Mechanical Warranty for Collector Cars Offered ????

[bill pritchett]

I just received an email from a company that is offering a mechanical warranty for collector cars.  To the best of my knowledge, I have not seen this before.  I have no idea of the cost, but it does cover cars from 1920.  Thought this was an interesting product offering.  Other than what is in the text body below, this is the only thing I have seen on it.  At least, it might be fun getting a robocall from someone offering a warranty on a 1932 Packard.  Unfortunately for EdinMass, it does not cover a 1917 White.

Bill 

 

[TerryB]

The price would have to be outrageous for them to make any money if they are going back to 1920.  1960s and up, maybe it could be done at a price that is affordable.  The other options would be a high deductible or a buyout clause.

[Matt Harwood]

One of these companies called and tried to get me to offer their warranties to my customers. I asked them, for example, if they would cover a hole in a 1935 Lincoln V12 block. There was a lot of silence, then, "I'll have to check with one of the specialists on that."

And they never called back. Imagine that.

[Brass is Best]

Probably only covers the car if it has a Chevy 350 and a Ford 9 inch rear end.

[joe_padavano]

As with all these mechanical coverage products, it's just an insurance policy, no different than extended warranties. Obviously cars with a large database of claim history and thus a quantifiable risk will have a lower premium than will cars with no claim history (and unobtanium parts). The issuing company is betting that you won't make a claim, and you're betting that you will. There is no free lunch.

 

And FYI, extended warranties are BIG moneymakers, which is why stores push them so hard. Do the math.

Edited September 23, 2020 by joe_padavano (see edit history)

[padgett]

The word is TANSTAAFL.

[TTR]

12 minutes ago, joe_padavano said:

... it's just an insurance policy, no different than extended warranties. Obviously cars with a large database of claim history and thus a quantifiable risk will have a lower premium than will cars with no claim history (and unobtanium parts). The issuing company is betting that you won't make a claim, and you're betting that you will. There is no free lunch.

 

And FYI, extended warranties are BIG moneymakers, which is why stores push them so hard. Do the math.

+ 1

[joe_padavano]

17 minutes ago, padgett said:

The word is TANSTAAFL.

 

Took me a minute... 😉

[alsancle]

I can't imagine a scenario where this would work for any car over 25 years old.  

 

Would love to see what a policy would cost for a H6C Hispano or 540k Mercedes.    The premium would need to be 10k a month for the company not to go bankrupt.

[Trulyvintage]

I visited the website & found the parent company @

 

https://www.ptacadmin.com

 

 

Jim

[Guest]

 I read their terms and conditions and it looks to me that they can substitute different parts , as available, whether they meet your approval or not.

 So much for the hole in Matt's Lincoln block. (350's are good replacements, as many people use them"

 Of course, I may be wrong, as I did not have my lawyer study the contract of term and conditions.

🤪🙈🙉🙊

[joe_padavano]

Their on-line application only accepts VINs with 17 characters, which is 1981 and newer...

[motoringicons]

Most prewar cars are sold with a 50/50 warranty. 50 feet or 50 minutes from the time or location of sale-whichever comes first.

 

If you are buying a legitimate old car and expect a warranty, you probably should change your hobby to stamp collecting.

 

 

Edited September 24, 2020 by motoringicons (see edit history)

[gossp]

I am simply not the guy to give my contact information (or time) to this or one of the other companies offering such a service... but am idly curious what the rates and actual agreement look like. I wonder if any of the well known collector car insurance companies have done the research as they have certainly been contacted. 

[Matt Harwood]

7 hours ago, motoringicons said:

Most prewar cars are sold with a 50/50 warranty. 50 feet or 50 minutes from the time or location of sale-whichever comes first.

 

If you are buying a legitimate old car and expect a warranty, you probably should change your hobby to stamp collecting.

 

I'm sure that you get guys buying old cars who ask about a warranty. I know I do. It is a bit of a head-scratcher.

 

I will often say to people, "Did I tell you about my guarantee?" They get all excited. "I guarantee it'll break sooner or later." That usually breaks the ice a bit and puts things in perspective in a humorous way that people understand.

[Steve_Mack_CT]

I worked for one of these firms back in the 80s when it was a huge cottage industry doing both new and late model cars as well as rust and protection from "acid rain".  Took no time at all to see what a scam it was then, and I got out of it (lots of fun insider car biz in a year's time, though).  It is no doubt a scam today.

Edited September 24, 2020 by Steve_Mack_CT (see edit history)

[TAKerry]

I would be curious as to their fine print and hearing from someone that has actually talked to a rep from the company as opposed to speculation.  Having said that I think of warranties on anything as to the worth of the paper they are written on.

