Depends on what make and model vehicle you're buying. If you're buying something from the big 3, they probably make sense. NEVER buy one from a dealership, and NEVER buy one until your factory warranty is about to expire...buying one when the vehicle is new is a complete waste of money...
Your thoughts on extended car warranties....
- Thread starter ZZman
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1 - For most cars, probably not. The companies make a profit. If you buy one, you are betting your car will break. If that's the case, why are you buying the car?
2 - If I would, it would only be a manufacturer's warranty. The aftermarket plans are just barely legitimate.
3 - No
Originally Posted by ZZman
1. Are they worth it?
2. Have or would you consider one?
3. Has one ever saved you expensive repairs?
2 - If I would, it would only be a manufacturer's warranty. The aftermarket plans are just barely legitimate.
3 - No
Originally Posted by ZZman
1. Are they worth it?
2. Have or would you consider one?
3. Has one ever saved you expensive repairs?
If you are buying late model used, with ~36K miles or more on it, an extended warranty contract can make sense, especially if the vehicle is something like an AWD/4x4 Nissan with a CVT and lots of electronic options on it. If you're talking a Toyota, Subaru, Mazda, etc, I'd skip it.
You can negotiate the price way down. Rolling the cost into your loan, which is what the dealer wants you to do isn't the best plan because of negative equity which can come into play if you plan on trading in before the loan is paid off,
There's nothing wrong with "aftermarket" contracts provided you are buying it through a dealer network that likes working with that particular company. The mega chain dealerships in my area don't even sell/promote OEM extended warranties and haven't for years. They all use the same aftermarket one. If you go out of the dealer chain, it's a $100 co-pay. I think on average, a 5yr/100k bumper/bumper contract is $2K.
Obviously they're not the best financial move, but what is financially wise about vehicle ownership? A $2000 over 5yrs insurance policy isn't the worst thing for a vehicle w/out the best reliability track record.
You can negotiate the price way down. Rolling the cost into your loan, which is what the dealer wants you to do isn't the best plan because of negative equity which can come into play if you plan on trading in before the loan is paid off,
There's nothing wrong with "aftermarket" contracts provided you are buying it through a dealer network that likes working with that particular company. The mega chain dealerships in my area don't even sell/promote OEM extended warranties and haven't for years. They all use the same aftermarket one. If you go out of the dealer chain, it's a $100 co-pay. I think on average, a 5yr/100k bumper/bumper contract is $2K.
Obviously they're not the best financial move, but what is financially wise about vehicle ownership? A $2000 over 5yrs insurance policy isn't the worst thing for a vehicle w/out the best reliability track record.
I thought the 100k 7 year Ford "Basic" esp ( they didn't offer 8 years at the time) bought from a discounter was good value, even though I never used it and it expired having never been used. New car.
It was pretty reasonable about $750 with a deductible of about $100 as I recall. Covers the drivetrain plus stuff that can keep you from getting to work.
It's insurance not a security blanket. My car repair costs for the next eight years at were paid for in advance at a reasonable price and limited.
I don't get the argument that the dealer/manufacturer make a profit on it therefore it's a bad deal. What are we? A bunch of ChiComs?
P.S. you might want to check on the price of a factory warranty even if you aren't interested in buying one; it will give you insight into the manufacturer's true estimation of its product's durability.
It was pretty reasonable about $750 with a deductible of about $100 as I recall. Covers the drivetrain plus stuff that can keep you from getting to work.
It's insurance not a security blanket. My car repair costs for the next eight years at were paid for in advance at a reasonable price and limited.
I don't get the argument that the dealer/manufacturer make a profit on it therefore it's a bad deal. What are we? A bunch of ChiComs?
P.S. you might want to check on the price of a factory warranty even if you aren't interested in buying one; it will give you insight into the manufacturer's true estimation of its product's durability.
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Originally Posted by jimbrewer
I thought the 100k 7 year Ford "Basic" esp ( they didn't offer 8 years at the time) bought from a discounter was good value, even though I never used it and it expired having never been used. New car.
It was pretty reasonable about $750 with a deductible of about $100 as I recall. Covers the drivetrain plus stuff that can keep you from getting to work.
It's insurance not a security blanket. My car repair costs for the next eight years at were paid for in advance at a reasonable price and limited.
I don't get the argument that the dealer/manufacturer make a profit on it therefore it's a bad deal. What are we? A bunch of ChiComs?
P.S. you might want to check on the price of a factory warranty even if you aren't interested in buying one; it will give you insight into the manufacturer's true estimation of its product's durability.
With the price of some repairs these days $750 is a pretty good deal imo. I'd never likely but a new car but if I did why wouldn't I pay that $750?
