20 year/200,000 mile warranty

[sawagw]

I am definitely purchasing a new 2010 Genesis this week. I am down to two dealers. One is offering the Genesis with the Hyundai Circle price. The other does not participate in the Hyundai Circle but they are offering a 20 year/200,000 mile powertrain warranty with purchase. Their total price is $700 higher and they are badging the car and putting on mud guards which I value at $100. So basically trying to decide if the warranty is worth about $600. The warranty requires a $100 deductible on all services after the factory warranty expires and it is not transferrable if I sell it. The warranty is through a third party so I am a little skeptical on claims actually being paid. I have seen other dealers in other states offering this same warranty. Does anyone have any experience with this warranty and do you think it is worth the extra cash?

 

[Mark_888]

Third Party warranties are not as good as extensions of the factory warranty. But are you really considering keeping the car more than 10 years?

 

[sawagw]

I am more concerned with the mileage than the years. I put on 25k per year.

 

[ttsig]

Third Party warranties are not as good as extensions of the factory warranty. But are you really considering keeping the car more than 10 years?

Perhaps he's more concerned with the miles rather than the years. I drive 25-30K miles a year, sometimes more, so it doesn't take too long to hit the 100K mile mark when you drive that much. I've rarely kept a vehicle longer than 8-10 years, but I've kept many vehicles until the 200K mile range, and a few into the 300K mile range.

I'm certainly hoping my Genny makes it to 200K miles (currently at 50K with about a month to go before I hit 2 years of ownership).

I'm generally not a guy that pursues extended warranties, but an extra 100K miles of protection for $600 would be tempting as the likelyhood of a vehicle needing at least a $600 repair by the 200K mile mark seems reasonably high since even relatively minor repairs can quickly get into the hundreds of dollars. I'd be wary of the 3rd party, and check them out as much as possible, especially to understand exactly what is covered and what the procedures are for filing claims. I've only ever purchased a single extended warranty on a vehicle (on a certified used vehicle that already had almost 20K miles) and I needed to use the 3rd party warranty twice, once for an A/C repair and another for the transmission. The two repairs together were almost $2000 and I had no real problem with the warranty claim, but I did have to pay for the repair out of pocket and it took several weeks to get the money back. They also required a "pre-approval" of the repair amount which was somewhat of a pain, but in the end, they covered both repairs at 100% exactly as advertised, it was just more annoying than a factory warranty claim.

 

[ASHDUMP]

My girlfriend purchased an extended warrenty for $1200 on her 2006 Kia Sportage. We have a $50 deductible and the dealer we get the service done puts EVERYTHING through our extended warrenty provider. She's had a total of $1300 bucks tallied on it so we're up $100 minus the deductible.

We have a really good Kia dealer/service department where I live. They go out of their way to write off all repairs on that extended warrenty... even the stuff that doesn't qualify for it. I actually get my Genesis oil changes done there...

 

[ctrcbob]

If an "extended warranty" is through the manufacturer, (I.E. Hyundai), that is good and you can trust them. If the "extended warranty" is an aftermarket warranty, by an aftermarket company, which you see advertised every day on TV, Radio and XM, they are not worth the paper they are printed on, even if you purchase the warranty at your dealer. You read about these extended warranties in www.ripoffreport.com every day. They always find a way to decline coverage, even though they had not gone out of business yet, and they always go out of business. If you must get an extended warranty, make sure it says it is from the manufacturer, and not an aftermarket company. In Hyundai's case, because their factory warranty is already so good, I don't think they even offer an extended warranty though I could be wrong on that.

They are not GIVING you that extra $700 (or $600) warranty. That is an extra profit to them.

In addition, if it is a "Dealer Warranty", that has nothing to do with either a manufacturer or an aftermarket warranty, they still get you in the long run.

First, they count on you either selling the car before the extra warranty runs out or, you crash the car and no longer own it.

Second, even if you keep the car, somewhere in their "contract" they have listed the things you have to to to maintain the car to keep the warranty in effect, and with a dealer warranty, if the dealership gets sold, or they go out of business, you are left holding the bag.

Lastly, we have a KIA Dealer nearby, who advertised that you would get FREE TIRES FOR LIFE. (A nearby Toyota Dealer advertised the same thing). However, a friend of mine who bought their KIA found out that to get those free tires for life, he was required to have a four wheel alignment EVERY 5000 MILES. Paying for those alignments every 5000 would be enough to pay for many more tire changes than the "free tires for life".
Later, that KIA dealer was sold, and the new owners refused to honor the "free tires for life" of those who purchased from the original dealer. Big brew-ha-ha in this area about this.

My advice. Buy from the cheaper dealer.

