I know better than most that aftermarket car warranties are...let's just say, "bad." I had a great one once (for my Cadillac Catera),and it paid out a bunch for repairs, then the company went bankrupt (I got a $4 settlement many years later), and I had a typical one once (for my Saab) that never covered any of the things that actually require repair on a car - like brakes, shocks, and suspension parts.
But I digress.
On the advice of "smart people," when I bought my most recent car (a VW Touareg), I indicated to the salesman that I was considering financing the car (which I wasn't), and I wanted to consider an aftermarket warranty. The theory is that the dealership makes more money on this crap than they do on the car itself, so they should be willing to negotiate the price if they see a chance to make money on the other stuff. That didn't pan out, by the way. This was one of those places where they do not negotiate price - which was OK, because the advertised price made the vehicle the most attractive one within a hundred mile radius of my house.
So on Day One of the negotiations, I took the car for a ride, loved it, and got into a discussion about the extended VW warranty on the drivetrain. I was under the impression that for the Touareg, VW had provided a 10-year, hundred thousand mile factory warranty on the drivetrain. So we had this conversation, the three of us: me, the salesman, and the dealer's F&I person about warranty. I told them what I thought was the case, and they told me I was wrong, and there was no VW warranty on the drivetrain, so I would be buying this car "naked." With no warranty except the Dealer's 30-day 50-50. The F&I person quoted me a price of $3,600 for a three year aftermarket warranty - which I found stunningly expensive - and at the end of the conversation I walked away.
After going home, I confirmed that I WAS CORRECT about the warranty. VW offered a 5-year/60k mile warranty on the drivetrain of their other cars, but for the Touareg, it was 10-year, 100,000 miles. The vehicle is built like a tank, which is one of the reasons I like it, and I expect it to last basically forever.
So the next day, I trekked back to the dealer (90 miles away), and re-started the discussions. Same three people. I snagged the Owner's Manual from the vehicle in question, and took out the warranty pamphlet, which detailed the 10-year drivetrain warranty, telling them that with this information confirmed I would now buy the car.
So I turned to the F&I person and basically said, "Yesterday, when you believed that there was no factory warranty applicable, you quoted me the outrageous price of $3,600 for this warranty. Now that we have confirmed that there is a factory drivetrain warranty for the ENTIRE 36 month period in question, what is your revised price???"
Of course, you know the answer. No reduction in the price of the warranty. "So," I continued, "we have confirmed that at least half of the risk of repair costs has been removed - by the VW drivetrain warranty - you can't offer any reduction in the warranty price?"
And he's going on and on about, "Well, if EVEN ONE of the car's screens or computers goes out, the cost would be THOUSANDS AND THOUSANDS of dollars!"
I thought I was listening to a Democrat politician.
Anyway, FWIW. If you needed any more convincing, NEVER even consider an aftermarket warranty.
But I digress.
On the advice of "smart people," when I bought my most recent car (a VW Touareg), I indicated to the salesman that I was considering financing the car (which I wasn't), and I wanted to consider an aftermarket warranty. The theory is that the dealership makes more money on this crap than they do on the car itself, so they should be willing to negotiate the price if they see a chance to make money on the other stuff. That didn't pan out, by the way. This was one of those places where they do not negotiate price - which was OK, because the advertised price made the vehicle the most attractive one within a hundred mile radius of my house.
So on Day One of the negotiations, I took the car for a ride, loved it, and got into a discussion about the extended VW warranty on the drivetrain. I was under the impression that for the Touareg, VW had provided a 10-year, hundred thousand mile factory warranty on the drivetrain. So we had this conversation, the three of us: me, the salesman, and the dealer's F&I person about warranty. I told them what I thought was the case, and they told me I was wrong, and there was no VW warranty on the drivetrain, so I would be buying this car "naked." With no warranty except the Dealer's 30-day 50-50. The F&I person quoted me a price of $3,600 for a three year aftermarket warranty - which I found stunningly expensive - and at the end of the conversation I walked away.
After going home, I confirmed that I WAS CORRECT about the warranty. VW offered a 5-year/60k mile warranty on the drivetrain of their other cars, but for the Touareg, it was 10-year, 100,000 miles. The vehicle is built like a tank, which is one of the reasons I like it, and I expect it to last basically forever.
So the next day, I trekked back to the dealer (90 miles away), and re-started the discussions. Same three people. I snagged the Owner's Manual from the vehicle in question, and took out the warranty pamphlet, which detailed the 10-year drivetrain warranty, telling them that with this information confirmed I would now buy the car.
So I turned to the F&I person and basically said, "Yesterday, when you believed that there was no factory warranty applicable, you quoted me the outrageous price of $3,600 for this warranty. Now that we have confirmed that there is a factory drivetrain warranty for the ENTIRE 36 month period in question, what is your revised price???"
Of course, you know the answer. No reduction in the price of the warranty. "So," I continued, "we have confirmed that at least half of the risk of repair costs has been removed - by the VW drivetrain warranty - you can't offer any reduction in the warranty price?"
And he's going on and on about, "Well, if EVEN ONE of the car's screens or computers goes out, the cost would be THOUSANDS AND THOUSANDS of dollars!"
I thought I was listening to a Democrat politician.
Anyway, FWIW. If you needed any more convincing, NEVER even consider an aftermarket warranty.
