Caveat Emptor
While waiting for my
car to be brought around to the customer pick-up area not too long
ago, I couldn't help hut hear an angry young customer venting her
rage on the auto dealer service manager.
"You told me
yesterday that my car would be ready!" she screamed. “There
it sits, and I can't have it? I wish you would tell why! I'm
late for work," she wailed.
The service manager
tried to explain to her that for some reason, the company she had
purchased her extended warranty from had not sent the payment, even
though the previous evening they had approved the work by fax. The
dealers hands were tied. They could not release the car without the
promised payment.
Apparently, this
particular extended warranty company was notorious for not paying the
dealer for work accomplished. regardless of what the policy owner
thought. The young woman was livid, and soon her mother arrived to
pay the bill with her charge card. The mother was not happy either,
and did her best to make life miserable for the people at the
dealership. The manager told her she would be reimbursed as soon as
the warranty company paid for the extended warranty work.
The young woman
picked up her car and left in a huff. I went over to the service
manager to find out . what happened, as customer service is
always a sore point with me.
"We offered her
a car to use while we waited on the warranty company to pay, but that
wasn't what she wanted," explained the manager. I asked why the
insurance company hadn't paid.
“Don't use the word 'insurance'
company," said the manager. The companies
that sell after market extended warranties most certainly want to
avoid being called insurance companies! If they were insurance
companies, they would have to operate under the state laws governing
insurance."
That in itself was
an eye opener. I asked, "Why doesn't the company pay for the
work? Wasn't it covered by the extended warranty?"
"Oh, yes! The
extended warranty supposedly covered the work, they just don't like
to pay!" was the answer. Apparently, there are several extended
auto warranty firms with bad names and reputations as far as
responsive payment for repairing or replacing parts that fail while
under the extended warranty.
The consumer pays
extra for these extended warranties, and only a few are offered by
the automobile manufacturers themselves. If the warranty company
doesn't pay the bill. the car owner is stuck paying out of his or her
own pocket. I asked the service manager if the extended warranty that
refused to pay was offered by that dealership.
"No, we offer a
program, but it is a company extended warranty. The one the young
lady had is one she bought after she bought the car," answered
the manager. "We get these all the time and we explain to the
customer about how the payment for service works."
Check with you
dealership before buying an extended warranty that isn't from the
dealer. You may be saving yourself grief later. Like when you're late
for work.
George Mindling
©
2001
