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Extended Warranties

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  • maxx4memaxx4me Member Posts: 1,340
    gm02: nobody has found a better deal to date than: www.capperautocenter.com
    I'll be buying from them in about 7 months, before car reaches 12months/12,000 miles
  • boomer1bboomer1b Member Posts: 316
    check out http://www.gmoutlet.com

    MAXX......Did you check the prices if you buy before the 3/36 is up instead of buying before 12mth/12k?

    The price is cheaper if you buy it when new, a little more $$ if you buy before 12/12 and yet more if you bought before the 3/36.

    I didn't get into it to figure which would be the best deal.....
    With 5k in rebates ...I just bought another truck!.......

    Worth checking tho!
  • maxx4memaxx4me Member Posts: 1,340
    no, the price is the same brand new up until 12/12,000. gmoutlet's prices are like only $60 over Capper's across the board. Both places will show you the prices for when you pass 12/12,000 as well. They have nothing to hide since they are the two best out there. I tried to shop their prices at over 2 dozen dealers and failed.
  • gm02gm02 Member Posts: 49
    Excellent information, saved me BIG $$$.
    GM Outlet wins, they are offering:
    5yr / 40k for $855
    5yr / 50k for $1035
    Leaning toward the 5yr/40k

    They beat Capper only by $20., due to a 1 week special that ends Friday. Alan at GM Outlet was excellent to talk with!! Full of good advice & info, he mentioned 10/1 GM will come out w/new pricing, and it will be more!
  • boomer1bboomer1b Member Posts: 316
    gm2.....Glad to hear it ! I spoke with Alan a while back while shopping.

    Remember tho: Those GMPP warrantees START when the car is in service tho.
    So I can assume you got 40k and 5 yrs OVER your 3/36 right?
  • maxx4memaxx4me Member Posts: 1,340
    great gm02. Both places seem to be GREAT to work with, and offer a huge discount. Congrats.
  • gm02gm02 Member Posts: 49
    Alan from GM Outlet confirmed, that 5yr/40k is 5yrs from date of purchase & 40k added onto the existing mileage.

    Thanks again, only decision left is either the
    5yr/40k at $855 or
    5yr/50k at $1035
  • boomer1bboomer1b Member Posts: 316
    Just depends on the miles you drive per year !

    Some say a ex-warranty is a crap shoot !
    I know from experience a new computer is $1000,
    a trans $2500, and so on.......
    For some its a good piece of mind !

    Me: I never buy them for my Caddies...Only my snow plow trucks !
  • sapphirebluesapphireblue Member Posts: 29
    I'm currently "new" (2004 and 2005) car shopping, looking mostly into sport wagons (Matrix, Vibe, Passat, Legacy) and some small SUVs (CR-V, Forrester, Highlander).

    I tend to keep cars at least 7+ years ... my current car is a 1994 Ford Escort LX that I bought in 1996 after another person's lease.

    A lot of new-car warranties seem to run 3yr/36K ... with an occasional one (e.g., VW) going up to 5yr/60K.

    So the questions are ... since I intend to keep my car at least 2-4 years more than the normal warranty, is an extension worthwhile beyond any peace-of-mind issues? Is there any impact by which manufacturer I pick, on whether the ext. warranty is worthwhile?

    If yes, is it better to buy soon after getting the car? Or wait until closer to the end-mark of the original warranty? (I'm guessing not to get it at the same time as purchase, from what I'm reading on these boards.)

    Thanks,
    sapphireblue
  • maxx4memaxx4me Member Posts: 1,340
    saphireblue: the one main thing I have learned from these boards is this: the best thing to do is NOT buy an extended warranty at all. Keep the money and be your own extended warranty company (especially with a brightening economy on the horizon). If you don't follow that wisdom, then the next best thing is to buy a manufacturer's warranty and not an after market one. The shine is off the star on these after market companies. Too many bad things have happened to them during the past 4 years (and guess what: it is a direct correlation to the economy, and their inability to make money investing your money.....gee, what a suprise).
    I will be buying my GM warranty during the 11th month of ownership. No need to part with my money after purchasing my car, when I can buy the new car warranty at the same price 11 months later.
    Now for my opinion: if you buy the Highlander, CR-V, Vibe or Matrix, I would definitely NOT buy an extended warranty. While things do go wrong with Hondas and Toyotas, and the parts are expensive, things don't go wrong THAT often with these manufacturers. If you buy the Subarus, which DEFINITELY have very expensive parts, but are generally reliable cars, you have a 50/50 proposition there in my opinion (I'd buy the extended on any Subaru). I'd steer you away from the Passat, which is waaay overpriced for what you get, and the reliability is marginal at best. And as I leave you: don't forget to look at the Maxx!!
  • ateixeiraateixeira Member Posts: 72,587
    In my experience Subaru parts aren't really that costly. More than the domestics but cheaper than Mazda's parts, for instance.

