NOTE: Any mileage or dollar amounts stated aren't actual but as close to actual as possible as I am currently typing this from work and don't have the information in hand.
I purchased a 2001 Audi S4 on April 7. The car had about 80,500 miles at the time, but it was in great shape mechanically and appereance wise. The car showed no signs of wear and tear or any mechanical issues that could need short-term attention.
Being that it had 80k miles, I decided to inquire about extended warranty contracts. At the time, the dealer I purchased the vehicle from offered warranties through Heritage Warranty. The cost of my contract was about $2500, with a $100 deductible.
At around 84,500 miles, over the course of a week or so, I begun noticing the transmission felt a little notchy going into 1st and 2nd gear. Once I realized it seemed like a permanent condition (not related to ambient temperature conditions, as summer was closing in), I decided to schedule an appointment with the local Audi dealer's service department. The appointment was set for Wednesday, June 22nd at 9 am. (A few days after)
Now, another thing that I had noticed a few weeks prior but was intermittent and visual inspection did not reveal anything wrong was a slight clunk which developed on the front-left suspension. I decided to notify the dealer's service advisor so they could take a closer look at it in case it was something that needed attention.
The next day I received a call from the service advisor. I was told there was a chance a few of the synchros were failing. They also informed me that some of the control arms had worn boots/bushings and needed to be replaced (specially the front-left which was pretty much grinding metal to metal). They proceeded to contact Heritage. On Monday, June 27th, I receive a call from the service advisor stating Heritage had declined both claims. The reason being that they MUST BE pre-existing conditions. They had no actual evidence of this, but they claimed that they did not know of synchros possibly wearing off in 4000 miles.
The service advisor told me I should contact my original dealer (not Audi) to see what they could do about it as far as negotiating repairs. I followed his advice and spoke with the finance manager at my dealer who sounded frustrated at the fact that I had issues with Heritage. He said they were no longer conducting business with them and already had issues with other customers who purchased their contracts. He decided to call them and was going to get back to me by next day.
On Tuesday, June 28th (today) I received a call from the dealer's owner. He was extremely apologetic for the situation and expressed a lot of concern regarding the way Heritage had handled their customer's situations. He said that they tried communicating with them but hit a roadblock and asked if I could call them directly and then call the dealer back to let him know what I could figure out.
I called Heritage immediately. A person by the name of Chris answered the phone. After briefly explaining my situation he basically gave me the same exact verbage that was given to both the Audi dealer and the dealer I bought my S4 and warranty from. That wasn't really the worse of it...
What really bothered me is that Chris continued to defend the adjuster's claims (without any benefit of the doubt) that (and I quote) "There is no way, no matter how bad of a driver someone is, that synchros can begin to wear off so quickly... Therefor, this must've been a pre-existing condition".
I presented my arguement and he would literally laugh and state that there is "no way they could have gone bad in 4000 miles". I wonder how many different manufacturer cars he's actually had experience with? After about 10 minutes of back and forth, I realized we weren't going in any direction I deemed just. I asked to speak with a supervisor and he claimed to be "the supervisor". I then asked for his last name and he refused to give it to me (at first he used the words "We can't give out that information", later on he said "I can give it but I choose not to"... Probably on a "power trip"). He told me all I needed was his extension, so his name was Chris "At Extension 166"... After this he told me that there was nothing else to discuss and he was ending the call (keep in mind I did not, at any point, insult him or became offensive in any way. Short of telling him I couldn't believe he was a supervisor due to his inability to have the courage to provide me with his full name). He proceeded to hang up on me...
My arguement (and this is not a direct quote of what I said, but more of a detailed paraphrase) is NOT that the synchros decided to all of a sudden begin to wear off... Synchros ARE designed to wear off. However, they can continue to function as designed even with a good amount of wear. Most of these synchros are made of brass to allow for gear components to not wear down, instead of the other way around. Synchros begin to wear from the moment a vehicle hits the road (at 0 miles). Slowly, but surely. Depending on driving style and conditions, they can wear really fast or have a very long functional life. Also, composition of material use, engine speed (within specification), and other variables can contribute to faster wearing or longer lasting syncros.
A car can have 3000 miles and need synchro replacement, or it could go on for 100,000 miles before it is noticibly notchy. If you buy a vehicle with 80,500 miles and for 3000 miles it shifts smooth as butter, then in the last 1000 miles before the 84,500 marker it begins to degrade, the vehicle's transmission was functioning within specifications up until that point. A pre-existing condition is one were a problem is present at the time of purchase.in a used vehicle, the clock is ticking for many parts. If a warranty is supposed to cover it for another 24,000 miles, at ANY point during that period any of the components failing should be warranted, provided their were functioning within specification at the time of contarct purchase.
There are some components that are considered wear and tear items and are not covered. Such are brake pads, clutches, etc... However, other items are stated as being covered (internal lubricated parts to be exact) and synchros happen to fall in that category. This is not an arguement of whether wear and tear was a factor here. They advertise themselves and sell contracts for used vehicles. Used vehicles will have a good amount of wear and tear. As long as their internal parts are still within functional specificaions, there should not be an assumption that the vehicle was purchased with a pre-existing condition. Gradual wear is normal on MOST internals. If 3000 miles into the warranty period one of these items decided to go, it should not make a difference as if it had done so at 20,000 miles. If that was the case, then why not have a clause that states "24,000 miles warranty coverage will not commence until the vehicle has 20,000 miles over its current mileage".
One thing, though. I'm almost certain someone from Heritage or any affiliated company will probably respond with one of their generic responses stating they haven't done anything illegal and that they're protected by their contract. Unfortunately, for you, the law (and not you or your lawyers) decides how much protection your contracts or clauses provide you.
I have read the many complaints from several customers against Heritage. While in some cases I do realize certain things went to extremes from a customer's standpoint, most of the claims do sound completely legitimate and any reputable company who would stand behind its services would take positive action to correct the situation. A company that is so hesitant to do so, yet continues to advertise themselves as providing all of these "great and excellent services for peace of mind" should be considered predatory in its intentions.
As it stands, the repairs for my car are estimated at around $3800 for the transmission (parts and labor). I'm not seeking to get a "freebie" or any extra money here. I am simply very disappointed at Heritage's speediness in rejecting claims. It seems to be their default answer. I have heard of more claims being rejected than the other way around. How is this possible? If so many cars have pre-existing conditions, then either you need to come up with a stricter measure for having vehicles inspected and certified for your warranty products, or you should stop selling USED vehicle warranties.
And coming up with a laundry list of warranty claims authorized involving smaller parts (such as alternators) is only going to make our case for a class action lawsuit stronger. It will prove that Heritage is comitted to NOT authorizing the majority of repairs which exceed a percentage of the warranty contract cost.
If any of you made it this far reading my story (which is still going on), and you'd like to contact me regarding taking legal action against Heritage, feel free to e-mail me at:
(I only authorize people with a legitimate interest in my situation to contact me regarding taking legal action. It is not OK to contact me with the intention to flame or debunk my alegations. If you're an employee of Heritage, you may contact me to resolve or further discuss any issues regarding my claims. Do not contact me to try and convince me of your decisions or for any reason other than taking positive action towards my situation)
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