Coolness vs Warranty: story by JL Rockies

[JL Rockies]

As some of you know, I work for a dealership and I work with all the departments so I hear many stories throughout the day. Our dealership got involved with a service customer who had what turned out to be an exploded motor (that's technical jargun). The customer was confident that the extended warranty he purchased with the truck would cover the $6,700 estimate... it would not much to his shegrin.

The warranty company inspector rejected the claim due to the lift and oversized tires that were on the vehicle. He said the aftermarket items placed increased stress on the motor causing it to fail.... DENIED!

Here's the blip: the customer bought the truck from a CO dealer with the lift and tires preloaded along with the extended policy. At this time the warranty company and the customer are fighting it out with the dealer.

Moral of the story? Not sure really. Maybe it's be careful about extended policies because they don't make $ paying out $6,700 claims. When it comes to aftermarket stuff, things can be twisted into any story 'they' like. My girlfriend (when I and she worked for Toyota) had a Corolla that had constant stalling problems and was always in the dealership as they replaced parts one by one. Eventually, they blamed the aftermarket audio system. I had one of the inspectors go in and it was found that they put the wrong gas tank on the car during the assembly.

 

[Cody]

I would also be chagrined if they denied my claim...especially if the dealer sold the vehicle with the warranty equipped as is. At the very least the dealership should refund the cost of the extended warranty that wasn't going to be valid in the first place.

 

[rollover]

I would also be chagrined if they denied my claim...especially if the dealer sold the vehicle with the warranty equipped as is. At the very least the dealership should refund the cost of the extended warranty that wasn't going to be valid in the first place.

X2.
The dealer that sold it is the Pro not the guy buying the truck. If they offer it at the time of sale they should warranty it.

 

[ret32]

The trick is to time having the engine "explode" when you're on the highway, then it's a possible insurance claim. Especially helpful if it causes you to swerve, blow out a tire, and/or results in any body damage. A small fire helps validate the claim as well. Then let the insurance company deal with the warranty company and the dealer WHILE they're paying to have your vehicle repaired and paying for a rental car to boot.

 

[GOAT]

I've dealt with similar issues on a fairly large scale. If it's something the customer caused by alteration, abuse or neglect then it on them. If the dealer is found at fault by selling the vehicle in an altered condition, then the customer is taken care of, every time.

 

[Greg]

Extended warranty's are bullshit, just another way for a stealership to take your money IMO. We bought an extended warranty for my wife's old '99 Toyota 4Runner several years ago... at the beginning of Winter, the driver-rear axle seal started leaking, introducing gear oil in the brakes. With the ground/street being frozen, the rear end slid all over the place anytime you touched the brakes. Thinking the extended warranty would cover the seal replacement, we took it into the dealership where we bought the Toyota. The claim was denied because seals are deemed 'wear & tear' items... Even with paying for that stupid warranty, I ended up replacing the seal myself, rather than pay the dealer their price for the repair. What a bunch of shit, I will never buy an extended warranty again.

 

[GOAT]

Extended warranty's are bullshit, just another way for a stealership to take your money IMO.

depends on the warranty company the dealer uses

 

[Greg]

depends on the warranty company the dealer uses

Perhaps, but I'll never pay for one again.

 

[O'neal]

X2 what greg said....

Bought a camry for my wife one time and they talked us into the extended warranty BS.... later down the road it starts loving oil,took it in and they refused to even touch it.I also WILL NOT buy an extended warranty again.

When I bought my CTD last year,the dealership tried like hell to get me to get the ext warranty and did the sale's pitch of how great it is and how it would save me thousands.I told them they were full of BS....Salesman

 

[cruiseroutfit]

I had really good luck with my factory Toyota extended warranty but I know I'm the exception to the rule. On my current Tacoma it saved me a few thousand on items that really could have been argued wear/tear or excluded do to lift/tires.

 

[GOAT]

There are good warranties out there as well as bad. Just like everything else in life, the devil is in the details.

 

[KWight]

I had really good luck with my factory Toyota extended warranty but I know I'm the exception to the rule. On my current Tacoma it saved me a few thousand on items that really could have been argued wear/tear or excluded do to lift/tires.

x2

The previous owner of my truck bought the extended warranty when they purchased the truck. At 64,000 miles the oil pressure gauge quit working one day. They drove the truck to the shop where the Service Department inspected it. They found that the oil pressure gauge was fine, the oil pump was shot. The owner burned up the engine and the engine had to be replaced The owner paid a $100 deductible to have a $6800 new engine installed in the truck.

Kevin

 

[jeeper]

The trick is to time having the engine "explode" when you're on the highway, then it's a possible insurance claim. Especially helpful if it causes you to swerve, blow out a tire, and/or results in any body damage. A small fire helps validate the claim as well. Then let the insurance company deal with the warranty company and the dealer WHILE they're paying to have your vehicle repaired and paying for a rental car to boot.

I have thought a few times about letting our van "accidentally" fall off the trailer around 60mph.... somewhere far away from others..
Just so I can get rid of it and get something new... but I think they call that fraud

 

[Will3161]

It seems from these stories that the service department has more to do with warranty claims being accepted or rejected than the actual warranty company. Is this the case?

 

[JL Rockies]

Service dept is going to get paid one way or the other. The adjuster denied the claim not the technician.

 

[Gravy]

This is exactly the kind of thing SEMA spends thousands upon thousands of dollars fighting every year...

Basically what JL Rockies is saying is: don't buy an extended warranty from this dealership...

 

[cruiseroutfit]

Here's the blip: the customer bought the truck from a CO dealer with the lift and tires preloaded along with the extended policy. At this time the warranty company and the customer are fighting it out with the dealer.

...Basically what JL Rockies is saying is: don't buy an extended warranty from his dealership...

Reading is your freind

 

[Gravy]

I meant "this" dealership.

 

[JL Rockies]

I am not allowed to preload, after load or even acknowledge the possibility of lifting a truck. Our N Salt Lake store used to install them all the time before I came on the scene. Well, one day a customer took his GMC truck (lifted) out to the dunes and folded the frame. GM denied the warranty because the frame had been modified to fit the lift. It cost the boss $50k to buy the guy a new truck.

SEMA can do nothing to make a private warranty company pay claims involving aftermarket equipment. These companies are pretty clear up front what will and will not be covered. They did successfully lobby to get a law passed that applies to manufacturer warranty but even that law doesn't make a manufacturer have to cover an aftermarket part. There's a good chance that the original warranty would not cover all of the replacement cost of the engine. A very good chance.

I always bought Toyotas so I never saw the point of extended warranties. When I bought a Jeep, I bought a warranty because... it's a Jeep. I paid $1400 for the warranty and it covered about half the claims. Ther claims it did cover cost about $1400.

 

[ichi-san]

Whether it's a dealership or a private company selling extended warranties, they are in business to make money. At the end of the day they take in more than they pay out. I would say it's like playing the House in Vegas - sure every once in a while someone hits the jackpot, but overall odds are in the House's favor.