Extended warranties are a waste of money.....

[dishdude]

Originally Posted by Spktyr
Originally Posted by atikovi
Originally Posted by NO2
1. Your going to beat up the vehicle. I bought a Ford Aerostar van (unreliable) with an 8 yr, unlimited mileage warranty for $1500. After 250,000 miles, it had $8000 in repairs and I had a loaner when it was down.


There must be a cap on the amount they pay out over the life of the warranty or for individual repairs. I can't imagine they would pay for a $5,000 engine replacement on a 250,000 mile car worth $3,000.


They're playing the odds on those 'unlimited' mileage warranties, but there are documented cases where they have done exactly that rather than be in breach of contract - almost none of these warranties include a clause allowing them to replace the vehicle should it be cheaper than the cost of repairs. If you think about it, that actually makes sense - another similar car would be a 'surprise box' as they don't know the history and they would be exposed to liability if it turned out to be a pile of junk.


I thought all these warranties had provisions that if the repair exceeded the value of the vehicle they would cut a check for the value of the vehicle.

 

[Spktyr]

Originally Posted by dishdude
I thought all these warranties had provisions that if the repair exceeded the value of the vehicle they would cut a check for the value of the vehicle.


Some, but not all or possibly even most, do. As with all insurance, depends on the issuing company and what their actuary/actuaries say, plus what they feel is appropriate customer service.

 

[hatt]

Originally Posted by Spktyr
Originally Posted by philipp10
the bigger question is.....why would you own something that could cost you $21,000 in repair costs. That is pathetic.


Get a bad (watered/gas contaminated) load of fuel in a 6.7L SuperDuty or Cummins, any diesel with a Bosch CP4 high pressure fuel pump, you're eating $10-20K+ instantly. It's not just ultra-high-end cars that have repair bills like that any more.

https://www.classaction.org/ford-diesel-fuel-pump-problem-lawsuits

Buying a modern diesel pickup truck is a pretty dumb move for most people.

 

[Spktyr]

Originally Posted by hatt
Originally Posted by Spktyr
Originally Posted by philipp10
the bigger question is.....why would you own something that could cost you $21,000 in repair costs. That is pathetic.


Get a bad (watered/gas contaminated) load of fuel in a 6.7L SuperDuty or Cummins, any diesel with a Bosch CP4 high pressure fuel pump, you're eating $10-20K+ instantly. It's not just ultra-high-end cars that have repair bills like that any more.

https://www.classaction.org/ford-diesel-fuel-pump-problem-lawsuits

Buying a modern diesel pickup truck is a pretty dumb move for most people.


Another example would be DSG transmissions, which are fitted to everything from the cheapest econoboxes (Focus, FIesta) to some ridiculously powerful sports cars. Pop one of those and depending on design you can be out over $10K. If the known weak one in a 2012-2016 Focus dies, it can cost more than the car is worth to fix.

Again, it's not always the top-shelf cars with ugly repair bills.

 

[Ws6]

Originally Posted by cashmoney
I probably would never buy a car that I thought might need an extended warranty.

We have always owned Honda, Toyota, Lexus, Mazda cars/suvs - not much need for extended warranty on super reliable cars.

After 45 years of owning reliable, low maintenance, and low cost of ownership cars, I can easily afford to insure myself in case of rare expensive mechanical failure.

I always do the warranty, and I buy JDM, too. I finally found a 150k mile bumper to bumper.$2400. 0 ded. I'm certain it will pay off. It covers shocks and struts, as well.

 

[dave1251]

Originally Posted by CKN


However-on this forum buying a beater for $500.00 and driving it for 250,000 to 300,000 miles is considered the "peak of automotive excellence"........



I drive 40K+ miles a year. With this much wear and tear in my body this site can keep the "peak of automotive excellence". I'll drive what is fun and comfortable.

 

[ARCOgraphite]

Originally Posted by Spktyr
Originally Posted by R1jake
One thing I keep seeing in this thread is no warranty needed with a Toyota. This I totally agree on even though I currently don't have one. I've owned many toyotas and have never had one fail me. Same with my parents who always bought new toyotas and when done with them the kids beat them until they was totaled or no longer road worthy. They all still ran great. I'm in the market for one now as a matter of fact.