 

[ctrcbob]

If an "extended warranty" is through the manufacturer, (I.E. Hyundai), that is good and you can trust them. If the "extended warranty" is an aftermarket warranty, by an aftermarket company, which you see advertised every day on TV, Radio and XM, they are not worth the paper they are printed on, even if you purchase the warranty at your dealer. You read about these extended warranties in www.ripoffreport.com every day. They always find a way to decline coverage, even though they had not gone out of business yet, and they always go out of business. If you must get an extended warranty, make sure it says it is from the manufacturer, and not an aftermarket company. In Hyundai's case, because their factory warranty is already so good, I don't think they even offer an extended warranty though I could be wrong on that.

They are not GIVING you that extra $700 (or $600) warranty. That is an extra profit to them.

In addition, if it is a "Dealer Warranty", that has nothing to do with either a manufacturer or an aftermarket warranty, they still get you in the long run.

First, they count on you either selling the car before the extra warranty runs out or, you crash the car and no longer own it.

Second, even if you keep the car, somewhere in their "contract" they have listed the things you have to to to maintain the car to keep the warranty in effect, and with a dealer warranty, if the dealership gets sold, or they go out of business, you are left holding the bag.

Lastly, we have a KIA Dealer nearby, who advertised that you would get FREE TIRES FOR LIFE. (A nearby Toyota Dealer advertised the same thing). However, a friend of mine who bought their KIA found out that to get those free tires for life, he was required to have a four wheel alignment EVERY 5000 MILES. Paying for those alignments every 5000 would be enough to pay for many more tire changes than the "free tires for life".
Later, that KIA dealer was sold, and the new owners refused to honor the "free tires for life" of those who purchased from the original dealer. Big brew-ha-ha in this area about this.

My advice. Buy from the cheaper dealer.

Was just reading in the local Orlando Newspaper;
"When Does Prepaid Pay Off"? Under "Extended Warranties" it says:

"Extended warranties, also called service contracts, mean you are essentially prepaying for a repair. They are a source of huge profit for retailers and seldom a good deal for consumers, consumer advocates agree. Consumer Reports, for example, has long advised shoppers to just say no".

In addition, I listen to Clark Howard, who also advises people to pass on extended warranties (service contracts). You can check him out on his radio show, on TV's HLN, or on www.clarkhoward.com as he gives good advice.

 

[ttsig]

Was just reading in the local Orlando Newspaper;
"When Does Prepaid Pay Off"? Under "Extended Warranties" it says:

"Extended warranties, also called service contracts, mean you are essentially prepaying for a repair. They are a source of huge profit for retailers and seldom a good deal for consumers, consumer advocates agree. Consumer Reports, for example, has long advised shoppers to just say no".

In addition, I listen to Clark Howard, who also advises people to pass on extended warranties (service contracts). You can check him out on his radio show, on TV's HLN, or on www.clarkhoward.com as he gives good advice.

I generally concur with this advice 100%, but the warranty in question in this thread is more questionable than most because it provides 100,000 miles worth of warranty for only an additional cost of only $600 over the other dealer. I've never seen such a long warranty offered for a price that low.

Still, if I were in your situation, I would ask them what their price is with the warranty removed. That way you'll know what they're really charging you for the warranty (it's not an accurate assessment to compare their price to another dealer). My guess is that they should be able to knock off another $1,000 or more without the warranty. I'd take whatever the best deal is, and save the money just as suggested above.

 

[sawagw]

I do not think the dealer has any additional profit in this deal over the other deal. I know the guy personally, he used to work for my wife years ago and he told me he was losing $100 on the deal. I am making him compete with a Hyundai circle deal and he does not qualify for the $250 circle rebate. I know they are buying these warranties in bulk so there is a discount there and the fact that they are non-transferrable also lowers their cost so $650 seems right. I am going to get him to send me the warranty contract so I can go over it with a fine tooth comb before I make any final decision. The two other factors that are pro for this dealer in addition to the warranty are the fact that he is the closest dealer to me and I would most likely use him for service while the other dealer is over an hour away. Since I am not trading in a car that might be a logistical challenge. The bigger issue is they have the color combo I want (black/black) where the cheaper guy is black/cashmere. I know there are dealers about two and a half hours away with black/black but that is just another bigger logistical headache.

 

[ctrcbob]

I know they are buying these warranties in bulk so there is a discount there.

RED Flag! Whoop Whoop Whoop. Dive Dive Dive.

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[ttsig]

I do not think the dealer has any additional profit in this deal over the other deal. I know the guy personally, he used to work for my wife years ago and he told me he was losing $100 on the deal. I am making him compete with a Hyundai circle deal and he does not qualify for the $250 circle rebate. I know they are buying these warranties in bulk so there is a discount there and the fact that they are non-transferrable also lowers their cost so $650 seems right.