As you said this is insurance. To protect you in the case of an expensive repair you can't afford. Insurance on a smartphone is a rip-off imo because you can repair or replace the phone for cheaper than what you pay for the insurance and deductible.a car isn't as easily replaced and repairs these days can sometimes be in the thousands of dollars.
I thought the 100k 7 year Ford "Basic" esp ( they didn't offer 8 years at the time) bought from a discounter was good value, even though I never used it and it expired having never been used. New car.
It was pretty reasonable about $750 with a deductible of about $100 as I recall. Covers the drivetrain plus stuff that can keep you from getting to work.
It's insurance not a security blanket. My car repair costs for the next eight years at were paid for in advance at a reasonable price and limited.
I don't get the argument that the dealer/manufacturer make a profit on it therefore it's a bad deal. What are we? A bunch of ChiComs?
P.S. you might want to check on the price of a factory warranty even if you aren't interested in buying one; it will give you insight into the manufacturer's true estimation of its product's durability.
With the price of some repairs these days $750 is a pretty good deal imo. I'd never likely but a new car but if I did why wouldn't I pay that $750?
As you said this is insurance. To protect you in the case of an expensive repair you can't afford. Insurance on a smartphone is a rip-off imo because you can repair or replace the phone for cheaper than what you pay for the insurance and deductible.a car isn't as easily replaced and repairs these days can sometimes be in the thousands of dollars.
I got a new $500 phone for $70 insurance and a $50 fee, 3 weeks after I bought the first one. I am using it now 3 years later, the insurance ran out a year ago. Now I could buy a used on for $99. Worked out well for me.
Originally Posted by HangFire
I got a new $500 phone for $70 insurance and a $50 fee, 3 weeks after I bought the first one. I am using it now 3 years later, the insurance ran out a year ago. Now I could buy a used on for $99. Worked out well for me.
2 years of insurance cost $70?
I got a new $500 phone for $70 insurance and a $50 fee, 3 weeks after I bought the first one. I am using it now 3 years later, the insurance ran out a year ago. Now I could buy a used on for $99. Worked out well for me.
2 years of insurance cost $70?
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Originally Posted by jimbrewer
I thought the 100k 7 year Ford "Basic" esp ( they didn't offer 8 years at the time) bought from a discounter was good value, even though I never used it and it expired having never been used. New car.
It was pretty reasonable about $750 with a deductible of about $100 as I recall.
Jim, how many years ago was that? Asking because I'm pretty sure they're double that cost today.
I thought the 100k 7 year Ford "Basic" esp ( they didn't offer 8 years at the time) bought from a discounter was good value, even though I never used it and it expired having never been used. New car.
It was pretty reasonable about $750 with a deductible of about $100 as I recall.
Jim, how many years ago was that? Asking because I'm pretty sure they're double that cost today.
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Originally Posted by JTK
Originally Posted by jimbrewer
I thought the 100k 7 year Ford "Basic" esp ( they didn't offer 8 years at the time) bought from a discounter was good value, even though I never used it and it expired having never been used. New car.
It was pretty reasonable about $750 with a deductible of about $100 as I recall.
Jim, how many years ago was that? Asking because I'm pretty sure they're double that cost today.
Eight years ago at Floodford.com. They haven't gone up that much. Looking at their prices now, I'd go for the eight year 100k plan but with a $200 deductible. $880 for 4x2 f-150. Still very fair.
Originally Posted by jimbrewer
I thought the 100k 7 year Ford "Basic" esp ( they didn't offer 8 years at the time) bought from a discounter was good value, even though I never used it and it expired having never been used. New car.
It was pretty reasonable about $750 with a deductible of about $100 as I recall.
Jim, how many years ago was that? Asking because I'm pretty sure they're double that cost today.
Eight years ago at Floodford.com. They haven't gone up that much. Looking at their prices now, I'd go for the eight year 100k plan but with a $200 deductible. $880 for 4x2 f-150. Still very fair.
If I buy extended warranty I never need it and if I pass on it something major breaks. Just me. On last vehicle I bought one and at 90k it needed an O2 sensor but 100 deductable I changed it out for 25 then 1000 over warranty ac went out go figure. I did get the warranty on Caravan but it is only 7 year bumper to bumper but only to 60k as I drive approximately 7k a year lately. I should be good ...Š for awhile.
I almost never buy one these days. I did on the Subaru because I was able to get it from the manufacturer for about $1500 which extends bumper to bumper coverage out to 7 years or 70,000 miles. If my wife had chosen the Corolla we were looking at I would have passed on the warranty. Since I have no prior experience with Subaru and the price was pretty negligible I figured I'd bite. If it were more expensive I would hedge my bets that repairs will run less than the cost of the warranty. I didn't buy one on the Frontier and I don't suspect that I'll need one.
