Pay Bills

Warranty company pays big repair bill after News 2 investigation

Jason Smith spent $15,000 per truck. His wife was pregnant and the couple knew he would have to pay medical bills. So an $8,000 repair bill was not what he expected.

MOORESVILLE, NC — Jason Smith had been looking for a truck for a few weeks. After visiting a few places, he finally found the one he wanted. The 2016 Chevrolet Colorado appeared to be in good shape, and it was within its price range.

Smith paid $15,000 and drove off with his new truck. The truck seemed like the perfect fit for Smith and was a bargain for the price. Unfortunately, the Chevy would have a significant problem during the first week.

“In six days it was impossible to drive,” Smith said.

The truck’s transmission failed and had to be replaced. There were also problems with the brakes and the camshaft. The estimate to fix everything was around $8,000.

“It was a lot, a big chunk of change,” Smith said.

He called the dealership and asked for a refund, but was told he had cashed the check and would not refund the money. The truck was purchased “as is”, which means the dealer was not obligated to reimburse.

“They got my money, and that’s all they cared about,” Smith said.

The silver lining in all of this was that the truck came with a 90-day warranty. After the dealer refused to repurchase the truck or reimburse Smith, he contacted the warranty company.

“The warranty (he was told) would cover everything I had a problem with, but that was a lie, it didn’t cover anything,” Smith said.

The warranty company told Smith he would have to pay to have the transmission taken apart, and if the transmission failed, part or all of it could be covered. The only problem with that is that there was no warranty, and it would cost Smith thousands of dollars to have the transmission stripped.

Smith decided to contact News 2 to see if we could help. We called the dealership and warranty company to better understand the problem and review the contract and warranty. A rep told us they would review the request and get back to Smith.

It took a while, but the warranty company eventually agreed to pay for most of the repairs to the truck. The transmission was covered, but Smith had to pay for additional repairs. It was only about $2,000 of the $8,000 repairs.

“I couldn’t be happier. I appreciated everything you did,” Smith said.

In this situation, we were able to help you, and it is good to understand that when buying a used car, most are sold “as is”, which means that the dealership is not responsible. mechanical problems after purchase.

It’s also important to understand what a warranty covers, as most won’t cover certain parts. Just because a seller tells you, “It’s a full warranty,” read the fine print before you sign and pay for the warranty.

Buying a car warranty isn’t necessarily a bad thing, and in many cases can be beneficial. You’ll need to know what it does and doesn’t cover before you buy it.