: Aftermarket warranties (Warranty Direct)



tlac
05-25-09, 09:45 PM
:hide:Good Evening everyone,

Hope your Memorial weekends were great! I was wondering if anyone has any experience with aftermarket warranties, particularly Warranty Direct, and Cadi dealership acceptance. I just picked up a 2006 STS RWD V8. I traded in a 2002 Lexus ES and now i'm a little worried about reliability... maybe I just turned into a foreign car weenie! I have about 59K miles, so I think that is too much for GMPP coverage. Warranty direct is quoting 5K for 37mo/37,000mi, which seems a bit much.

I did get a good deal ($16,995) on a one owner lease super clean (I'm thinking GM exec. It spent time between chicago, indiana, and kansas judging by the GPS) with navi, bose 5.1, heated steering wheel, F&R side airbags, heated but no ventilated seats (too bad) and cool stealth grey.

Thanks in advance!

K STS
05-25-09, 09:47 PM
good god, hell no. $5,000 for 37 months? You've got to be kidding me.

EChas3
05-26-09, 12:54 AM
With all the cool gadgets, I recommend extended warranties on these cars. Other members have said GMPP is next best to Certified Pre Owned. Since you can't get CPO when it's over 50k miles, if you can't get GMPP then you're into the dog-eat-dog after-market warranty world. I supplimented my CPO with an two-year extension from Zurich through the dealer.

Before buying I checked around. Now Warranty Direct keeps calling and e-mailing me. I don't like them. Believe it or not, to include everything like a mfg warranty, some companies will want more than that. You didn't state your in-service date. Mine was September 2005. Warranty Direct was quoting 100,000 (41k miles to you) and September 2012, so they are being consistent with what I found last fall.

Dadollac1
05-26-09, 10:54 AM
when i purchased my 05 sts last year (42k) i also purchased and extended warranty which cost me $3400 and will last 4 years or 48000 miles which would bring my coverage to 90000 miles bumper to bumper with a zero deductable. i think extended coverage will be a wonderful thing down the line.

BaTu
05-26-09, 11:35 AM
First, you absolutely need a warranty, these cars are ridiculously expensive to maintain (the Exact reason the extension are so expensive)

Second, Warranty Direct was who I used on my previous STS ('97) and had all repairs done at my local dealership. I had a 7yr,. - 100,000 extension and used Every bit of it (I bought the '05 when it finally ran-out last year). They dealt with me very fairly overall and I was happy with the experience.

That being said, this time around I did go with the GMMP. The price was about the same and I thought the repairs would just go more "smoothly" (with Warranty Direct the dealer made me pay them and get refunded, which Warranty Direct did quickly).

If you can't get a GMPP I think Warranty Direct is your next best choice.

prospyder
05-26-09, 12:59 PM
Check with the BBB before you purchase an aftermarket "extended warranty." One company based in Missouri has complaints in 30 states about their sales tactics and warranty claims process. They advertise heavily on TV with race drivers endorsements and have used direct telephone solicitation to secure customers, sometimes making false claims and misrepresentations. Unlike insurance, the aftermarket warranty business is not well-regulated, so caveat emptor.
The principal owner of the company in question is building a $17M home, so the business is doing well.
A recent article in the St. Louis Post-Dispatch cites the fact that many of these aftermarket "warranty" companies get over half of the fee paid by each customer with less than half going towards fulfillment of warranty claims.
Does anyone know if Warranty Direct has had issues with false claims or sales tactics?

BaTu
05-26-09, 01:17 PM
Warranty Direct's been around a Very Long time. Back in 2001 when my factory coverage ran-out I did the research and chose them because of what I found.

There ARE currently a ton of, looks like mostly Florida scammers, out there you have to be Very Careful of, Warranty Direct is Not one of them. I had a good, long relationship with them and wouldn't be afraid to do it all again.

Besides, with the current state of GM, who says THEY'RE such a solid company? ;)

prospyder
05-26-09, 10:31 PM
BaTu, you are correct. the BBB shows Warranty Direct as an accredited business. Here's a url to the BBB Report: http://search.newyork.bbb.org/reports.aspx?id=53450&pid=44&page=0&FindStr=warranty+dire&SearchBy=company&Address=&City=&Phone1=&Phone2=&Phone3=&MembersOnly=F
I agree that the GMPP may be risky (see an earlier thread on the subject), but the government is backing-up the GM warranties. GMAC, which provides the GMPP, is getting some bailout money of its own, so I guess that their extended service plans will be OK. I'll compare prices between the two as I get clolser to purchasing an extended warranty.
Interestingly, so far I've found that there is no advantage to buying a GMPP extended plan right now since I still have 2 years and 9 months on the original GM owners warranty. So I'll wait for a while longer to buy one or the other.

