3rd Party Warranty At A Dealership

[TaylorMade86]

So it would make a lot of sense that a dealership would look for any reason(aftermarket parts specifically) to deny coverage under a warranty claim, even if the problem is unrelated to part. Because its an expense out of THEIR side.

Now my questions is, would they be so keen on denying coverage if its a 3rd party extended warranty? They’re on the receiving end of that paycheck either way so i don’t see why they would even mention such a thing when they only have something to lose. Atleast thats how i view it

I want a new header but am worried about voiding my warranty. Would they even care to bring it up in this case? It doesn't seem it would be in their best interest. Assuming we (the dealership and me) just avoid the subject all together.

[mav1178]

Yes, they'll deny anything.

Warranty works by 1) you having a problem that is covered by the terms laid out in the warranty, 2) the dealer or authorized shop does the work covered, 3) the dealer or shop gets reimbursed by the warranty provider, be it corporate office or 3rd party fancy warranty company.

If anything on your car prevents #3 from happening, #1 won't happen. Dealers and warranty have been around long before you and I were born, they blanket deny claims initially to cover this.

Usually people with mods only push through a warranty claim if they can overwhelmingly convince the dealer that it is covered. Only the dealer that cares will do work for you, most don't care about modded vehicles and flat out show you the door.

[sneefy]

3rd party warranties are universally awful.

It wouldn't be the dealership denying coverage, but the warranty company. And the business model of that warranty company is to deny coverage as much as possible.

[ls1ac]

Be careful as sometimes a dealer will try to sell an extended through a third party.

[RZNT4R]

I'm at a small independant shop, we do 3rd party extended warranties and for most of our customers who have one, it's a great value...

--- BUT ---

That's because we SELL them, and we sell the right level of coverage. 3rd party warranties sold in a dealership finance office is good for minimal coverage and maximum cut of the price going to the F&I department, that's because most dealership segregate their departments financially and they're all out to eat the other alive. The F&I agent isn't looking to sell you the best warranty for you, he's looking to sell you anything and pocket a cut. Electronic rust proofing? SOLD! Ceramic coating? SOLD! Clear bra? SOLD! Window tint? SOLD! Remote starter? SOLD! Extended warranty? SOLD!

When we sell an extended warranty we only sell the big daddy "everything is covered" tier, there are exclusions of course, like shocks and wear items, but many many times have we had customer spend 3K on a warranty and the warranty paying out over 10K over the life of the car. It had gotten so ridiculous that they've put a spending ceiling, now they'll stop at the market value of the car :lol

Long story short, it's not in the F&I's interest to sell you the good warranty because he's not going to see a cent on the repairs, he'll sell you the cheap tier with a huge markup and make it look good with F&I lingo.

[soundman98]

it's no different than health insurance. there's "major medical" and there's "it's covered"

major medical might only cost a few hundred a month and really only cover when your arm is sawed all the way through, but complete coverage can cost multiple thousands for the same time period.

[Project N64]

I have had over 13k in repairs covered by a third party warranty on my 05 sti, I got it in 2016 and still has a warranty until end of September. My plan gives me the option to go to dealer or independent shop, when I was consuming oil I took car to dealer where they recommended a new shortblock. The car had an aftermarket k&n short ram intake and it was all still covered with no problem even when warranty company sent an inspector. All I had to pay was a 100 dollar deductible, just be safe and return car to stock and try to have good communication with the service advisor or shop. Now for my BRZ have a similar third party warranty. I took car in for valve spring recall to dealer, dealer finds my cam carriers were leaking and wanted to charge me 900 to fix, I told them to contact my third party warranty. Somehow the dealer ended up charging them little over 2200 dollars for the leaky cam carriers. I think they charged for pulling the engine?? I have had my BRZ tuned but flashed back to stock before recall. Third party warranties are awesome

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[FRS Johnny]

My 2013 engine blew up and the dealer said they cant fix it under the valve spring recall. The service advisor told me to tell my insurance and file a claim saying something hit my car on the freeway and it broke my engine. Isn't that insurance fraud?