Extended Warranty

[dpwell]

These guys call all the time. Its is a recording so I just hang up. Today I was doing paperwork when they called, so to waste time, I decided to see what was up. My car is a '98 Boxster w/ 93k miles. I have had it for less than two years. I have spent upwards of $1000 on parts and still have more to do. They say for $2000 I get a warranty that covers the car for 5 years and an additional 100k miles. I take it to the dealer (or wherever I want) for repairs. $0 Deductable, free car rental, free towing, and other frills. It sounds to good to be true (leading me to believe...). I was wondering if anyone has heard of, or has experince with these guys? Their name is General Warranty Service, and that they are associated with Duralube (an oil additive). I give them a deposit, they send the additive, I get an oil change and if the car still runs a month later the warranty starts.

Thanks For Your Help, Mike

[rsfeller]

Google the topic and you will find lots of pros and cons to these extended warrenties. If you are a DIY guy you don't need one but if you cannot do you own work and you car scares you it's always something to consider. Someone in my family sells for one of the big extended warrenty companies and he makes LOTS of dough and he is legit. He's told me the redemption rate is very low on these warrenties and not does he make good money but so does the underwriter.

You should be able to find good coverage for half that price too!

Lastly, consider the cost to loss. If you put that $2000 in the bank for 5 years it would be a better investment. Even with an RMS failure you are only looking at $1500 to fix and that seems to be the worst that happens. I would do some research on your 98 (prone to engine failure that year) to find out if you have already been replaced and if so forget the warrenty.

If you have not replaced the engine, have an auto transmission and cannot fix your own car you may want to consider such a warrenty but I would go lots cheaper and get a shorter warrenty. Are you so sure to have the car in 5 years?

[macsak]

in hawaii, we have had consumer reports of scammers selling extended warranties over the phone

i am sure this isn't only limited to hawaii

be VERY careful

aloha

steve

Google the topic and you will find lots of pros and cons to these extended warrenties. If you are a DIY guy you don't need one but if you cannot do you own work and you car scares you it's always something to consider. Someone in my family sells for one of the big extended warrenty companies and he makes LOTS of dough and he is legit. He's told me the redemption rate is very low on these warrenties and not does he make good money but so does the underwriter.

You should be able to find good coverage for half that price too!

Lastly, consider the cost to loss. If you put that $2000 in the bank for 5 years it would be a better investment. Even with an RMS failure you are only looking at $1500 to fix and that seems to be the worst that happens. I would do some research on your 98 (prone to engine failure that year) to find out if you have already been replaced and if so forget the warrenty.

If you have not replaced the engine, have an auto transmission and cannot fix your own car you may want to consider such a warrenty but I would go lots cheaper and get a shorter warrenty. Are you so sure to have the car in 5 years?

[1schoir]

These guys call all the time. Its is a recording so I just hang up. Today I was doing paperwork when they called, so to waste time, I decided to see what was up. My car is a '98 Boxster w/ 93k miles. I have had it for less than two years. I have spent upwards of $1000 on parts and still have more to do. They say for $2000 I get a warranty that covers the car for 5 years and an additional 100k miles. I take it to the dealer (or wherever I want) for repairs. $0 Deductable, free car rental, free towing, and other frills. It sounds to good to be true (leading me to believe...). I was wondering if anyone has heard of, or has experince with these guys? Their name is General Warranty Service, and that they are associated with Duralube (an oil additive). I give them a deposit, they send the additive, I get an oil change and if the car still runs a month later the warranty starts.

Thanks For Your Help, Mike

Mike:

Be careful with any warranty company, especially one that does automated phone advertising. There are lots of warranty companies that set up shop, collect premiums, and fold up their tents a short time later. The principals, if they don't get caught, can usually be found sunning themselves at some resort island.

Do your homework.

Regards, Maurice.