z06bigbird
05-27-09, 12:52 AM
Third party extended warranty notes to self:

1. Read the contract. Three or four times.
2. Check BBB.
3. Ask any friendly service mgr to read it for/with you. Buy him lunch.
4. What specifically does warranty cover?
5. What does it exclude?
6. Does it require actual breakage, or will it pay for worn rings, noisy rear end, etc?
Many warrs cover ONLY BREAKAGE.
7. If the repair costs exceed the value of the vehicle, how much will warr pay?
Many pay only up to the wholesale value of vehicle.
8. If the problematic item has a TSB, will the warr pay for it? Some will not pay
anything if there was ever a TSB on item. Cars typically have thousands of TSBs
on each model.
9. Does the warr provide new parts or used parts? If the used item fails, will warr
pay for labor on the next go around? The warrs will likely refer you back to junk
yard or shop that installed the item, hoping they have a warranty.
10. Repeat item. Have you asked your service mgr to read the contract with you?
Best advice you can ask for. He/she is the guy/gal who knows what is and what
is not a great contract.
11. What have you found on an internet search?
12. What is the best-book rating on this company?
13. Are you aware that third party warrs go bankrupt at the rate of about 12 per
year? More now than ever.
14. If you ask for a refund, where does the company send the refund? To you or to
the dealer? What if the dealer goes out of business or goes bankrupt, and they have your check?
How do you get your $$ back?
15. What other questions do you have about or for the warr co?
16. Does warr pay entire labor cost, or just a portion?

cadillacroadside
05-27-09, 08:49 AM
check with a few local dealers and repair shops, just to see if they even take the policy much less administer it. as a policy i do not accept anything but gmpp, i wont even call an aftermarket company to see if its a covered item. another thing to consider is if you travel alot. remember gmpp is accepted in any gm dealer..most outside policies are not

BaTu
05-27-09, 11:16 AM
A couple of points.......

First, FORGET what they say they cover, all you want to know is what they DON'T cover. When I had my Warranty Direct contract it simply stated the, 20 or so, non-covered items. They were consumables (tires, brakes, belts, hoses, clutch etc) as wells as battery, rust, and "trim" (trim covers A Lot more than you'd think ;) ). But the struts were covered and all electronics.

Second, I could take my car anywhere that would make the call for repair approval (really the same call they'd have to make to ME) and then I could either pay and wait for reimbursement (painless really) or Warranty Direct would pay them directly with a CC (the repairer didn't have to bill-and-wait).

These are the most important criteria for making the repairer happy.

When my '97 needed head gaskets the dealership told me - "We only do it ONE way, we pull the engine, do both sides and timesert everything. These guys aren't going to be happy paying us the ($100.+ hr) labor rate and if they won't go for it you'll have to have it repaired elsewhere"

Warranty Direct payed over 3K to them with just a little negotiating. This on a 7yr bumper-to-bumper, no deductible, $1,200 contract that they eventually laid out 6K in repairs on :)

They did, towards the end when the car was like 10yrs old, insist on pitting in refurbed parts (AC compressor) but Would pay for Delco at the dealership. I just payed the dealer the difference out of my pocket. My choice, I understood their position....

As I said, overall, I made a good choice I think.

tlac
05-27-09, 04:01 PM
Thanks for the info! I guess Warranty Direct sounds like a pretty good company without GMPP as an option. I've never had a car for more than a 1 1/2 to 2 years, so i'm not sure that spending over 4k on a warranty during that period will pay off.

WillySTS
05-27-09, 06:16 PM
:hide:Good Evening everyone,

Hope your Memorial weekends were great! I was wondering if anyone has any experience with aftermarket warranties, particularly Warranty Direct, and Cadi dealership acceptance. I just picked up a 2006 STS RWD V8. I traded in a 2002 Lexus ES and now i'm a little worried about reliability... maybe I just turned into a foreign car weenie! I have about 59K miles, so I think that is too much for GMPP coverage. Warranty direct is quoting 5K for 37mo/37,000mi, which seems a bit much.

I did get a good deal ($16,995) on a one owner lease super clean (I'm thinking GM exec. It spent time between chicago, indiana, and kansas judging by the GPS) with navi, bose 5.1, heated steering wheel, F&R side airbags, heated but no ventilated seats (too bad) and cool stealth grey.

Thanks in advance!

I don't know why you are afraid of reliability, I just returned from my Memorial Day trip to Vegas(LA-Vegas run), I saw 2 Lexie(or is it Lexuses) on the side of the road...both getting towed and one Cadillac, no tow truck that I could see...

