[GCinFLA]

Over the past 8 weeks I have been reading the various posts on Extended Warranties (or I guess, technically, Extended Service Agreements).

Besides the BMW Plan, usually the most recommended/purchased Agreement appears to be from Route 66.

Looked at their sales pamphlet and their top of line Easy Street Factory Type Warranty looked good.

Then I asked and received a copy of the ACTUAL contract.

1) Will not cover diagnostic time.

2) Will not cover Tax

3) Will not cover Shop Charges (where majority of Dealers add on a % of total bill for misc. shop supplies)

4) will only cover rental for repair that takes more than 4 hours by the book. So if problem you do not know what it wrong and you get a rental car, you might not be covered.

5) 4 hour repair is only 1 day rental. Each additional day would take another 4 hour repair. God help you if part has to be ordered of if over weekend.

6) Seat Belts, Air Bags, Exhaust and other parts not covered

7) Towing only if on a street. No Driveways or Parking Lots.

8) BMW Equipment such as Lane Departure Warning or Collision Avoidance not covered

9) Enhanced Electronics does not cover #8. Furthermore, only 1 replacement of component over life of Contract. So if they put in used or 3rd party and it fails again, you are out of luck.

10) "Sound Reproduction" not covered.

Probably more I haven't caught.

Not really interested in value of Extended Warranty discussion. Plenty of other threads discuss that

Bottom line. As Route 66 is so recommended, are these exemptions typical of others - or did other members just not read their contract, instead going by the sales brochure?

[jgoens]

I have been thinking of looking into this as well as my warranty ends in a month. Did you get any pricing? Route 66 is,only offered through credit unions which I suppose would have to be joined to get this coverage. The thing that I am concerned with is the lack of diagnostic coverage. That can end up pretty pricey by dealer standards.

[GCinFLA]

Originally Posted by jgoens

I have been thinking of looking into this as well as my warranty ends in a month. Did you get any pricing? Route 66 is,only offered through credit unions which I suppose would have to be joined to get this coverage. The thing that I am concerned with is the lack of diagnostic coverage. That can end up pretty pricey by dealer standards.

Agree on diagnostic. That was first thing I caught before the others. Also why I posted here. Is that normal for these types of Extended Service Plans?

Prices were inline with other 3rd Party Extended Warranties such as Zurich and Warranty Solutions.

I called Route 66 and asked for local Credit Union that could sell to me.

Called the Credit Union and they had no issue writing without joining and gave me a price.
Realized in Florida these service contracts are charged Sales Tax.

In an effort to save $200+ in sales tax, called Route 66 back and found a Credit Union in Illinois where no tax is charged.

Called that Credt Union and they offered me $250 higher than price+sales Tax in Florida. Plus I had to join their Credit Union.

Called back Route 66, asked for a Dealer in Chicago area and they told me Dealers only sold with Used Cars. I laughed and said I've never met a Dealer that will not sell an item.

They transferred me to Dealer Services where they said they would get their Regional Person to contact me back on Monday with Dealer names in area that were Route 66 Dealers.

It's now past closing on Thursday and I've heard nothing back. So follow up/customer service is a big question mark for me.

Bottom line, whether is Dependent in area or local representative option on how much to add to price, pays to shop around.

[pallymore]

I've been looking to get extended warranty for a couple of months, but then i decided it's not worth it.
I probably will keep the car for another 2-3 years (around 70k total miles on the odometer i think) and I'd rather set aside some emergency fund that may be used towards my next car instead of wasting a few thousand bucks on peace of mind.

[GCinFLA]

And proof of not reading the "fine print".

[GCinFLA]

Hmmmm. The lack of response from those recommending Route 66 in other posts is telling.

[munu]

I have been using Route 66 for 7-8 years now. I had it on my e90 and now I bought it on f30. So far my experience is nothing but GREAT. I agree with what all OP found out in terms of exclusions but I would say it is still much better then other companies.

I have used them at least 6-7 times on my e90 at the BMW dealer and they took care of everything. All my expenses were fully covered except for one which was a crack in the hose which was less then $100 expense. You just have to pay for tax which is just few dollars.

Also keep in mind you don't pay taxes when you buy the insurance which will save you around $200. I think for that you have to buy the coverage from credit union which is not in your state.

[GCinFLA]

Originally Posted by munu

I have been using Route 66 for 7-8 years now. I had it on my e90 and now I bought it on f30. So far my experience is nothing but GREAT. I agree with what all OP found out in terms of exclusions but I would say it is still much better then other companies.

All the other Reputable Companies I investigated DO cover those, so your statement "...it's still better then (sic) other companies" is incorrect.

Originally Posted by munu

Also keep in mind you don't pay taxes when you buy the insurance which will save you around $200. I think for that you have to buy the coverage from credit union which is not in your state.

