Automotive

Argghh... more "deals" on used car add-ons.. now extended warranty "scam?"

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  • Aug 2nd, 2005 1:29 pm
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[OP]
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May 18, 2004
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Argghh... more "deals" on used car add-ons.. now extended warranty "scam?"

ok.. so to add my frustration level.. i was offered rust proofing.. now they are talking about gm extended warranty..
well needless to say i decided on saying No... but now they lowered the price as an incentive (obvious proof that they were a scam before)

anywho it's a 2004 grand prix gt2 with 47000km

they orignally wanted $2300 for covering powertrain until 120,000 km
now they are offering it for $1795

still seems very high for me.. but he says it's cost..
so the big question is.. does anyone know what the heck the cost is one those warranties?
18 replies
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Jun 8, 2005
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GTA
How much are you paying for the car in total. You seem to not sure if you are getting all the details of the deal.
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Jul 25, 2005
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NO!

Say no too anything and everything else.. just buy the car.

THE END.
[OP]
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May 18, 2004
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kAMiKaZe wrote:NO!

Say no too anything and everything else.. just buy the car.

THE END.

Lol thanks
i think that's what i needed.. a nice firm NO


I guess i just get suckered in when i hear the word "deal" :cheesygri

it's not even the car salesman i'm talking to about this, it's another one who sells extended warranties and does financing.
Since i'm buying it with cash/line of credit i only asked for curiosity what the extended warranty woudl be..
Sr. Member
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Nov 21, 2001
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Markham
The_Madz wrote:ok.. so to add my frustration level.. i was offered rust proofing.. now they are talking about gm extended warranty..
well needless to say i decided on saying No... but now they lowered the price as an incentive (obvious proof that they were a scam before)

anywho it's a 2004 grand prix gt2 with 47000km

they orignally wanted $2300 for covering powertrain until 120,000 km
now they are offering it for $1795

still seems very high for me.. but he says it's cost..
so the big question is.. does anyone know what the heck the cost is one those warranties?
If they don't have to repair anything, then the cost is $0 ;)
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Jul 25, 2005
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groo wrote:If they don't have to repair anything, then the cost is $0 ;)
That's what happened on my last vehicle!

GRRRRRRR

Cost a lot of money on the vehicle and we never made a single claim.. so it was a total loss of money.

GRRRRRRR

Ya. theres a reason they are pushing this warranty SO HARD.. because it's a great money maker for them.
Jr. Member
Jan 18, 2004
199 posts
3 upvotes
Put it this way.
A friend has a 1997 Subaru 2.5 RS.

He just blew the motor, threw a piston in the block, etc.

The 'extended warranty' he purchased when he bought the car NEW is covering 4000 of the repair, but they have told him he is responsible for the other 1500 (dealership prices).

So while he IS getting 4000 covered, he is still looking at a 1500 repair bill after buying the dealership's 'extended warranty'.

The scam is not the warranty itself. Its that the warranty company is not a part of the car company (meaning its a seperate entity). Thus, they have to look out for their own hides, meaning that any way they can figure out to claim you have modified or done something to circumvent their guidelines, and thus they are free and clear from paying, they will try to do.
[OP]
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May 18, 2004
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Is that even if it's extended warranty from GM they will pull such a scam?

my worst fear is that whomever drove this before me was hard on the transmission which is a good 1900$ in repairs

but i guess this is like playing the lottery...
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Jul 25, 2005
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The_Madz wrote:Is that even if it's extended warranty from GM they will pull such a scam?

my worst fear is that whomever drove this before me was hard on the transmission which is a good 1900$ in repairs

but i guess this is like playing the lottery...
Except the lottery is a lot cheaper.. and has a lot higher payouts..

With the warranty.. *IF* you have a problem and make a claim.. mostlikely you will only get your money back (from what you already paid) and perhaps a bit more worth in repairs..

but MOSTLIKELY you will get nothing back, as nothing will fail.. and they will keep ALL your money.

Lottery $2.. payout.. $millions
Warranty $1500.. payout.. $3000? MAYBE?

You're better off using that $1500 to buy all lottery tickets..
[OP]
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May 18, 2004
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Good point..

well i'm going to say no.. i wonder what the next thing they will try to push is =)


thanks a lot everyone.. great help
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Jul 25, 2005
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lOl

they sure are pushing the extras on you... from now on, as soon as they start talking .. just cut them off and say "NOOOOOOO"
[OP]
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May 18, 2004
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lol yeah i held my ground but oh my are they are persistent.

i said no for that warranty and he goes on saying how i can do payments over 18 months to cover it .... and i still say no

then he says i can go with a smaller warranty that covers up to 100,000km for $1250.. amazing price he says...
i still decline..


he ends up saying that he will hold it open for me... just because he likes me for the next week or so if i change my mind..

like wow.. they can't take no for an answer when it comes to that eh
Sr. Member
Mar 13, 2005
726 posts
47 upvotes
Stoney creek
you can buy an extended warranty on any gm vehicle from any gm dealer afterwards as long as the ORIGINAL 3yr / 60000km warranty has not expired. they say you should try to do it 3months/ 5000km before the warranty expires. my suggestion is to call some dealers after the fact and get pricing and decide then if you want to do the extended warranty thing. You might be best to find out when the "in service" date is before deciding what warranty to buy.
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Aug 1, 2005
1703 posts
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Windsor
kAMiKaZe wrote:Ya. theres a reason they are pushing this warranty SO HARD.. because it's a great money maker for them.
Some lost a PILE of money on my '96 Trans Am.

I bought this one for 23k plus tax, with financing came to something like 33k, back in 1999, with 68000 kms on it.

I paid about 1900 for the 3 year extended warranty.

In the next three years:

Water pump replaced due to leaks - $400
Left power headlight motor stripped gear - $400
Trunk latch lock broke - $ Couple hundred
Rear defroster broke twice - $Couple hundred
A.I.R pump replaced. (Unit recalled a few months later, Pontiac did not send out notifications. By the time i found out, they would not refund me the money) - $350
Various other small repairs - $thousand.

Engine Seized at 12x,000 km, was rebuilt- $4700 (and took them three months)
2 New starters from the Pontiac dealership trying to start a seized engine. (included above)

One day after after warranty expired(now all out of pocket)

Front rotors replaced(damaged/warped by Pontiac while rebuilding engine) - 300. ( I believe the engine/transmission/wheels were dropped when taken out)

Spark plug cables damaged by Pontiac. Air intake damaged by pontiac(they jammed a screwdriver into it and pried it on, because they couldn't get it to fit) Damaged Optispark front unit replaced. Various diagnostics and parts repaired- $1200

At 158,000 km(3 years later): Engine broke in the same manner as before, after only 30,000 or so KM. Said screw it, and had the old engine pulled, put another engine from a same year Trans AM in: $2300

The car still has the problem that over about 4000 rpm, the engine disengages from the transmission, and freewheels up to about 6700 rpm. Redline(and engine power cutoff) is at 5700... Something's definately wrong.

My leased '97 neon had several thousand dollars of repairs as well, it's only big ticket item was a transmission replaced the week before I turned it back in, and three sets of engine mounts while Chrysler ignored the obviously broken transmission and went looking for cheaper fixes.

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