Extended Warranties

snakeweasel

i wouldn't pay for a warranty on the Civic, but you can bet I'd get one for the Benz because when that pesky $2k auto climate control system goes out*, and it will, it has paid for itself. Then the $4k of failures that follow are just gravy.

Thats another thing I can't understand. Why buy something that is so unreliable or expensive to repair that you have to have some sort of extended warranty/service contract.

qbrozen

haha.

i don't think there is a good answer to that one.

jimbres

i wouldn't pay for a warranty on the Civic, but you can bet I'd get one for the Benz because when that pesky $2k auto climate control system goes out*, and it will, it has paid for itself. Then the $4k of failures that follow are just gravy.

I agree that it's smart to prepare in advance for these expenditures, but why do you think that buying an SC is a good way to do that? After all, you've got 4 full years - the term of the manufacturer's warranty - to get ready for these worrisome bills. If you bank just $6.50 per day - a piddling sum, you'll agree, for someone who's buying an $80K car - you'll have over $10,400 in savings by the time the warranty runs out. (I'm assuming 4% interest here, although many of the high-yield accounts are paying 5%.)

If that's not enough for you, then toss in an extra couple of bucks per day.

This approach puts you in charge. You're the administrator of your own plan. You decide where to get your car fixed & whether to use new or reconditioned parts. There's no red tape & no needless paperwork because you're the boss. Doesn't that appeal to you? It certainly appeals to me. Why should someone make these decisions? And why should someone else pocket interest income that you can earn yourself?

I really don't see a downside here. You run the show & you keep the interest. It's all good. Of course, I'm assuming that you have enough self-discipline to refrain from spending the money on a new big-screen TV or a 2-week bender. If you don't, then maybe you should buy an SC. ("Please, PLEASE take my money. And no matter what I say, don't give it back to me unless I can prove that I need it to fix my car. OK?")

Kirstie_H

because some of them are waaaaaaay fun to drive.

snakeweasel

How much fun can they be to drive when they are in the shop getting repaired, or worse when they break down 10 miles from the nearest town when its 10 degrees and snowing heavily,

tidester

snake,

Why buy something that is so unreliable or expensive to repair that you have to have some sort of extended warranty/service contract.

That's interesting logic in a skillfully loaded question. Kudos!

By your reasoning one would have to question manufacturers also. Why on earth would they sell cars that are so unreliable or expensive that they require warranties? Why would you buy them?

tidester, host

qbrozen

Well, 4 years if you don't exceed the miles sooner.

But let's assume 4 years at $6.50 per day ....

So I have $10,400 after 4 years, correct? If I bought that $2k warranty, I'd still have ~$8k. The factory warranty runs out and now the extended warranty is in effect and the car needs a new $4k tranny (these new 7-speeds might be more than that, for all I know). IF I had the $10k saved, I'm now down to $6k. But since I have the extended warranty, I still have $8k in my pocket.

As I keep saying, there is no wrong answer here. Maybe the car will need zero repairs. Maybe it will need $20k in repairs. Nobody knows, which is why I call it gambling.

jimbres

When you spend that kind of money on an SC, you're really making 2 bets: that you stand a reasonable chance of recovering the purchase price of the contract and that you won't need that money for anything else that might go haywire during the life of the contract.

Suppose that 6 months after I spend $2K on a gold-plated SC, I'm hit with a costly non-automotive emergency. Maybe my cesspool collapses or my refrigerator croaks or I have to bail out my brother-in-law. I sure could use that $2K now, but I might as well have flushed it down the toilet for all the good that it will do me.

A dollar in the bank is a much more useful dollar than one that's locked up in a single-purpose service contract. It's available for whatever that week's emergency might be. Here again, it's clear that when you buy an SC, you give up control. A total stranger 2 time zones away decides when, if ever, you'll get back any of your money. Why would anyone would to put himself in that position?

This is why I'm inclined to see a service contract as the greater gamble. If I buy one, I'm betting that car repair costs will be my biggest money problem. That assumption is just too risky for me.

audia8q

Thats another thing I can't understand. Why buy something that is so unreliable or expensive to repair that you have to have some sort of extended warranty/service contract.

HAHA...I've known some jag guys who brag about the fact they can afford to have a car that spends 200 days a year in the shop. LOL

It's all about impressing the neighbors.

hyundai_slsmn

people alays seem to navigate toward the jag when talking about the shop. mine has 92k on it and has never once when she owned or since ive owned not ran. oil changd every 10k

By your reasoning one would have to question manufacturers also. Why on earth would they sell cars that are so unreliable or expensive that they require warranties? Why would you buy them?

