Mechanic’s View of Aftermarket Car Warranties

4 things no one is talking about when considering an aftermarket car warranty.

01:12 Reason #1 - Much Longer Wait Times For Repairs
06:29 Reason #2 - Diag & Denied Claims due to "Uncovered Parts"
10:03 Reason #3 - Predetermined Price on Labor & Parts
16:23 Reason #4 - Cost of Warranty Vs Policy Limits

[WilliamKenyon-xd]

40 years in auto repair, and I can confirm his every remark. Take the money that the warranty costs and put in a savings account instead. When your car breaks down, you'll have some funds to pay an honest shop a fair dollar!!

[sevenpaulperalta]

I tried to convince my friend not to buy a warranty, but he did it anyway. The celebrities promoting these products should be ashamed of themselves!

[omahapt]

For 5 years I worked on the other side of this. You are bang on point. I will not bore you with the details, but I'll tell you that after 5 years I could no longer live with it and left. We were instructed to go thru the claims and the contracts to find a "legitimate" reason to not pay out. In my case, the "warranty" was actually a mechanical breakdown insurance. Insurance companies, like casinos, always win.
For anyone reading this, avoid it. You're better off putting that money away for when your car needs a repair.

[brianraglandsr.]

I own a small shop in Ohio. I decided to deny warranty companies years ago now for all that you discussed.

[traxxi]

This is the reason why I never waste money on extended warranty. Brother, I commend you for taking the time to put this information out there. God bless!!

[andrewrecato]

As somebody who was considering one, I really appreciate your candidness

[fredhenry]

Thank you. Well done. Never had aftermarket warranty and now confirms I never will. Great topic, first time for me. Appreciate it. Thanks again.

[ericgreth]

I've never bought an aftermarket warranty. Knowing how much commission the salespeople make on these was enough. This is an excellent overview from a mechanic.

[bdeknight]

I was a career auto tech (40 years) and small shop owner, spot on description of what to expect, I always told my customers don’t buy the warranty but put the cost of it aside to use for future unexpected repairs. Nobody ever complained.

[msmoniz]

Reasons:
1. THEY are a rip off.
2.They ARE a rip off.
3.They are a RIP off. and finally..
4 They are a rip OFF!!

[lakoncers]

I spent $2500 on the Carmax warranty. by the time I was done with my four years Carmax had put in about $15, 000 into my truck. No extended time at mechanic shops and never had a single repair declined. It actually became a thing where taking my car to the mechanic was a chance to have my car thoroughly gone over and anytime they found something that could possibly be worked on. They got it approved and it was repaired or replaced. So maybe not all warrantees are the same but the warranty from Carmax was wonderful.

[CrazyPetez]

If I buy an extended vehicle warranty, it’s always from the vehicle manufacturer, that is Ford, or GM, etc.
Thanks for the honest report on after market warranties.

[tobysarsi]

Thank you for speaking your truth about aftermarket warranty experience. I’ve always suspected that it’s a nightmare for auto repair shops to try and make any money at all on these claims not to mention trying to help a customer who forked over their money buying the warranty

[ttrienski]

Everyone needs to hear this. Warranties add time to repairs, and there are still things you have to pay for. YES, all shops should charge for diagnostic time no matter what. Technicians should not work for free. Shops are expensive to run. Diagnostic equipment, software subscriptions, and training all come with a price.

[Cocora]

The previous truck I bought was a 2018 Cadillac Escalade. After 20 plus visits to the dealer, vehicle still under warranty, plus I bought their platinum extended warranty too, I gave up and sold it. I got most of the extended warranty money back after a lot of arguing, insisting, emails and many months of waiting. Had it less than 3 years. Next truck, Lexus GX 460, negotiated the vehicle, no dealer fees, tags title, registration and tax. It felt very good to say no to everything else! Soon coming up on 3 years of trouble free ownership, just maintenance. Really enjoyed your perspective on your business and the way you have to handle these companies.

[David-lutl]

I just got Walco aftermarket warranty and when I was buying the warranty they game me a 30 day money back guarantee if I changed my mind. Well looks like I’ll be getting my money back because if my car is going to be sitting In a shop for two to three weeks I’d just do the whole thing myself or find an honest shop that I can trust and is passionate about their business and customers.

Thank you for your experience, expertise about this situation/subject!

[銀河のたろー]

Shadetree's videos are a treasure trove of invaluable insights and wisdom! His multifaceted expertise in tax, legal, and wealth management makes him a go-to resource for navigating the complexities of personal and small business finance. Evelyn's engaging delivery and practical advice have significantly enhanced my understanding of wealth-building strategies

[AirEvangelist]

Been in the HVAC business for decades and have refused to get involved with companies that provide home warranties, for all the same reasons you list. Thanks for telling it like it is. Wish your shop was close to us.

[joaopedroalbernaz]

"WE'VE BEEN TRYING TO REACH YOU REGARDING YOUR CAR'S EXTENDED WARRANTY..."

[tombaker]

I wish I could find a mechanic like you in my area…. You really take care of your clients….