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Old 03-28-2014, 01:17 PM   #1
rschottr
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Unhappy Extended Warranty Warning

For anyone who decides to purchase an extended warranty, please read...

Take the time to read the disclaimer and terms of coverage. I purchased an extended warranty from First Extended Service Corp, sold through the Subaru dealer. While it appears to provide a pretty comprehensive list of covered parts, what it doesn't spell out is HOW they are covered. The warranty only provides $30 a day for a rental and that is only if the repair is longer than 4 hours. That may seem fair for the rental but read on. They only cover the rental for 3 days. Ad up the time it takes to get an approval to the shop from the warranty company (1-2 days) then the time it takes the warranty company to receive the part order (1 day) plus the time it takes to aquire and ship the part (1-2 days) then the shop to install the part (1 day) your 4 hour repair takes 5+ days. If that happens to cross over a weekend you can expect another day or two depending on the repair facilities working hours. As for the parts, they can supply the parts at their discretion. That means they can supply NON-OEM parts and remanufactured parts, whichever is cheaper. Another fact that they don't spell out is the actual coverage costs. They adhere to a "mechanics work schedule" which spells out the maximum time each repair takes. If the shop has a slow guy or he runs into a snag, YOU are on the hook for the extra cost. Also, if their hourly rate is above what the warranty company believes is the going rate, YOU pay the difference per hour. I had my rack and pinion go out on my 09 WRX. The new part was in stock and cost $712. It was a 3.1 hour job. I have a $100 deductible on the extended warranty. My repair took 10 days (they weren't open on Sat/Sun) and cost me $200 (their hourly rate was $30 more an hour than the warranty company paid.) I received a remanufactured NON-OEM part. So, when it says "...without additional charge to you" don't believe it.
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Old 03-28-2014, 01:36 PM   #2
Badler
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I thought it was common knowledge these things sucked? Your first red flag should have been the dealer selling it to you.
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Old 03-28-2014, 01:49 PM   #3
Jake1050
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Quote:
Originally Posted by Badler View Post
I thought it was common knowledge these things sucked? Your first red flag should have been the dealer selling it to you.
This... Except for the special paint sealer coat, that is a good deal.
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Old 03-28-2014, 02:13 PM   #4
thill
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Can't you cancel the warranty and get the balance of the warranty back? I rarely buy extended warranties on cars, but if you do don't buy third party. But Subaru/Honda/Toyota genuine warranty backed by the manufacturer. And you can buy those online from any dealer in the country usually.
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Old 03-28-2014, 02:13 PM   #5
Knotsure
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I've learned - if you are going to buy one, only buy Company backed. My Subaru Added Security Gold has paid for itself on each one. Another thing to watch for..wear and tear they don't cover. To them 'lack of compression' in higher mileage cars is 'normal wear' and not covered (Easy care I think? Was my bros Ford). Checked and found the Subaru OEM does cover stuff like that. And my dealer told me they pay more than what an average customer will for parts and labor. Guess with these, brand name vs generic makes a diff. Others on here may tell you the same.
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Old 03-28-2014, 03:31 PM   #6
Knotsure
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Did a dealer sell you the warranty?
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Old 03-28-2014, 03:55 PM   #7
Notch 8
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Quote:
Originally Posted by Knotsure View Post
Did a dealer sell you the warranty?
Reading comprehension. Grasp it.
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Old 03-28-2014, 03:57 PM   #8
Notch 8
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The only extended warranty worth more than the paper it's printed on is the Subaru(or other OEM manufacturers) one.

Chalk this up as a learning experience.
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Old 03-28-2014, 04:41 PM   #9
Knotsure
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Quote:
Originally Posted by Notch 8 View Post
Reading comprehension. Grasp it.
my apologies. I missed it.
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Old 03-28-2014, 06:15 PM   #10
ItalianGuy
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Quote:
Originally Posted by Notch 8 View Post
Reading comprehension. Grasp it.
Don't get all pissy at him because you ****ed up and want to vent on nasioc.
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Old 03-28-2014, 06:24 PM   #11
Notch 8
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Originally Posted by ItalianGuy View Post
Don't get all pissy at him because you ****ed up and want to vent on nasioc.
Reading comprehension.
Grasp it.
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Old 03-28-2014, 07:12 PM   #12
Knotsure
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Hey - if it helps someone feel better to point out on error by someone else, who am I to take that moment of glee away. Thus, tip o'the hat and move on..
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Old 03-28-2014, 07:22 PM   #13
Badler
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Quote:
Originally Posted by ItalianGuy View Post
Don't get all pissy at him because you ****ed up and want to vent on nasioc.
What? You may want to just take a step back from the internet for a bit.
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Old 03-28-2014, 11:30 PM   #14
rschottr
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Yes, I will be chalking this one up to experience. My first WRX had the Subaru Gold, this one they offered theirs and said it was the same. Won't make that mistake twice!
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