Shift to Park but already in Park

I've been in the automotive business for 30 years, (retired now) and some of those years were spent selling VSC warranties to dealers that offer them to you, the customer. All VSC warranties are not the same. It would help if you always read your warranty before the purchase. Many VSCs DO NOT COVER wiring harnesses or harnesses in general, so it's a good idea to familiarize yourself with the warranty. These warranties can exclude O Rings, gaskets, and replacement oils. Just because you were sold an extended service contract does not mean everything is covered. I don't know why people buy the warranty, then think everything is covered. Most likely because the sales or finance person said it's "bumper to bumper", or everything is covered, no need to worry... BS. I have explained in detail on this forum the two types of VSCs sold through the finance dept., or sold through an aftermarket vendor that you may have found outside of the dealer. The warranties are the same wherever you purchase them. There are new car VSCs, and there are used car VSCs. Neither one covers 100%. Run a search for my post here on it.

A new car VSC is called an "Exclusionary" warranty. This extended warranty covers everything the factory covers, except for a small list of wearable items like... belts, hoses, bulbs, tires, etc... Even this warranty can exclude wiring harnesses. It would cover a failure of a major component like a headlight assembly, water pump, AC compressor, etc., but may exclude the wiring harness to said headlight assembly. You really need to have the Finance Producer that is booking your deal go over the contract so you know what's covered, and what's not. I find much of the time the Finance Producer doesn't even know the coverage, so good luck. Always look through the Exclusions/Exceptions part of the contract before buying. Ask your finance person questions while you go over it. Don't let them rush you and take your time.

A used car VSC is called "Named Component" and is typically sold on a car with a number of miles on it, usually, the qualifier is around 40 to 50k on the odometer. This VSC covers only a list of named components that are designated by the "PLATINUM - GOLD - BRONZE tiered coverages. Each tier covers more, or fewer, items. Be sure to read the listed components covered on this VSC. There is a reason it's called Named Component. If the car has any factory warranty left on it, then you're covered by that first, and if you purchased an extended warranty on that certified preowned car, that VSC will kick in after your factory warranty has termed out.

This applies to a new car VSC, too. If you have a failure within the factory warranty term, your factory warranty covers it, not your VSC. This is why it's not the best idea to purchase a VSC on a new car until you're closer to the factory warranty terming out. A new car VSC won't ever be used until 3 to 4 years down the road, or if you reach your mileage stipulation first. So, when you purchase and finance a VSC contract on a new car, you are paying interest on those first 3 to 4 years of that cost but will never use it. If you have a 7-year VSC on a new car, you will only use 3 to 4 years of that warranty on the backend of your note, but you will pay for the whole 7 years through the interest on payment from the beginning. Not a good purchase. Try not to finance a VSC. Pay cash if you can. The best kind of VSC is an "Add On miles and Years" warranty. That means if your car has a factory warranty of 4 Years/50k, and you purchased a VSC that was 7-year/100k Add On miles and Years warranty, your coverage goes to 11 Years/150k. However, the factory warranty will cover the first 4/50, then the VSC will kick in after the factory expires.

Ask the right questions if you can so you know what you're getting. Oh, by the way, the dealer cost on a VSC is very low. The highest profit product in the finance dept. is a VSC. Back in 2016, I purchased a new Nissan Maxima SR. The finance director at this dealership was a very good friend of mine. I told my finance producer booking my deal I wanted a 7-year/100k VSC on the car because of that piece of crap CVT tranny. He was trying to sell it to me for shy over 3k. I told him that I was in the business and I knew what his cost was on the VSC, and there was no way I was paying that price. I asked him to get his director, my good friend, so I could speak with him. I told my friend I wasn't paying 3k for the warranty, but I did want to buy it from him. I could've gone anywhere outside the dealer to buy one, but I wanted him to make the money, and I knew the top three insurance companies that are used in the dealer market for VSCs. They used one of them. Typically, you can add a new car VSC within the first 30k miles (with inspection and certification). After that, it becomes a used car VSC, Named Component", and the car would then need to be certified with an expectation to add that warranty. If anything's broken on the car, you would have to fix it before you could add it, and of course, you won't be financing it. I purchased my VSC outside of the note. My friend knew I was dealer savvy, so he asked me what I wanted to pay for it. He showed me his cost sheet for the product. His cost was around $1100, at that time. I told him I didn't mind him making a profit, but not $1900.00. He said I'll sell it to you for $1100.00... cost. I purchased the warranty. The dealer cost will flux depending on whether it's Domestic, Asian, European, or Exotic. As a matter of fact, Exotics are typically excluded from most VSCs. Too expensive to fix and parts acquisitions can be a nightmare.

I was able to do this because of who I knew in the market, so I know not everyone can have that luxury. The main takeaway here is this, don't finance the VSC, and keep in mind, this is the heaviest profit product in the finance dept., and the VSCs are always overpriced. On top of the top-heavy cost, some warranties are underwritten by horrible providers and can be difficult to exercise. Unfortunately, you'll never know how difficult it could be until you exercise the warranty.

Anyway, just wanted to post this again so those who don't know, now know.