Where do I start with C.A.R.S. Warranty? Well lets first start with the coverage offered on their stated warranties. The warranty states, in fine writing, that if a non-covered component makes a covered component not operational (mechanical failure) that they will not cover their normally covered component.in addition, they state that they "cover" many parts, in all reality, that they will never or rarely have to pay for at all. An example would be if the flywheel goes out on a vehicle... The part that typically makes the flywheel malfunction, 99% of the time (can't remember what it is called), is not covered under their warranty. So in reality this part is not going to be covered. This is one mere example.
In the state of Michigan, C.A.R.S. Recently had a suit filed against them, and the plaintiff won in regards to tear downs on vehicles (specifically a Cadillac in this case). They have had numerous Attorney General complaints, and have even had their BBB status yanked because of valid complaints. With this being said, many of these car dealers that they do business with are fully aware of the complaints and how they pay their claims. So why do they continue to do business with them? Large bonuses, promises of great vacations spots, etc, for top dealerships who sell their product. The dealers that continue to do business seem to lack overall objectivity, as well as not realizing that when they continue to sell a product that they fully know will not perform, as presented, that they inadvertently become liable themselves. Not only does the customer have a valid suit against the warranty company, but they also have a valid suit against the dealer that sold it.
The largest concern is that C.A.R.S., and warranty companies like them, hurt local economies because they have the right to ship used parts to service shops. This is worded in their warranty coverage. They rarely allow mechanics to buy the parts on their own (in their own area), even when the part they are sending and be measured comparably in cost. From my understanding, I my information could be wrong, they own their own company on the side that supplies used parts for vehicles. This seems like, not only a severe case of conflict of interest but also an Interstate Commerce issue since they are interfering with the ability for local economies to make money. I believe C.A.R.S., and companies like them, will be eventually confronted with this issue.
Before doing business with any company, the consumer should check with the Attorney General and any other authority to make sure that what they are buying will perform as promised.
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