HPNG

Hello Friends: Thanks for the comments. You folks make a good case for not buying warranties. We plan to keep the car for 10 years like our last one. That is why I got really upset when I heard about the head gasket and other chronic catastrophic problems of Subaru that never seems to go away. I do not plan to buy any extended warranty for now, may be later on, and then may be not at all. However, I spoke to a 60+ years old mechanic at Subaru, and he said he bought his mother a Subaru warranty for her subaru like an insurance plan since repairs are quite expensive, if the warranty expires. He appears to be a very honest person. I thought I put the following information here, should someone need it in the future. I did found this person offering a better deal Subaru BACKED extended warranty as shown from his 3 email correspondences below: (You can also do a search for "extended warranty" or "mmccall" under "Subaru Marketplace" in the forum section for this person's (a subaru dealer) offering.) To: avtinc2000@yahoo.com Subject: Subaru Added Security From: "mmccall @ Ultimate Subaru Message Board" <mmccall@ida.net> Add to Address Book Date: Thu, 03 Jun 2004 13:03:48 -0400 I decided to email you and will post these as well. the best deductable money wise is $50, the $0 is a lot more money and the $100 is not much less. here goes: coverage cost $50 deductable $0 deductable $100 deductable 5yr/60k $700 $750 $650 6yr/60k $760 $850 $725 6yr/80k $985 $1090 $900 5yr/100k $1175 $1295 $1050 6yr/100k $1250 $1385 $1150 7yr/100k $1375 $1530 $1275 there are shorter terms than these as well if you are interested. All of these are the Gold Plus program, which is the better coverage, that lists only what is not covered. Also includes road side assistance for the full term. You also have the 10 payment option. By useing a credit card you can pay 10 payments with no interest, instead of one lump sum. /////////////////////////////// To: avtinc2000@yahoo.com Subject: Subaru Added Security From: "mmccall @ Ultimate Subaru Message Board" <mmccall@ida.net> Add to Address Book Date: Thu, 03 Jun 2004 13:09:10 -0400 Also, all you need to apply the coverage is call me at (800) 574-8673 ask for Monte. With your credit card I can get it all done for you in a minute or two and I'll over night the from to sign and send back. ///////////////////////////////////// From: "Monte McCall" <mmccall@ida.net> Add to Address Book To: avtinc2000@yahoo.com Subject: RE: Subaru Added Security Date: Thu, 3 Jun 2004 11:47:23 -0600 We mostly just use our Subaru website on the Subaru site. http://www.idaho-falls.subaru.com/en_US/ /////////////////////////////////////////////////////////////// kindest regards, HPNg

Hello Amanda: What "Added Security" SOA warranty did you puchase ( e.g. 7yr/100K, etc ) and how much did you paid for it? Thanks. HPNG

