Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!

My warranty has expired. Now what?

tidestertidester Member Posts: 10,059
edited March 2014 in Saturn
I keep reading about folks who have just experienced a major mechanical problem with their car and, oh, by the way, the warranty has expired. The stress can be overwhelming when the replacement or repair is a big ticket item - like a broken transmission or cracked engine block.

Let's use this space to vent, share coping skills and commiserate and, especially, I'd like to hear about success stories and strategies that work in minimizing the damage to your finances.

tidester, host
SUVs and Smart Shopper

Comments

  • oldfarmer50oldfarmer50 Member Posts: 22,533
    I'm not a big fan of warranties. Just the fact that manufacturers offer them indicated that they think you will never get your money's worth out of them. I mean, if they thought they would have to pay out anywhere near the amount they charge they would have no incentive, right? The fact that they are willing to discount them proves my point.

    Then there are the exclusions and deductibles. Most of these things have so many conditions on them that unless you are a lawyer you can't tell what is covered. Who needs that?

    When I recently bought a new car they tried to sell me all the extras. To be polite I let the F & I woman give her pitch but really wasn't listening. Then as she finished up she ends with "And after the $1500 deductible you don't have to pay a penny".
    My head spun around like in the Exorcist. I thanked her for her time and declined her offer. :cry:

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • isellitisellit Member Posts: 15
    Warranty on a car is similar to good health.

    You do regular maintenance on a car and it should last 100k-125k miles without any major breakdowns if you have a fairly dependable model.
    If you smoke, drink, have multiple partners and live life on the edge and avoid yearly checkups your body with fall apart and you will have poor health/dealth at an early age.
    Many people buy life insurance because of their life style just like many people buy extended warranty for their lack of car maintenance.
    Personally Id say if a car has been kept up and did not give you fits while in warranty there should be no need to buy an extended warranty when the factory warranty runs out. I would never buy an extended warranty on a new car, thats what the factory "free" warranty is for.
  • tidestertidester Member Posts: 10,059
    You do regular maintenance on a car and it should last 100k-125k miles without any major breakdowns ...

    Of course, the operative word is "should." People who do take great care of their cars often experience warranty expired woes with serious problems.

    If you smoke, drink, have multiple partners and live life on the edge and avoid yearly checkups your body with fall apart and you will have poor health/dealth at an early age.

    Jim Fixx was the epitome of fitness and health and even he succumbed to clogged arteries at the ripe young age of 52. Nor did the exemplary diet and lifestyle save Euell Gibbons. :(

    tidester, host
    SUVs and Smart Shopper
  • michaellnomichaellno Member Posts: 4,120
    You do regular maintenance on a car and it should last 100k-125k miles without any major breakdowns ...

    Of course, the operative word is "should." People who do take great care of their cars often experience warranty expired woes with serious problems.


    Tell me about it. In November of 2002 I bought a new 2003 Saturn L300. I elected not to get an extended warranty.

    I have had all service performed by the dealer. Unfortunately, that hasn't prevented me from having to spend close to $3000 on repairs after the 3 year / 36K standard warranty expired:

    2 Body Control Modules within 16 months of each other
    Transmission axle seal
    New rotors and calipers for the front brakes

    The car now has almost 70,000 miles on it and is paid for. It's been over a year (knock on wood!) since anything has needed repair. I'm just hoping that I can nurse it along for another 2 or 3 years before I get something new.
  • mattandimattandi Member Posts: 588
    Excluding extended or extra coverage from the equation, would you buy a new car if it did not have any new car warranty coverage?
  • tidestertidester Member Posts: 10,059
    Michael,

    I'm curious. How soon after your warranty expired did you get hit with those expenses?

    tidester, host
    SUVs and Smart Shopper
  • michaellnomichaellno Member Posts: 4,120
    I'd have to review the receipts, but I think that the problems started about 6 months after the warranty expired - spring of 2006.