Toyota's had some stinkers too - ....

The rules for Toyota buying: Don't buy year one of anything they offer, do your research on the earlier years of a model, and NEVER buy any Toyota smaller/lower in the lineup than the then-contemporary Corolla.


We've had 5 toyotas and they all had been the least reliable. Their quality is legendary - exclusively from the 80's !

On our Japanese-built 2005 RAV 4 : waterpump, rear shocks, slave cylinder, valve clearance (requires teardown), oil usage, rear exhaust, DS seat latch.

All before 50K miles 3 years

Don't get me going about Tacos. Garbage. but a good size for guys under 5'-6" and great resale.

discaimer: none of the above is statistically valid. It is valid for me. And I am NOT buying a Canadian Rav4 over a Subaru or NIssan.

 

[PWMDMD]

These are insurance policies. Few people pay homeowners insurance for 50 years and complain they paid all those premiums and never got to recoup them because the house never burned down. Most people do not need them but when you do it can really be a great product. The key is to not get hosed on the cost.

 

[mpack88]

Extended warranty put a new engine in my friend's moms Tahoe that was consuming too much oil.

 

[jimbrewer]

Manufacturer extended warranties by law have to be priced above expected losses from claims. Think about it: If the manufacturers knowingly price the warranty below cost they have effectively overstated current earnings and defrauded investors.

That said, I think a warranty makes a lot of sense if the price is right. A decent deductible and coverage of the things that would affect the ability to keep the car on the road is reasonable. Paying hundreds of dollars over that to insure every little thing with an ultra low deductible, not so much.

My $750 7 yr. 100k mid-level coverage Ford ESP policy expired worthless.

No regrets. For the price I would do it again.

 

[supton]

Originally Posted by geeman789
Older cars break. People who NEED reliable cars should just replace them early, and not bother with the extended warranty.

The cost of a warranty will likely pay for several days of a rental, plus the first repair. Not buying a new car for 10 plus years will pay for many repairs.

Now having to put up with the headache of getting a car into a shop, running around to a rental place, etc... and doing it a few times per year... yeah that'll drive one to proactively replace. If one can afford to do so, and "must" have reliable wheels, then that's probably the price of taking that particular career choice.

 

[JTK]

Was this "lifetime extended warranty" one of those shady deals that's built into the price of the vehicle or was this a separate package you purchased?

Regardless, it's a good thing for you!

I've bought a few extended warranties over the years and have had some expensive repairs done that were covered, but I don't think the costs ever exceeded what the contract cost me.

To me, the most disturbing trend to these extended warranty packages is the dealerships push you to just tack the cost onto your loan. Obviously for more financial benefit to them. "It's just an extra dollar or two per day!" Problem for the buyer is, it just pushes you further underwater on their loan. If you're not prudent, 3-4yrs down the road you still owe thousands more than what the vehicle is worth.

 

[madeej11]

Originally Posted by Spktyr
Originally Posted by R1jake
One thing I keep seeing in this thread is no warranty needed with a Toyota. This I totally agree on even though I currently don't have one. I've owned many toyotas and have never had one fail me. Same with my parents who always bought new toyotas and when done with them the kids beat them until they was totaled or no longer road worthy. They all still ran great. I'm in the market for one now as a matter of fact.


Toyota's had some stinkers too - the variable venturi carbed cars, the early 1ZZ engines with their penchant for oil gelling and sudden horrific oil consumption (to the point of oil starvation on a single tank of gas!), the 3VZ 3.0L V6 that randomly blew headgaskets (which they never really figured out why and had to bandaid with thicker gaskets), the frame rot problems on the Tacomas, the 97 Camries...

And I say the above as a satisfied former Toyota pickup truck (22R) and current 4Runner (5VZ) owner. I like Toyota in general, but they aren't perfect - and neither is anyone else.

The rules for Toyota buying: Don't buy year one of anything they offer, do your research on the earlier years of a model, and NEVER buy any Toyota smaller/lower in the lineup than the then-contemporary Corolla.

