So the shop that has your vehicle is tying up a lift while waiting for a call back…some shops will bill you for this time on the lift if the vehicle is not mobile. And that time is paid by you…no them. These companies are aweful…we have not dealt with one yet that is worth the money. Next time you consider purchasing one, call your local shop and ask their opinion. They will probably advise you to steer clear. I’m sure you can find most of this out with a little bit of online reaserach as well. Happy shopping…you are officially an educated consumer now.