Auto Extended Warranty Info/Question.

[ricoba]

We just purchased a new to us car (2002 Lincoln Continental with 22,000 miles on it and still under the manufactures warranty for another month).

I have been looking a extended service plans. Anyone have any advice suggestions as to the months/miles I should look at?

We can't shop online here in California due to insurance regulations, so we have to get quotes directly from insurance companies and our credit union.

I called a local Lincoln dealership, because I wouldn't mind a Ford warranty, but yikes they were way out of the ballpark, but the Finance Manager did mention the rate could be lower if I came down for a face to face (kind of like a TS presentation!!!! )

Any suggestions/advice etc????

Thanks!

Rick

 

[rsonc]

becareful where you purchase your and ask what happens if the company files bankruptcy. I purchased a couple of years ago from Warrenty Gold and then less then a year later the insurance company they used filed bankruptcy and then about a year later they filed. This was in 2003 and we have never seen a penny of the 2k-3k that we had paid.

I had another warrenty on the previous car that we owned and it had worked great, it was purchased through the car dealership. That car was a lemon and had over 7k in repairs over the 6 months that we owned it.

Good luck
Susan

 

[bogey21]

My advice is twofold. First, only buy a warranty issued by Ford. Second, do visit the dealership. They will negotiate. Normally their cost is about half the list price of the warranty. I got mine for half (of list) + $100. Tell the dealer it is in their interest. They get the $100 profit from selling the Warranty and will get the lucrative warranty repair work if needed.

GEORGE

 

[JimJ]

Call a number of Lincoln dealerships. It doesn't matter as far a the coverage goes as to who sells you the warranty. Juat remeber, there is a large profit margin on the list price.

 

[nightnurse613]

I just want to echo, you never know. We have had a warranty on our last three cars, purchased over internet and had excellent service (typicaly not too many problems, but a few). The last one we bought, were having a problem, went in, covered by the agreement but when the dealer called-the warranty company was in liquidation. I doubt we'll ever see any of that money either. They said they had an A insurer and a re-insurer, too. Been in business for years-like I said we had them on last three cars.

 

[ricoba]

I think most of you have confirmed what I have felt....get a Ford warranty....but I need to shop around at more dealerships. I have been able to get Ford quotes online from Ford dealerships outside CA, but I am not really sure they are licensed to sell here.

The one dealer I called here was almost $2000 more than the online quote from a Ford dealer out of state. The finance manger told me they couldn't even "buy" the insurance for the price online. I find that claim kind of dubious since I know agents don't buy insurance, they simply issue and bind policies.:annoyed:

I don't know why CA does not allow us to shop online. My assumption is that they are trying to "protect" us from predatory merchants such as the Warranty Gold fiasco of a few years back.

Even the insurer that was offered through the Credit Union doesn't come up A+++ in insurance ratings, but I am sure they have re-insurance just in case of future problems.

I am kind of curious about the future of a Ford warranty as well, since Ford has numerous financial problems itself. While I don't think Ford will go under, I do know that when we had a Montgomery Wards warranty on an item, it disappeared when Monkey Wards went down

Thanks again for the input.

Rick

 

[bogey21]

The finance manger told me they couldn't even "buy" the insurance for the price online.

I think what the finance manager was saying is that his "cost" for the warranty from Ford was higher than what you were seeing online.

Trust Me. The cost to the finance manager (dealer cost) is roughly 50% of the retail price. Most dealers will negotiate a price somewhere in between.

GEORGE

 

[ricoba]

George, thanks for the 50% cost info.

I am like you willing to let them make a $100 to sell the policy and then get my business for the maintenance repair work etc. But there is no way I am going to give them a $1500 profit on selling an insurance product.

The quote was from a dealer we previously used when we had another Ford product. I always remember the service being quite good, but they have since been bought out by one of the big corporations (Sonic) I think. My sense from my last trip to the dealership is that they have let things slide since that point.......

 

[Fern Modena]

Ric,
Have you tried AAA? Seems to me I remember them selling that sort of insurance in California. I don't know if they do any more, or if its competitively prices, but you could check. It was the surprise of my life for me to discover that my auto insurance was 47% less with AAA than most other companies here in Nevada (I know, I checked).

Fern

 

[ZCar]

ricoba,
Have you tried Ford dealers (probably?) as they sell the same warranty.
And of course, there are different levels of warranties to cover from basics to almost full coverage, so watch price differentials. They may be 'apples & oranges'.
Also, I think in CA , it is not sold as insurance, but as a warranty. Apparently there is a distinction.

 

[metfan]

Go to www.insurancepoliciesonline.com it is an AON warranty, we have used it 3 times, have on 2 different cars. Very good, and you pick the shop. Florida law is like California, it is considered insurance and regulated. Go to site, click on auto part, and they have 3 tier plans, i would take the best with 0 deductible....Let me know if i can answer anything else!!

 

[kapish]

Call a number of Lincoln dealerships. It doesn't matter as far a the coverage goes as to who sells you the warranty. Juat remeber, there is a large profit margin on the list price.

I agree with this. When I purchased warranty for my new Honda, I called a dealership in Tennessee and got the extended warranty at 50% of list price. It is the same Honda warranty, and associated with my vehicle's VIN. Check out websites/forums/usergroups that are specially put together for your car's make/model. Those sites usully have information about participating dealers etc. readily available.

In my case, I own a Honda Odyssey, and participate in discussions at OdyClub.com. We saved $2000+ when we purchased the van because about 10 of us from the site got together and did a group buy!