What You Need to Know About Your After-Market Used Car Warranty
Many Used Car Warranty Holders Are Finding Themselves Out of Luck
How much is that used car warranty you're holding worth? Might not be worth the paper it's written on if you're like many used car owners. If you've purchased a used car warranty, there are some things you need to know.
Ultimate Warranty Isn't So "Ultimate"
It's a car owner's worst nightmare. The day of my wife's birthday her car breaks down and from that point on the following days are all downhill.
First, we call the "roadside assistance" number for the roadside assistance package that came with her used car warranty. We purchased this warranty for about $1,600 when we purchased her car. We find out that while the used car warranty itself was good for 2 years, the roadside assistance was good for only a year. It has been literally one year and six days that we owned the car, so we're six days past the point of roadside assistance. Thank you AAA for coming to the rescue on this one.
So then we get the car towed to the garage (no thanks to Ultimate Warranty) and the garage (who, thank God, was filled with competent and friendly people) calls the warranty company to find out about coverage. Ultimate Warranty tells the repair shop that I must pay for the repairs and they'll reimburse me. I decide to call the warranty place because that was not my understanding of how it works.
And The Ball Drops
This, my friends, is when the story gets bad for those of us who have purchased a warranty through Ultimate Warranty Corp. They don't have money to pay the claims and the company has been put into receivership. The receivership was supposed to have gone to court to approve a plan to pay existing and future claims at the end of last month. That didn't happen and no one is saying anything about it ever happening. In fact, when I call the customer service number for my warranty, they say claims probably won't be paid at all.
This means we're out of luck. The thousands spent on warranties is money out the window. If you purchased a used car warranty from Ultimate Warranty, I suggest you contact the dealer who sold it to you. They profited from the sale so should take some of the responsibility.