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OT: Automobile Extended Warranty Programs

Discussion in 'Uncategorized Threads' started by starshot2b, Sep 18, 2007.

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  1. starshot2b

    starshot2b TS Member

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    Since quite a few of you were extremely helpful on my car buying thread, I need your help once again.

    I plan on getting an extended warranty (I'm not buying brand new) and don't want to get reamed thru the dealer. There are quite a few companies I found online, but would prefer a recommendation, if possible. I did call my insurance company first, they only offer extended warranties if you are the first owner of the vehicle. If there is a way to negotiate thru the dealer, let me know that as well, otherwise I'll be getting it afterwards.

    Any help is really appreciated.

    Thanks, Sherree
     
  2. Jeff P

    Jeff P Well-Known Member

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    Oh, Sherree....

    Please, don't.

    I probably can't offer too much in the way of hard numbers, but as an accountant I see a lot of this kind of thing. In my experience (and your mileage may vary, no pun intended), most of the time the extended warranty just ain't worth it. In other words, for what they'll cover, you'll never get your money back.

    I think you're far better off, on a relatively new car, spending $100 or so at a garage and having them check the vehicle out. They'll tell you how things look - now - and sure, it may break tomorrow, but you can steer clear of known problems.
     
  3. mt

    mt Member

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    If you are purchasing used through a dealer you might be able to purchase at the same time a factory sponsored extended warranty. Our experience with the BMW plans have been excellent. Every minor service costs so much money that the plans have worked out well for us. My neighbor needed some engine work on his, it ran $15K....he was very happy to have the extended warranty. I'm not sure if i'd get one on a honda civic...a lot depends on the cost of maintenance.

    If you purchase privately then you have to be very careful about the non factory sponsored warranty plans as they can be very hit and miss...with them declining many repairs.
     
  4. maclellan1911

    maclellan1911 TS Member

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    If your going to buy into a warrenty plan for say 1500.00 Then just put the 1500.00 into a short term CD. If you need it its there. The CD keeps you from spending it. OR where you going to roll the warrenty into you loan? All the warrenty I have seen can be very whishywashy. Only replace parts that are directly lubed, no new calipers if over heated or piston boots torn. Just read the contract carefully. I dont believe in them myself. Now A factory warrenty maybe different. Do not see many of those.
     
  5. smsnyder

    smsnyder Well-Known Member

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    the biggest risk for the warranty company is uaually after the 1 year if a late model car. make sure company is insured and bonded and make sure it is a solid company. read the contract.
     
  6. jackmitch

    jackmitch TS Member

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    got one through toyota for my wifes camry. it had 7600 miles on it when we bought the car. bought warranty when original factory warranty was about over. what a waste of money the damn thing never breaks down.
     
  7. Pull & Mark

    Pull & Mark Well-Known Member

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    I happen to agree with jackmitch above, just buy a Toyota and don't worry about the warranty. We have over 67,000 miles on ours and no problems at all. I have yet to hear anything bad about Toyota's. Good Luck. Break-em all. Jeff
     
  8. motordoctor

    motordoctor Shoji Tabuchi in Branson

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    do not buy an aftermarket warranty. stick with the factory sponsored warranty. Check out a certified used car which comes with the balance of the warranty and many up to 100,000 miles. I agree with the above about the insurance companies treating you bad and only paying for some repairs. When I had my shop I hated to deal with them. The factory deals are much better. Best to do like the above and put the money into a cd or something and save it for the problem. Many times the warranty will not cover worn parts and only pay for part of the repair. Buy a lower mileage vehicle and stay away from something with really high mileage. Think about leasing a new car if you drive within the mileage allowances and it will always be under warranty. motordoc
     
  9. smartass

    smartass TS Member

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    Extended warranties are for suckers- don't be one.
     
  10. TC

    TC TS Member

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    Sherree, if you are buying a Honda from a Honda dealer, it should be certified and Honda will warantee it for 100,000 miles at no additional cost to you. We just did this on a used Civic. (getting 38 mpg, love it!) Tony
     
  11. mono1393

    mono1393 Member

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    Try Continental Warranty

    800-929-2694

    They have a good plan with Emergency Roadside Assistance. I blew an oil seal in my Ford turbo and they paid everything that the Ford Warrany did not pay for, including a rental car, towing to the nearest Ford dealer, and the Ford warrany deductible of $100.