Not true. Below is quote in Florida, as you are in Orlando.

Some States do not charge tax on Service Contracts. However, Route 66 has not filed for exemption in those States (including Florida) as others have done, thus you pay Tax on Policy and then again, tax on Repair.

As also noted, this same set of quotes on same vehicle was $200 higher than TOTAL amount in Illinois, even though Illinois is tax exempt on Service Contracts.

[munu]

Originally Posted by GCinFLA

All the other Reputable Companies I investigated DO cover those, so your statement "...it's still better then (sic) other companies" is incorrect.



Not true.

Depends on State, as seen below.

However, Route 66 has not filed for exemption in those States as others have done, thus you pay Tax on Policy and Tax on Repair.

As also noted, this same set of quotes on same vehicle was $200 higher than TOTAL amount in Illinois, even though Illinois is tax exempt on Service Contracts.

My comment was based on what I actually did recently. I am in Florida and got a quote from GTA (Florida based) which clearly showed tax. Then I found a small credit union somewhere on west coast, they offered me the price (almost same as GTA) and there was no tax. This is based on actual experience (not documents on the web). I think it works just online shopping, taxes depends on if the selling company got presence in your state.

So I would recommend call some credit union or even go online and get online quote. Try http://www.route66warranty.com/AFFCU/

[bimmer456]

I say forget about route 66 and trade in your car for a CPO.

[GCinFLA]

Originally Posted by bimmer456

I say forget about route 66 and trade in your car for a CPO.

CPO is MUCH shorter term which needs to be considered for resale value.

[GCinFLA]

Originally Posted by munu

So I would recommend call some credit union or even go online and get online quote. Try http://www.route66warranty.com/AFFCU/

That site, for example:

1) Does not offer the longest term as shown in my quote. Note cost for extra 14 months is only $70 more on my quote.

2) Does not offer the disappearing deductible. Based on your posts at $100 per incident,, you ended up paying much more than my posted quote

3) does not offer the Extended Electronic Package option, most electronic devices are excluded, making this equivalent to the BMW GOLD, not PLATINUM Warranty. And Route 66 is worse as it only allows for item to be repaired ONCE, so if they use used or non-OEM part and it fails again, you are SOL.

[Kafkaesque328]

Extended warranties are like any insurance - you will always pay out more than you get back and you never 'beat the house'. These are designed to make money. Short of catastrophic engine failure of some kind, these are rarely ever worth it vs. 'self insuring'. Better off opening up a random 'high yield' online savings/mm account and divert a few hundred bucks into the 'car rainy day fund' each month for a few years (in which time most likely nothing will go wrong with your car) and then in a few years, the car repair slush fund account is alive and well at $5000 strong or whatever, earning 1% APY or whatever and maybe you have to use some or all of it, maybe none of it. With an extended pre-pay warranty, you are guaranteed to spend that money. A lot of guys do this when there car is finally paid off. What a bummer - car payments for 5 years and then at the 5 year mark you shell out $3000 or whatever it is for some warranty you may barely use. Looks like the warranty in question is only for breakdown failure and doesn't cover maintenance, which gets pricey.

2 cars ago, I had a VW GTI that I bought CPO. After the 36k/3 year mark, I used the CPO warranty for a few things that were 'covered'. Initially I was like "oh cool, good thing the car was CPO because x, y and z were covered." Nevermind the fact that I probably paid a $3000 price premium for a CPO car vs. a non CPO car so in reality, I lost money and would have been better off not having the CPO warranty.

Originally Posted by GCinFLA

That site, for example:

1) Does not offer the longest term as shown in my quote. Note cost for extra 14 months is only $70 more on my quote.

2) Does not offer the disappearing deductible. Based on your posts at $100 per incident,, you ended up paying much more than my posted quote

3) does not offer the Extended Electronic Package option, most electronic devices are excluded, making this equivalent to the BMW GOLD, not PLATINUM Warranty. And Route 66 is worse as it only allows for item to be repaired ONCE, so if they use used or non-OEM part and it fails again, you are SOL.

And the Nav or backup cameras i.e. in car tech seems the most likely things to fail to me. Engine components if periodically maintained replaced or serviced should be good and less prone to failure than electronics.

[munu]

Originally Posted by GCinFLA

That site, for example:

1) Does not offer the longest term as shown in my quote. Note cost for extra 14 months is only $70 more on my quote.

2) Does not offer the disappearing deductible. Based on your posts at $100 per incident,, you ended up paying much more than my posted quote

3) does not offer the Extended Electronic Package option, most electronic devices are excluded, making this equivalent to the BMW GOLD, not PLATINUM Warranty. And Route 66 is worse as it only allows for item to be repaired ONCE, so if they use used or non-OEM part and it fails again, you are SOL.

