Your thoughts on extended car warranties....
- Thread starter ZZman
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If you're buying a used Land Rover, Italian car of your choice, or other typically unreliable platform, then yes, it will surely pay dividends. Otherwise, they're generally a bad deal for the consumer.
To think of it another way, dealers love to sell these things. They see them as a way to pad profits. That's bad for the consumer.
To think of it another way, dealers love to sell these things. They see them as a way to pad profits. That's bad for the consumer.
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Not worth it in my opinion and Consumer Reports. Unless you have a lemon.
On my heat pump for my house I have a service contract only because when you have a problem they come quickly. With no service contract they come after finishing all the customers with service contracts.
On my heat pump for my house I have a service contract only because when you have a problem they come quickly. With no service contract they come after finishing all the customers with service contracts.
1. Are they worth it? Generally, no.
2. Have or would you consider one? Yes, back in 1988. Only extended item repair that might have been covered was not covered, by warranty exclusion (GM extended warranty)/
3. Has one ever saved you expensive repairs. No. On the other hand, a former boss bought Chrysler products and came out very well on every extended warranty he purchased. I never had that kind of luck.
My family is purchaseing extended warranty on laptop computers, and we have at least broken even, so far.
2. Have or would you consider one? Yes, back in 1988. Only extended item repair that might have been covered was not covered, by warranty exclusion (GM extended warranty)/
3. Has one ever saved you expensive repairs. No. On the other hand, a former boss bought Chrysler products and came out very well on every extended warranty he purchased. I never had that kind of luck.
My family is purchaseing extended warranty on laptop computers, and we have at least broken even, so far.
Not worth it
Never bought one (First new car in 1964)
Would never have paid out its purchase price, even on Austin Healy or 1972 Fiat
Like Vegas, the odds favor the "house".
Never bought one (First new car in 1964)
Would never have paid out its purchase price, even on Austin Healy or 1972 Fiat
Like Vegas, the odds favor the "house".
The ones we have dealt with tried their best to get out of doing repairs. One of the things they don't cover is leaks. If your AC compressor leaked the refrigerant out they won't cover it. Another one sent us used Junkyard parts. And another dropped the client as soon as the car was fixed. They all are crooked.
1. Depends on the vehicle's likelihood for extensive, post warranty repairs and owner's risk tolerance
2. I have only bought one once, for a 2008 Jeep Grand Cherokee Overland. Bought it in early 2010 and being that this one had most available options and having owned several Jeeps, I purchased the extended warranty. Long story short is that as much as I liked this vehicle, it sold me on Range Rovers; if I was going to deal with marginal reliability and irritating problems, I might as well get something that I really wanted.
3. Yes. The climate control panel on the Jeep GC failed past the original warranty and was staring to emit a burned electrical smell when I got rid of it. There were also numerous issues w/ the entertainment and connectivity systems which were also after warranty. The drivetrain issues, including the xfer case pulling itself into neutral when parked(!) were covered by the factory.
2. I have only bought one once, for a 2008 Jeep Grand Cherokee Overland. Bought it in early 2010 and being that this one had most available options and having owned several Jeeps, I purchased the extended warranty. Long story short is that as much as I liked this vehicle, it sold me on Range Rovers; if I was going to deal with marginal reliability and irritating problems, I might as well get something that I really wanted.
3. Yes. The climate control panel on the Jeep GC failed past the original warranty and was staring to emit a burned electrical smell when I got rid of it. There were also numerous issues w/ the entertainment and connectivity systems which were also after warranty. The drivetrain issues, including the xfer case pulling itself into neutral when parked(!) were covered by the factory.
1. Are they worth it?
Not if you purchase cars based on reliability
2. Have or would you consider one?
No, I purchase cars that are older and well maintained. To me, far cheaper and less hassle than dealing with dealerships
3. Has one ever saved you expensive repairs?
Yeah, on a Volvo S60 I once owned. Despite being only a couple of year old with low mileage, that thing spent more time at the dealership than in my possession.
I sold it soon after.