Because it is a machine that can break at any given moment. I saw a lady buy a brand new Honda Accord and proclaim that these were the most iron clad car on the planet and nothing would ever go wrong and she "didnt need" a warranty. WHat happened around 40k...blown auto tranny to the tune of about $4k out of wty and no ext wty. Around 60k a blown shortblock to the tune of close to $4k again no wty. I lost track of how many people I have seen like this. Also if you think it is such a nothing deal to throw a little extra aside why not when buying that $17k Civic buy a $1k wty bump your payment $20 and have a genuine honda care wty. Whether you put $20 aside or pay an extra $20 it's still $20/mo to know that for 7rs/100k you will have a fully functioning car and if something breaks it will be fixed

snakeweasel

Because it is a machine that can break at any given moment. I saw a lady buy a brand new Honda Accord ......

Lets be serious, for every one of those how many have made it past 100K with no issues? Hundreds or even thousands?

I can count on the had of a high school shop teacher how many people I have known with those kind of problems within the first 100K miles. Yet just about everyone I know have gone past 100K without any of those issues. The few that I have know have either been high end luxury cars or they have been neglected.

Also if you think it is such a nothing deal to throw a little extra aside why not when buying that $17k Civic buy a $1k wty bump your payment $20 and have a genuine honda care wty.

Why? Because odds are I will not use that warranty. If I pay the extra $20/month and don't use it I am out $1,500.00. If I put the $20/month into my investment accounts and I don't use it I am $1,500.00 ahead. So far I figure I am $20K ahead by not getting the extended warranty.

explorerx4

improved models and usually buy an extened SC.
i don't really know how it has worked out overall.
my '02 explorer is the best overall vehicle i have ever owned, but it pushed envelope in a lot of ways.
it may be the first vehicle that i got my money back on the extended SC, but i don't care.
since then, i have learned i have up to 3 years to buy the manufacturer backed extended SC, and you can do so over the internet, so i am waiting to decide if i need to buy one for my '04 focus.

zackcam

My biggest recommendation in this area would probably be a car insurance company . . . something about a lizard . . . which offers you mechanical breakdown coverage for a little bit over your regular premium. You must insure a new car with this company from the beginning to get it, but if any part of the vehicle breaks it will cost a maximum of $250 to fix. From what I have gathered, making mechanical breakdown claims will not increase your insurance rate with this company for some reason or another.

I have never worked for the insurance company in question (I have my own company I would love to advertise here, but can't due to the membership agreement), but know that everyone who has made this type of request has only had to pay $250 for the repair (ranging from transmissions to engines) and has not experienced a rate increase as a result of the claim.

Zachary Cam

qbrozen

And if $2k is all you have to fall back on and it will break your savings to buy it, I might agree with you that its not in your best interest to buy it.

Then again, if you are buying a car that requires a $2k extended warranty and $2k is all you have in the bank, you are definitely looking at the wrong car.

stobar

I am going to take delivery of a 2007 Solstice next week. The only thing I haven't decided on yet is whether to bump the 36K bumper-to-bumper to a 5 year 60K gmpp major guard. I know that the standard powertrain warranty is now for 5 years 100K, but not sure if that covers things like AC. Any advice would be greatly appreciated!

snakeweasel

No! No! No! the solstice is the day after tomorrow and its 2006.

tidester

36,000 is too limited in my opinion.

Also, I would advise against taking advice based on celestial events from someone whose user name is an anagram for "ale weakness" and who fails to realize that a Solstice is better than an Equinox.

Sorry, SW, I couldn't resist!

tidester, host

snakeweasel

Its also an anagram for "a wales knees" or "A sane elk sew" or "we sneakes ale".

Sorry, SW, I couldn't resist!

I can't blame ya.

Kirstie_H

Just my opinion...
If you plan to keep this vehicle for longer than 3 years or 36,000 miles, get the GMPP. You need to read the policy before purchasing, as it should list either items covered or items excluded. Any decent policy will cover A/C, but not stuff like tires, regular maintenance, and upholstery.