Anyway...Warranty Direct is no good, here is how to tell. Call them and ask them if the cover seals and/or gaskets as the primary repair(as in headgaskets and/or lower crancase seals). If they say no, then nothing is covered on your car since not much of anything else fails a lot. Also ask them which electronics do they cover. It will be a very short list and will not include your radio as GMPP does. The list goes on and on....get the GMPP.:duck:

BaTu
05-27-09, 08:13 PM
Anyway...Warranty Direct is no good, here is how to tell. Call them and ask them if the cover seals and/or gaskets as the primary repair(as in headgaskets and/or lower crancase seals). If they say no, then nothing is covered on your car since not much of anything else fails a lot. Also ask them which electronics do they cover. It will be a very short list and will not include your radio as GMPP does. The list goes on and on....get the GMPP.:duck:

I can't imagine how you became So Misinformed :(

NONE of what you've said here is true.......

You're confused, get a clue ;)

WillySTS
05-27-09, 09:57 PM
I can't imagine how you became So Misinformed :(

NONE of what you've said here is true.......

You're confused, get a clue ;)

Just denied claims for our customers, is all...I have no reson to bag on them. If they don't cover thing that commonly go wrong, then in my opinion, they are no good...but suit yourself.:thehand:

BaTu
05-28-09, 10:57 AM
I'm telling ya, you're confused.

You're thinking about another company, not Warranty Direct.

Did you Even Read this thread? Did you read where they actually did cover my headgaskets and even paid Top Dollar to the dealer to have the repair done. Included the oil & filter change, the coolant, ALL other gaskets, TimeSerts, without any trouble???

Again there are a lot of bad companies out there, maybe now more than Ever, but from my personal experience THEY were Not one of them (and you would have known that if you'd just taken a couple of minutes to actually read the posts before you added your reply making such a ridiculous statement as "they won't cover your head gaskets" ) ;)

There are several "levels" of coverage and I had the top-of-the-line, bumper to bumper, no deductible plan. So I know they will cover the items you mentioned. If the problems you've claimed to have seen were, in fact, with Warranty Direct (which I doubt), then possibly it was a basic coverage plan....

WillySTS
05-28-09, 02:16 PM
I'm telling ya, you're confused.

You're thinking about another company, not Warranty Direct.

Did you Even Read this thread? Did you read where they actually did cover my headgaskets and even paid Top Dollar to the dealer to have the repair done. Included the oil & filter change, the coolant, ALL other gaskets, TimeSerts, without any trouble???

Again there are a lot of bad companies out there, maybe now more than Ever, but from my personal experience THEY were Not one of them (and you would have known that if you'd just taken a couple of minutes to actually read the posts before you added your reply making such a ridiculous statement as "they won't cover your head gaskets" ) ;)

There are several "levels" of coverage and I had the top-of-the-line, bumper to bumper, no deductible plan. So I know they will cover the items you mentioned. If the problems you've claimed to have seen were, in fact, with Warranty Direct (which I doubt), then possibly it was a basic coverage plan....

OK, "my give up...", I did have one encounter with WD and it was with the basic plan and they didn't cover h/gaskets nor damage from overheating. If you have the "top of the line " plan and they covered it, then you are right and I am wrong...sorry that I got you all worked up.

But, in my experience, MOST of the aftermarket warranties that come into our shop or any dealer where I haved worked, do not cover such items.

Once again,...sorry.:canttalk:

jamesbalzer
05-29-09, 02:26 AM
As a licensed new vehicle dealer (not Cadillac) I can tell you that aftermarket warranties are generally crap. It's a gamble; they are betting it doesn't break and you are betting it does. Important to note that if these aftermarket warranty companies didn't take in more money than they laid out, they would be out of business......put the money in the bank and know that the first 5K you spend on "warrantable" repairs was free. I'll bet you've got money left over in 37 months.

tlac
05-29-09, 11:37 PM
That's more or less what I was thinking. I think i'm going to have faith in my Cadi, because it is in great condition. I'm probably only going to have it for about a year, so I just can't see any major problems. I think with the stupid gas prices going up again maintenance cost are the least of our problems!!

BaTu
05-30-09, 10:58 AM
If you're going to only keep it a year, I think I might agree with you.

As I described my situation above, for the first first few yrs of my extension I thought "this is how they make money! Because for the $1,200 I paid I only had only the FPR replaced (this when the car was 4-7yrs old)" BUT for the NEXT 3-4yrs the repairs Really piled-up!!!

amgqmp1
05-30-09, 12:39 PM
put the money in the bank and know that the first 5K you spend on "warrantable" repairs was free. I'll bet you've got money left over in 37 months.