    The first BCM replacement and brakes were done within a couple of months of one another. The axle seal and the second BCM were last year (2007).

    Not much sympathy from the Saturn dealer, either.
  • volvomaxvolvomax Member Posts: 5,238
    Not much sympathy from the Saturn dealer, either.

    I'm sorry, why should the dealer give you any sympathy??

    YOU elected NOT to get the extended warranty.
    That is a you problem, not the dealers fault.

    The ONLY reason you shouldn't get an extended warranty is if you don't plan on keeping a car after the new car warranty period.

    I don't care whop makes it. Modern cars are so complex that NONE of them will last like the old ones.
    There are too many computers, relays and gadgets anymore.
    Plus, all the same suppliers make components for everyone.
  • tidestertidester Member Posts: 10,059
    I'm sorry, why should the dealer give you any sympathy??

    I believe it was an observation and not a statement of expectation. I am curious to know what proportion of components have "mean time between failures" just beyond the duration of the basic manufacturer's warranty.

    tidester, host
    SUVs and Smart Shopper
  • michaellnomichaellno Member Posts: 4,120
    volvo - as tidester points out, I didn't expect Saturn to cover my out of warranty expenses. I will, however, give my Saturn dealer props for splitting the cost (nearly $600 total) with me on the second BCM replacement as it failed within 16 months of the first one - had it failed within 12 months, they would have covered it 100%. Of course, it doesn't hurt that I have 3 Saturns in the family and all of them get nothing but dealer service.

    I realize that I had the choice when I bought the car to purchase an extended warranty and did not do so. My wife's 2008 VUE, however, does have an extended warranty (even though GM warranties the powertrain for 5 years or 100K miles). My daughter's 2006 ION does not have an extended warranty - but, since she drives about 7K a year, we decided that it was a gamble worth taking.

    tidester - I have since learned that the BCM failures are pretty common with the L-series. Not quite sure why that is, but the Saturn boards are full of folks who have had the same problem as I did.
  • volvomaxvolvomax Member Posts: 5,238
    Even as an observation, it's pointless.
    Dealers are businesses, not Santa Claus.

    I am curious to know what proportion of components have "mean time between failures" just beyond the duration of the basic manufacturer's warranty.

    Probably quite a high proportion.
    Remember, cars are designed to a price point.
    You use the cheapest components you can to get the job done.
  • volvomaxvolvomax Member Posts: 5,238
    volvo - as tidester points out, I didn't expect Saturn to cover my out of warranty expenses. I will, however, give my Saturn dealer props for splitting the cost (nearly $600 total) with me on the second BCM replacement as it failed within 16 months of the first one

    Well, then you got something MUCH more valuable then sympathy.
    And, you should have mentioned this in your initial post.
  • manamalmanamal Member Posts: 426
    Gulp....3 years ago today, I bought by subie.

    Everything seems ok right now.

    But I did have a warranty repair just under a month ago (o2 sensor). They assured me that had it been 1 month later, I would have been taken car of gratis. (They do all of the maintenance).
  • roadburnerroadburner Member Posts: 17,288
    1995 BMW 3 Series w/114K, purchased new- out of warranty repairs: Serpentine belt tensioners-$122, Timing Chain Tensioner-$45, Battery-$75
    1999 Jeep Wrangler w/106K, purchased used in 2002- repairs: two batteries-$150, exhaust manifold-$650(Banks Torque Tube), radiator/T-stat-$271
    2004 BMW X3 w/60K, purchased used w/CPO warranty and 16K- no repairs since new car warranty expired 10K miles ago. CPO goes to 100K
    I would have lost money buying a warranty on the 3er and TJ; the jury is still out on the truck. The CPO warranty adds @$1000 to the price. We'll see if I incur over $1000 in repairs over the next 2 years/40K miles. I doubt it...