    I couldn't of been any happier after that ordeal. My truck was in the shop and repaired by that afternoon. They still paid for a days car rental while in the shop.
     
  12. Texas Ton

    Texas Ton TS Member

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    If it has to be used, try and find one with service records. If it has been serviced well, I wouldn't buy an extended warranty, especially if you're going to put miles on it in a hurry.

    I guess any of them can have a problem, I just think it an extended warranty is needed, you're buying the wrong vehicle.

    On our last two (Pontiac/Chevrolet) if I had paid $5 for 100K warranty, I would have thrown away $5.

    But as others have said, if you insist, get factory.
     
  13. Barry C. Roach

    Barry C. Roach Well-Known Member

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    I was once a new car sales manager. Loved to sell that extended warranty, the accident and life and the disability. Big moola for the dealership. Sometimes more profit than the car deal.$$$$$$$$$$$$$$$$$$$$$$$$$$$$
     
  14. kehrby

    kehrby Active Member

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    I work on cars for a living and I see the aftermarket warranties all the time. Useless, don't pay for anything. You will waste your money and still have to pay for repairs out of your own pocket! Get the factory sponsored warranty and you won't be sorry. It is a true warranty with specific coverages. Read it over so you know what you are getting but it is still worth it to pay a little more for the factory program. I even get it on my wifes cars and I work on them! People who say that the dealer will ream you aren't looking at the value, only the initial cost.

    Ford technician
    Steve
     
  15. DENNISMASTROLIA1

    DENNISMASTROLIA1 Active Member

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    If you purchase from a reputable dealer i.e Ford-G.M. ask to see the contract first and then take it home to read it. My friends wife works in a dealership and her job is to SELL financing and EXTENDED WARRANTY programs --they are usually worthless and YOU WILL PAY FOR EVERY REPAIR. If a bumper to bumper plan is offered you are covered for only two things-you guessed it-the front bumper and the rear bumper--unless they tell you that is covered by your insurance company and not them.Do not make this purchase.SAVE YOUR $$$.
     
  16. ec90t

    ec90t Guest

    Sherree,

    If you can't get a factory warantee then don't bother. The aftermarket one's are a joke! They replace major assemblies with used parts (read the fine print) and will fight tooth and nail not to cover anything. They are there for themselves and not for you. There is a lot of good info on this thread.

    ec90t
     
  17. over the hill

    over the hill Active Member

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    Anyone know anything about this Gap Ins? It seems dealerships promote this. I thought if you financed a new car your fin. co had overage just in case your ins. co wouldnt cover total value. A co worker of mine just paid 400 extra. Whats the scoop? Gerald
     
  18. lancelot

    lancelot Member

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    You can usually get a factory, extended, warranty at a much better price by going online and shopping for it. We saved $300 by doing this.

    Although, I think, you usually come out better by passing on one there are cars that have such high repair costs that a FACTORY, extended warranty is justified. My wife had a Northstar engine replaced and if she had not had one the cost would have been $11,000, instead of the $200 deductable.

    Ron Ireland
     
  19. Bruce Specht

    Bruce Specht Well-Known Member

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    There is no good reason to buy and extended warranty! I say that without benifit of knowing the age and milage of the car your purchasing. You should add that to the request. Is there any warrnaty left form the MFG? How many miles are currently on the vehicle and what has been done in the way of service? What year is the car? New cars don't break all that often thats why you see so many new car delaers selling tires and oil change services. Keep up with the perventive maintenace and you will be fine. Save your money put the premieums in the bank.
     
  20. perazzitms

    perazzitms TS Member

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    Cars ain't moving too good right now.

    The balance of the factory warranty is transferable - that's 60,000 right there in the case of the Honda. The 'extended' part only comes in AFTER the factory 60K. The money you pay is for 60,001 - 100,000 - that's only 40K, not 100K --- factor that in your considerations.

    I'd look at:

    1) It's a Honda. Enough said. I work with a guy who has a 92 Accord - with 180K on it - not a single problem.

    2) Tell the dealer you want the factory warranty thrown in - it won't cost him a penny, and if he thinks the deal hangs on it, he'll do it.
     
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