1) What I have noticed when I was shopping around is that each credit union offer different options and also different prices. Route 66 says price is control by credit unions. I got 8 year/100K coverage. Penfed don't offer this plan, they only cover upto 5 year. I also got total loss coverage for $50, some companies don't offer that too.

2)In my case there is no deductible. $100 that I mentioned was for one of the repair which was not covered by them so I paid that from my pocket.

3) I have not used them for any electronic repair so I have no idea. In my case I always got it fixed by BMW dealer so no chance of getting non-oem or used part.

What plan and price are you planning to get and which credit union are you trying with?

[GCinFLA]

Originally Posted by Kafkaesque328

Extended warranties are like any insurance - you will always pay out more than you get back and you never 'beat the house'. These are designed to make money. Short of catastrophic engine failure of some kind, these are rarely ever worth it vs. 'self insuring'. Better off opening up a random 'high yield' online savings/mm account and divert a few hundred bucks into the 'car rainy day fund' each month for a few years (in which time most likely nothing will go wrong with your car) and then in a few years, the car repair slush fund account is alive and well at $5000 strong or whatever, earning 1% APY or whatever and maybe you have to use some or all of it, maybe none of it. With an extended pre-pay warranty, you are guaranteed to spend that money. A lot of guys do this when there car is finally paid off. What a bummer - car payments for 5 years and then at the 5 year mark you shell out $3000-5000 or whatever it is for some warranty you may barely use.

LOL.

You're funny.

1% APR on accounts that little. comical. Clearly you have not followed your own advice or you would know what these account pay...and have paid....this Decade.

FWIW, I've never lost money on an extended warranty.

[Kafkaesque328]

Originally Posted by GCinFLA

LOL.

You're funny.

1% APR on accounts that little. comical. Clearly you have not followed your own advice or you would know what these account pay...and have paid....this Decade.

FWIW, I've never lost money on an extended warranty.

Listen Ben Bernanke, I can't tell if you are being sarcastic or not about the APY but there are a whole host of online savings accounts with a 1% APY. Before the crash leading up to 2008, a lot of accounts like ING, Emigrant Direct and FNBO had rates as high as 5%. The point was stick your money somewhere 'in case' you have to pay, somewhere liquid that is better than brick and mortar.

Your opinions on these warranties are subjective. These products wouldn't exist if they weren't a cash cow for these companies. extended warranties, service agreements and 'protection packages' are a cash cow for dealers especially. The best is when schmucks buy a new car with a 4yr/50k mile warranty and that day, tach on an extended warranty that doesn't even take effect until the factory warranty expires (in 4 years when they may not even have the car anymore), and on top of that, usually roll it into the deal, essentially financing and paying interest on it.

I would say if you have spent several thousand dollars on ext. warranties and have had repairs/failures that have exceeded the cost of said warranties that you have been unlucky in terms of reliable cars.

[bimmer456]

Originally Posted by GCinFLA

CPO is MUCH shorter term which needs to be considered for resale value.

It depends on how many miles the car has to begin with. It's up to 100k miles, not sure how many years, maybe 6 years from in service date. Pretty much covers everything vs. Route66 which doesn't cover a lot of things.

[GCinFLA]

Originally Posted by Kafkaesque328

Listen Ben Bernanke, I can't tell if you are being sarcastic or not about the APY but there are a whole host of online savings accounts with a 1% APY. Before the crash leading up to 2008, a lot of accounts like ING, Emigrant Direct and FNBO had rates as high as 5%. The point was stick your money somewhere 'in case' you have to pay, somewhere liquid that is better than brick and mortar.

Your opinions on these warranties are subjective. These products wouldn't exist if they weren't a cash cow for these companies. extended warranties, service agreements and 'protection packages' are a cash cow for dealers especially. The best is when schmucks buy a new car with a 4yr/50k mile warranty and that day, tach on an extended warranty that doesn't even take effect until the factory warranty expires (in 4 years when they may not even have the car anymore), and on top of that, usually roll it into the deal, essentially financing and paying interest on it.

I would say if you have spent several thousand dollars on ext. warranties and have had repairs/failures that have exceeded the cost of said warranties that you have been unlucky in terms of reliable cars.

It's not 2008.

And You have listed banks that don't even exist any longer. I know. I had an ING Orange Account. No more.

Considering you clearly have not followed your own advice, I won't be following your mythical advice either.

Also, seem you did not read the "fine print" in Post 1 either.

Another strike....

[GCinFLA]

Originally Posted by bimmer456

It depends on how many miles the car has to begin with. It's up to 100k miles, not sure how many years, maybe 6 years from in service date. Pretty much covers everything vs. Route66 which doesn't cover a lot of things.