    Mine: 1995 318ti Club Sport; 2020 C43; 2021 Sahara 4xe 1996 Speed Triple Challenge Cup Replica Wife's: 2015 X1 xDrive28i Son's: 2009 328i; 2018 330i xDrive

  • tidestertidester Member Posts: 10,059
    Dealers are businesses, not Santa Claus.

    Sorry, but Santa Claus IS a business. A very large business. And pity the poor kid who's newly unwrapped toys break even before the New Year's celebrations commence. :P

    You use the cheapest components you can to get the job done.

    Which raises the question "What, exactly, is the job?" Is it "the job" to give the illusion of quality and reliability - but only until the warranty expires? "Quality" is commonly defined as "conformance to customer requirements" and I have a hard time accepting the notion that customers require serious system failures just after the warranty expires. It seems to me that a good way to guarantee the future bottom line would be to provide real quality in today's offerings.

    In any case, I'd like to hear from others about their experiences with problems that popped up after the warranty ran out. Business models and philosophy can be discussed elsewhere.

    tidester, host
    SUVs and Smart Shopper
  • oldfarmer50oldfarmer50 Member Posts: 22,533
    "...would you buy a new car if it did not have any new car warranty?..."

    Well, nothing in life is free. I'm sure the car companies charge you more to cover the manufacturer's warranty. So you're paying for it weather you want it or not.

    So I guess I'd have to say that if they lowered the price by a couple of grand I'd still buy the car without any warranty.

    Having said that I do feel the original warranty has some value. Most defects in new cars show up pretty quickly. After the first year or so most problems are due to bad owner care.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • oldfarmer50oldfarmer50 Member Posts: 22,533
    "...Modern cars are so complex that NONE of them will last like the old ones..."

    You mean we can't expect them to give us that stellar performance of those beauties from the 70's and 80's? Man if the new one aren't up to those standards I don't see how they could make it to the showroom without breaking down. :P

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • joel0622joel0622 Member Posts: 3,299
    You use the cheapest components you can to get the job done

    Reminds me of one of my favorite movie quotes by Steve Buscemi in Armagedon when he is talking about the ship they are taking into space.

    You know we're sitting on four million pounds of fuel, one nuclear weapon and a thing that has 270,000 moving parts built by the lowest bidder. Makes you feel good, doesn't it?
  • volvomaxvolvomax Member Posts: 5,238
    You mean we can't expect them to give us that stellar performance of those beauties from the 70's and 80's?

    Actually, there were a lot of cars made in that era that lasted a long time and are still on the road today.
    Honda's, Volvo's, Mercedes,Subaru.
    What they had in common was they had low hp unstressed engines, were made mostly of steel, not plastic and had virtually no power equipment or computers.
    In short, there wasn't much that could go wrong.
    There isn't a car made today that is likely to be on the road 20 yrs from now, and the vast majority will die before 10 yrs on the road.
  • mattandimattandi Member Posts: 588
    Yeah, that's kinda the point. Warranties have some value, and yes manufacturers charge for that value. The value comes as a hedge against repair costs, the image of the manufacturer, the perception of reliability of the car, peace of mind, etc. As volvomax aptly points out, that value has a limit.

    An extended warranty is something of a gamble. As with all gambling the advantage goes to the house.

    My story. Warranty on Saturn LW2 ran out last February. Since then I have spent about $4k on repairs. BCM, replaced radiator and water pump, O2 sensor, replaced ignition switch, among various other smaller items. Oil cooler assembly sprung a leak, but refused repair, a little bars leak plugged the leak. Car is worth about $2-3k, so I definitely lost out. Car just had a plethora of components subject to failure unknown to us when we bought the car. Oh well, it's running ok right now and gets me to where I need to get. Fingers crossed. ;)
  • oldfarmer50oldfarmer50 Member Posts: 22,533
    "...Actually, there were a lot of cars made in that era that lasted a long time..."

    I do agree with you a bit here. In my driveway there is a 1988 Plymouth K car with 140K and a 1985 Ford F-150 with almost 250K on them. Trouble is, they both look like junk yard escapees. The drive trains seem OK but the rest of the vehicles are toast. I'm not sure if an extended warranty would cover the rust spots or the faded paint.