Originally Posted by Sam_Julier
Originally Posted by Quattro Pete
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.
I bought my first extended warranty contract on a 2000 MB C240 for $1,400. First year of the model. Bumper to bumper coverage to 100,000 miles.
I sold the car about 2 days after the contract expired. The dealer and MB had spent over $10,000 in repairs in less than four years.
The car was a joy to drive. As long as someone else was paying for the repairs.
The old C class MBs were pretty bad, especially when they were entangled with Chrysler. The newer models are much better.
Anyway, I think their CPO warranty is pretty good if you tend to put on a lot of mileage. They do 3 years unlimited miles. There's one guy on here who drives 30k+ a year. He could probably buy one that's 3 years old with 30k so you'd still have the 4th year factory warranty then it'd be 4 years unlimited miles and it'd probably rack up 150k with a warranty.
Originally Posted by Quattro Pete
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.
I bought my first extended warranty contract on a 2000 MB C240 for $1,400. First year of the model. Bumper to bumper coverage to 100,000 miles.
I sold the car about 2 days after the contract expired. The dealer and MB had spent over $10,000 in repairs in less than four years.
The car was a joy to drive. As long as someone else was paying for the repairs.
The old C class MBs were pretty bad, especially when they were entangled with Chrysler. The newer models are much better.
Anyway, I think their CPO warranty is pretty good if you tend to put on a lot of mileage. They do 3 years unlimited miles. There's one guy on here who drives 30k+ a year. He could probably buy one that's 3 years old with 30k so you'd still have the 4th year factory warranty then it'd be 4 years unlimited miles and it'd probably rack up 150k with a warranty.
Well we just made our money back on the extended warranty we bought on the Fusion. If the wife wouldn't have pushed me I would have said no to getting it.
Took the car in for what I thought was a new axle seal. They said the oil pan is leaking and the gasket between the 2 trans halves is leaking. $ 2,000 repair bill. I only have to pay $100 deductible.
Took the car in for what I thought was a new axle seal. They said the oil pan is leaking and the gasket between the 2 trans halves is leaking. $ 2,000 repair bill. I only have to pay $100 deductible.
The problem with warranty work for s thy you're giving your car to someone else, and that's how accidents happen.
I think the best warranty any of us could ever hope to buy/own/use is a comprehensive set of tools. Letting someone else do stuff to your car is nearly as bad as letting someone else do stuff to your wife! You should always do it yourself
I think the best warranty any of us could ever hope to buy/own/use is a comprehensive set of tools. Letting someone else do stuff to your car is nearly as bad as letting someone else do stuff to your wife! You should always do it yourself
Well, lot's of companies sell extended warranties. Lot's of companies wouldn't sell them if they didn't make lots of money on them.
There are situations where they work for an individual but the odds are the majority of us will not benefit. If they worked for the majority, they wouldn't be selling them.
There are situations where they work for an individual but the odds are the majority of us will not benefit. If they worked for the majority, they wouldn't be selling them.
Originally Posted by ls973800
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..
^ This! When we got our new Corolla I found the same thing. Dealers wanted thousands more for the same Toyota extended warranty offered by internet dealers. Also, the F&I guy at the dealership really pushed the extended warranty and made it seem like we needed to buy it that same day - but then I specifically asked if it could be purchased later, and it can, actually for quite some time. It was at that point I researched these internet dealers and they are legit. It was shocking how much profit can be built into these sales. In the end, we felt Toyota reliability had never let us down before so we opted not to get i and the Corolla has not missed a beat in like 65k miles now. I would also note to carefully check out all the combinations of time and mileage with these warranties. If you rack up the miles fast, go for one with the max mileage terms. If you don't, you can opt for a warranty that lasts longer time-wise.
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..
^ This! When we got our new Corolla I found the same thing. Dealers wanted thousands more for the same Toyota extended warranty offered by internet dealers. Also, the F&I guy at the dealership really pushed the extended warranty and made it seem like we needed to buy it that same day - but then I specifically asked if it could be purchased later, and it can, actually for quite some time. It was at that point I researched these internet dealers and they are legit. It was shocking how much profit can be built into these sales. In the end, we felt Toyota reliability had never let us down before so we opted not to get i and the Corolla has not missed a beat in like 65k miles now. I would also note to carefully check out all the combinations of time and mileage with these warranties. If you rack up the miles fast, go for one with the max mileage terms. If you don't, you can opt for a warranty that lasts longer time-wise.
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