Especially if you decide to be a DIY mechanic. ;) Great advice, I hope others learn/follow your sage words.

BaTu
05-30-09, 01:53 PM
You guys have got to be thinking about another kind of car....

5K is NOTHING. DIY or Not! You better get educated in just what the parts cost ;)

5k phhfff just look around, if you have the basic V6, maybe... But a 1SG/ACC/HUD car will "gobble-up" 5K in parts (did you see the "Clean Radar" thread just a few threads away?

Yea, DIY and you can handle the repairs cheap - you know, like anyone of the electronic "modules" or the Nav system. Or how about a Trans or a Diff, maybe headgaskets :D

K STS
05-30-09, 10:48 PM
You guys have got to be thinking about another kind of car....

5K is NOTHING. DIY or Not! You better get educated in just what the parts cost ;)

5k phhfff just look around, if you have the basic V6, maybe... But a 1SG/ACC/HUD car will "gobble-up" 5K in parts (did you see the "Clean Radar" thread just a few threads away?

Yea, DIY and you can handle the repairs cheap - you know, like anyone of the electronic "modules" or the Nav system. Or how about a Trans or a Diff, maybe headgaskets :D

I think you should be the one to get educated. I work at a service shop where we frequently fix/repair 05+ XLR's, CTS-Vs, and STS. I drive an STS. I had an 03 CTS prior to this. One of my friends has an CTS-V. Another one of my friends has a CTS-V. The owner of the company drives an XLR. Repairs are few and far in between. If you need parts, you DONT have to go brand new. Take a visit to www.car-part.com to find great deals locally on parts for your car. I found a new rear carrier for my CTS that needed replacing at 80k miles for $300. The 3.42 carrier for my STS that I'll be swaping from my 2.73's is $300. The transmission is around $1,000 with 20k miles used. These prices are cheap, and I guarantee if you put $5,000 in the bank and wait 37 months, deducting funds to maintain/repair your car, you will have plenty of money left over.

BaTu
05-31-09, 12:27 PM
The Junkyard??? Seriously,,, that's the real alternative?

Your advice, for the majority of STS owners, is they should forgo a foolish expenditure like a warranty and save the 5 grand over the next 4yrs and just go with "Junk Parts" instead...

So, the "boobs" among us, when (and Not IF) they break-down have their cars towed to the dealership and professionally repaired with new replacement parts are just not aware of the better alternative?

You simply get in the 2000 Accord (you know, the one where the wheels & tires are worth 3X the car, and has that 4-1/2in resonator/tailpipe with the "Ricers Rule the Road" sticker at the top of the windshield) pull it home with a rope, and put the JunkYard Tranny in your AWD STS, on your back, in the driveway. :yup:

This is what we Cadillac drivers should all be doing instead of wasting our money by betting against the cost of future repairs of these VERY complex cars?

Hmmmm,, Tempting but,,, Naa I go with coverage ;) (admittedly not the decision I would have made when I was you age, but experience does bring education sometimes :halo:

K STS
05-31-09, 03:10 PM
I have an extended warranty. But it sure as hell wasnt $5,000 for 37 months. And your on the assumption that EVERY cadillac needs replacement parts and labor. Guess what, this 2000 Accord you speak so highly of has problems as well. I can tell you that my cadillacs have had LESS issues than my Cobra, Porsche, BMW, land rover, etc. Maybe this is your first car...?

tlac
05-31-09, 03:51 PM
My very first car was Catera and I LOVED it, even though it was known to the world to be a POS. It was a POS in terms of electronics and suspension, but other than that it was problem free and knocked the pants off the competition in terms of performance and value.

My foreign cars have always been absolutely trouble free, but they have no personality and the markup is hardly worth the maint. money I could stick into a domestic.

I'm impressed by all the 80's and early 90's Cadillacs that I see in pretty decent shape. You don't noticably see many pre mid-90's model Lexus' driving around (I don't know, at least in my neck of the woods/observations).

I think with Cadillacs in general it's best just to keep upgrading them every couple years rather than worry about all problems building up.

Thanks for the response everyone, it appears that warranties have about the same odds as gambling:D

EChas3
05-31-09, 04:05 PM
Every car runs on used parts. Would I use them in my car? It depends on the parts. Some of those aftermarket warranties have fine print permitting/requiring the use of aftermarket or used parts.

You pays your money (or not) and you takes your chances.

Personally, I have CPO (100K/72 Month) & a Zurich insurance policy for an extra year if I stay under the 100K. The whole deal was less than $2,500. One significant repair by a dealer and I may break even. Two issues before September 2012 and I'm ahead. On a 2006 1SG AWD w' HUD/ACC, the odds are in my favor.