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Extended auto warranties?

Discussion in 'Uncategorized Threads' started by g7777777, Dec 28, 2007.

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  1. g7777777

    g7777777 TS Supporters TS Supporters

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    Has anyone done comparisons on these products which extend the factory warranty?

    thoughts? reccomendation?

    regards

    Gene
     
  2. GRR

    GRR TS Member

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    You can only use this web for that kind of subject unless you have a shotgun in the trunk............
     
  3. g7777777

    g7777777 TS Supporters TS Supporters

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  4. noseeam

    noseeam TS Member

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    Gene, I know very little on this stuff.
    I myself think they are a ripoff.
    I have a Ford F150 that just went over 36,000 miles and they have been calling me at all times of the day,let alone the mail I have received.
    They even started calling me on my cell phone,untill I put a block on it.
    So looks to me there is a lot of money selling this stuff.
    Besides,at my age I only buy three pair of under shorts at a time.
    One year warranty could be a lifetime one for me.

    Bocephas
     
  5. geneleroy

    geneleroy TS Member

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    I purchased the best factory extended warranty on my 1999 Jeep.($1700) The service manager said it covered everything just like the new car warranty for 5 years or 75,000 miles. Shortly after, I had the struts that hold the hood up replaced. My mechanic was told by the warranty man that the struts were not covered by the extended warranty. He(the mechanic)told the service manager that he would have to tell me the struts were not covered. Turns out they must have been covered because I didn't pay for them!
     
  6. Hap MecTweaks

    Hap MecTweaks Well-Known Member

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    I bought an extended warranty for a new car once to the tune of 900-1000 bucks. When it was needed for an engine repair after the factory warranty ran out, the company that did the insuring went out of business. Never again, bad bet. Hap
     
  7. pdq

    pdq Member

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    Not always a bad bet.

    Sometimes a terrific bet -- you just have to buy carefully. I typically buy used S class Mercedes when they are 5 years old and have 50k miles on them, typically at about 1/3rd of the sticker price. The original factory has typically expired by then. Also, I buy them from a Mercedes dealership, and sell them when they have about 200k miles on them.

    About 12 years I bought one, and the extnded MB warranty seemed to expensive, but they also sold an aftermarket one. I went to the dealership near me & asked the service manager if he'd ever heard of them & he said yes, they used them all the time & they were easy to work with. So, I bought it for about $1,600, extending the warranty out 3 years and up to 100,000 miles. I had work done under this warranty totalling about $8,000. I'm very aware of how cars run & find stuff they miss in the pre-purchase inspections.

    A little over 3 years ago I bought a 5 year old one with 45k miles from a MB dealership in Houston -- it was in such good condition they had it inside on the showroom floor surrounded by new cars. This time, I bought the MB extended warranty for $1,900, again covering 3 years up to 100,000 miles. That dealership had done a poor job of its pre-purchase inspection and it bacame apparent that the previous owner didn't notice a lot of little things that were wrong, and in some cases were expensive to fix.

    This is going to sound like a made up number, but on that car I had almost $20,000 of repairs covered by the MB StarMark warranty. When the car had 99,800 miles on it I paid to have exhaustive testing done. The car now has 115k miles on it and operates better than when I first took delivery at 45k miles.

    In both cases, purchasing those warranty policies were excellent investments.

    Moral of the story? Buy from that brands' dealership and buy a factory extended warranty, or do your homework if buying an aftermarket policy. If you have your repair work done by an independent shop, ask them who they've had good luck with & do the research to see how long they've been around, are they a small fly by night company, or a wholly owned subsidiary of a large company like GE, etc. I think there is a subsidiary of GE that offers these, but don't know the name.

    Pete
     
  8. Bruce Specht

    Bruce Specht Well-Known Member

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    With factory warranties were they are why would you spend the money on an insurace policy? The average person owns a car for 7 years and drives 12k per year. My advise after 30 years in the aftermarket auto repiar business, don't waste your money.
     
  9. Questor

    Questor TS Member

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    For a used car, yes they make sense. For a new car, I believe they are a poor value unless coverage is extended far beyond 100,000 miles.
     
