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OT: Extended Car Warranties

CERU00

CERU00

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Feb 10, 2005
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Wondering how many people have ever purchased these warranties and, if so, if they've made sense.

I'm being sold a $1400 warranty on a GMC acadia for 7 yr/75,000mi that covers parts/labor for most component repairs except for emissions/cometic damage/airbags/paint/physical damage. It also provides rental allowance and trip interruption coverage($75/day) if stranded. Of course they started the discussion at over $2k. I've never bought extended warranties on anything but looking for feedback. I'm thinking a deal like this might make sense for an European car that is much more expensive to repair but not most vehicles..
 
Does the car you're buying have a warranty?
If so, deduct the years the car is covered by its warranty before it expires from the 7 years and you'll get the numbers of years you will be using the extended warranty
 
it's an way for the salesman to bump up his commission. Getting one of these thrown in is a sign you're getting screwed.
 
if the deal made sense for you, it wouldn't make sense for the salesman.

the way this works is that 99% of purchasers lose out and 1% may get a benefit. this is something you should pass on.
 
Also find out who the warranty is from. It might be only from the dealer and not GMC. Second, call GMC and find out the cost if you buy it from them the day before your regular warranty expires. Why buy the extended coverage years early?
 
Knight Shift said:
Are you going to keep the car more than 5 years?
I think these warranties are a waste of money and scams.
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Major scam. These policies make huge amount of money for the companies, which means, the vast majority of customers lose out big-time.
 
I'm in the 1% that benefitted. Paid for most of a new engine for my car when s$&t hit the fan. It really depends on how long you keep the car, how long the warranty is, how much you pay, etc
 
PhilaPhans said:
I'm in the 1% that benefitted. Paid for most of a new engine for my car when s$&t hit the fan. It really depends on how long you keep the car, how long the warranty is, how much you pay, etc
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Me too. The two extended warranties (one on my 1987 Monte Carlo SS, one on Linda's 2003 Buick) I've had were well worth the money.
 
I have always been told and always read that extended warranties are a rip off, so I have not gotten them over the past 20 years or so....

the last time I bought a new car, all was going well with the car dealer who made the sale...it was the "suit" in the signing office who presented the extended warranty to me, which I declined......he went about the rest of the paper work and then brought it up again, this time a bit cheaper....more paper work, then again another price on the warranty....he said he could not believe I did not want it....

I actually was more irritated that I did not get their best offer to start, being a repeat customer, even though I would not want it anyway....and being a steady customer means squat anyway, I know

warranties are truly a scam because there is no set price, it is just what ever
they could squeeze out of you......and if you did take the warranty as first offered, a bigger rip off yet
 
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CERU00 said:
Wondering how many people have ever purchased these warranties and, if so, if they've made sense.

I'm being sold a $1400 warranty on a GMC acadia for 7 yr/75,000mi that covers parts/labor for most component repairs except for emissions/cometic damage/airbags/paint/physical damage. It also provides rental allowance and trip interruption coverage($75/day) if stranded. Of course they started the discussion at over $2k. I've never bought extended warranties on anything but looking for feedback. I'm thinking a deal like this might make sense for an European car that is much more expensive to repair but not most vehicles..
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I'm confused. The powertrain warranty on a new Acadia is 5 years/100,000 miles. The "bumper to bumper" is 3 years/36,000 miles. So the only thing that the extended warranty is extending are the bumper-to-bumper items not covered by the powertrain warranty. These things typically include electrical components and switchgear. You're not getting a lot for your money.
 
These things are not a waste of money if you are buying and plan to keep a car with a spotty reliability record. The prices are 100% negotiable though so keep that in mind and understand the incremental coverage you are purchasing vs what you get from manufacturer. I bought extended coverage on a dishwasher recently and have replaced very expensive electronic parts with it on multiple occasions. I would not buy this coverage for reliable cars like Hondas and Toyotas but boy do I wish I had it for that damn Volkswagen Passat I am currently driving.
 
Does the warranty cover routine maintenance (oil changes, brakes, tires)? Why doesn't it cover emissions and airbags -- if it is extending the bumper to bumper warranty, it should be bumper to bumper.
 
Upstream said:
Does the warranty cover routine maintenance (oil changes, brakes, tires)? Why doesn't it cover emissions and airbags -- if it is extending the bumper to bumper warranty, it should be bumper to bumper.
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Emissions components are covered by an 8 year / 80,000 mile warranty as per federal law.

There's a similar mandate for airbags, but I don't recall what the duration is.
 
The plan is priced too high.
Should be around $1,000 to 1,200 for 100,000 miles or 10 years
For peace of mind it is worth it if you keep the car. Helps when you are stuck in a financial bind down the road if engine or transmission goes bad. Out pocket should be no more $100. Too many exclusions in the plan offered to you. Yes the poster should be good for reply and his opinion since he worked at BMW. All the extended warranty plans are done with the financial guy not the salesman selling you the car.
 
All insurance is a scam. Until you use it. I bought my 04 civic off of its lease ( I was the leasee ) original was 3/36k. I shopped around and eventually got my extended warranty from a dealership in Mass. Doesn't really matter where you buy it from if it is a extended factory so shop around.

My head gasket went 500miles before it expired so it was a wash for me.
 
