Extended Warranty is a SCAM! (Insider Knowledge)

36 thoughts on “Extended Warranty is a SCAM! (Insider Knowledge)”

1. You are scamming everyone Ray! You make money from your customers cars &&&&& plus YOU MAKE MONEY BY RECORDING THEIR VEHICLE in a video. Without customers permission. And you don’t pay the customers for using their vehicle. You make money of YouTube and overpriced work from your shop. but you want to talk about extended warranty’s. Get a grip man.

2. How is this not literally fraud?

3. Insurance as a whole is a scam, they want to take in money and pay nothing out!!!!

4. 2 things I've never encountered in my life….. A reputable warranty company and a reputable car dealer.

5. Buy a $200 car from the junk yard and invest in some tools! I dealt with an insurance company one on a suspension repair on an older Honda. I got some good parts from a salvage yard and did it as cheaply as possible. Then they started trying to cheap out even more and they would only pay me $50 for an alignment. I said whatever just got it done. Then the insurance company started calling me wanting me to fix other cars. I was like nope, I am done with you. Now you realize that my price was very fair, but you tried to screw me anyway so now you can pay more at another shop. I don't do warranty or insurance work any more.

6. You do great work, forget the morons who say you make money from content and mechanical work at the same time. If you can do both at the same time and make money at it for you and your family more power to you. Best wishes from Victoria BC Canada 🇨🇦

7. I find people who talk a LOT are people I want to take everything they say with a block of salt. You talk too much, Ray!

8. What about Honda Care?

9. Warrant companies make you pay for diagnostics. If your engine is burning oil, you have to pay for the tear down to prove that it is a warranty item. Of course they will say it failed due to lack of mtc or what ever else they come up with. Then you are left with the total bill and out of the money you paid for the useless warranty.

10. Great info

11. Warranties can only be issued by the vehicle manufacturers!!! FACT

12. I WOULD ONLY USE THE MANUFACTURERS WARRANTY..TOO MANY RIPOFFS..

13. Dealerships really tick me off! Back in 2015 my wife purchased a brand new Honda CRV Touring, we bought the best warranty they offered. Six months later the right rear brake caliper was locking up, THEY WOULDN'T COVER IT!!! I took off the caliper and checked it out, the slider pins were stuck, they didn't add any grease to them at the factory! I replaced the worn pads and greased everything properly. Also greased the other pins on the rear left and the front. Engine would vibrate at idle in gear, they covered that with supposedly an ECM firmware or software upgrade, I forget what they did. Worked ok for a while but it has vibrated ever since, very frustrating! We paid $45,000 for the car in 2015.

14. Extended warranty after your initial warranty expires is usually good on a luxury car. I have had used extended warranty several times and saved me $$ . It all depends on what warranty you get also.

15. Wish we had your type of mechanic here in England I bought a Land Rover Freelander blow the big ends after 144 miles had extended warranty tried to claim on warranty only to be told that I had cause damage by going to fast round corners and the oil had cavitation and caused the failure also told by them that I did not know how to use a dip stick have driven all sorts of HGV’S and lots of different vans and cars had to take garage to court to get my money to pay for the repairs

16. I NEVER buy a warranty of any kind on anything. If those pay warranties were so good for me, the sales clerks wouldn’t be pushing them so hard. To date I bet I am $30k ahead.

17. Just spent 3 days helping my mom find a car.. I haven't bought a used car in a very long time. I immediately noticed a pattern while shopping. The cars are all marked up 2k! I when punching the numbers I saw the price of the warranty. I told the lot that we don't want the warranty.. he says "we can't make money without the warranty"

    I've never had a warranty that was useful

18. It's an insurance policy, and the providers will do everything they can do get out of paying.
    I've been on both sides of this, and they aren't worth having.

19. Extended warranties are like Vegas – the house always wins. For every one person who "wins", many, many, many people have to lose. For most people, it's just pre-paying for repairs that may never actually happen.

20. When I bought my 2019 Toyota Tacoma from Fowler Toyota dealership in Tulsa, OK, I was just like other Toyota dealerships that have always said their vehicles have a 3-year warranty on Bumper-to-Bumper warranty but…

    In less than 3 years, my windshield wipers weren't good: I was told the warranty was ONLY good for 1 year.

    When the outside rear view mirror on the driver's side fell off, I was told Fowler Toyota dealership has NO warranty on it and I had to call Toyota factory to deal with the situation.

    These 2 items were totally whacko and S***!

21. I've had two aftermarket warranties each was with a different company. Both companies denied the first claims I tried to put in. Two different cars. Both were legit mechanical break downs. I cancelled them both times. I won't buy anymore aftermarket warranties. If anyone out there knows of a good one, let me know.

