for display only
Big Blue Interactive The Corner Forum  
Back to the Corner

Archived Thread

NFT: Auto Source - Extended Pre-Owned Car Service Plans

batman11 : 8/18/2017 10:55 am
Has anyone ever used them? My son is buying a used car (2001) in New Jersey. The dealership offered an extended service plan with this company which covers most engine, transmission, drive axle components and repair work. (3 months or 4,500 miles for $195) The car "seems to be in good shape" mechanically with some new parts installed. (New radiator, hoses, belts, battery, etc.) We would appreciate any information, or experiences that anyone has had with this company, or with this type of coverage. Thank you!
Usually there's a deductible and they're very limited in what they  
Mellowmood92 : 8/18/2017 11:07 am : link
cover. Also, you have to deal with a 3rd party - not the dealer or manufacturer. If it's a domestic or Japanese car, it may not be worth it for only 3 months.

I did an extended once on a used Audi (my first car) and it was a complete waste of money. However repairs on German cars are really expensive, so it's good to have a deal or manufacturer warranty.. i stay away from 3rd party, but that's just me.
three months?  
Dan in the Springs : 8/18/2017 11:18 am : link
that's not much time. I'd say if he thinks the car is going to have major mechanical problems in three months he should probably just pass on the car. That's the counsel I'd give my own kids in this situation.

Having said that, at that car's age, a little insurance against a serious problem would provide some comfort or peace of mind if he's the worrying type. I have a daughter that's this way. She was buying her first car this summer, a 2006 Subaru Forester. A close family friend was offering it to us at a very low price. She just kept worrying and it was hard for her to decide. I knew it was a good deal, so I bought it.

She wanted to use it, but I told her that it was mine, and if she wanted to use it she would have to pay for it. She had use of a different car, and I was really just trying to get her through the process of making a buying decision which is hard for her. After a few weeks she finally agreed to buy it. She's really happy now, but she's the type that may have wanted to spend the extra $195 to buy a warranty just to give her peace of mind to go through with the purchase.

Seriously, if you think a car has a decent chance of a major repair within three months, don't buy the car.

Mellow and Dan,  
batman11 : 8/18/2017 11:36 am : link
it's a 2001 Mitsubishi with only 49,000 miles, so it has not been driven into the ground. The Carfax info. shows one owner, and regular servicing up through May 2017 when it was sold to the dealer. I have seen the car and driven it. There is no indication that there will be any major problem any time soon. My son, like me, is a skeptic, so we have trouble believing what looks like a good deal will turn out to be one in the long run. It is not a huge investment for peace of mind and to protect against something catastrophic happening early on. Thanks for your feedback!
Gotta be some fine print there  
Lawrence_Taylor_56 : 8/18/2017 12:37 pm : link
That price is insanely low unless the deductible is $500 or $1000
If it were me, I'd pass.. i also never buy extended warranties  
Mellowmood92 : 8/18/2017 1:28 pm : link
I'd probably spend the $195 to have a mechanic take a look at it and see if he saw any major issues (assuming you have a mechanic who would do that).

But then again $195 isn't a lot for 3-months of piece of mind
I once bought an extended warranty...  
Dan in the Springs : 8/18/2017 1:37 pm : link
and got screwed. It doesn't directly apply to your situation, but here's the story.

Bought a used Nissan Sentra from the Nissan dealer - was probably 6-7 years old give or take. It had around 49,000 miles or so. The warranty was sold to me as an extended 50,000 mile warranty. I believed it would cover most repairs for another 50,000 miles. Somewhere around 80k or 90k miles I had a major mechanical failure and tried to make a claim on the warranty at the dealer that sold me the policy. It was then that I was told that the contract only covered claims until 50,000 TOTAL vehicle miles. The language was completely unclear on when the coverage began - I was certain that I was buying a warranty that would give me several extra years of coverage.

Anyway - I went to battle with the dealer and wrote up a nasty complaint to the BBB. The dealer ultimately contacted me and we worked something fair out - can't remember the exact details but the warranty company refused to help so it was just the dealer making the concessions to me in the spirit of customer service.

Since then, I haven't bought an extended warranty and would only do so very carefully.
Dan  
batman11 : 8/18/2017 4:01 pm : link
I am always reluctant to buy the extended warranty on anything. After talking to my local mechanic, who I know well for a very long time, I am going to advise my son to pass on this one as well. The mechanic said that he has not dealt with Auto Source specifically, but his experience with these type of companies has usually been negative. He has had a hard time getting them to pay even if they approved the repair work in advance and said that there are usually high deductibles in effect.
RE: Dan  
Dan in the Springs : 8/18/2017 6:40 pm : link
In comment 13564945 batman11 said:
Quote:
I am always reluctant to buy the extended warranty on anything. After talking to my local mechanic, who I know well for a very long time, I am going to advise my son to pass on this one as well. The mechanic said that he has not dealt with Auto Source specifically, but his experience with these type of companies has usually been negative. He has had a hard time getting them to pay even if they approved the repair work in advance and said that there are usually high deductibles in effect.


Best of luck to him - I'm sure you're saving him $195. There really sounds like an absolutely miniscule likelihood of a covered event happening in the first 90 days anyway.
That's what  
batman11 : 8/18/2017 7:05 pm : link
I'm thinking as well, Dan. Thanks again!
Extended warranties  
Daniel in MI : 8/18/2017 10:17 pm : link
my research suggests this: these companies have a lot of statistics about what breaks, when, and how much they cost (on average). They don't stay in business losing money.

You're taking a gamble that what breaks on your car: A) costs more to fix than the warranty; and B) is covered by said warranty if it does break.

You're making this bet against a company with better information than you have, they do this for a living. I tend to stay away from them.
Back to the Corner