YACT: Small dealership warranties...

[Red]

Continuing the ongoing saga of the turbo wagon, what is your experience with small dealership warranties?

I don't have the warranty in writing, but I talked to the owner today and he said it is a $100 deductible and covers all powertrain/drivetrain part failures (including turbo + all associated parts), steering components, brake components, electrical components (including power seat motors, power window motors, etc). He said the work can be performed anywhere nationwide. It's a 36 month, 54,000 mile warranty that would cover the 1994 850 Turbo wagon 'til April 2007 or 141,000 miles, whichever comes first. Cost: $900.

He is having his mechanic fix the power window problem on Monday morning, having the car sent to Firestone this weekend to see why the right tire is rubbing is the right fender, and is also having the mechanic checkout why "steam" came out of the dipstick hole after I ran the car pretty hard for about 10-15 minutes. He said something about replacing the PCV valve or something? I told him my personal mechanic said that steam out of the dipstick hole might indicate that water has got into the block somehow...possible a head gasket. He said the mechanic will figure whatever is wrong with it, and in the worst care situation, if something horrible wrong happens with the car the same day I buy the car, the warranty will cover everything.

 

[AgaBoogaBoo]

Did you buy it yet? If not, get the warranty in writing

 

[Red]

Originally posted by: AgaBooga
Did you buy it yet? If not, get the warranty in writing

No, but I'm starting to seriously consider this car and I'm wondering about the quality of this warranty because it sounds like an amazing warranty for $900 (almost bumper-2-bumper for 3 years on a 10 year old car)

 

[EagleKeeper]

Look very carefully at what the warranty actual covers at the given cost and deductible.
There are usually 2-3 different levels. Small dealerships will tell you about the low price and high coverage.

 

[fredtam]

Be careful. I have sold warranties that require you to pay for repairs and then file a warranty claim to get reimbursed. Secondly a lot of warranties are "nationwide" but require you to have it fixed at an authorized service center which may be far away. You can't just pull in to the local mechanic or dealership and expect them to fix it hoping to be reimbursed by an unknown warranty company. Find out who the warranty company is and I may be able to tell you more. Really the car doesn't sound like something I would invest in especially relying on this warranty if something goes wrong and there are already signs of problems. Does the dealership have a service center?

 

[fredtam]

Also open the radiator cap up dip yur finger in and look for signs of oil. Then let the car warm up with the radiator cap off and look for bubbles (like fizzing). If you see either one of these don't even consider buying the car.