Our Service Director, Alice Cliff, shared her thoughts on extended service warranties.
“I receive phone calls at least once a week from customers who receive a postcard or letter saying Kia warranty has expired, with an offer to purchase that company’s warranty plan.”
Of course, the new car warranty for NEW KIAs is 5 years or 60,000 miles limited basic warranty, and 10 years or 100,000 miles powertrain coverage.
The Certified Pre-owned Warranty for pre-owned KIAs meeting the requirements is 12 months or 12,000 miles, or the remainder of the original coverage; whichever is greater. Plus the remainder of the 10 year or 100,000-mile powertrain coverage from the original in-service date.
“I tell customers to throw it away because it’s junk. Those warranties are expensive and do not cover the full cost of the repair. Customers end up paying much more than just their deductible. Those warranties sometimes require junk yard parts for repairs.
In many states, including South Carolina, the state Department of Motor Vehicles sells registration data to marketing companies that use phone and mail marketing to scare car owners into purchasing potentially unnecessary products. The state and Federal government regulates our sales activities as consumer advocacy, but there is little regulation or protection regarding these predatory “warranty” companies.
These “aftermarket” warranty companies often slow down the repair process by delaying approval, sending 3rd party vendors out, and require tear down before approval, often sending used, unreliable parts for us to install, and only covering portions of the repairs. This all can make for a less-than-optimal repair experience.
The allure of these products is often that you can make monthly installment payments for these coverages. The downside is that the payments continue for years and seemingly never end. If you discontinue the payments, you lose all the money you’ve paid up to that point.
“I tell them that if they want a good warranty, I can send them to our finance manager, who will offer them a quality product.”
We offer extended service plans for most all vehicles we sell, customized to the vehicles we sell, and customized to your needs at the time of purchase. They can be included in your loan payments.
We can also offer 12-18 month payment plans at no interest, 0%, for these plans, separate from your vehicle loan. If you pay cash or bring outside financing, that also applies.
We also offer these same service plans during your vehicle ownership.
All new car franchise dealers offer products branded by their new car manufacturer, and or one of these major companies: JM&A, Zurich, Easy Care, AUL. They are large reputable companies that often back or administer the extended service products for the manufacturer as well.
ASK US ABOUT YOUR CURRENT COVERAGE AND WHAT WE CAN DO TO EXTEND THAT PEACE OF MIND.