Help hashing out new car contract lingo -

[Star*]

Okay someone here please help me understand this for someone - (oh and I wish it were me) but I said I may know someone - meaning YOU all) that could explain it so I could explain it and why or why NOT someone would want this coverage.

Car purchased - used car - approx. 27k miles.

Car window sticker thing says XXX Warranty - still has factory warranty left. Car year 2008 - Have no idea what factory warranty means - what's left.....how to find out. Dealer unsure too. (okay ......)

Now sales guy sells person GAP insurance. Near as I can figure - this is incase car is totaled and either this person is the cause or other person is under insured. Car will be replaced. ????

Sales guy also sells something called Coast Guard Vehicle Service Contract for around $2,000.00 that is supposed to replace transmission, engine, etc. Doesn't replace batteries brakes paint etc. this is worked into the payment, but it also was a "sell" because it has ROAD SIDE assistance reimbursement and "Rental if necessary for repairs" reimbursement.

Mk - Don't you have AAA? - Answer yes...had it for years.....SHould I cancel? ........I'm thikning you should cancel the coastal - the car is a Kia.......looks and runs great you're the 2nd owner..but then again..if the motor goes kaput ------can you afford more than $2,000 to replace that or the tranny? Answer no.....so I'm not sure how to advise on this -

I personally have never had a new or newer car. Don't want to see anyone get ripped off - but I think the GAP (guaranteed Asset protection ) is a good thing to have - I mean replacement car for $695.00 Yeah - good deal.....but the other thing? Is that a gimick?

Can anyone help me help her?

Thank you big time.

 

[keista]

When I bought my newest used car years ago, GAP insurance was NOT an option. They just put it on. It did not replace the car, but paid off the difference between what insurance paid and the balance of the loan, if the car were to get totaled. Car loans are almost always 'upside down' and the GAP protects you for that. YES, I think it's worth it even though we could have used it but didnt' because we rolled the car loan into our home refinance 15 months BEFORE it was totaled. GRRRRRRRRRRRRR Yes, i would still get it again without batting an eyelash.

Coast Guard Vehicle Service Contract for around $2,000.00 that is supposed to replace transmission, engine, etc.

Ah, the remaining factory warranty is supposed to do that. Kia warranties are usually 10 year, 100,000 mile, so there is plenty of warranty left on this vehicle. AAA even at the most premium membership won't hit the 2K mark for 16 years. Stick with AAA and bag the Coast Guard stuff.

 

[Star*]

Do you have any idea HOW one goes about getting a copy of the factory warranty on said Kia? Dealer/salesman played very dumb dumb when it came to getting around to "Well what is left on factory warranty? Do you have any information on former owners would they know? etc..etc.? Can KIA be contacted direct for warranty per se in writing? or is there such a thing?

Thank you keista for the info on the GAP ins. - So sorry to hear you had an accident in your home where a car was totaled. I hope everyone was okay. Recently my sister broke her neck and GAP insurance paid for a new car for her. FOUR months off the lot - she was in another total accident but the insurance has been doing everything possible to "FIX" her brand new 2011 Focus...and I would be ashamed to call what they did "quality job 1" - Matter of fact My thought? Take pictures as I was smiling and then say after my look see? Okay well I'm leavning this here - going to Kinkos....and having ALL these blown up to 24x36 and handing them to your competition.....IF when I get back everything isn't put back in TIP top shape....that is. HOwever she is the genius and I....am just a ninny.....she chose to blow a gasket....act like a baboons patootie and they still haven't gotten it correct, and now probably won't. No one takes MY advice - ever. I however have lived long enough to take a looksee at everyones advice.

I was just thinking the Coastal was a rip off ----I just don't want to leave her without a paper stating the warranty on teh Kia is in writing. WIth the coastal - there is sometihing in writing.

 

[keista]

Yes, you should be able to contact Kia directly. Should be roughly 7 years or 73,000 miles left. It is whatever comes up first. The sales guy is purposely playing dumb about it because he wants to sell the Coast Guard cr*p. Have your friend double check with Kia, but I *think* the warranties just transfer automatically.

 

[Star*]

Ahhhh thank you Oh wise and thrifty keista......for your knowledge....I shall tell her about your incredible brain and quick reply!