  10. lancelot

    lancelot Member

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    Law of averages says NO. However if you buy certain types of autos, and you keep them past the new car warranty period it might be the right thing to do.

    My wife likes to drive Cadillacs, and she keeps them past the new car warranty period. She has purchased a FACTORY, GM, warranty off the internet with each.
    You never pay more buying off the internet and we've saved, maybe $700, each time.

    I am not a fan of the Northstar engine. I've never seen one that did not use oil. The one in her 97 DeVille blew when she was a year past tne new car warranty period. It cost her the $200, deductable with the extended warranty. Had she not had it the bill would have been $11,000.

    Shoot good. Ron Ireland
     
  11. Shooting Jack

    Shooting Jack Active Member

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    Do not buy aftermarket warranty policies! In all aftermarket policies I have ever dealt with as a service manager at a Ford/Toyota/Buick dealership they weren't worth a flip. For example the aftermarket warranty said it covered rack and pinion steering unless the seals were leaking(why else would it fail?) and they would often call for the parts when something was covered and if it didn't fit their approval they would bill it back to us. I never saw a good policy that I would recommend. Factory warranties is a totally different story. Dependent on the warranty you want as they have powertrain, and then three other levels of coverages each costing a little more and covering more items. Jackie B.
     
  12. shannon391

    shannon391 Active Member

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    If It was a good bet in your favor how could THEY turn profits?
     
  13. smartass

    smartass TS Member

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    If extended warranties (maintenance insurance really) were such a great deal, why would everybody and his brother try so hard to sell you one. If they were really good, they would sell themselves.
     
  14. pdq

    pdq Member

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    Sir Studly:

    I think the answer is that most people are as attuned to their car as they are their toster oven.

    If you buy a car that's been ignored and are oblivious to things wrong with it, then you are likely to have very few claims, in which case the insurance company comes out way ahead, and since this describes a large number of people, they make money hand over fist.

    However, people on this list are probably more of the "precision" mindset, and if so, and you start taking the car in every time something small doesn't seem right, getting the car sorted out can cost significant $$$.

    I wasn't exaggerating in my prior post -- I had $20,000 of warranty work done to the car and at 114,000 miles it's operating better than when I bought it with 45,000 miles.

    You just have to buy wisely.

    Pete.
     
  15. smartass

    smartass TS Member

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    Sir Pete, extended warranties only cover specific things, so if you take your car in for nothing but BS, they won't pay. Don't think I was referring to your post, because I wasn't, so don't be so thin skinned.

    I still say that anything that has to be sold (especially by telephone solicitation) to consumers generally isn't a worthwhile purchase. If you have a good product to sell at a good price, word of mouth will sell it- of course a little advertising won't hurt anything.
     
  16. alfermann66

    alfermann66 Member

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    Pete, I agree that, "You just have to buy wisely" and it occurs to me that you haven't been. I'm 68 years old and have had some 30 vehicles in my life that haven't required those kind of expenditures entotal. Considering your experiences....I would be re-thinking 5 year old M-B's.

    Buz
     
  17. maclellan1911

    maclellan1911 TS Member

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    Put that 1000 to 1600 in a money market or something. If you buy a car you cant afford to fix, maybe a Factory Extended warrenty would work. I have found most non factory have to many outs for not paying. Normal Wear and Tear is their battle cry.
     
  18. th445

    th445 TS Member

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    Everything I've heard about them their nothing but money makers. I've read lots of times not to buy them its just a racket. I got calls to buy a extended contract on a applance on time and I told the lady thats why I bought this brand so it would last for more than a couple of years and not need repaired and if it doesn't they would more than just hear from me.
     
  19. barnbarron

    barnbarron TS Member

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    Wife paid big bucks for waranty on her PT Cruiser. It was'nt worth the paper it was writ on.
    My advice is that if it is not an extension of factory warranty --run from it.

    Just my .02.

    Shoot a smoky hole in the sky.

    Barnbarron
     
  20. shannon391

    shannon391 Active Member

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    If you are self insured and financed, you pay no interest or premiums, then you have funds available for repairs or replacement. Dumb people pay smart people interest.
     
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