To me that seems like they are definitely adding the warranty to try to make a little extra money. $650 seems pretty low to me for a warranty which takes you to 200,000 miles. The reality is, warranty companies and dealers are in business to make money, so while they might tell you they are losing $100 on the deal, they're adding the warranty in the hoping of making some real money off of you.

$650 sounds virtually impossible to me for a 200,000 mile warranty. Almost every vehicle that's on the road for 200,000 miles will need at least one repair of $500 so they're either banking that most owners won't keep the vehicle for that long (non-transferrable as you said), their only covering very catastrophic failures, like blown engines or transmissions, not all the things that are likely to go wrong, or they'll require documented maintenance that cost far more than the minimum required maintenance or they'll refuse the claim. Unless they're a big company it's also very likely they'll be out of business in a few years anyway. In almost every case you're better off just putting the $600 in the bank for your own personal warranty.

The real point is, you won't know how much they're really charging for the warranty until you ask them to take it out. Also, if the warranty has some type of draconian maintenance requirements (pretty common) you need to understand the cost of keeping the vehicle in warranty. As Bob said, dealers sell these things as a profit generator, not to protect you.

 

[ajls09873]

That ridiculous warranty solely responsible for dealer.
Manufacturer is not resposible for that warranty.
dealer take total responsibility.
if dealer close their business, the warranty is vanish.

 

[sawagw]

I ended up purchasing the car today from the dealer with the warranty. I got them down to $350 above the other dealer with the Hyundai circle pricing. The dealer with the warranty was the only dealer in my entire state which had a black/black Genesis. I based my purchase more on the fact that it was the color I wanted and looked at the warranty as a nice freebie. I did not want the cashmere interior because I am afraid my young kids will trash it. I would have had to go out of state to find a 2010 that was black/black and the other dealer said they could not do a dealer trade for the Hyundai circle program. My wife convinced that $350 was worth not having to drive out of state to buy a car especially since I was not trading one in and I would have had to figure out how to get two cars home. I read through the warranty and it is fairly typical, do all of your scheduled maintenance or it is void. The one good aspect of it is the psychological effect of the warranty in that I will force myself to maintain the oil changes every 7500 miles and not let them go over which in the long run is the best thing I can do for the car anyway.

 

[Mark_888]

The one good aspect of it is the psychological effect of the warranty in that I will force myself to maintain the oil changes every 7500 miles and not let them go over which in the long run is the best thing I can do for the car anyway.

You could have saved yourself $100. For only $250, I would come by your home every so often to make sure you changed your oil, and beat the crap out of you if you went past 7500 miles between oil changes.

 

[saronne]

Hi, everyone! ) I am going to be purchasing a Sonata but I thought some info might be valuable to you folks since this "warranty" would extend to your cars as well:

There are actually no aftermarket "warranties"; what they are are service contracts. I live in California and it seems that there might be only one that is really good (in business over 29 years) that is willing to service my state: it's Easy Care and it is anything but cheap.

Each dealership chooses whatever service contract company it uses; most of them go out of business. There are a few really good ones (VERY few( but, again, we in CA are left out in the cold for most of these).

There are different levels of contracts- I will be getting one with zero deductible covering about everything for up to 10 years (except batteries, bulbs, and other items that are expected to wear out). I will be paying no deductible. If my car already has, for example, 10k miles when I get it, and is perhaps a year old, I will have 9 years or 90k miles left (100k contract, not 200k). It is both transferable and pro-rata refundable,It will cost me $2k (and that is quite a bit discounted).

Obviously the service contract being offered is for the powertrain only, and again I suggest that you thoroughly check out the company the particular dealership has chosen.

BTW, should you choose a more inclusive warranty (betcha they try to sell you one) be sure you get the kind that doesn't state what they cover but rather what they do NOT. You do NOT want one that gives you a list of items- there are a bazillion parts of a car that most of us never heard of. Only the top level contract offer gives you a list of exclusions rather than inclusions.

I am probably going to buy from a particular dealer that does offer the 200k service contract as their price for the car beats out about everyone else's. I do not expect the service contract to be worth much, if anything, but it doesn't really matter because as I said it isn't costing me anything. This dealer also gives free oil changes and tire rotations, etc but won't do me much good seeing as I live too far way to take advantage of these perqs.

I wish everyone the best re their choices; again, please remember that there is no such thing as an extended warranty, unless it comes from the manufacturer; these are service contracts.

 

[Mark_888]

I was at a local dealer getting the brake light recall done (not where I purchased my Genesis) and a salesman hit on me in the waiting room and tried to sell me a 2014 Genesis. Salesman was trying to make a big deal about their 20 year - 200,000 powertrain warranty. I read some of the fine print, and it was offered by that dealer only, and required all maintenance to be performed by that dealer (not any Hyundai dealer). This included paying the dealer for all maintenance items and all the inspections, etc, as detailed in the owner's manual.