Carchex Extended Warranty

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MRTYMCFLY@webtv.net - 13 May 2007 22:06 GMT

I just received a clean Carfax report on a car I just purchased. The
CarFax website has a link to Carchex which sells extended warranties for
used cars based upon the model,mileage, and age of the vehicle. Most
major repairs are covered. Does anyone any experience with these
warranties? Any recommendations? Thanks.

Doug and Patty

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Scott Dorsey - 14 May 2007 15:42 GMT

> I just received a clean Carfax report on a car I just purchased. The
>CarFax website has a link to Carchex which sells extended warranties for
>used cars based upon the model,mileage, and age of the vehicle. Most
>major repairs are covered. Does anyone any experience with these
>warranties? Any recommendations? Thanks.

You are gambling. You are betting the insurance company that something
will fail and they are betting that it won't fail.

Now, from an independant standpoint, you should know it's a sucker bet.
The insurance company has calculated the odds very carefully to make
sure that on the average, they will win.

BUT, that doesn't mean that you might not win in the short run. That's
why it's a gamble. The car _might_ fall apart tomorrow and you'll collect
bigtime and be glad you got the warranty. More likely it will just run
and run with no problems and you'll be paying the warranty for nothing.
But you don't know for sure.

If it makes you feel more comfortable, do it. If it doesn't make you feel
more comfortable, don't do it.
--scott

Signature

"C'est un Nagra. C'est suisse, et tres, tres precis."

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Don - 15 May 2007 03:22 GMT

>> I just received a clean Carfax report on a car I just purchased. The
>>CarFax website has a link to Carchex which sells extended warranties for
>>used cars based upon the model,mileage, and age of the vehicle. Most
>>major repairs are covered.

Usually when you read the fine print far less is covered than the
advertising copy would lead you to believe.

>> Does anyone any experience with these
>>warranties?

I am about to the point of refusing to have anything to do with these
scumbags. Trying to get authorization for my customers to be
reimbursed typically takes more work than the repair! Automotive
repair trade magazines regularly advise us NEVER to count on the
company for payment. Get what paltry reimbursement authorised that
you can, hand the information to the customer and wish him/her luck.
Some say they will pay on the spot with a credit card -- I have
experienced cases where the credit card was bad!
They have many tricks. Some will insist on providing used parts
shipped from the other end of the country to effect the repair.
Diagnostic time, fluids and other incidental costs are rarely paid.
All claims are void if work has started without authorization.
So the shopowner has to leave you car on hold whilst listening to
annoying messages and "music" loops only to end up disconnected or
told the person handling this type of claim will call back.

No thanks...I'd rather be fixing cars.

> Any recommendations? Thanks.
>
>You are gambling. You are betting the insurance company that something
>will fail and they are betting that it won't fail.

Or when it does fail they can weasel out of their obligation.
Those that aren't ingenious enough at dodging claims frequently go
bankrupt as one method of taking the money and running with it.

>Now, from an independant standpoint, you should know it's a sucker bet.

Very much so.

>The insurance company has calculated the odds very carefully to make
>sure that on the average, they will win.

Big time.

>BUT, that doesn't mean that you might not win in the short run.

Its practically unheard of for them to pay out more than the cost of
the policy. I have heard rumors that it has been known to happen, but
it doesn't happen very often at all.

> That's why it's a gamble. The car _might_ fall apart tomorrow and you'll collect
>bigtime and be glad you got the warranty.

But why would you buy such a POS car in the first place where that is
a likely scenario? Even then, the warranty companies are ahead of you
-- they won't cover seriously troublesome models.

> More likely it will just run
>and run with no problems and you'll be paying the warranty for nothing.
>But you don't know for sure.
>
>If it makes you feel more comfortable, do it.

If it makes you comfortable to give your money to an industry that
returns about a dime in claims for every $ paid in.

Kind of like going to Best Buy and they want to sell you a $7 "service
contract" on a $19 phone.

Don
www.donsautomotive.com

> If it doesn't make you feel more comfortable, don't do it.

Good advice!

>--scott

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