Originally Posted by Spktyr
Originally Posted by R1jake
One thing I keep seeing in this thread is no warranty needed with a Toyota. This I totally agree on even though I currently don't have one. I've owned many toyotas and have never had one fail me. Same with my parents who always bought new toyotas and when done with them the kids beat them until they was totaled or no longer road worthy. They all still ran great. I'm in the market for one now as a matter of fact.


Toyota's had some stinkers too - the variable venturi carbed cars, the early 1ZZ engines with their penchant for oil gelling and sudden horrific oil consumption (to the point of oil starvation on a single tank of gas!), the 3VZ 3.0L V6 that randomly blew headgaskets (which they never really figured out why and had to bandaid with thicker gaskets), the frame rot problems on the Tacomas, the 97 Camries...

And I say the above as a satisfied former Toyota pickup truck (22R) and current 4Runner (5VZ) owner. I like Toyota in general, but they aren't perfect - and neither is anyone else.

The rules for Toyota buying: Don't buy year one of anything they offer, do your research on the earlier years of a model, and NEVER buy any Toyota smaller/lower in the lineup than the then-contemporary Corolla.

NEVER buy smaller/lower than a Corolla? Have to say that the Yaris hatchback which is still available is probably the most reliable in the whole Toyota lineup.

 

[Andrew1972]

Originally Posted by PWMDMD
These are insurance policies. Few people pay homeowners insurance for 50 years and complain they paid all those premiums and never got to recoup them because the house never burned down. Most people do not need them but when you do it can really be a great product. The key is to not get hosed on the cost.


Yes an insurance policy however the cost of repair typically is not even the cost of warranty. Most people can swing the repair cost especially if they bank the cost of warranty.

A home is a different beast and majority of people cannot afford to self insure. Typically you carry a $1000 deductible. Also homeowners is coupled as a requirement of mortgages people typically carry.

 

[WylieCoyote]

The last one I bought was on the '05 Sport Trac, shortly before the 5/60 expired. $1200. It paid for itself when the 1st gear bearing failed and filled the transmission with metal shavings.

 

[PWMDMD]

Originally Posted by madRiver
Originally Posted by PWMDMD
These are insurance policies. Few people pay homeowners insurance for 50 years and complain they paid all those premiums and never got to recoup them because the house never burned down. Most people do not need them but when you do it can really be a great product. The key is to not get hosed on the cost.


Yes an insurance policy however the cost of repair typically is not even the cost of warranty. Most people can swing the repair cost especially if they bank the cost of warranty.

A home is a different beast and majority of people cannot afford to self insure. Typically you carry a $1000 deductible. Also homeowners is coupled as a requirement of mortgages people typically carry.


Hondacare for 8years and 100K miles cost me $1185 on my Pilot. There are LOTS of repairs that are more than $1185 with stories of $5K+ repairs on here routinely. If I never need it that $1185 isn't putting me out all that much but if I do it easily pays for itself. As I said....it's insurance and the key is to not pay $5K for $1180 warranty.

 

[Toros]

I have always gone by the concept of banking the cost of the warranty or premium and if you ever need a major repair you draw on that amount. Having stated that, I never buy cars new but do buy late model, low mileage vehicles often with a remaining balance of the factory warranty. Last two being 2016 Lexus. My RX350 purchase included an additional 4year/100K powertrain warranty in the deal... I think it was just dealer fluff but didn't cost me.
My wife works as an auto insurance arbitrator. Had a claim recently for a Range Rover that was $33,000 for a rear end collision that damaged the tail gate.
I can see how some folks just roll the cost of a warranty into a monthly payment on some high end vehicles... whatever.

 

[Andrew1972]

Personally in owning new and used vehicles over 25 years I have never encountered any repairs exceeding $500 in the typical 8yr/120k period these warranties cover max.

 

[PWMDMD]

In 20 years of owning a home and having auto insurance I've never filed a claim. You don't until you need to. That's how insurance works. There's no right or wrong....just what level of risk you're willing to accept.

 

[dareo]

Any updates on your engine OP? This is the older body style Tiguan right?