Thank you, (shalom) Thank you (shalom), Thank you....Shabooooooooody!

 

[DammitJanet]

I have never heard of Coastal. My ford came with an automatic 75k roadside assistance but it didnt pay for tranny or anything like that. My warranty would have covered that but it was only for 3 years or 36K Ford doesnt have good warranties. I didnt bother to upgrade either because...well I just didnt. Has paid off, I am almost at 100k in 4 years and my warranty would be long gone. Fords are tough little cars though. Knock on wood.

 

[AnnieO]

Warranty would still be good even if it was only a 5-year... And the GAP insurance is a definite.

As for the other thing? Salesman is trying to make a commission. If the warranty's still good, you do not need it.

 

[keista]

You're very welcome Star.

I just wanted to clarify that the accident was not in my home. When we refinanced the home, we included the car loan - this made our GAP go away. Then 15 months later husband and his stepson totaled the car. Guess who is STILL paying for that car via mortgage? ME.

 

[CrazyinVA]

Re GAP insurance: I got caught in the upside down totalled car debacle several years ago, and ended up having to roll a few thousand dollars of the balance left on the loan on my totalled car, into a loan on another car. It was very frustrating because I only had 1 car, and the insurance of the lady who hit me only covered 5 days of rental car coverage. Of course, they waited to declare my car a total loss 1 day before the rental car coverage ran out, so I had to scramble to get another car AND find someone willing to roll the balance of the old loan into a new one. I was so glad when I paid that loan off. In hindsight, I suppose I could have sued the woman who hit me for the difference, but at the time I didn't want to deal with it or hire an attorney who'd just take part of the money anyway. I just needed a car.

My next car, I bought GAP insurance. I never want to be caught in that trap again. Luckily I haven't had to use it.

 

[Star*]

KIA said the power train warranty ONLY stays 100K or life of the car WITH THE new original owner. ONLY.

There is a very VERY limited and it is ALL subject to interpretation via dealer and KIA - 60K/ 5 year limited warranty still on the car for VERY LIMITED things (nothing included in power train) that leaves her 2 years or 30K more miles gratis from Kia. Does NOT include labor, or replacement vehicle while car is in the shop being repaired.

THere IS (oh boy) a 12 year warranty on seat belts! (emphasized that)

And a Five year warranty on paint! But not against chips dings etc. (again interpretation) dealer/KIA.

SO.....our thought was.....for 1900.00.......should the engine go, the transmission go-----in the next six years? It's covered bumper to bumper. Rental coverage is covered. I understand that roadside assistance doubled is redundant - but it's included - so not much to do about that - but IF ---IF the engine were to go that is THOUSANDS...if the trany were to go - again? Thousands.

Our concern was - HOW do they determine by their standards that it was mechanical and not owner.....I am advising her to get rid of it because I've never heard of ANY of this stuff paying off......EVER. Farcey land for anyone I've ever heard have it. If the car were to take a dive? Bust a rod, throw a piston - whatever -----there would be no recouping the loss. IT would be a complte loss. Know what I mean??

I am advising her to keep the GAP for sure. THAT seems a small price to pay and well worth it.

I guess I'm just lookign for someone to speak up and say OH I had that COastal or Extra replacement engine/tranny insurance and BOY am I glad I did - it fixed everything-----for 2k....Know what I mean??

 

[keista]

I WISH I had that on my van! GRRRRRRRRRRR I actually opted to pay 1K more for a rebuilt tranny because it had a 3 yr 100,000 nationwide transferable warrantyas opposed to a used one with 3 month warranty which I would NEVER use since the repair was done FAR from home.. Don't know if it will be worth it ultimately, but I figured I was going into deep debt already, I might as well go for broke.

I find it odd that the warranty is non transferable, but it is their warranty, they can do what they want.

Well, since the powertrain warranty does NOT transfer, then it's an insurance gamble. Are your friends getting a GREAT deal on the car? Can they afford the increase in payment this would create? I'm now leaning more to the side of "go for it". If the A/C or cooling system fail, those can get up to as much as 2k as well.

Give them all the info and tell them to "go with their gut".