    Having said that, we got a 7/100 Subaru Gold warranty, and that includes 7 years of roadside assistance. That alone saved us $497 in AAA membership fees. Factor in slightly better resale if you sell after maybe 6 years or so, and the warranty itself was nearly free.

    If you pay for roadside assistance, that's something to consider.

    -juice
  • eizelle75eizelle75 Member Posts: 1
    I have a 325i that is about to come to the end of its 4 yr. warranty. It has 43,000 miles and but for a twice recurring issue with the brain, I have had no problems with it. Is it worth it to buy an extended warranty on it. The best I've found is 100,000 miles for $2600 - which only gives me 52,000 miles or another 4 yrs. for that price. Averages out to $600/yr -- is it worth it? Any advice would be appreciated.
  • ateixeiraateixeira Member Posts: 72,587
    I don't think so, that's a very high price. I'll admit Bimmers must be pricey to work on, but you may as well invest that in a trade-in.

    -juice
  • duanixduanix Member Posts: 1
    i recently bought a subaru with an extended warranty- 7/100, carefree car protection at bob baker,ca. i just read the contract at it says "fidelity warranty services,inc" is the service company & administrator( i thought it was soa) .... is that a sound purchase? or should i cancel and take the basic 3/36 warranty instead?.......thanks
  • ateixeiraateixeira Member Posts: 72,587
    Doesn't sound like the Subaru Gold warranty I have.

    I'd go back to the dealer to at least clarify.

    -juice
  • asharerinasharerin Member Posts: 10
    I was considering purchasing an extended warranty for our 2003 Honda Accord with 22k miles on it. Has 1 year or 14k miles left on the manufacturer warranty.

    However after much research and something nagging at the back of my brain I came to realize these extended warranties are a very bad investment. Insurance is a great way to share catastrophic risk among a large group (such as home insurance). But buying insurance on relatively small ticket potential repairs is ridiculous. You will come out way ahead if you put that premium in a savings account and earn some interest. My credit-union is offering a 60 month term-deposit at 4.4% compounded monthly and you should be able to get something similar.

    Worse case scenario you may have a necessary repair for $1k-$2k, or a run of smaller repairs totalling this amount, (about the premium anyway) which your average person can easily cover through a personal loan, savings, or using the premium stored in the bank account. And what are the odds of this size repair on a reliable vehicle? Not very good!

    Unless you have absolutely no confidence in the vehicle you have bought (which begs the question why buy it in the first place????) this is a suckers game. If your house burned down and you didn't have insurance most likely you would be in huge financial trouble. If your car needs a $900 repair then pay it! Don't fall victim to the scaremongering that your car could be the worst lemon ever created........well it could be but the odds are tiny and you would simply trade it in after your realized this and use the premium as a downpayment on a reliable vehicle.
  • asharerinasharerin Member Posts: 10
    As an addendum to the above post the following may help you make the decision. If you are the typical US consumer and have a few thousand in credit card debt then consider this:

    Assume the extended warranty premium is $1300.00 for a 5 year/100k warranty, and your annual credit card rate is the average 18% p.a. (probably around 21% in 5 years). Instead of buying the warranty pay this $1300 off your credit card debt today. This is equivalent to making a $1300 investment earning 18% p.a. TAX FREE! Assuming you were going to buy the 5 year warranty this $1300 investment today in 5 years will be worth $3000. Thats a $3000 gain in savings TAX FREE.

    So if you do have at least $1300 in credit card debt and will most likely carry this balance of $1300 over the 5 years then the extended warranty is actually costing you $3000 after tax (around $4000 pre-tax income for the average consumer). Do you anticipate $4000 worth of repairs in just 5 years?
  • ateixeiraateixeira Member Posts: 72,587
    Worst case scenario $2k?

    I beg to differ, prices for repairs have skyrocketed, some tranny replacements can run $4-6 grand. To a lot of people that is catastrophic.

    Debt-free here so that doesn't apply to me.

    -juice
  • boomer1bboomer1b Member Posts: 316
    Would you rather finance that $1000 extended warranty purchase rolled into your 0% car loan.

    OR
    When that $5000 auto trans. poops out on your Subie outback after warranty period.
    $2000 struts, $1500 computers, $1000 ABS module and so on !
    I read horror stories about these parts pooping out after warranty on these threads. A loose piece of plastic trim ain't nothing !

    You could use your 25% int. credit card to pay the bill.