Not if you purchase cars based on reliability
2. Have or would you consider one?
No, I purchase cars that are older and well maintained. To me, far cheaper and less hassle than dealing with dealerships
3. Has one ever saved you expensive repairs?
Yeah, on a Volvo S60 I once owned. Despite being only a couple of year old with low mileage, that thing spent more time at the dealership than in my possession.
I sold it soon after.
Originally Posted by Imp4
If you're buying a used Land Rover, Italian car of your choice, or other typically unreliable platform, then yes, it will surely pay dividends. Otherwise, they're generally a bad deal for the consumer.
To think of it another way, dealers love to sell these things. They see them as a way to pad profits. That's bad for the consumer.
Funny, I switched to LR after a series of Jeep GC's, w/ the last Jeep being the only vehicle I determine to justify an extended warranty. Ironically, my RR's have been very good, the current ones are...the earlier ones, well they earned their reputation.
If you're buying a used Land Rover, Italian car of your choice, or other typically unreliable platform, then yes, it will surely pay dividends. Otherwise, they're generally a bad deal for the consumer.
To think of it another way, dealers love to sell these things. They see them as a way to pad profits. That's bad for the consumer.
Funny, I switched to LR after a series of Jeep GC's, w/ the last Jeep being the only vehicle I determine to justify an extended warranty. Ironically, my RR's have been very good, the current ones are...the earlier ones, well they earned their reputation.
Most of my used BMWs have been CPO cars. The only one that had a lot of repairs under the CPO warranty was my wife's first year E39 528i. BMW NA usually offers rebates and low interest loans for CPO cars and BMW CCA kicks in $250-$500 as well.
Some years ago I purchased an extended warranty for a Dodge Caravan. The warranty was not affiliated with the manufacturer. After 3 years the transmission went out. But the extended warranty company had declared bankruptcy 2 months before that happened. I did get about 7% of what I paid for it back when the bankruptcy court was done with it. I was done with extended warranties until I purchased a 2016 Ford Focus. When I found out about the transmission, I paid for another warranty-this time from Ford. If you are getting the warranty, get it from the auto manufacturer. The other warranty companies tend to disappear after a few years.
Depends.
I bought one for my 335d and it covered a bunch of post-factory warranty dealer visits over the emissions systems. I also got an unbelievable deal on the cost of the warranty itself which really helped. In this case I came out ahead.
On my current ride, due to manufacture sales restrictions, I was unable to obtain the same deal and I figured I would break-even over the expected repairs* if I was lucky.
*I was going to purchase the warranty which covered gaskets, when it comes to BMW the most common post-warranty expense revolve around a couple of gaskets.
I bought one for my 335d and it covered a bunch of post-factory warranty dealer visits over the emissions systems. I also got an unbelievable deal on the cost of the warranty itself which really helped. In this case I came out ahead.
On my current ride, due to manufacture sales restrictions, I was unable to obtain the same deal and I figured I would break-even over the expected repairs* if I was lucky.
*I was going to purchase the warranty which covered gaskets, when it comes to BMW the most common post-warranty expense revolve around a couple of gaskets.
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I bought one a used car my daughter bought in Texas. She found this car at a dealer, and being we are in New Jersey I couldn't be available to help her out is something went wrong. She didn't want me to pay for the warranty and she couldn't afford it being a college student at the time, but I did anyway. One month before she was gong to sell the car, the trans went out on it. Dealer says she was looking at $3k to fix it. Then remembered the warranty. Covered in full. It doesn't always work out this good, but it was cheaper then the 3k. Don't think I'd buy one on a Brand new car tho.,,,
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Only one I bought was on an early Ford Tempo, guessed right on that one 'cause it was horrible. In general it's a 100% markup and I usually scream at any sales/finance people trying to foist one off on me.
1. under limited circumstances
2. yes
3. I had an '87 Ford Aerostar, a work van that I drove very hard and was known for poor reliability. Purchased an 8 yr unlimited mileage warranty, and had over $6000 of repairs. The warranty cost $1500. Lots of engine work, brake lines, A/C, steering etc. etc.
My Mom bought a '12 Subaru Forester with a 7 yr warranty. Never used it. As other have said, it is only worth buying if you are purchasing a used or unreliable vehicle, and only if the warranty is provided by the vehicle manufacturer. Don't ever buy 3rd party warranties for cars.