This car WILL break down after the warranty expires.

dtownfb

Wow! Very strong statement from the host. is the reliability on this vehicle this bad? I would think the 5 yr 100k powertrain would cover the major stuff.

stobar

I been researching and someone at the Solstice forum gave me some good advice. At a minimum I'll go with the 5/60 major guard. Always nice to have, and there are GM companies that sell it at just above cost on line. I have GMPP major guard on another vehicle, but I was able to get them to throw that in with the deal. There is no dealing with a Solstice, and for the other person that asked, there are no known problems. In fact, it has gotten nothing but positive reviews. Just trying to figure out what all is covered in the Powertrain warranty. GM has bumped that to 5/100 for 2007 models.

tidester

is the reliability on this vehicle this bad?

I think Kirstie was talking in general terms, i.e., not specific to any particular make or model.

tidester, host

mitzij

For information on GM's new Powertrain coverage, www.gm.com/warranty should help you out. Generally, it's the engine, transmission, transfer case, and axle assemblies. Earlier you mentioned A/C. It would not cover the A/C.

nortsr1

"NO" Kirstie specifically said "THIS CAR" will break down when the warranty expires"!!!!!!!

Kirstie_H

My statement was not based on the reliability of this particular vehicle. It is based on research & personal experience regarding both GM vehicle reliability and general reliability of new-to-market cars (I know first MY was 2006).

The powertrain warranty covers only stuff like transmission and engine. It's not going to cover electrical issues and A/C. If that's a concern, then the GMPP is a good idea if you plan to keep the car for an extended period. You will want to read BOTH the manufacturer warranty specs & the GMPP specs carefully to see what is or is not covered.

If you're not planning to keep the vehicle a long time or you're comfortable bearing the risk of unexpected repair bills on a model with very little reliability history, then obviously it is your money, your call!

As I stated in my initial response... my personal opinion only.

dtownfb

No problem Kirstie. I was surprise how adament you were about the Solistice esp. since it has only been on the market a year and there is no realibility information available.

I guess it all depends on how long you decide to keep the vehicle and your driving habits.

rakudrama

Reading some fine print on the AHFC web site I see this fine-print:

Florida residents may only purchase Honda and Acura Care coverage from a Florida Honda or Acura dealer. Washington residents may only purchase Honda and Acura Care service contracts for new and used Acura and Honda automobiles from Washington dealers and select dealers from contiguous states. Contact your local automobile dealer for details.)

This would seem that I can't shop around outside Washington for an extended warranty/serice contract. What is the reason? What if I move?

snakeweasel

What is the reason?

I have a lawyer friend that would say "Someone won" as in someone won some lawsuit so now they have to make some legal claim and/or restriction.

What if I move?

If you move out of Washington State you will no longer be a resident and the restriction will no longer apply.

upallc

I just bought a new Honda Accord V6 last night and purchased an extended warranty since this will be a commute car. I am not feeling too good about this warranty. It was late and they did not show all that was inlcuded and it was 1,800 which is too much! How easy is it to get out of it now?

nj2pa2nc

you have 30-60 days to cancel the ew and get a full refund. Go back to dealer and cancel. Be prepared for them trying to talk you out of it. The quicker you do it the better

dtownfb

upallc: what nj2pa2nc said. If you are stil interested in purchasing an extended warranty, go over to the Honda board. There are Honda dealers that sell genuine Honda extended warranties for under $1000 (depending on the mileage and coverage) over the internet. the websites are listed in the forum.

strange1

following the same bent, We have a 2004 Dodge Durango with 38K on it. I can get a 5/100 ext warranty (no deduct) for a little over a thousand. It included 4 wheel dr and full drive train. What do you think? Should I do it?

Jack

qbrozen

What was the original in-service date of the truck? If the truck is already 3 years old, then you'd be paying over $1k to cover it for just the next 2 years.

strange1

Durango is slightly over 3 yrs old but my quote is for 5 yrs or 100K. It is a dealers pkg. so is a little diff than general owners quote. My question is, is an ext warranty a good thing for this make and model. What general probs have been experienced with this make and model. Thankz.
Jack

qbrozen

do you mean 5 years from now?
usually extended warranties run from the original in-service date.

mikefm58

Friends of mine had a 99 Durango and they more than got their monies worth. If I were to ever buy a Chrysler product, I would definately get the dealer ext. warranty.

strange1

Yes 5 yrs from now and 100K miles on odometer. Thanks for the feedback. We might just get that warranty.
Jack

leoncts

I have a Volvo sedan, and purchased their TotalCare Extended Warranty. I have had the car serviced by the dealer at each recommended interval (15k, 22.5k, 30k miles, etc.) before I take it for the 45k ($450 cost) service, let me ask others - Do I really have to have the car serviced as recommended in order to keep my extended warranty valid? The warranty contract does list this as one of 'my responsibilities' and to have proof of required service ..in order to have repairs begun...' What has others experience been?

mikefm58

The "recommended service requirements" should be according to your owner's manual and not the dealers list of items, which tend to be inflated. And yes, you need to do these items to keep the ext. warranty valid.

mitzij

"It included 4 wheel dr and full drive train."