    Most folks don't realize the $250 dollar fix just ain't there anymore. Most so caled minor repairs that are covered by warranties
    (if you have one) are very $pendy nowadays !
    Its a crap shoot......and for some folks a good choice!
  • maxx4memaxx4me Member Posts: 1,340
    $3,500 in repairs on my $650 warranty I got with my 626 back in '96. I sure lucked out there
  • boomer1bboomer1b Member Posts: 316
    LOL.......SO your the GUY who put Warranty Gold outta business !.......LOL !!!!!!!!

    There was another fella around here called Spyderd98 (spl). He had one of those Mitsu. Spyders and a Warranty Gold policy !
    Every WEEK that car was getting fixed ! Prob. after prob. He posted that they did fix it !
    Sometimes with junkyard parts etc. but they fixed it!
    A year or so passed and he posted faithfully about his experiences....
    Finally Warranty Gold went broke ! We twisted him a bit about it! But he got his moneys worth!

    He posts now under a different handle....Maybe he will chime in here!.................
  • asharerinasharerin Member Posts: 10
    Yes we have all heard the horror stories about thousands upon thousands of dollars of repairs constantly and a luckly person with an extended warranty and a company that actually had the funds to cover these claims. What you don't hear is the 99% of people who lose by being on the wrong side of the ludicrous odds on this bet.

    Plus not factored in is the risk of the warranty company not paying claims or going bust......read around this is a real risk and an oddsmaker would probably say around 20%.

    If $4-$6k is catastrophic then I have news for you.....you cannot afford the vehicle plain and simple!

    But also not factored in is the peace of mind aspect and I know fear has been bred into the american psyche for centuries now and is hard to escape from. My advice just please calculate the odds. I think you would do better to take your $1k premium to your local casino and play some blackjack. At least the casino will pay out :)
  • maxx4memaxx4me Member Posts: 1,340
    My company was Ryan. They were excellent. After I racked up too many bills, they started sending their investigators to my dealer to see if my repair need was legitimate. They paid out every time.
    I calculate my risk as follows: "Toyota" Vibe: no warranty needed; I don't expect problems with Denso parts. Chevy Malibu Maxx: Oh yeah; you better believe I'm getting a warranty; a manufacturer's warranty that is.
  • boomer1bboomer1b Member Posts: 316
    SOME extended warrantys offer a REFUND if not used also ! GMPP?

    True..... Some vehicles I wouldn't purchase a ex-warranty for either for the drivetrain stuff....

    BUT...Those $pendy sensors, computers, and other things can suck your wallet dry in no time....
  • ateixeiraateixeira Member Posts: 72,587
    LOL boomer! :-)

    Stick with a manufacturer's warranty. Even then I'm not sure a Daewoo one is much good now. ;-)

    They use OE parts, not junkyard or aftermarket stuff.

    Subaru will refund their Gold warranty if it's never used.

    -juice
  • art_vandelayart_vandelay Member Posts: 45
    driftracer: Any chance you can provide insight into dealer cost on Ford's various ESPs? Thanks.
  • art_vandelayart_vandelay Member Posts: 45
    Does anyone have any experience with or knowledge of "InterContinental Warranty Service"? This is the plan sold by my credit union. Other folks who've financed through my credit union and gotten this contract say they've used it and had no problems. The only real info on the CU's site says "Our Vehicle Service Agreement/Mechanical Breakdown Insurance is provided by one of the world’s leading and financially strong re-insurers (rated A++ Superior by A. M. Best Co., Inc.)."
  • driftracerdriftracer Member Posts: 2,448
    Nope, I can't, actually. I'm no longer in the car business as an F&I guy and don't have a cost book for any of the Ford, GM, or DCC warranties. I have, and will again, ask the F&I manager to show me their cost book before I buy a warranty. They may not like that tactic, but if they want to sell a warranty at $100-200 over their cost, they'll show me the book.
  • art_vandelayart_vandelay Member Posts: 45
    Thanks anyway, drift. It was worth a shot!
  • boomer1bboomer1b Member Posts: 316
    Don't bet the farm on any AM Best Co. ratings.

    Warranty Gold was A++++ whatever rated by them a year or so back.......

    Then they went belly up... as you can read here in this thread !
  • sundevilsundevil Member Posts: 28
    I bought a 7year/75K mile manufacturer warranty with $0 deductible for $600 for my 2004 V6 Toyota Highlander.
  • ateixeiraateixeira Member Posts: 72,587
    Dirt cheap, good deal...

    -juice
  • nitromaxnitromax Member Posts: 640
    I bought the ESP for my Explorer before it turned 36,000 miles and boy did I get lucky there.

