Extended warranty -

[Rich Engelhardt]

My wife bought a new car yesterday.

I swore up and down I'd never throw away money on an extended warranty.


BUT.... there are so many electronic gizmos and whirly-gigs on newer vehicles you almost have to pay extra as insurance.

Extended warranties have saved our bacon with appliances in recent years. I'm pretty much sold on them for a lot of things.

[Pat Germain]

The specific car is an important factor. If it's anything from GM, Ford or Stellantis, I would say you absolutely need an extended warranty.

[Jim Becker]

I buy a vehicle manufacturer backed comprehensive extended service contract (they are not actually "warranties" no matter who calls them that) because of the complexity and because it eliminates any financial surprises if some component fails within the terms of the contract. For my Subaru Ascent Touring, I have a 10 year, 100k mile, $0 deductible ESC that covers everything except a very short list of exclusions which are largely wear items and cosmetics. If I hold the vehicle for the whole 10 years, my "insurance cost" is $235 a year. If I don't need to use it and trade early, I get money back as I did when I traded the MY19 for the new MY23 this year. Burn up the head unit that's also the heart of the vehicle's computer systems...$2500 minimum. Need a transmission out of warranty...that's currently about $12000 for my particular vehicle. I'm good with the small cost of the contract I purchased.

Currently, "as we speak", I'm actually sorry I didn't opt for an ESC for the new laundry appliances I bought a year and a half ago. The washer electronics died this week. When the tech gets here next week, I'm not looking forward to the cost and we've already been discussing where the cost line is between repair and replace.

[Jim Becker]

The specific car is an important factor. If it's anything from GM, Ford or Stellantis, I would say you absolutely need an extended warranty.
I would say that leaving those brand families out relative to whether an ESC "is right for you" is not a good idea. They are no different than any other brand when it comes to reliability.

[Ron Selzer]

I have mixed feelings, most of the time I don't buy it. 1997 Dodge Intrepid, extended warranty bought and needed. 2003 bought a PT Cruiser that ended up being a lemon, we lost our court battle with Chrysler after the lawyer said it was all my fault for not telling Chrysler about the problem not being properly repaired by the Chrysler dealer, we bought it from. The extended warranty paid over $7000 to repair the car. 2004 1500 Ram pickup I bought new, without extended warranty. Has never needed any repairs until way after the warranty would have expired. Guy at work bought it off of me and way over 200,000 miles, still running strong. Only basic, expected repairs needed.
2018 Ford Transit, 2018 Ford Edge no extended warranty, have not needed any repairs.
Ron

[mike stenson]

Yep, worst car I ever had was a Subaru. The various GMs and Fords have been pretty reliable, all in all.

The infotainment system on my Mazda sucked enough that I think I'm done with new vehicles though. They'll all feel old in months. The one time I had an extended warranty and there was a problem, they bent over backwards to try and deny the claim. Just like the home warranty on that came with this house when I bought it, actually.. They just ghosted us when we had a septic failure.

[Jim Becker]

Yep, worst car I ever had was a Subaru.

It's luck of the draw...we're on number 7 and have had no real issues other than some age related things with a MY11 Outback that simply resulted in a trade for a MY20 Forester for Professor Dr. SWMBO. Anyone can have issues with any brand and some things are very subjective, too. I've never had a claim denied for a manufacturer based ESC. And that includes a MOPAR contract that paid out quite a big on the MY12 Grand Cherokee I owned.

[mike stenson]

It's luck of the draw...we're on number 7 and have had no real issues other than some age related things with a MY11 Outback that simply resulted in a trade for a MY20 Forester for Professor Dr. SWMBO. Anyone can have issues with any brand and some things are very subjective, too. I've never had a claim denied for a manufacturer based ESC. And that includes a MOPAR contract that paid out quite a big on the MY12 Grand Cherokee I owned.

Our first one had a fuel system failure, that burped gasoline out of the fill door. The second one (they replaced the first) burned oil like a clapped out track porsche. You know, the issue there was a TSP over, except our Vin "didn't qualify". After two in a row, I'm just done. I know plenty of people love them, but I'm also aware they have a higher than average TCO.

[Rich Engelhardt]

Jim,
It was exactly the experience we had with an appliance that made the decision to buy for us.

[George Bokros]

I never bought one before but did on my '21 Ranger. Like some have said,"The electronics and gizmos are expensive."

[Pat Germain]

I would say that leaving those brand families out relative to whether an ESC "is right for you" is not a good idea. They are no different than any other brand when it comes to reliability.

I respectfully disagree. Any brand can have issues, but when you look at the Consumer Reports surveys, the three "American" brands stand out with the most problems. Whenever I mention Consumer Reports, people get prickly and insist on parroting the UAW propaganda that Consumer Reports is biased against American cars. So I'll state that their reliability ratings are based on surveys of tens of thousands of people who actually own the vehicles. And yes, I used to participate in their survey every year. For people who still think they're biased, oh well. I can't tell people what to believe.

[Pat Germain]

I'll repeat what I always say about vehicle extended warranties; when you're buying the vehicle and the sales weasel pitches the extended warranty, ask for the total cost. The weasels like to break it down as, "Only an extra $30.00 a month!". Whatever the total cost, offer to pay half. I don't know what the profit margin is on those things, but it must be significant since they will often accept the half price offer.

[Rich Engelhardt]

$1900 was the total price.
The extra coverage takes the warranty to 10 years, 100k miles.

What sealed the deal though was the extended covers more than the Hyundai coverage.
Hyundai - and I suppose everyone else - has come up with a new way to weasel out of things.

Warranties are only good for defects, not wear and tear.
If the display goes bad, they can claim it was due to wear and tear and not a defect.
Supposedly, the extended one doesn't do that - yet.