RU4Real said:
As other threads have declared this impossible, I have no choice but to believe that you aren't being truthful.
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About 1993 I had a caravan that was under extended warranty that had to have a head gasket.....that also made it just about a wash.....that being said, it was the last time I took out the warranty and have been saving money since then, not getting it
 
wheezer said:
I actually was more irritated that I did not get their best offer to start, being a repeat customer, even though I would not want it anyway....and being a steady customer means squat anyway, I know
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You never do, because that's how the game is played. I was lucky: I got to sit through it with my dad when I was a kid. He showed me the humorous side of it, with the salesman going back and forth between us in one office and the "suit" in another. He also taught me the whole concept of going into these negotiations with the attitude of being willing to walk if they don't satisfy you.
 
At its simplest, taking out insurance is usually not a good idea as long as you can afford the repairs in the future.

I don't take extra insurance on anything and have paid less in repairs than I would have paying the insurance. This applies to computers, appliances, tvs, cars, etc.
 
Upstream said:
Does the warranty cover routine maintenance (oil changes, brakes, tires)? Why doesn't it cover emissions and airbags -- if it is extending the bumper to bumper warranty, it should be bumper to bumper.
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No offered warranties covered the routine maintenance items. Not sure about some of the exclusions. They have three tiers of coverage and the upper levels were ridiculously priced.
Anyway the overall sentiments expressed here affirm my position. The whole business and charade they put on is so dirty. I'd probably consider it for $700 but nothing more. And yes, the coverage is buying at most 4 yrs of additional limited coverage and 2 additional years on the powertrain.
 
CERU00 said:
No offered warranties covered the routine maintenance items. Not sure about some of the exclusions. They have three tiers of coverage and the upper levels were ridiculously priced.
Anyway the overall sentiments expressed here affirm my position. The whole business and charade they put on is so dirty. I'd probably consider it for $700 but nothing more. And yes, the coverage is buying at most 4 yrs of additional limited coverage and 2 additional years on the powertrain.
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And if you read the whole offer first, you would never buy it. Things like deductibles, non-coverages, etc....
 
And if you read the whole offer first, you would never buy it. Things like deductibles, non-coverages, etc....
 
Extended warranties are not worth the money. Look up the bathtub curve. Factory warranties cover infant mortalities while extendeds are designed to cover the period of fewest defects in an automobile's life.
 
Bought in on my first car. 10 year 100,000 bumper to Bumper on my Hyundai Elantra. Gasket went at 91,000 and the Short Block had to be replaced due to the damage. Cost me $250.00 only because I bought a replacement timing chain for them to install since they had to take it out and put it in. Other than that 100% covered.

Have bought an extended Warranty on every car since as a security blanket.

I don not discard cars like some people, I pretty much drive them into the ground. I currently have a Dodge Dart and Dodge Offers a unlimited year/mileage extended warranty that covers pretty much 90% of the car for a $100.00 deductible. My wife has it on her Dodge Journey and they just replaced her Rear Brake Calipers at 105,000 miles because they were getting stuck in the closed position. Cost $100.00 deductable and they did the front ones as well just because they were afraid the same thing would occur.

It is a waste of money until you need it and use it.
 
RUJohnny99 said:
it's an way for the salesman to bump up his commission. Getting one of these thrown in is a sign you're getting screwed.
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Agreed. How many cars have major problems in the first 75k miles ? I'd say the percentage is very small. Keep that $1400 and take your (very slim) chances that something major will go wrong. Better off putting that $1400 in a piggy bank with a sign, "for future unexpected car repairs". At least the $ is still in your possession and the odds are it'll still be there when your car hits 75,001 miles.
 
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Extended warranties have commissions up to 40%. That being said they are more for piece of mind. Most vehicles have a 3 year 36k or 4 year 48k warranty for bumper to bumper with the engine up to 100k miles.

In my experience issues seem to pop up after about 70k miles. On a prior vehicle I had a malfunctioning airbag that went bad after the warranty and the dealer wouldn't fix unless I paid. The fix was over $1200 because they had to replace the computer. I didn't fix it and drove without the airbag. I have had sensors go bad in vehicles (ie. crankshaft position sensor) which is not wear and tear.

Most major issues occur in the 1st 30k miles that would be under warranty but electrical type things may take longer. If your car is a new model or has newer technology that has not been around as long then there may be a higher failure rate. Items like Blind Spot sensors, lane departure sensors, or other items that are new to the vehicle may not have been around 4 or 5 years for the company to see what issues come up. You would want those covered if they break after 4 or 5 years.

As I mentioned above it is more about piece of mind. Yes, you can take the $1000 to $1500 and put it in a savings account to pay for repairs and probably come out even vs. the warranty.
 
In Europe I hear that you can buy directly from the car companies.

Why do we need this sleazy car dealership system here in the US that everyone hates?
 
Scarlet_Scourge said:
In Europe I hear that you can buy directly from the car companies.

Why do we need this sleazy car dealership system here in the US that everyone hates?
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The US for some reason loves having the sales process through a middle person / salesman. For many products we buy there is a sales process. Try getting a price for an AC unit or heater? You will get 5 prices from 5 different companies.

The system has gotten better with cars thanks to the internet (Edmunds and TrueCar). For basic fixes like an oil change prices are readily available. But if you need real mechanic work you will again get different prices from different sources.
 
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