    "...There isn't a car made today that is likely to be on the road 20 years from now..."

    Wow, that's a pessimistic outlook. I've often wondered that myself. With all the gadgets they put on cars for pollution and such, there's that much more to go wrong. Still I look at my 1997 domestic with 102K on the clock and it is running better than I had ever hoped. I bought it used in 2002 and have put less than $1000 in repairs since.

    For my car an extended warranty would have been a waste of money.

    But now you've got me worried. As I type I'm looking at my new 2008 and waiting for parts to start falling off. :cry:

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • jipsterjipster Member Posts: 6,244
    My warranty expires in 3 months. If it's not against the law... I'll wait until something goes wrong then buy an extended warranty. Seems to be the financially prudent way to do it.
    2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere, 2007 Kia Optima
  • mitzijmitzij Member Posts: 613
    It'll be against any contract you buy. There'll be a clause in there to the effect of 'this car is presumed to have no defects at time of purchase. any preexisting conditions are not covered.' If you have a problem, buy a contract, then try to collect, you're engaging in fraud.
  • joel0622joel0622 Member Posts: 3,299
    My warranty expires in 3 months. If it's not against the law... I'll wait until something goes wrong then buy an extended warranty. Seems to be the financially prudent way to do it.

    I like that idea. I think I am going to tell HR in the morning to cancel my health insurance and I will only pay it the months I am sick. Then cancel my car insurance and tell them I will pay the premium for a month if I have a wreck. :D:D:D

    Nice try Jipster but like I am sure you already knew, that dog won't hunt.
  • jipsterjipster Member Posts: 6,244
    The Consumer Reports advertisement here (in right hand column) say's I don't need an extended warranty. You know what... I believe them. Just saved myself two grand. Thanks Consumer Reports!!!
    2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere, 2007 Kia Optima
  • oldfarmer50oldfarmer50 Member Posts: 22,533
    "...Thanks Consumer Reports..."

    But will CR come fix your busted ride if they're wrong? :confuse:

    P.S. Where do you see a CR ad? All I see on my page is expensive Buick and Caddy advertisements.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • joel0622joel0622 Member Posts: 3,299
    Consumer reports launched a big add campaign this week against Extended Warranties. I think it is funny that sites like this, and a few others will take there $$ for the advertising yet have a sponsored link on there front page to buy a warranty. Which is it?
  • jipsterjipster Member Posts: 6,244
    P.S. Where do you see a CR ad? All I see on my page is expensive Buick and Caddy advertisements.

    Try a different channel. Or, it may have been displayed only during a select time period. It was kind of a bland ad, which is why you missed it.
    2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere, 2007 Kia Optima
  • dirtmoverdirtmover Member Posts: 14
    No, you will, with all the money you've saved on by not buying extended warranties on other products. I've never bought extended warranties on anything and only buy insurance because it's compulsory for the vehicles and the risk is too high on my house. Yeah, sure, I've had to fix things on a small number of occasions but over the years I'm waaaaay ahead of the game by many thousands.
  • euphoniumeuphonium Member Posts: 3,425
    The day after my son bought his new Mustang Convertible, he returned to the dealer and returned the Extended Warranty Insurance policy for cancellation. The F & I guy tried to block his move by saying they couldn't cancel because the premium for it was tied up in his loan contract with the bank. :P Upon reciting the RCW statues on Insurance and showing his business card (Insurance Agent), the dealership gave him a return premium check. Later, when he took the car in for Warranty work, somebody, in the shop, threw a lighted cigarette butt on the top. They replaced the top. :mad:

    Extended Warranties have been very profitable for the dealers and that is why when I bought our new car, I passed on the EW and have saved the cost for when it was needed 10 years later. ;)
  • 151ranch151ranch Member Posts: 109
    The F & I guy tried to block his move by saying they couldn't cancel because the premium for it was tied up in his loan contract with the bank. Upon reciting the RCW statues on Insurance and showing his business card (Insurance Agent), the dealership gave him a return premium check.

