Another MaxCare Anomaly From A Reader and Unicorn Owner – Beware

It’s important to me that readers share their experiences with CarMax and MaxCare to make sure I’m not being overzealous, that this warranty stuff is the be-all-end-all of unicorns and I’m overselling it all. Feedback so far has been that MaxCare is a pretty good deal on these high-end cars, although from time to time things don’t quite work out the way I’d like.  I’ve heard of CarMax dealerships declining repairs as not covered by MaxCare when they were (a reader’s Range Rover supercharger), and manufacturer dealership service techs haggling over labor rates because MaxCare won’t pay the dealer’s rate (my ball joint issue with Guenther when I sold it).

Will share my hunches on dealerships at the bottom. First, wanted to publish the experience of regular reader and car guy Scott with his lovely Jaguar XJL as another cautionary tale, although this one by chance worked out.  Over the seven years of blogging I’ve gotten to know more than a few readers by email and have even had coffee or drinks live with some, and I’ve had the good fortune of meeting Scott several times and seeing this gentleman’s car in person.  It’s a great unicorn. And my apologies Scott….only took me five months since margaritas for me to publish!

From Scott:

Were you aware that CarMax does not cover interior plastic parts that break, even if said parts disable a vehicle function? I recently took my 2013 Jaguar XJL to (local Jaguar dealer unnamed to protect sources and methods and the innocent) for her 60,000-mile checkup and asked them to look into a check engine light that had just flared up. I also asked them to submit a warranty claim to MaxCare to fix the rear moonroof sunshade that had become jammed in the open position. (The 2013 Jaguar XJL has two moonroofs: one that completely retracts to open air in the front, and a fixed glass moonroof for the rear seats that has an electrically retractable sunshade.)

It turned out that the check engine light was being displayed because of a pair of malfunctioning O2 sensors, the replacement of which MaxCare covered under my 5-year warranty that expires in August.  But in the same email sent from MaxCare to my Jaguar dealer, MaxCare disapproved the repair of the sunshade because the part that broke was plastic, and MaxCare claimed that plastic trim parts (emphasis mine) are not covered under the warranty. (I will come back to this in a moment.)

Unfortunately for my Jaguar dealer, their service advisor did not look closely at the email from MaxCare. They simply saw “warranty approval” in the email subject line and proceeded with ordering parts and making both repairs. Unfortunately, even further for them, they did not discover the error until today when I went to pick up my car. To their credit, the Jaguar service manager admitted this snafu was entirely their error, so I wound up paying only the $50 deductible for the O2 repair (plus the previously agreed-upon $1,400 for the XJL’s 60,000-mile checkup). Meanwhile, they are going to continue haggling with CarMax over the refusal to cover the broken sunshade. Out of curiosity, I asked the service manager how much they were eating, and I was stunned by the answer: almost $2,000 in parts and labor. 

Now about that $2,000 sunshade: 

I know that rubber parts are considered wear items and are not covered under the MaxCare warranty. I also know that exterior and interior plastic trim is not covered under the warranty. But from my point of view, a plastic part that breaks — not a pretty piece of decoration, but a functional plastic part — is not “trim” and should be covered. Especially if that broken part renders a vehicle function inoperable. And ESPECIALLY if repair and replacement of that broken part will set the owner back a cool two grand!

My story has a happy ending, but only thanks to a costly mistake made by the Jaguar dealer. For your readers, my tale of monetary peril might serve as a cautionary tale — apparently according to MaxCare, not all functional mechanical parts are created equal!

Please feel free to share my take with your audience if you think it would be newsworthy. The only thing that I ask is that you leave my Jaguar dealer’s name out of it. They lost a lot of money on this, and I don’t want my service advisor getting into any more trouble than he already probably is in.

End of Scott’s note.

Here’s my thoughts.  First, the MaxCare ruling on plastic “trim” is arbitrary, ridiculous, and disappointing. Don’t know about any other readers, but I’ve never had to engage MaxCare directly to dispute findings and not sure how that would go. I’d probably lose and be banned. Scott’s experience, and mine, suggests in many cases questionable calls are best resolved when negotiations are between a dealership service rep and MaxCare, although in Scott’s case the repair was settled in his favor by accident only.  Because I am cheap and I have a great service rep (Ryan, if you’re reading?) and a flexible CarMax dealership here in Dulles, Virginia, I almost always start at my CarMax for repairs. They have a decent technician for European cars, and yet if it’s too complex my CarMax will send my cars to the BMW or Mercedes dealership for repair. (Scott noted his Jaguar dealership has always been helpful on MaxCare in the past.)

That accomplishes two things; I still get the first $50 of my deductible (which is always $50!) waived, and more importantly, any coverage disagreements are between the manufacturer’s dealership and MaxCare, and if they can’t be resolved my CarMax steps in since they are technically the paying customer to the manufacturer’s dealership. I’m out of it. And, again my experience, is that my Carmax, one of the larger ones, is a high-volume repeat customer with the local manufacturer dealerships’ repair shops and has way more oomph than I would if I went directly to a Mercedes or BMW dealership for repairs and things went wrong. (I know regular reader and unicorn sniper Mustafa (well, he used to be a regular – where ya been, Mustafa?!) has owned many unicorns and successfully challenged a few MaxCare rulings but I do not know if that was with MaxCare, his CarMax, or his local manufacturer dealership.)

I also believe that CarMax has more stake in me as a customer than the manufacturer dealerships do when it comes to MaxCare. At CarMax it feels like I’m leveraging their product – MaxCare – and they’d like to see it work out.  The few times I’ve tried to use MaxCare at a manufacturer’s dealership, or even an independent repair shop, and I mention MaxCare, I sometimes get treated as if I’m on welfare trying to get repairs and not pay for them – the “oh you’re going to be one of those!” looks from the dealer tech. Reminds me years ago using Priceline and bidding on cheap hotel rooms and at check in they treat you like a squatter that didn’t pay for the room at all.

Finally, I believe with CarMax or any garage, building a relationship with the service rep and/or the service manager pays off in the long run. I try not to be a jerk, let them work the system, and have no idea what it takes behind the scenes to negotiate with MaxCare. I’ve been surprised over the years when I was convinced parts weren’t covered and somehow my CarMax dealer worked it out that they were. When they aren’t I figure I’ve gotten my money’s worth over the years and go ahead an pay, but that’s rare, and I haven’t been burned by a mechanical plastic piece that failed – glad it worked out for Scott and appreciate him taking the time to write.