That’s exactly the point - aftermarket warranty are in business of making money, and the most “efficient” way to achieve that goal is to deny claims. The OEM warranty, on the other hand, is in business of maintaining brand loyalty and, therefore, is A LOT more likely to pay the claim. In many cases even when it doesn’t have to. Moreover, the worse the product - the more generous extended warranty is. Among those I worked for, chrysler was by far the best. I mean warranty, not product.
If you want a quality add-on at a reasonable price, you are better off getting an aftermarket unit installed by a specialized shop rather than a dealership. Actually, dealerships outsource this work to the very same shop and charge a nice premium/markup for “service”.
When I bought my first 4Runner in 2004, the dealer installed an AM alarm without even telling me about it until I was ready to drive off the lot (at Midnight!). They demanded $500 for it, and at that point, I was too exhausted by their games to fight. I assume that for that kind of money - no matter how overpriced - it would be of at least decent quality. A couple of years later, my truck was towed by mistake, and the alarm did not go off. I raised hell, and the dealer removed their alarm and issued a refund. I ended up buying an aftermarket alarm with remote start for $250 and had it installed by a specialized shop for another $250. It’s been flawless over the last 16 years. Well, almost - they didn’t connect it to the right rear door so it’s always shown as open but it the least potential problem, and I can live with that.
With my other (2018) 4Runner, I did the same thing except that I opted for a “brand name” (viper). It works but the old one is way better.
Re extended warranty: you are 100% correct - third party outfits pay a lot better commissions. Instead of paying claims.
Either OEM or aftermarket warranty - I’ll NEVER buy anyone.
Vehicles are least reliable it’s first 30k miles due to possible manufacturing problems - and then AFTER 150k miles due to wear. The time period of these extended warranties is when the vehicle is MOST reliable. It’s a very very expensive insurance policy no matter who sells it.
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Absolutely!
I don’t buy one either. But I only buy Toyotas so I don’t need it. However, if you buy, let’s say, a rover or chrysler - don’t know why anyone would do that but many do - you BETTER have it.