    Actually, if he did finance the service contract, the check should have gone to the lender. I wonder if they still had the loan paperwork and adjusted the numbers to take out the service contract?
  • euphoniumeuphonium Member Posts: 3,425
    You are right. When he told me they returned the premium, I took it to mean he got a return premium check. Twas better to rewrite than pay interest on a non existing EW. Thank you. :)
  • joel0622joel0622 Member Posts: 3,299
    Extended Warranties have been very profitable for the dealers and that is why when I bought our new car, I passed on the EW

    Not directed at you because I have seen that posted here by 100 different people, and it is really not a reason not to buy a warranty. With that philosophy I guess you could say that we make money selling cars to so you probably should not buy it either. ;)

    Are you saying that if the dealer did not make a profit on the warranty then you would buy it? If so then you do see value in them, just not the same amount of value as the guy trying to sell it to you.

    This is not a hokey sales pitch, it is something I truly believe. In my entire career I have never heard a good reason not to buy a VSC. I have heard 1000's of reasons why people won't but never a good reason.

    The big trend here seems to be to self insure, put the money you would have spent in a savings account each month. Well thats a great plan if the car runs with out a problem long enough for you to get your money saved, but at $20 a month savings it takes along time to save enough money to pay for anything major.

    I am a strong believer that if $20 a month puts a strain on your budget then you need the VSC more then any one.

    I don't begrudge or get mad at people who don't, its just the way it is. We run 40-50% penetration each month and that is good. I guess a plus is that we get people all the time trading a car they can't afford to fix. If they had the warranty then we would have not got the sale, and those people 9 times out of 10 then buy a warranty.
  • mitzijmitzij Member Posts: 613
    My best reason to not buy a service contract is that chances are that you won't use it, or use it enough to get a decent return on your money. The vast (and I mean vast) majority of people who come through my service department that have service contracts either A) haven't had need of the contract or B) the problem they have is not covered. And a good number of people even trade in their vehicles before the warranty is up-giving no use to the service contract at all.
  • wlbrown9wlbrown9 Member Posts: 867
    "My best reason to not buy a service contract is that chances are that you won't use it, or use it enough to get a decent return on your money. The vast (and I mean vast) majority of people who come through my service department that have service contracts either A) haven't had need of the contract or B) the problem they have is not covered. And a good number of people even trade in their vehicles before the warranty is up-giving no use to the service contract at all. "

    A decent return on that money is not what is important... It is the insurance that I won't have a $3-4000 engine rebuild or tranny out of my pocket. With the complex systems on many vehicles now, a major repair could be expensive. The peace of mind for me is worth a portion of the cost.

    A) They have used the peace of mind, but not the repair portion of the contract.

    B) Only purchase a factory backed plan that covers almost everything, such as GMPP Major Guard. There will be few things not covered. The factory backed plan most likely will be there.

    Most of the factory plans are transferrable...so, if I were buying a used vehicle and it had some time and miles left on the factory plan, it would be a more desirable vehicle that a similar one without anything.

    Last 2 vehicles I purchased plans on... '00 Jeep GC Laredo...plan cost $1000 or so for 2 additional years. It paid $around $450 for a new waterpump. So, my 'insurance cost' was about $275 a year after the 36/36K warranty was used up after 24 months. As many repairs as the Jeep had under warranty, I was not about to keep it without one and it was less expensive to cover it that way than to bite the bullet and trade it after 2 years and take the worst hit on depreciation.

    '04 Envoy XL SLT, proving much more reliable than the Jeep, at least so far. Paid around $1600 for 60 month, 90K mile GMPP major guard. So, far it has paid about $100 in repairs. Insurance factor is $400-$500 per year. I'll take that expense instead of risking a much higher bill IF it needed a major repair.

