Manufacturers extended warranties versus Alternative warranties

Discussion in 'General' started by kelmac, Jul 29, 2018.

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  1. kelmac

    kelmac New Member


    I posted a similar question in the Mitsubishi Outlander PHEV forum but I realized it probably applies to other models as well and I might get a response here more quickly. I've never trusted after market warranties for used cars. However, in this case I'm buying a new car. I wanted to buy the extended manufacturers warranty since I plan on keeping the car a long time but the dealer doesn't sell them. They sell Fidelity JMA warranties. They suggest it's better since non Mitsubishi dealers will honor them.

    I was tempted to buy since it wasn't that much more than the best price I found on a Mitsubishi warranty until the finance manager mentioned that neither one covers hybrid components.

    If there is anyone from the U.S. here that is familiar with the EV/PHEV extended warranties and what they usually cover I would appreciate your input. Also, I'd appreciate any input on non manufacturer extended warranties. Is the coverage typically comparable as good? Additionally, I'm concerned that the coverage is only as good as the reputation of the company backing it. Has anyone heard of Fidelity JMA?

    I can certainly go to another local dealer and see if they can match the lowest price I've found on a Mitsubishi warranty but if there is another warranty that would offer good coverage on the hybrid components perhaps that would be the better way to go.


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  3. David Green

    David Green Well-Known Member

    As I understand most manufacturers do not underwrite the extended warranties themselves, but they are underwritten by an insurance company. Whatever you choose to purchase, make sure you read and understand the fine print so you do not get hoodwinked when it comes time for a claim.
  4. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    Unfortunately I can't offer any advice based on personal experience.

    Just as a common sense suggestion, visit whatever dealership you would plan to use for service, and ask a service supervisor there if they would honor that type of extended warranty, and what would be covered -- and what wouldn't, such as the hybrid components you mentioned. Print off a copy of whatever contract or agreement you're looking at and take it along, so you can leave it with him if he needs time to check it out.

    Anyway, that's what I'd do if it was me.

    And don't forget, Consumer Reports says that extended warranties generally are not worth the price. Of course, that's always a gamble. Odds are, you'll pay more for the extended warranty than you'll ever get service out of it. But it's also possible you might wind up wishing you had bought it. As I said: It's a gamble. Play the odds and don't spend the money, as CR suggests; or play it safe and spend the extra money, as whoever is selling the extended warranty hopes you will do.

  5. kelmac

    kelmac New Member

    I agree that extended warranties are a big gamble if you pay full price. Based on my limited experience if you do your homework you can get it for half of full MSRP plus $100 bucks or so; and then you're doing ok. Of course you can't just tell the finance manager to divide by two and add $100. You have to call around. That's exactly what I did on the Mitsubishi warranty. I got two quotes over the phone for what is probably the full MSRP of $2,500. The second lowest quote I got was about $1,700 and the lowest was about $1,400.

    So my problem at this point isn't the pricing on the Mitsu warranty, but rather the scope of coverage. Even half price plus $100 is too much if there is broader coverage, including hybrid components, from a reputable --and well financed-- company for about the same price, or maybe a little more.

    Fortunately I don't have to decide right away. But sooner is better than later so I don't forget about it. So I'm hoping a little more online research will point me in the right direction. Otherwise I'm going to have to dig a little deeper and perhaps contact the warranty/insurance company directly and request a copy of the actual policies (not just the glossy brochure with the coverage summary) so I can do a side by side comparison; and then find out exactly what company is backing the non-Mitsu warranty. Just because a company named Fidelity is on the brochure doesn't mean it is the financial institution I'm somewhat familiar with.

    Anywho, if anyone has any more thoughts on this, I'm listening.
  6. David Green

    David Green Well-Known Member

    Finance managers make a living by selling extended warranties, GAP insurance, and surface protection plans, remember that, and negotiate hard... They will usually quickly drop the price in half, keep pushing, when they start getting very grumpy and combative you know you are getting close to their lowest and fairest price.

    I usually advise my friends buying cars to say NO to everything offered in the finance office, and take your chances. Taking their offers is like buying insurance on a dealer Ace in blackjack, Its a sucker bet, but sometimes it works out... I am an odds guy... :)~
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  8. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    You're obviously taking the time and trouble to make an informed decision, and that's the important thing. Good luck, whatever you decide!
  9. kelmac

    kelmac New Member

    I don't know if it makes a difference or not but I probably should have mentioned that I'm in the U.S. The lowest price of $1,400 that I found doesn't seem unreasonable. I'm happy to pay it given how much use I got from an extended warranty I bought for a used 1997 Subaru I bought. It wound up paying for a short engine block (among other things). I was young and naive then and it never would have occured to me to shop around on price for the warranty but that full price warrranty paid for itself several times over.

    Having said that, I'm concerned that the Mitsu warranty probably doesn't cover hybrid components. I've done a little research on Fidelity, which doesn't seem to have anything to do with the large financial institution; additionally they seem to have a fair amount of complaints.

    My husband didn't like the Mitsu Finance Manager so I have been in touch with the Sales Manager who has worked closely with us and has been about as decent as I can reasonably hope. He's going to see if he can get a copy of the Mitsu sales brochure to confirm whether or not it covers hybrid parts.

    Thanks for the feedback,

  10. kelmac

    kelmac New Member

    Thanks for the encouragement.
  11. David Green

    David Green Well-Known Member

    Good Luck, I hope you are able to get a great warranty at a great price, and even more hopeful you never have to use it.
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