bagwell

I've seen these advertised at a few local mainstream dealers (Toyota, Buick, and Subaru used car dealers)...are they worth the paper they're written on? I know the Subaru one says it will cover exactly the same as the Subaru powertrain warranty..but I'm assuming these are all aftermarket warranties and therefore the companies could fold at any time...

thoughts?

mmarshall

Some aftermarket warranties are scams and some are not. The ones that come, unsolicited, in the mail, are usually scams.....especially the ones that are disguised to look like official recalls or notices from auto manufacturers and have shifty-looking titles and or return-addresess. They are usually on white, light green, or beige-colored paper. If you get one or more of those in the mail, my advice is just toss it (or better yet, shred it). The ones advertised by reputable companies, of course, (like the one from GEICO Insurance, for instance, which offers a well-known warranty-extension) are usually credible.

As far as the Buick, Subaru, and Toyota aftermarket warranties go, most Subaru and Toyota products have better-than-average reliability records to start with. So, while not out of the question, given proper care/service on these vehicles and non-abusive driving, the chances of actually needing and using the warranty are not very high unless you have six-digit mileage on them. (exceptions sometimes occur, though......my 2006 Outback needed some early unscheduled repairs around 30,000 miles). American-market Buicks (some of which are Opel-based) quite a bit in reliability from much better than average to worse then average, so the case with them is a little more iffy.

You are correct to have at least some concern about companies supporting aftermarket warranties and failing going or out of business. But, even then, the whole deck is not necessarily stacked against you. I'm not a lawyer, but, as I understand it, aftermarket warranties are still responsible for any valid claims/repairs even if they don't have the available cash on hand......that's why they have their own business-insurance to take care of that. If they can't pay for any repairs that are legitimate, they will probably have to give you refund.

bagwell

yep, I'm only referring to aftermarket warranties sold by mainstream dealers for like, say for example, purchasing a used Chevy at a Toyota dealer. Definitely not a Toyota backed warranty.

The offers I receive in the mail goes right in the recycle bin.