    I believe it was the 6yr/75,000 mile for around $700.

    Around 50,000, the tie rod, upper and lower, wore out prematurely.

    Around 60,000 the engine crapped out and needed a new one. It was back-ordered due to the high demand on replacement engines (scary thought right there). Even though I wa ssupposed to get a free "loaner car" according to my warranty, the dealer I went through said that they couldn't do that but they would put me up in a rental. ESP would only pay up to $30 per day....the engine replacement took approx 30 days.
    When I returned the rental car, I wa sgiven a bill for about $280 by the rental company. They said with daily tax and such, the Ford ESP didn't cover it all.
    :-P
    weenies

    After getting the "Exploder" back, the AC didn't work. Took it back three times to get that "fixed". Two of those times required a "rental".

    Moral of the story.
    I saved a bunch of money by spending for the ESP.
    I lost a bunch of money/time buying an Exploder.
  • qaliqali Member Posts: 60
    I am currently leasing a 2002 Acura TL. I have 3 months remaining on the lease, and the vehicle has performed flawlessly during the past 2.8 years. The only issue has been the transmission recall by Acura, but after the dealer inspection no problems were found on my car and Acura has extended the standard warranty on the transmission to 7 years.

    I am planning to buy-out the car and keep it for at least 7 years. My question to this group is whether I should be considering Extd warranty. My dealer said that it is still available. Is the car reliable enough to last another 4 years without mechanical and electronic problems?

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi qali. There is really no right or wrong answer to the question of whether it is a good idea to purchase an extended warranty or not. Whether you should do so really depends upon how risk averse you are. I personally tend not to purchase extended warranties on my vehicles and find that consumers who purchase reliable models, like Hondas and Toyotas and their respective luxury brands Acura and Lexus, often do not make their money back on extended warranties. I always recommend that consumers who do want to purchase an extended warranty purchase an official manufacturer-backed policy. It is in manufacturers' best interest to keep consumers as happy and for their sakes hopefully loyal customers so they are more likely to step up to the plate and provide coverage if you have a problem with your vehicle than some random independent warranty provider would be. I am not familiar with the laws pertaining to extended warranties in Canada, but here in the U.S. most states allow consumers to negotiate the prices of extended warranties. Furthermore, you do not have to purchase the warranty for your vehicle at the dealership that you took delivery of your car at or the one that you plan on having it serviced at. You are free to comparison shop for an ESP, purchasing from the dealership that quotes you the lowest price. Of course, it never hurts to give the dealer that does your services work an opportunity to match your lowest price quote.

    In summary, I personally would not purchase an extended warranty on a vehicle that traditionally has been very reliable, like the Acura TL, especially if Acura has already extended its Powertrain coverage, but if you want to do so, shop around.

    Car_man
    Host
    Smart Shopper Message Board
  • qaliqali Member Posts: 60
    Thank you for the advice. In my case, the extended warranty is offered by Acura and I am to believe that the price does not change from dealer to dealer. I will however, confirm that. I personally would not go for 3rd party warranty providers.
    Having said that, you are correct that these are very reliable vehicles and are not prone to failures. My intent was to find out from this audience if anyone has had a TL long enough and whether I should be worried about any major issues in the next 4 years or so.

    Thanks once again.
  • gregoryc1gregoryc1 Member Posts: 764
    I am playing blackjack with my $875.00 as you suggested in posting #491, but I am betting against Honda over a period of 7 years or 100,000 miles. It has nothing to do with fear, but it has a lot to do with simple economics. $125.00 a year against the cost of a new automatic transmission, ($3,000 to $6,000), is cheap insurance. Some people bet at the casino, and I bet in a different fashion. It doesn't matter to me if other people do not have a warranty claim with an extended warranty. It only matters if I am covered by the extended warranty. I personally do not care how much money Honda makes with this program. All I care about is that my financial obligations are covered. Yes, it is "personal"!
  • sandman46sandman46 Member Posts: 1,798
    As Car_man has said, it's really about the amount of risk one is willing to take on. I've never done this on any car that we've owned. The wife's '01 Altima needed a new radiator, water pump, & left axle boot within the last 4 months for a total of about $600. Hind site tells me that maybe I should've taken out an extended warranty. With 67k clicks on the odometer and 4 years of ownership, probaly should've. But at the time, I took a gamble on the reliability factor of Nissan products.
    The only other things have been maintenance items...1 battery, 2 sets of tires, wiper blades, air filters, tranny and radiator flush, alignments and the 3750 mile oil changes. She still loves the car and hopefully we'll keep it till 100k.
    With her next car, I will definitely look for an extended warranty. I'd like her to try the Accord, as we've never owned a Honda yet. Nissan and Toyota have been our only autos since 1988 and we're quite happy with them!

