Extended warranties

Outside warranties are a total scam. If the car has been trouble free just take your chances. Make sure all campaigns are taken care of now so that any bugs will be out by the time you're free balling.

 

Unless you drive a ton, the power cube adds several dollars per mile to the cost of ownership. I did not get the extended warranty on my '05 when the original warranty expired. I have already saved enough money to pay for most any type of major repair.

Dave

 

I had the Power 1 warranty on my 550 when I purchased it as a used car a few years ago. During the first year of coverage, it took care of a few minor things that cropped up such as a couple of shock actuators, and an A/C ECU. I continued it for another year or so, and it was worthwhile. I did not renew it after that since the car was old enough to only qualify for the "Power train" warranty, which had much more limited coverage, and on which the costs had skyrocketed. At that time, the much more limited "Power Train" warranty was 3.5 times the original cost of renewing the very extensive "Power 1" coverage I had initially, so not worth it.

 

There is no longer an extended warranty provider in the marketplace that would cover a Ferrari except for the Power warranty program (service contract). The only aftermarket provider became insolvent for many reasons, very few of them were related to claims, but more of the former owners using reserves for personal pleasure.

 

Did you see this? They'll gladly take your money but good luck with a claim. Buy a power cube if anything or forget it.

 

You're not listening are you?

 

not all of these companies are a scam. #1 they can't be a scam... the good ones at least. just remember to look for any loop whole. The best kind of warranties are exclusion warranties. These are warranties that basically state what they do NOT cover. Not what they do cover. much much much less to worry about.

If you haven't had extended warranty experience, save the post of "they are a scam." please stay quietly on the bandwagon. However, if you have had personal experience and it was bad, then post away!!!

 

Keep your money and take your chances. This has been the overwhelming consensus since I've been on this site.

 

The companies make a profit because they pay out less than they take in.
Not rocket science.

 

+ 1

 

My observation after reading some of the limitation language is that they will replace items that have broken, but they will not replace items that are worn out. If this is an older car, then a lot of things fall to the latter catagory and would be difficult to prove coverage for.

Good luck with your decision.

Jeff
Dallas, Texas

 

that is correct. No warranty on the planet covers wear and tear. The closest people are the good people of BMW who offer a second program that includes these items. Mercedes offered it, and then it got to expensive so they stopped providing it. Audi did the same... and again... too expensive. All this before the world economic collapse.

You couldn't possibly imagine what it would cost to make a warranty that would replace wear and tear... No way it would ever sound economically feasible.

So, no they will not replace belts, nor bushings, many hoses etc... but, they will cover mechanical failure.

Yes, the world operates for profit. So they do payout more than they take in. However, many warranty companies have gone bust as well. You just need to look at the warranty company as a insurance company. Its coverage for break down. Sometimes your health insurance covers you... sometimes it doesn't. But if you fall down and break your arm. They cover it. If you go in for constant test etc... it gets a little grey on what they will pay for. Your insurance company makes a boat load of money off of getting more in than what they pay out, but the majority of there money is made by what they invest your money into while you are a policy holder.

 

Some auto insurance companies offer " auto service plans" that are not too bad if you can get them to accept your car.

 

When my 2005 F430 came off warranty, dealer (FoSF) was really pushy to sell extended warranty. That in itself was a big red flag to me. I'm not a big fan of insurance to start with, especially when there is only one viable provider that can dictate prices. Almost as bad as non-F car dealers pushing extended warranties on new cars, paint coatings, interior protection, undercoating. All high profit, low cost products.

 

I used to work as an auditor and then in management at an extended warranty company. Not all of them are rip offs, though there are some out there. Having several years experience on both the claims and underwriting side of it, I feel I have a better understanding than most

For anyone contemplating an extended warranty, feel free to PM me with specifics of the contract(preferably a copy of the coverage), and I will be happy to show you any major loopholes.


The major misconception in this thread? Most extended warranties actually will cover wear and tear related failures. Wear and tear related FAILURES. Meaning the part no longer functions as it was designed, based solely on it's own condition. High mileage policies will not cover wear and tear, but new car coverage type exclusionary policies will. New car coverage does not necessarily mean the car is new, it just is a type of coverage. However, do not think for a moment that wear and tear coverage means replacement of maintenance parts. Belts, hoses, tires, clutches, brake rotors/pads, etc are not covered. Neither are emissions/safety parts. This is pretty much an industry standard.

Again, I'm happy to help anyone with an extended warranty decision, whether that means reviewing the contract with you, or giving you my honest opinion of the provider.