5-8 years additional on 3rd party vs 2 on BMW CPO for more $1000+ Additional.

No contest.

[Kafkaesque328]

Originally Posted by GCinFLA

It's not 2008.

And You have listed banks that don't even exist any longer. I know. I had an ING Orange Account. No more.

Considering you clearly have not followed your own advice, I won't be following your mythical advice either.

Also, seem you did not read the "fine print" in Post 1 either.

Another strike....

What are you even talking about right now? I currently have an American Express Personal Savings account with a 0.9% APY. The highest one currently now is Ally I think at 1.10%. If you want exacts beyond that, visit bankrate.com, Jesus. Even if it is a b&m savings acct with a credit union with almost 0 return, its better than buying and like most people, financing an extended warranty. And yes, I too had Emigrant, FNBO and ING back in the day. What is mythical advice? To save your money instead of buy extended warranties like some kind of rube?

Instead of selectively reading and cherry picking my words like the troll that you are, how about exercise a little reading comprehension? Strike three and youre out, Florida.

[GCinFLA]

Originally Posted by Kafkaesque328

What are you even talking about right now? I currently have an American Express Personal Savings account with a 0.9% APY. The highest one currently now is Ally I think at 1.10%. If you want exacts beyond that, visit bankrate.com, Jesus. Even if it is a b&m savings acct with a credit union with almost 0 return, its better than buying and like most people, financing an extended warranty. And yes, I too had Emigrant, FNBO and ING back in the day. What is mythical advice? To save your money instead of buy extended warranties like some kind of rube?

Instead of selectively reading and cherry picking my words like the troll that you are, how about exercise a little reading comprehension? Strike three and youre out, Florida.

Originally Posted by Kafkaesque328

Listen Ben Bernanke, I can't tell if you are being sarcastic or not about the APY but there are a whole host of online savings accounts with a 1% APY.

A host? Or a unicorn.

Ally just recently increased their interest rate to 1.05% from under 1%. American Express is at 0.90% As thus you admit to having money pay almost 15% less...and we should take financial advice from you?

Again, how about you using some reading comprehension from Post 1.

Originally Posted by GCinFLA

Over the past 8 weeks I have been reading the various posts on Extended Warranties (or I guess, technically, Extended Service Agreements).

.....

Not really interested in value of Extended Warranty discussion. Plenty of other threads discuss that

Bottom line. As Route 66 is so recommended, are these exemptions typical of others - or did other members just not read their contract, instead going by the sales brochure?

Originally Posted by Kafkaesque328

I would say if you have spent several thousand dollars on ext. warranties and have had repairs/failures that have exceeded the cost of said warranties that you have been unlucky in terms of reliable cars.

I would say, unlike you, that I made some smart financial moves as I knew before today where the unicorn was....and acted on it.

[Kafkaesque328]

Originally Posted by GCinFLA

A host? Or a unicorn.

Ally just recently increased their interest rate to 1.05% from under 1%. American Express is at 0.90% As thus you admit to having money pay almost 15% less...and we should take financial advice from you?

.

15% less of what? I can't control savings account rates? Can you? Do whatever you want - put the money in a CD, a mutual fund, your Roth, whatever, you are missing the point in an epic way here. What are you even saying? Jesus, I am arguing online with a retired person in the Everglades somewhere. I believe in paying myself first, not companies like Route 66 or BMW for overpriced extended warranty bundles sold to lemmings and rubes en mass who have irrational fears about catastrophic breakdowns. Again, you are basically speaking total gibberish. I guess the big, huge, obvious points I have been making continue to elude you... Or maybe they haven't so all you can do is call me out on not being a walking encyclopedia of online savings account rates. Gee whiz, you can use Google, congratulations. In case you missed it, here it is again:

• THESE PRODUCTS EXIST TO MAKE MONEY FOR THE COMPANIES THAT OFFER THEM. BREAD AND BUTTER FOR DEALER FINANCE DEPARTMENTS.
• YOU ALMOST NEVER BEAT THE HOUSE.
• PRE-PAYING FOR WARRANTY WORK THAT MAY NEVER ACTUALLY BE NEEDED IS EXPENSIVE INSURANCE.
• YOU WILL ALMOST ALWAYS BE BETTER OFF TAKING X AMOUNT OF MONEY & SETTING IT ASIDE IN BASICALLY ANY SAVINGS VEHICLE, FOR A 'RAINY DAY' VS. BUYING AN EXTENDED WARRANTY.

Thats it, I'm out. Keep being the schmuck at the carnival who loses money at the shell game and I'll be on my merry way. Enjoy your copy of AARP magazine, bud.