    The Sandman :-)
  • boomer1bboomer1b Member Posts: 316
    That breaks the bank on any car today.......
  • ateixeiraateixeira Member Posts: 72,587
    We spent $2500 fixing our 626 in years 5-7 of ownership, with less than 80k miles.

    A warranty would have cost half as much and we'd have had a perk to help boost resale value.

    And yes, there were no major repairs. Engine and tranny were fine. It was the little stuff, wheel bearings, O2 sensor, axle boots, etc.

    -juice
  • boomer1bboomer1b Member Posts: 316
    Most newer vehicles engine and trans, will go 100k plus with a tune up, a oil change, and a timing belt !
  • orangelebaronorangelebaron Member Posts: 435
    I went to the finance guy today at the Subaru dealer for the 2005 Outback I am purchasing. After he talked me into the 2.9 financing for 63 months (over my home equity loan)... he almost speed talked me into signing for Lojack, alarm and extended warranty for 2500 dollars!!!
    I asked if I could think about it and he said this is the contract today!!! He was so excited!
    He discouraged me from using GEICO saying the deductible is $250 and they don't using Subaru parts.
    I ended up saying no to all except the 2.9 financing because I didn't think of researching this stuff beforehand. The extended warranty from Subaru is about $1450 to extend the warranty to 6 years and make it bumper to bumper. And come to think of it maybe going with GEICO may be a mistake because "what if they drop me" or I change insurers?

    So....... if I maintain my new Outback, do I really need an extended warranty and if I do get one..did I really have to get it today (delivery is 9/23 Thursday) and what should I pay for how much more coverage???

    Thanks, Guys!
    —Gary
  • ateixeiraateixeira Member Posts: 72,587
    I bet Geico would use OE parts for a certain amount of time, maybe if the car is less than 3 years old. After that they will use cheaper aftermarket stuff.

    If you get insurance with Liberty Mutual, they have a special program where they will use OE Subaru parts for the life of your car. It does cost more than I'm paying for my insurance, though (as expected).

    As for the warranty, I would stick with a Subaru Gold, even if you need to include a small deductible for each claim, maybe $50 or $100, to make it more affordable.

    You'll get 6 years of roadside assistance with that warranty, BTW.

    -juice
  • orangelebaronorangelebaron Member Posts: 435
    I used to have Liberty Mutual (for 20 years) since I got out of High School. Last year after I dropped my insurance for a few months because I had no car (big mistake) they wanted $2000 a year (double) just to start back up again (even though I was low risk).
    So I went with GEICO because they didn't pull that nonsense.

    How do I find out the best prices for Subaru Gold?

    G dub
  • ateixeiraateixeira Member Posts: 72,587
    There was some good advice above. Ask the F&I guy to see his pricing sheet and offer $100 over his cost.

    The trick is to find a motivated seller.

    -juice
  • akanglakangl Member Posts: 3,281
    The Nissan F&I guy about a 6 yr/100k ESC for my Titan and he quoted $1790 for the security plus something or other (top of the line ESC).

    Now here's the part that got me, he said that once my truck (2004 Nissan Titan with 11,200 miles on it) rolls over 12k miles the coverages start going down and I won't be able to get the 100k ESC. I called major BS, but he was adimant.

    I've never heard that before, I know the price goes up some after 12k miles, but I always thought you could buy the new vehicle ESC up until 36k miles. He said no, that once its over 12k miles its no longer eligable for the new car ESC. Major BS or is he right about Nissan Security plus?
  • driftracerdriftracer Member Posts: 2,448
    I know of NO manufacturer that has rules like that - sounds like some pressure to get you to pop for his warranty -

    Your best bet is to do some surfing and find a big Nissan dealer that sells ESCs on-line - call and get the facts.
  • akanglakangl Member Posts: 3,281
    Exactly what I thought, thanks for confirming it.
  • rroyce10rroyce10 Member Posts: 9,332
    ......... Oh yeah, anything over 12k and no mooses'sss'sss - page #2, paragraph 12, item line 6, look under BS ...l.o.l....

                                     Terry.
  • akanglakangl Member Posts: 3,281
    I promise he didn't get me with his high pressure pitch, I actually told him he was full of it. I was just surprised he would lie like that, then again this is the same dealership that let a tech take my truck for an 80 mile joyride (gone for 2 hours, they had no idea where he was or how to find him). I can honestly say the thought of kicking him where it counts definatly crossed my mind. NOBODY messes with my truck, especially the Titan.
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