    Again, I don't expect to get rich off the savings either way. I just like the decrease in risk by having this 'insurance'.
  • euphoniumeuphonium Member Posts: 3,425
    The purpose of Insurance is to prevent a financial catastrophe.

    VSC deductibles make the balance due less than a financial catastrophe.

    Extended Warranties have been very profitable for the dealers is another way of saying they are overpriced for the coverages afforded. That overpricement includes a very generous commission which can be more than the net profit on the car sale.
  • branhapbranhap Member Posts: 10
    I generally feel that it is best to just start off with the Factory Warranty. During that first 3 years and/or 36K miles you'll get a pretty good feel for how the car handles. If your car spends a lot of time in the shop, then sure go snag an extended warranty as your factory one is about to expire. Otherwise, I say, save the money for the extended warranty, and continue on your way. The key is having money in the bank to cover expenses.

    In my history of buying cars... I haven't found the need to buy an extended warranty yet.

    '96 Talon - Water Pump @5K - Factory overtorqued the bolts, Ignition Coils under warranty @32K. Front Brakes at 30K. I liked to drive fast! heh Ignition coil issue freaked me out, so i sold the car with only 50K miles on it. (Nothing quite like having a car stall on the freeway) It started to leak oil at around 45K, and I decided I had enough of that.

    '00 Cougar - A Couple of recalls, the Sunroof rails broke (originally they used plastic rails, replaced with aluminum.) under warranty. Outside of that, rear brakes at 82K miles (Back in February). and when I traded it in last week it needed a new battery most likely. Battery would be dead on cold mornings heh. This car was in a front-end collision at 3K miles, that required a few replacements in the engine compartment. Was a little worried after that, but wasn't in a position to sell it and get a new one. However, it held up great.

    '06 chevy equinox - One Warranty repair so far, rattle in the dash.

    Back in college, I had a Ford Escort that blew its engine on the way to class the day after an oil change. *sigh* That lead to the purchase of the Talon! I was like the 3rd or 4th owner of that car though.

    I don't put a ton of miles on my cars, but in the 14 years of owning cars, an extended warranty would have never really helped me out. That's my reasoning for not getting one.

    Now that I own a big old $30K truck, my thinking will change, but I have 3 years to figure that out!

    Paul
  • wlbrown9wlbrown9 Member Posts: 867
    My take on Insurance is to prevent a financial event past my pain threshold. That event may not be a 'catastrophe'.

    If you pay list price at the dealer for the extended warranty, it probably is profitable for them. Looking at the pricing on gmoutlet.com, discounts run 20-30% depending when you buy the coverage. I'm would guess other on-line discounters are in a similar price range.. At that price there is probably a reasonable profit for the seller, but less than 'very profitable'.
  • benzserviceguybenzserviceguy Member Posts: 96
    You might NOT want to do it that way.

    Depending upon who backs the extended service plan, some have requirements. Such as it needs to be 1K or at least 30 days before the expiration of the factory warranty (ie: have 30 or more days of factory warranty remaining and be below the 36 or 50K in mileage)
    Some require a pre inspection and any pre exsisting conditons are NOT covered.
    In addition, some also have a waiting period once you sign up - 30 days AND 1K.

    Just be careful, I have seen many perople buy the 2K warranty only to find out that it ONLY covers internally lubricated components (which is a JUNK warranty and is merely pissing $$ away)

    Best bet: get your dealer service advisor/writer/assistant manager to review the coverage. They can best guide you and get you the best coverage for your hard earned money. Most policies sold by the F&I dept of the dealership have the best coverage. STAY AWAY from the internet warranty companies - you usually get the JUNK warranty or one with limited coverage or limited re-imbursement.
    I have directed many of my clients to the proper warranty/coverage and they have given me many thankx for pointing them in the right direction.

    You really do "get what you pay for"

    -SKIP-
This discussion has been closed.