CarMax/MaxCare EXTENDED WARRANTY IS MISLEADING, WITH IN MY OPINION, FRAUDULENT BUSINESS PRACTICES.
Purchased a 2012 BMW X5 in April/May 2021, added MaxCare extended warranty (2 year, up to 75,000 miles total) at time of purchase with $500 deductible, for additional $2,100.
The vehicle had approx 45k miles on it. I would never have purchased the vehicle without the extended warranty.
I've had 4 needed repairs, 3 were significant, requiring the use of the extended warranty in the first year.
I have had the car repaired at two facilities, Winslow BMW, and another shop that repairs only BMW. The CarMax repair shops will not touch significant repairs on a BMW, so I have no choice.
In all three instances, the warranty covered the parts, but the catch is the labor.
MaxCare will only cover a portion of the labor costs. I asked them where they came up with the labor time and cost per hour, they will only say "industry standard". My last repair had a difference of 17 hours between what the warranty would cover, and the repair shop. If I had taken it to Winslow BMW, the repair costs were even higher, I had a quote from them as well.
My last repair cost me $3,600 out of pocket (due to shortage of labor costs covered by MaxCare), with a total out of pocket over $5,000 in this first year for the 3 repairs.
I have another oil leak that I have a quote of $3,100 for. Based on the last 3 repairs, my out of pocket should be close to another $1,400 +-.
In no case has my deductible of $500 even been close.
I spoke directly with the agent from MaxCare who covered my last repair, whom consulted her manager. I asked if they could point me in the direction of a shop where I could get my repairs completed with a deductible of $500. I even said I'd have it taken anywhere in the US. I even said I'd like to take it back to the CarMax I purchased from, since it has a repair facility.
I was told no, I had to find a shop myself and play this whole game again.
Here's the game/process:
I would have to take my car to a repair facility and pay for an another inspection, get a quote, file a claim with MaxCare. I won't know what the outcome of what MaxCare will pay until they run all their numbers. If I'm not happy with what they will pay for, I have to go to another shop, pay for another inspection, open a new claim with MaxCare, and do it all over again. The claims close out if you go to another shop.
This is not realistic. Vehicle inspections are about $150-$175 every time you take it to a new shop, maybe more. This can go on forever, with no guarantee of a better outcome.
MaxCare knows this, they stand by their quotes, you don't have much of a choice.
So basically, the deductible is a farce, very misleading. They can't even come close to actual labor costs, or provide me an alternate solution.
MaxCare would not provide me documentation of where the labor time and "cost per hour" come from, even after I asked for it.
I had coolant and significant oil leaks that were obviously there when I bought the car. My first inspection by Winslow BMW just months after I purchased, showed numerous significant issues that should have been caught by any cursory inspection by a CarMax mechanic. Leaking oil and coolant was never disclosed to me.
I totally understand that buying a used car that happened to be a lemon is on me. I should have had my own inspection when I bought.
That's on me, although I believe it should never have left the lot in that condition.
The warranty issue is not on me. They sold me a warranty that I was led to believe had a $500 deductible. I feel completely misled. The labor time and "cost per hour" quotes are fraudulent in my opinion, when you can't provide me where your costs come from, or the name of a repair facility that will complete repairs at the cost you say are "industry standard", that's not legitimate business practice.
This is the third vehicle I've purchased from CarMax, I will never buy another, nor recommend it. I will tell this story to as many people as I can. read more