[charlier]

12 hours ago, Roger Walling said:

 I read their terms and conditions and it looks to me that they can substitute different parts , as available, whether they meet your approval or not.

 

I have to wonder what happens if they cannot find a replacement part and there is no substitute then what? 

Does that fall under the "best effort" clause in their contract which means "we tried, sorry we could not find a replacement part and we're keeping your money, best of luck"?

 

That clause is used by many 3rd party companies that offer maintenance contracts on computer equipment that has reached end of life with the original manufacturer. "Best Effort" is their out to avoid legal problems.

 

Do they also state they will pay a specified amount/hour for labor to do the repair work? That usually means the owner is on the hook to pay the difference between what this company will pay per hour and the rate charged by the repair shop. This is why some auto repair shops I know will not do work under these types of agreements.

 

 

[Guest]

1 hour ago, Steve_Mack_CT said:

I worked for one of these firms back in the 80s when it was a huge cottage industry doing both new and late model cars as well as rust and protection from "acid rain".  Took no time at all to see what a scam it was then, and I got out of it (lots of fun insider car biz in a year's time, though).  It is no doubt a scam today.

 My brother bought that guarantee about rust proofing for his brand new 70's Ford.

 Several years down the road when it rusted out, the company refunded his money per the fine print in the contract. So, the company got to use his money for several years at no cost. (I repaired the rust damage and found absolutely no rust proofing in that area! They just drilled holes in the door jamb and installed those bright yellow plugs.)

Edited September 24, 2020 by Roger Walling (see edit history)

[joe_padavano]

9 hours ago, motoringicons said:

Most prewar cars are sold with a 50/50 warranty. 50 feet or 50 minutes from the time or location of sale-whichever comes first.

 

I'm pretty sure that's a 5/5 warranty. 😉

[padgett]

The only way to avoid rust is to live somewhere it isn't and garage everything (to avoid sun damage)

[Steve_Mack_CT]

Roger, representing my ex employer in small claims court a couple times helped motivate me to go sell something else for a living!!

[1957Birdman]

Of course there is the 12,000 miles or when you drive it out of the driveway, whichever comes first.

[Matt Harwood]

Interestingly enough, I just had a guy today offer to buy a car, but after we sent him the paperwork he E-mailed us a document he wanted us to sign that said, basically, "Harwood Motors guarantees this car is in perfect mechanical condition and has no issues that need repairs, and should it require repairs in the future, all such repairs will be paid for by Harwood Motors."

 

No, I'm not kidding. That's not how this works. At all.

[1957Birdman]

Tell him if he wants that kind of warranty he should go buy a Zippo lighter.

[padgett]

Chutzpah.

[JamesR]

Interesting. For that  to work, I'm guessing it would have to be a Lloyd's of London type of warranty coverage; highly specialized with world class experts involved in the process. And then priced accordingly for the customer (i.e., very expensive.) But advertisements that feature 2010-ish Mustangs, similar vintage Challengers and late model Jeeps as prominently as the old cars doesn't exactly convince you that they have that kind of expertise.

[Cadillac Fan]

17 hours ago, Matt Harwood said:

Interestingly enough, I just had a guy today offer to buy a car, but after we sent him the paperwork he E-mailed us a document he wanted us to sign that said, basically, "Harwood Motors guarantees this car is in perfect mechanical condition and has no issues that need repairs, and should it require repairs in the future, all such repairs will be paid for by Harwood Motors."

 

No, I'm not kidding. That's not how this works. At all.

 

you should simply reply with your flow chart directing him to a late model vette, mustang, etc.  

 

 

 

[Frank DuVal]

10 hours ago, Cadillac Fan said:

you should simply reply with your flow chart directing him to a late model vette, mustang, etc.

 

Even those are not sold with all future repairs to be paid by the dealer!🤣

[60FlatTop]

As long as the parent company nets 10% they will be happy. I looked into Lemon Law Warranties when they first came out and they were a pretty well hedged gamble. If you set aside the amount of the payment in a personal fund you would actually be in good shape to cover yourself.

 

In my non-automotive business I deposit 5% of each job into my "Circus" account (You know, when the circus starts). It accrues through the year and covers any expenses that can't be billed. I purge it as a bonus each year and loan 90 days of predicted funds back as a basis for the account for a starter. I laid the whole system out from my knowledge of Lemon Law insurance. It's a money maker.

 

For those whom use the term "my mechanic" frequently the better option is developing the best relationship with that mechanic and give him a tip that makes him smile real big when he completes a job.

[John_Mereness]

That's funny !!!