Warranty Through Credit Union

[nachodaddy]

I chose to finance my car through my credit union, and rather than get the for 5 year/60k warranty, I was able to purchase gap insurance and a 5 year or 125k warranty through my credit union. I was shocked that this was an option. Do any of you have experience with warranties through your banks rather than ford?

Edit: I forgot to mention the warranty was under $1,500 USD. Felt like the steal of the century compared to what Ford offers.

 

[Maihyo]

Wow thats a hell of a warranty! I've always had warranties through the dealerships so unfortunately I cant put any info in on that. It's actually the first I've heard of it. I can say gap insurance saved my wallet during my first and only accident on a previous car. It covered the extra 4.5k my insurance wasn't going to pay.

 

[METZGER]

Yea mine was only 3 years. As soon as 3 years was up I started having problems.

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[nachodaddy]

Yea mine was only 3 years. As soon as 3 years was up I started having problems.

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What problems?

 

[thedraque]

to my knowledge you have to pay for repairs out of pocket and then submit a claim to be reimbursed with those type of warranties

 

[Blown]

^^this and doesn’t cover every part

And GAP usually requires some sort of deductible.. GAP through dealerships can be more expensive but also $0 deductible

 

[jmrtsus]

Gap and third party warranties are another source of big income for banks, credit unions and new car dealers. On top of the kickback $$ they get for selling it to you, YOU pay finance charges to them for YEARS on Service Agreements you can't use for 3 or 5 years and GAP insurance for a brief time period. All you really need is to pay the additional insurance for replacement cost coverage for the first year. The Ford Protect prices are negotiable and will go down seriously close to the end of your warranty or hard bargaining. Then you can make interest free payments with Ford, dealer forgot to tell you that didn't they! Third party service agreements seldom come up to the Ford Protect levels and are not like you can pull into a Ford Dealer and walk away without paying dearly or getting pre approval. Our car has a reputation of excellent reliability with the exception of the automatic transmission being junk in the other Fiesta's. My car recently went out of the 3 Year warranty period. The drive train is still warranted for 5 years so I have no reason to purchase one. But if I had a reason I would not do the third party thing. So for 50K miles the expensive parts are covered. Parts are cheap on our cars so I just cannot justify any service agreement at all for this car. To each their own, Caveat Emptor!

 

[Ford ST]

I will disagree about it being a big profit for credit unions they are in the business for their members. Credit unions are owned by it's members.

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[jmrtsus]

Credit Unions still need to generate income to stay in business, this is just another way to do so by getting a fee for selling it and the interest on financing it. So call it a "big income generator" for them if you like.