Date: Thursday, June 03, 2004 Re: Our purchase experience (good & bad) at Heuberger Subaru, Colorado Springs, Colorado Hello Subaru Owners and Fans: By the way, why is there no listing of recalls on www.ultimatesubaru.org? There is a government recall on head gasket problems with Subaru. There is also a recall problem with rusting of something related to the transmission or brakes. We purchased a 2004 2.5-liter Subaru Outback at Heuberger Subaru, Colorado Springs; Colorado on May 31-st, 2004, and completed the purchase on Wednesday, June 02, 2004. I have the following experiences (in descending order) at the above dealer: 1) We tested the Outback on gravel road. We like the Outback’s handling. Unfortunately, we did not find out about www.ultimatesubaru.org until later…. : ( The salesman (Captain Ed Myers, a former tugboat captain) was good at his sales job. We showed him the invoice price from http://www.ConsumerGuide.com, and he also showed us the dealer’s invoice price. Of course he said he does not make money selling at invoice price, which I then laughingly told him that it is a big balooooooney…. : ). We enjoyed working (and haggling… up to a point ) with him to get the car. In the end, we got to purchase it at invoice price with a $1,500 rebate. Of course, he led us to think that we got a really good deal……smiles…. If you are in Colorado Springs, and you like Subaru, look up Ed Myers at Heuberger Motors. 2) Here is our next experience at the financing department. When I went to see K.C. (financing manager) at Heuberger Subaru on Wednesday, June 02, 2004, to complete the purchase transaction, he offered me “Added Service” extended warranty (only warranty one backed by Subaru). Here are the warranty prices he offered: Heuberger’s “Added Security” warranty price offered by KC Warranty coverage Year/Mileage Price 6 / 60K $1,425.0 5 /100K $2,295.00 6 / 80K $2,495.00 6 / 100K $2,750.00 7 / 100K $2,995.00 Add $250 for ZERO deductible option. (I was not told about the deductibles until I ask about it) I like members to give me feedback about Subaru’s “Added Security” extended warranty pricing that was offered to them. We need a listing of such extended warranty pricing on www.ultimatesubaru.org from various parts of the country. I declined his warranty offer, but KC immediately offered to discount $1,000 (one thousand dollars) for the 7 yr/100K extended warranty under the following conditions, as I understand it: -The warranty and discount will not be offered again -The warranty purchase will have to be done today (i.e. Wednesday, June 02, 2004) I told him that I couldn’t make the decision until I spend some time thinking and researching about it and that I have to talk with my significant other also. I later talked with a friend who also bought a new Subaru from them not long ago. He said the warranty prices they offered him are not as high as what they offered me. He did not purchase any of their warranty plans either. I also later found out about http://www.ultimatesubaru.org via http://www.cartalk.com. I learned that one of the members, Shrano, was offered $849 for 6yeras/60K miles warranty with a money back guarantee if he never uses the extended only in April 2004. Shrano also posted this: “i think for $850 it's a pretty good deal. it is not a dealer thing - it is a SOA warranty, so I can do to any dealer which is good.” In addition, Steve, in response to Shrano wrote this: “We got my wife's '03 TS extended for that same time frame, 6/60, for around $800, with $0 deductible.” I also went to Subaru.com to check out the warranty information. Here is what Subaru.com said about its “Added Security” extended warranty: (see http://www.subaru.com/owners/care/security/middle.jsp?pageID=1 ) “Why is a Subaru-backed extended service contract the best choice? Subaru views a service contract as an investment in customer satisfaction, rather than as a profit maker. We know that a satisfied customer will likely be a repeat car buyer. Independent providers/insurance companies have no investment in your next car purchase. This philosophy really makes a difference in the quality of their service contract product, and even more importantly when it comes to honoring your claims. ” When I showed KC the information that Shrano posted at http://www.ultimatesubaru.org, he then offered me the same deal (he did not mention about the money back guarantee if warranty was never used). I was flabbergasted. I then begin to get a feeling that I was almost taken for a ride from the get go since Subaru said the following IMPORTANT statement at their webpage: http://www.subaru.com/owners/care/security/middle.jsp?pageID=1 : “Subaru views a service contract as an investment in customer satisfaction, rather than as a profit maker.” Obviously, this philosophy does not apply at Heuberger Motors. I also asked KC to have the title of the car mailed to my spouse’s work address since there have been some reports of stolen mail in our area, but he said he couldn’t do that at this time. I do not know why he cannot take down the address and do it later. It just does not make sense. Here is what I did next after I paid for the car: I requested to see Mr. Gunner Heuberger, the owner. I presented the problems of overpriced and ever changing warranty price with ultimatums to purchase at time of car purchase closing or the offer will not be available. He is a good listener. He then brought his General Sales Manager, Mr. Robert Ieans, to hear what I experienced above. Here is what Robert Ieans said: 1) We are one of the top dealers in the country, and we do not screw customer and still get to the top. (My comments: As I understand it, Subaru’s sells well in the Rockies (Colorado) as well as other cold climate and snowy regions such as Maine, Minnesota, Canada, and so on.) 2) The financing department works hard to get sales commission for extended warranty sales. We do not sell at the same price to each customer. (My comments: When I heard this statement, it sends chills down my spine. So, if two customers have just purchase the a new Subaru each, they will get two prices for the same “Added Service” warranty, in the name of profit making. Since I did not use their financing sources to pay for the car, I assume that the sales commission from the auto loan is ZERO, which may cause KC to be more aggressive in pushing the high priced extended warranty sale. I am wondering if this business model is appropriate or compatible with Subaru’s Extended Warranty philosophy.) 3) This is the end of the month and sales department like to get as many sales closings as possible. (My comment: Robert and I were talking on Wednesday, June 02, 2004, at time of closing) 4) When Gunner offered to find out more about the price of the warranties, Robert told Gunner that Shrano’s extended warranty is not from SOA (Subaru of America) since the cheapest “Added Security” Subaru warranty is $200 above Shrano’s stated price. (My comment: Do a search for "Shrano", and see what type of warranty Shrano got. Answer: Extended Warranty is from Subaru). 5) We like to sell the extended warranty (during closing) because we do not have to inspect the car again when you decide to buy your extended warranty later. (My comment: Whether anyone agrees with his statement, does this justify giving their customers an ultimatum that such (an overpriced) warranty offer will not be available again? In short, Robert is defending the extended warranty sales tactics in the financing department, regardless of problems and conflicts with Subaru’s intentions of the purpose of the “Added Security” extended warranty. I have more comments, but I will leave it for later. I hope to hear from other Subaru owner’s experiences with respect to extended warranty purchase as well as what they paid for the “Added Security” Subaru warranties with or without deductibles ( e.g. 5yr/100K, 7yr/100K, 6yr/80K, etc.). Again, we need to encourage creation of a listing of extended warranty prices at http://www.ultimatesubaru.org offered by dealers from various parts of the country. After browsing the www.ultimatesubaru.org site and learning about the serious problems with Subaru cars, I now understand why Subaru badly NEEDS to sell their extended warranties with NO PROFIT MAKING INTENTIONS. I also spoke with several people waiting for their Subaru in the service department at Heuberger Motors that day, and none of them said they purchase the extended warranty. Till your comments and replies, thank you. kindest regards, HPNG avtinc2000@yahoo.com

Hello Shrano: Is the extended warranty offered to you for your 2004 Subaru Legacy called "Added Security" Extended warranty by Subaru or a third party warranty? Did you purchase the warranty? And did you include the zero deductible option? IF so, how much does it costs? Thanks. HP Ng