Not allowed by law to extend an "extended warranty"????

[VIPERCANE]

Not allowed by law to extend an \"extended warranty\"????

Just got an email from Bill Pemberton stating that once you have an extended warranty on your car, you are not able to extend it for the second time due to Moss-Magnuson act. Yuck!!! My extended warranty expires 6/30/04 and I would like to extend that baby but..........Anybody got around this???? Please advise.
Thanks.

Bindy

 

[0260in3]

Re: Not allowed by law to extend an \"extended warranty\"????

I'm not familiar with the Moss-Magnuson act but maybe it only applies to extended factory warranties. Maybe an extended warranty from another source would be allowed. There are companies that deal in extended warranties that seem to always send me a brochure when my factory warranty is getting ready to expire. I actually bought one of these policies for my Stealth Twin Turbo about 10 years ago. I just remember it was very difficult to file a claim under it as their rep had to approve everything. The company ended up canceling my policy when they found out my car had been in an accident before I purchased it. Did Bill provide any details about the Moss-Magnuson act?

 

[Wild Bill]

Re: Not allowed by law to extend an

Exactly: (qoute taken from http://www.ftc.gov/bcp/conline/pubs/buspubs/warranty.htm#offering )

"However, there are differences between warranties and service contracts.

Warranties come with a product and are included in the purchase price. In the language of the Act, warranties are "part of the basis of the bargain" Service contracts, on the other hand, are agreements that are separate from the contract or sale of the product. They are separate either because they are made some time after the sale of the product, or because they cost the customer a fee beyond the purchase price of the product"


Service contracts we should still be able to purchase but warranties only come with new cars.

That's my uptake but I'm sure some of our lawyers out their will know more.

B

 

[VIPERCANE]

Re: Not allowed by law to extend an

Here is Bill's email to me:

"You can not legally extend a service contract per the Moss-Magnuson Act. This law prohibits extending a second time, a contract that is intended to extend an original warranty. This protects the Insurance industry and allows them to have competitive rates on the initial contract - with reliable actuarial tables. Sorry I ca not help, but I do appreciate you thinking of us"

Okay, decipher away folks!!!!

Bindy

 

[MR VENOM]

Re: Not allowed by law to extend an

C'mon dude. You have over 100 posts. Don't tell me you haven't heard of the "wizard". If not, keep asking all of us who "really" won't know the answer. Hint: he just had a "big" BBQ bash!

 

[garolittle]

Re: Not allowed by law to extend an

Why not extend it 3 or 4 times? I think the Dealerships have to draw the line somewhere. Otherwise, people could purchase exended warranties for 10 plus years past the "In-Service" date.

 

[JWVIPER]

Re: Not allowed by law to extend an

Why not extend it 3 or 4 times? I think the Dealerships have to draw the line somewhere. Otherwise, people could purchase exended warranties for 10 plus years past the "In-Service" date.

I actually have 3 yrs left on my extended 95 wty and I would do it again if I could.

 

[VIPERCANE]

Re: Not allowed by law to extend an

MRVENOM, I did contact Chuck and he basically said the same thing. Not able to do so.



Bindy

 

[slaughterj]

Re: Not allowed by law to extend an

Exactly: (qoute taken from http://www.ftc.gov/bcp/conline/pubs/buspubs/warranty.htm#offering )

"However, there are differences between warranties and service contracts.

Warranties come with a product and are included in the purchase price. In the language of the Act, warranties are "part of the basis of the bargain" Service contracts, on the other hand, are agreements that are separate from the contract or sale of the product. They are separate either because they are made some time after the sale of the product, or because they cost the customer a fee beyond the purchase price of the product"


Service contracts we should still be able to purchase but warranties only come with new cars.

That's my uptake but I'm sure some of our lawyers out their will know more.

B

Interesting. I read nothing on that link that would not allow for additional service contracts to be sold, BUT this link is just a description of aspects of the act, and not the text of it itself. I would say that the link indicates our "extended warranties" to be service contracts though, but again, this is a description and not the law.

 

[Ron]

Re: Not allowed by law to extend an

A 90 year old guy can buy life insurance, just might cost him $1.00 less than the death benefit.

Not to challenge Bill, but why would an insurance company need "protection" from some consumer that wanted to spend his money on extending an extension? Nobody is saying that there is a cap on what they can charge. They just have to calculate potential liability and amortize it plus profit. You can buy appliance insurance as long as you want and end up paying 3x the original value of the appliance. I know someone that did!

More likely D/C figured out they can make more money servicing the car after 7 years of use rather than selling warranty extensions.

 

[VIPERCANE]

Re: Not allowed by law to extend an

My local dealer, Orlando Dodge called me today and told me that I could buy an Added Care + contract, basically a used car service contract.........price....$4095 (51 months 63k miles). Got to be f**king kidding me.

 

[JWVIPER]

Re: Not allowed by law to extend an

My local dealer, Orlando Dodge called me today and told me that I could buy an Added Care + contract, basically a used car service contract.........price....$4095 (51 months 63k miles). Got to be f**king kidding me.

Must be that FLA heat getting to him down there !!!

 

[RavenFan_94]

Re: Not allowed by law to extend an

Bindy,

My service plan was 4 years and I paid a little more than half of that on my 96