I purchased a brand new 09 HHR SS last month from a dealer here in Maryland. When asked if I wanted an extended warranty, I said yes. I assumed that because I was at a Chevy (GM) dealership that I was getting a GM extended warranty but that was far from the case. What I got was an extended warranty that was not a real GM warranty but was from an outside provider. What I later learned is that an actual GM extended warranty for an additional year and more mileage coverage and even a zero deductible was almost 800.00 dollars less. The people at GM said that because they are independently owned they can do what they want and I believe that they sell these non GM warrantees which are more money than an real GM warranty because they get a kick-back from the non GM warranty companies. So I just want to let anyone that might be buying a new HHR or any GM vehicle to make sure that if you ask for an extended warranty, that it is in fact a GM extended warranty. I don't want to see this happen to anyone else. And if you are at a GM dealership and they don't offer you a GM warranty, I would steer clear of that dealership !

 

You can always cancel the warranty and get the GM. I would contact their General Manager.

 

It is just like getting financing through a dealership. The dealer gets a kickback from the lending institution. Earlier this year I was "helping" someone buy a car and they were going to finance it. The initial rate was a 12% loan, too much. The dealer hemmed and hawed and came back to 9%, too much, they had their finance person tell us that they could match any lending institution and made lots of call and got it down to 6%, the best that they could do. It was late in the day and nothing was signed. The next day we went to the credit union and got a car loan for 4%. We went back to the dealer and they said they could have gotten that rate, and we said we were told the best rate was 6%. We then got an additional $3000 for the trade in, as that too was a low amount, but it was a cash deal for the dealer.

We must have spent four hours haggling, but you need to walk out the door. Those extended warrenties are a rip off unless you get it thrown in with the deal. If you have any problem with a new car, if it doesn't hapen within the standard warrent period, it shouldn't happen at all.

At $800/yr and the car standard warrenty is 3 years thats $2400 you've spent and there aren't too many failures that $2400 won't cover.

 

Same thing happened to me.. I contacted the District Mgr and he had the dealership
refund the cash. I got the GMPP for $300.00 less, with no deductible....

The aftermarket warranty required me to take it to the original dealer to avoid
a deductible.

The dealer finance people expressed SHOCK that the GMPP was cheaper.....BS...it's all
about kickbacks...

We gotta be REAL carefull out there....

 

Your betting the warranty company that you'll have troubles costing more than the warranty. They are betting you that you won't have problems. Put the $1200, or what ever it is, in the bank. At some point you'll either have enough to cover a major repair, or you'll have some "rainy day" money. And you won't have to hassle with fighting a claim.

 

To each, his own....

 

"It is important to note however that General Motor's dealerships are independent businesses, and as such, are responsible for the day-to-day operations of their business." So I have a brand new 09 GM Chevy HHR SS, purchased from a GM dealership with a Toyota (5 year/60,000 mile/50.00 deductible for almost 2900.00) warranty. My quess is that if you want a GM extended warranty you would have to go to a Toyota dealership. Anyone in the process of purchasing a new vehicle from a GM dealership should be aware of this pratice and if they will not give you a GM extended warrany then I would recommend going to another dealership that will !

 

Another thing everyone should realize is that EVERTHING is negotiable when you are in the finance office. Also READ what you sign. You can only blame yourself if you don't get what you THOUGHT you were getting.

If you do what I state above in EVERY transaction you conduct (refridgerators, dishwashers, houses, etc..), there won't be any remorse later on.

 

Good advice from ChevyMgr!!

But realize that extended warranties are very like any kind of insurance, on anything. These companies make a PROFIT on any and all of them, so the odds are in their favor. Someone else stated that you would be better off in the long run by putting some money aside and taking your chances. Cheaper for you in the long run.

That said, there will be circumstances where some will say that they benefitted, but we are talking about the overall averages here.

 

I agree in principle with all that has been discussed. That being said, Chevy Mgr is correct, I should have paid better attention....my bad.
I MUST have a car every day. No car....no income. The GMPP warranty provides me with
one less thing to worry about...for me, that has a value all it's own, above and beyond the costs.