Jump to content
Ultimate Subaru Message Board

Extended Warranty...getting screwed


Recommended Posts

So I just took my '99 Legacy Outback in to fix an oil leak...106400 miles on the clock, but I bought an extended warranty (for a couple grand) when I got it used from the dealership (Commonwealth Subaru, Plaistow NH) and I'm allegedly covered for another 3000 miles or so.

 

So anyway, they tell me $400 to fix it...but the company my warranty is through has gone out of business (SmartChoice2000) so they won't cover my claim and I have to pay it out of pocket.

 

I argue to them, I bought the warranty FROM THEM at the time I purchased the car FROM THEM and the one time I take it in for service FROM THEM they're not going to stand by their own product? They said that I bought the warranty as a product of SmartChoice, they just sold it to me. :banghead:

 

So anyway I have to go back tomorrow to get it fixed, and there will be a service manager there I can argue with.

 

Has anyone else out there bought this extended warranty from SmartChoice200 thru their local Subaru dealership? Dealt with this problem?

Link to comment
Share on other sites

The language that absolves the dealer from responsibility is in the contract. It's a shame that dealers do this, but they make 50% of what you paid (and probably financed), so they do.

 

All service warranties are just insurance policies, and almost all underwriters are fly-by-night scammers.

 

Listen everybody DO NOT BUY WARRANTIES! After the dealer tries to sell you one, ask how much per month it will add to your payment. Then REFUSE, vehemently!

 

Go home and open a dedicated savings account and put that much money in it per month, then if you have a mechanical you will have YOUR money put away for the repair.

 

Oh, and tell the dealer that you were getting the car fixed so you would get your best price on a private sale because you WERE coming back to buy an new Baja, but now NOT, you'll go to another dealer.

 

Sorry this happened to you, join the fight against warranty rip-offs!

Link to comment
Share on other sites

Don't give up so easy. Send the dealer a certified letter with a return receipt, explain that you bought this in good faith, and now that the provider is out of business, you will be forced to seek restitution in small claims court. Explain you will give them 10 day's to contact you to settle this. let them know that if they fail you will bring suit aganist the provider and also aganist them, being they was acting as the agent for this company. If they fail do what you told them, go to the county courthouse, ask one of the clerks where to file, and do it. The cost is very little, but the pleasue is worth ever penny. The dealer don't won't to deal with this, they will most likely settle with you as soon as the court contact's them. If not go to court, if you get your judgement, go to the clerk and file it, an wait for your money.

Link to comment
Share on other sites

well i must say, when i bought my 95 conversion van, i bought the extended warranty, it added $20 a month to my payment..

 

good thing i did, cause that warranty company, paid for an engine, rearend,brakes, rotors, drums, fuel injectors,fuel pump, sending unit, wiper motors and on down the list..

 

they paid about 8 grand in repairs on that damn thing.. so in my book the extended warranties are very nice to have.. sounds like you just got some bad luck with the company going outa buisiness.. i'd try and make the dealer pay ya back for that warranty..

 

i gotta add, the warranty company spent 8 grand on that van in a matter of 8 months or so.. so the $20 a month savings bein put in the bank wouldn't have cut it by a long shot..

Link to comment
Share on other sites

a little followup...I'd done a little reading around the net and saw this was a big problem around the country, apparently the insurance co was on the up and up for many years but then just suddenly up and died, leaving buyers and dealerships all over the country in the lurch. Ain't nobody getting paid.

 

So anyway the next morning I went back in at 7:20am to drop the car off...spoke briefly to the service manager about how disappointed I was about the coverage situation, but wasn't about to pick a fight at that time of the morning. He said they could offer me 10% off, I said 40 bucks off a $400 job really was no bargain. He said maybe we could work something out and I left the car.

 

Later in the day he called back and said "You had a $100 deductable on it anyway. If you pay the deductable, and for the timing belt ($79), we won't charge you for any of the labor. Does that sound fair?" I thought it was pretty fair. So in the end I'm satisfied.

 

Thanks for your helpful replies tho. I was all ready to start preparing my certified letter.

Link to comment
Share on other sites

Well as someone who has managed a dealership for 4 years, I understand your frustration. If the dealer does not wish to cover this and unfortunately they wont. I suggest two things 1) Contact an attoney and sue there butts 2) they had to replace there extended warranty company with another, I believe they have to honor your warranty. If your talking to the service manager dont get you anywere, tell them you wish to speak to the owner and dont leave until you do. Most owners will sit down and explain it to you and are willing to work with you more than service writers or service managers(afterall they get a nice bonus on the money they bring in).

Link to comment
Share on other sites

Been there, done that on my Jeep!!! I will NEVER buy another "aftermarket" car warranty again. Same exact thing happened and as someone else stated, this not an uncommon problem!

I would discourage anyone from spending the money on one of those warranties. Instead, buy it from the manufacturer. You are then dealing with the people who are also doing the service.

Bummer for your headaches!! I do have to give a "hats off" to the dealer for working with you!!

Link to comment
Share on other sites

One exception to avoiding 3rd party ext.warr. might be like GEICO. Pretty big company.

 

I haven't decided to pick it up, mostly because of the 'overlap' with the already fairly generous Subaru standard warranty.

On my '03 OBW they quoted $78 a year to 100,000 miles - NO TIME LIMIT. So if it takes 14 years to get to 100,000 I'll have coverage. It's exclusionary, which is good, anything not specifically on the list is covered. You can have it serviced at any certified shop(? - that probably means you can't diy it) You can drop it anytime and just stop paying the $78/yr.

 

But, it's $250 deductible and you must add it before 11mos./11K or the end of the car's model year.

 

But, if a drivetrain component goes out in - say - 2.9 years that costs $1000 to repair, you will have paid close to $230 for somthing covered by Subaru right?

If the same thing happens at 3.1 years, you will have paid the $230 plus shelling out the $250 ded.

 

It does seem that for someone buying a car that will not see high mileage, has a poor standard warranty and is expensive to repair this would be ideal. I just think keeping a little xtra in the bank for the car is just as good.

 

What do you guys think?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...