Adolph
Elkhart,#2Consumer Comment
Fri, July 01, 2005
These "extended warranty" companies folding and disappearing are legion. The dealers love 'em as the dealer usually gets half of the prepaid "premium". When sold with a new car, there will obviously be no claims until the vehicle warranty expires. With a used car, there will usually be a delay in placing a claim, and even a MUCH BIGGER delay in processing it. . This gives the dealer and the warranty company 100% profit. The dealer can shrug it off as a "warranty company issue, not our problem". The warranty company can then predictably evaporate within one year or less. . Several years ago the Dodge dealer in South Bend, IN, changed ownership. The existing dealer (Coral Dodge) sold "in house" extended warranties literally up to the last minute the Wiese group took over. Bingo! Thousands of dollars of "in house warranties" DEAD! Wiese, of course, wouldn't honor them. This was one of the most unconscionable acts I've ever witnessed from a car dealer. (That says a LOT!) The South Bend Tribune gave an account of this ploy, the Indiana Attorney General ultimately did (or could do) nothing. I also blame Chrysler Corp. as the transfer would've had to have their blessing, Chrysler should've forseen this debacle. . Extended warranties? Dealer's love 'em. As good as a "market price adjustment" and the plethora of other ways car dealers earn their well deserved reputation as bottom-feeders.