Quote:
Originally Posted by Lotusmotion
Your best protection against dealer gouging is knowing your car and choosing who you do business with. Unlike risk from an auto accident, that is totally in your control.
Many car owners elect to not want to control that risk by passing it to a third party via an extended auto warranty.
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I had a friend with a 911 a few years ago that took the car to the Porsche dealer because his transmission was slipping when he shifted. Now we as car guys all know that probably means you just need a new clutch.
The dealer told him he needed a new transmission. It was going to be about $6,000.
When he pulled out his extended warranty, the service manager said they were going to need to look the car over again. He said they made a mistake and the new bill came back for a new clutch which was about $700.
My friend didn't realise he was almost screwed. He just thought they made a little mistake. When he told me this I explained to him that had they tried to bill the warranty company for a new transmission, they would have wanted proof that it was damaged. They knew it wasn't, they were just trying to rape him.
So even though he still had to pay for the repair, the extended warranty forced the dealer to be "honest".