2. yes
3. I had an '87 Ford Aerostar, a work van that I drove very hard and was known for poor reliability. Purchased an 8 yr unlimited mileage warranty, and had over $6000 of repairs. The warranty cost $1500. Lots of engine work, brake lines, A/C, steering etc. etc.
My Mom bought a '12 Subaru Forester with a 7 yr warranty. Never used it. As other have said, it is only worth buying if you are purchasing a used or unreliable vehicle, and only if the warranty is provided by the vehicle manufacturer. Don't ever buy 3rd party warranties for cars.
Depends on what you buy. Some vehicles like bimmers, jags, etc. suck money out of you if you even pass by a dealer with one of their cars (LOL). Since the '70s, I've owned GMs, a couple Fords, and recently a '08 Nissan and a '12 Mazda (wow that's not recent but shows I keep cars a while). I only got screwed by a 09 Pontiac G8 where the gas vapor collection system F'd up to the tune of $900. Its obviously part of the pollution system but no, its not covered!
Originally Posted by ZZman
3. Has one ever saved you expensive repairs?
Yup. Wife had a 2008 MB C300 4matic. The ext. warranty has paid for itself many times over.
3. Has one ever saved you expensive repairs?
Yup. Wife had a 2008 MB C300 4matic. The ext. warranty has paid for itself many times over.
If you are going to purchase one, check on line. There are well known dealers who sell them for a lot less than the dealer you may be dealing with does. I purchased a 8 year, 120000 mile, $0.00 deductible for our 2019 Honda Pilot. Found one of the on line dealers and paid $1345.00 for the Honda Care warranty. Good at all Honda service departments in the US and Canada.
The dealer I purchased my car from wanted $2400.00 plus tax. I told him my on line price (which at the time wasn't taxable since it was a purchase made out of state on line). His would have been over $1200.00 more for the same identical warranty!!!! He would not budge one dollar on the price so I got it on line.
I know there are well known Honda, Acura, Ford, and GM dealers on line who sell them at a very reasonable cost. Just do a Google or other search if you are looking for one for the car you are buying.
I know everyone says Honda is one of the brands that is dependable. We are planning on keeping this car a long time. For a little over $14.00 a month for the 96 month warranty we feel it is well worth it. If we sell the car before the warranty is up, it is completely transferable to the buyer for a fee of under $100.00. How many private sellers can offer a warranty when the car is 6 or 7 years old? We average under 12000 miles a year so there will be warranty left more than likely.
Only warranty I ever lost money on was one for a 2003 F 150. Have had plenty of GM warranties that paid well above the cost of the warranty.
As mentioned, stay with the warranty that is factory backed, not an aftermarket one in most cases.
The dealer I purchased my car from wanted $2400.00 plus tax. I told him my on line price (which at the time wasn't taxable since it was a purchase made out of state on line). His would have been over $1200.00 more for the same identical warranty!!!! He would not budge one dollar on the price so I got it on line.
I know there are well known Honda, Acura, Ford, and GM dealers on line who sell them at a very reasonable cost. Just do a Google or other search if you are looking for one for the car you are buying.
I know everyone says Honda is one of the brands that is dependable. We are planning on keeping this car a long time. For a little over $14.00 a month for the 96 month warranty we feel it is well worth it. If we sell the car before the warranty is up, it is completely transferable to the buyer for a fee of under $100.00. How many private sellers can offer a warranty when the car is 6 or 7 years old? We average under 12000 miles a year so there will be warranty left more than likely.
Only warranty I ever lost money on was one for a 2003 F 150. Have had plenty of GM warranties that paid well above the cost of the warranty.
As mentioned, stay with the warranty that is factory backed, not an aftermarket one in most cases.
In over 40 years of car ownership I never bought one, and saved a ton of money by not buying one. They were a great commission booster on my paycheck when I sold cars. Occasionally they pay off, like any insurance. Some swear by them, others swear at them. I won't buy one.
Throw the money that the warranty cost per month, in the bank.
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