22. I can't understand how people can sleep at night knowing that they are scamming innocent people

23. Thanks for VERIFYING what many of us have GUESSED and had Suspicions for…. for YEARS! Over 20 years ago, I started just buying from one owners, where I take it to a mechanic I like and use and trust and pay for the inspection…. so far… 5 out of 7 times that garage identified stuff I missed, but was able to FIX myself before it became an issue… OR I got it in to get it fix and the gamble paid off… only twice I had to bite bigger bullets. It happens. NEVER EVER EVER Do I buy from a dealership!

24. Always get a pre purchase inspection bone heads!

25. Aĝrer. I sold Fpfds and made morr on the after sale items sold. I personslly had serious issues with the after sale warratee. Wouldnt pay for amy trpubles I had personally.

26. You guys are leaving I hope

27. You can always buy the warranty not through the dealer.

28. Blech! Micky D's!!!

29. So well explained. Always have a mechanic you trust check the car out

30. Not all. We bought a 2500 dollar dealer’s extended warranty from my wife’s 2019 KL (in late 2018). With only days left on the warranty, they replaced the PTU. 3K+ part, plus several hours of labor. Cost us a 100 bone deductible.

31. I bought a car many years ago from Enterprise Car Sales, so it was a retired rental. It only had 30k miles on it and it seemed to run well, so I bought it and the extended warranty for $500, it was a drive train warranty only for 12 months. Now, I have an uncle that used to be a mechanic at a dealership and he gave me an important piece of advice, "no matter where you buy a used car, private sale, dealership or used car lot, IMMEDIATELY change the oil." Not because it might be old but because of the additives they can use to hide problems. So, having taken this advise I did just that and the engine immediately started knocking. According to the dealer I took it to for repairs," the main thrust bearing shattered and the pieces destroyed everything the oil touched." So that $500 warranty bought me a brand new engine. Unfortunately, the warranty expired before the issue with the transmission revealed itself.

    I think the scam warranties are the ones that dealerships try to sell for like $3,500, while other dealers would charge $500-$800 for the same. It's not easy to find an honest dealership, especially for new cars.

32. I think I saw one, where the mechanic diagnosed that because of a timing chain/belt failure, the engined needed to be replaced. The extended warranty company insisted that the engine be broken down so that their inspector could inspect and determine if the engine really needed to be replaced. He came out after the mechanic took the engine apart and agreed after all of this that the engine did need to be replaced. The warranty company did pay for the new engine, but did not pay for the original tear down and dismounting of the engine, and there were certain things they did not pay for, I think like water pump, possibly alternator reinstall, and other ancillary things necessary for the car to operate properly. The customer was still out a couple of thousand to get his/her car repaired. So, another commenter was right, if you can do this, avoid the third party extended warranty and establish a rainy day fund, that can be used to pay for unexpected car repairs. As another commenter said, an extended warranty from the car's manufacturer may be all right, but these third party companies, are mostly scams. Run, don't walk away. We took out an extended warranty on my wife's 2018 Accord. It was from Honda Corporation, the few little things it needed, the dealer honored the warranty. I almost laughed at them though, when they brought it up during car buying negotiations, they said, "well with all the new technology on this car, you never know….." I knew that yes, this was the first year it was on the Accord, but they had put it on the CR-V in 2017, so it was already out there. There was one incident of questionable behaviour, her battery died one day when she took one of the kids to the orthodontist. At first I couldn't get it to jump start. We called the 800 number to get it towed in. The person that answered the phone, said we didn't have an extended warranty after we answered all her questions. I finally managed to get the car started, and told my wife to get it to an independent repair shop near our home, and not to turn the car off for any reason until she did. They said, yep battery is bad and put in a new one. The next time I was at the dealership I saw right on the computer screen, "Extended Warranty." I figure they were using a third party company to answer the phones, that are also, the customer no service numbers for your cellular, cable TV, and internet service. Oh, and don't forget your health insurance too.

33. Two years ago we bought a 2014 Yukon Denali for Mrs. Cusser, needed a vehicle with the large 6.2 engine for her towing of two horses. She didn't want a pickup truck, so our "pool" of vehicles was relatively small; I ended up buying from an independent car lot, my inspection showed a leaking radiator which was replaced. Anyway, the owner of the place said 90% of the buyers finance (I paid cash) and 90% purchase an extended warranty. So 2 years in, the only "repair" was a faulty AC actuator which I fixed by cleaning it out with a Q-Tip.

34. Great video! Quick question, will the dealership let you do a pre-purchase inspection at an independent shop?

35. I can say for sure they are not all a scam. CNA National covered my 2015 Acadia up to 150,000 miles. They paid out over $12,000 to repair multiple issues with the car including rebuilding the transmission at 120,000 miles. They would only approve OEM parts. And I got a rental car for 7 days every time it was in the shop. Worth every penny.

36. This is why I'll never buy a used car.

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