Avoid Penn Warranty- they are RIPOFFs! - PeachParts Mercedes-Benz Forum

edge · #1 12-09-2007, 01:52 AM

Penn Warranty is a scam company. My transmission went bad and they are scamming their way out of repairing it. I have read complaints all over the web about them ripping consumers off. With their bull**** runaround and double talk. PLEASE AVOID BUYING THEIR WARRANTYs, you have been WARNED!

nissanzx1 · #2 12-09-2007, 11:32 AM

I would personally never buy any warranty. That $500, or $1000, or $1500 is much more wisely invested than given to a warranty company. NONE of them are any good unless they are sold by the manufacturer, IMHO. Then, you still have that deduct to pay them and the dealer factory warranty is major $$$...

I would be interested to know the reasons they are giving you as to why you are not covered.

I sold Penn a couple of times during a brief stint as an auto dealer. They were only $400 cost, and I thought to myself--only $400--How can they cover anything? I wonder how much your dealer charged you?

-GH

Dee8go · #3 12-09-2007, 04:10 PM

I guess you get what you pay for. You can get really cheap rates if you're willing to forego any real coverage. Unless, of course, you are just looking for catastropic coverage.

deanyel · #4 12-09-2007, 04:16 PM

Quote:

Originally Posted by Dee8go

I guess you get what you pay for. You can get really cheap rates if you're willing to forego any real coverage. Unless, of course, you are just looking for catastropic coverage.

The $400 was apparently the dealer cost - not comparable to the retail price. There are apparently huge markups on these things - 300%, 400%, or more. So they're all going to sound cheap at dealer cost.

edge · #5 12-10-2007, 12:49 PM

The RipOFFS are so numerous, check out:

http://ripoffreport.com/searchresults.asp?q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21&q5=penn+warranty&Search=Search

I wished I had saw this before I bought mine from the used car dealer. It cost me $800 for two years which was cheap and seduced me to a worthless warranty. How can people actually work for these scammers, have they no morality? I bought my '97 E420 for $6K so I thought, what the hell, get some piece of mind for $800 because a few years back my used '94 E320 trans went with 82K miles on it. BTW, what's up with the Mercedes trans going bust with llow mileage? These are suppose to be quality cars but my E420 has only 132K miles on it and the trans is toast. My '93 BMW 525iT has endured better with no major probs with 168K miles. I only had to replace the radiator. I don't know how to get my $800 back but someone should burn that place down.

edge · #6 12-10-2007, 12:51 PM

Anyone that has had negative dealings with Penn Warranty, please feel free to contact me. I am considering getting an attorney to represent over a dozen people that have had bad dealings over the $1000.00 mark this year.

My vehicle is now at its third transmission repair shop and I am still getting the run around. 3 industry experts have told me that my transmission needs replaced and Penn Warranty (Betty my rep) simply wants to approve a seal and have the shop put it back together. The shop says it needs clutches, and a drum, and a rebuild, just replacing the seal would have the same problem and not work as it was brought in?

I feel this is crazy, and have gotten hold of many other dissatisfied customers (thru internet, web-sites, and a very helpful BBB employee that sent me extensive information over the last two weeks. A special lemon law firm specializing in warranty misrepresentation is very interested in my particular case because of how well it has been documented since I left the first garage almost a month ago.

My claim has been approved for a seal and not the new transmission as three experts have said it needs, so I am waiting to see what happens this week, but I am sure we will be seeing this matter in court as their track record is not very satisfactory, and from some rumors I have heard, senior management has have legal problems recently. ANY INFORMATION CAN BE SENT TO OR FEEL FREE TO CONTACT

Don
PITTSBURGH, Pennsylvania
U.S.A.

edge · #7 12-10-2007, 12:54 PM

we are a repair shop customer came to to us with a leaking rear wheel cylinder. they told us to take it a part and give them a price to repair it. the truck was on my lift for 4 days and they still did not give us a ok to fix it. I could not tie my lifts up any longer so we fixed it so we could get it off my lift. I deal with a lot of warranty comp. and this is the worst one i ever delt with and now they refuse to pay us. because we didn't wait for a ok to fix it. all i can say is if your looking to buy a warranty for your car and a dealer try to sell you a penn warranty just tell them no thanks. there are some good warranty companys out there but they are not one of them.

Bill
lisle, New York

Dee8go · #8 12-10-2007, 01:06 PM

Quote:

Originally Posted by deanyel

The $400 was apparently the dealer cost - not comparable to the retail price. There are apparently huge markups on these things - 300%, 400%, or more. So they're all going to sound cheap at dealer cost.

Extended warranties in the photo industry (from which I recently came) were generally pure profit for the dealer. I figured that would not be the case where cars were concerned, but I guess it all depends upon what the warranty covers . . .