Is it a powertrain contract or and exclusionary one? If it's powertrain, check to see what the powertrain warranty (standard on your Dodge) is. If it only includes 4wd and drivetrain, it's not a comprehensive plan.

nathaninc

Why do i not buy a warranty. I've never in my experience had problems with all my cars before 130k miles. Maybe it's because i've on driven honda's toyotas and bmw's. My other reason is if I really need the damn thing why does the finance guy try to push me so hard to buy it. Becuase it benefits him more than me that's why. I purchased a ridgeline yesterday and the fobby chinese finance guy was trying to sell me (in his broken english) a $1600 7 yr 100k extended warranty. 30 min wasted time later it was down from $1600 to $900 and I was ticked off beyond belief. 900 was his at cost price. So i asked him why the hell was he trying so hard to get me to add the warranty to my car if he wansn't getting anything out of it???? he just avoided the question and talked about protecting the stupid upholstery or something which i didn't give a fig about. It came down to the point where I had to threaten him with bodily harm before he printed out the finance papers!!! :mad: When Honda calls me for the survey this will be the only complaint I will have on my buying experience

leoncts

Thanks for the response. Do these 'recommended service requirements' have to be completed by the dealer or can I have them done by a local garage or other national chain repair center? the warranty is not specific to this point but will they say the service was not done by a Volvo trained tech?

nj2pa2nc

maybe we have been lucky but the only things we have done to our cars on a regular basis is oil changes and tires rotated. When we have had any warrantywork - (original or extended) we were never asked to show proof of the so-called required maintenance.We put way over 100,000 miles on our cars.

wlbrown9

Just be prepared to show with receipts that you have been changing the oil, etc. I think federal law forbids mfgs from REQUIRING their dealers perform these services unless they provide them at no cost.

nj2pa2nc

We do keep all the receipts for the car service but never have been asked to show them when any warranty work has been done

strange1

It includes powertrain and 'bumper to bumper" (what a misnomer)as specified by mfg'er except for the following.............(several things incl radio dvd player and some other things). Thanks

Jack

bakwas0

Folks,

I have a 2003 VW Jetta with 35000 miles. The original factory warranty is due to expire in a week.

The 2003 Jetta has documented Engine problems specifically the Mass Air Flow Sensor and the Water pump. To protect myself from other engine problems, I am researching extended warranties.

I have researched several forums on extended warranty, read about WarrantyDirect, The Auto Club, Mercury Insurance Group, VolksWagen RealDriver extended warranty (administered by Fidelity Warranty Services) etc. My observation is:

1. Warranties backed by Good AMBest A rated Insurance companies donot cover Wear & Tear. They cover only Mechnical Breakdown defined as "failure due to faulty workmanship or materials"
2. Warranties that cover Wear & Tear are all backed by RRGs.

I would like to ask if:
1. Anyone has used Volkswagen/Audi Warranty (administered by Fidelity Warranty Services) and do they honor the claims (especially on vehicles older than 5yrs/50k miles)

2. Has anyone used aftermartket warranty like WarrantyDirect, Warranty America etc for expensive repairs (repairs costing more than the premium) with good satisfaction ?

I would appreciate any advice or help on this.

Regards,
Bak

ymfl

I have a 2002 highlander w/(51,440 miles) lease is expiring Mar 21. I'm planning on purchasing it.

What kind of extended warranty should I be looking for?

Can anyone help me. This will be my first time purchasing a lease and an extended warranty.

Thanks
ymfl

mikefm58

Just curious, what's the payoff and why don't you just go out and buy a new one?

snakeweasel

I have a 2002 highlander w/(51,440 miles) lease is expiring Mar 21. I'm planning on purchasing it.

:surprise: Ouch.

Now that I have that out of my system what would be the purchase price of the highlander and what trim and options does it have?