[Mel Fulks]

I haven’t read Consumer mag in years. I don’t think they are biased, just nutty. They had some really far out warnings about what
might happen to you in some cars. Guess some of those things could happen ,but they were too vigilant in finding dangerous stuff.
Even now I never step on a candy wrapper , too many bad falls !

[Jim Becker]

I respectfully disagree. Any brand can have issues, but when you look at the Consumer Reports surveys, the three "American" brands stand out with the most problems. Whenever I mention Consumer Reports, people get prickly and insist on parroting the UAW propaganda that Consumer Reports is biased against American cars. So I'll state that their reliability ratings are based on surveys of tens of thousands of people who actually own the vehicles. And yes, I used to participate in their survey every year. For people who still think they're biased, oh well. I can't tell people what to believe.
I guess I misunderstood and thought you were saying that GM, Ford and Stelantis vehicle owners didn't need to consider ESPs which is why I said they should.

I don't find CRS bias so much as they don't necessarily adapt their reliability algorithms fast enough. It took several years for them to properly reflect "current" reliability on the vehicle I drive and when an industry insider documented to them that the numbers didn't work, they ignored the advice to check it. For two years. Nearly four years in, the reliability estimates for the vehicle still reflected "year one" (expected) issues even though their survey data on the intervening years did not reflect the issues. That was a math error, not a bias. It was finally corrected about a year ago.

[Brian Elfert]

You have to remember that extended service contracts are like casinos. The house always wins. You may get $5,000 in repairs covered for your particular vehicle, but there were maybe another twenty customers who had zero dollars in repairs which covered your $5,000 in repairs (and then some).

I know someone who gets to buy stuff for his personal use from his employer at basically cost. He bought an extended service contract that normally retails for $20 for $3. That indicates that service contracts have a huge profit margin which is why some dealers will sell them to you at 50% off because they are likely still making money at 50% off.

[Jim Becker]

That's true, Brian, which is why it's important to be careful "what" one buys. Whenever this subject comes up, I'm pretty anal about saying "manufacturer backed". I'd never buy a third party contract on an automobile, personally. For me, it's "insurance" and if the "premium" is acceptable to me to reduce the risk, I'll buy it. I also do not accept "the price" from a dealer and always have multiple quotes in-hand from other dealers who are known to sell at just above cost. I ask for a match. If the local dealer will do that, they get the business. If not, I buy the contract from the dealer that provided the best price. Doing the homework for ESCs is just as important as doing the homework necessary to get the best price on the vehicle.

[Dave Lehnert]

I purchased an extended warranty on a new 2013 Chevy Equinox. 10 Year 100,000. Still drive it today. Best car I have ever owned.

I only needed to use the warranty twice. First time it was a covered part but denied warranty because the part was dirty. Thats why the part needs to be replaced, but what ever . It was the VT valve or something like that ??? Second time it was for an axle seal. Also was covered under warranty. The kick in the pants was the seal and labor was covered. but they did not cover the fluid change or the labor to do that. Top that with the $200 deductible and the warranty did not cover much.

After all said and done I basically lost $2,000. I could have done a lot of repairs out of pocket for $2000. Also each time my repair was delayed a day because my shop I used had to wait for approval ( Or denial in my case)

[Bill George]

So make sure its a GM warranty Not a third party one and there Will be no delay for an Ok. BTW was this not all this just covered in another Thread?

[Ronald Blue]

I respectfully disagree. Any brand can have issues, but when you look at the Consumer Reports surveys, the three "American" brands stand out with the most problems. Whenever I mention Consumer Reports, people get prickly and insist on parroting the UAW propaganda that Consumer Reports is biased against American cars. So I'll state that their reliability ratings are based on surveys of tens of thousands of people who actually own the vehicles. And yes, I used to participate in their survey every year. For people who still think they're biased, oh well. I can't tell people what to believe.

I haven't picked up a Consumer Report in years. If I believed them my last two pickups would have been certain to leave me stranded someplace along side the road. I've had my current Silverado for 9 years next month. It's ready to roll over 100,000 and all it's ever had done was tires a couple times and rear brakes just this year. It's the highest trim level with about every option they offered in 2014. There have been a couple recalls to update software. My 2023 Toyota Highlander Platinum just purchased new in August already has a recall because the front bumper assembly plastic can detach. This is my second Toyota and I'm not complaining because it is a good vehicle. When it comes to climate control my Silverado is hands down better. If I change the temperature a couple degrees in it I can feel the difference immediately. The Highlander and Avalon before that not so much. Point being they all have their issues and recalls. We did get the extended warranty on the Highlander but hopefully we will never use it. YMMV

[Dave Anderson NH]

Just bought a new Outback for the wife 3 weeks ago. I've avoided extend service plans (warranties) for years but with all of the expensive electronics on today's car it made sense to buy in. The 11.6" display alone is over $3000 for the part let alone labor. They did pitch a brand X service plan but I said no. Bought the Subaru backed one for 10 years or 100K miles. Yes the house always wins. I don't mind that for the chance to avoid outrageous repair bills and as Jim said it is only a small amount spread over the years of ownership and it is transferable to a new owner.

As for Subaru as a brand, Sue had a problem with the paint bubbling on a black Legacy sedan within days of buying a Subaru sedan 4 cars ago. The dealer went through all of the channels including bringing in the DuPont paint folks. This took about 2 months while she racked up 6000 miles on the car which was a previous model year leftover bought at a good price. We got a call from the dealer one night telling us to bring the car in and they would exchange it no charge for the identical version of the new year's model. She is now on her 3rd Outback and 7th Subaru. Their response for the problem was outstanding.

[Steve Jenkins]

We had both our vehicles totaled at the same time earlier this year. Due to all the electronics we bought the manufacturers extended warranty on both the new ones

[Rick Potter]

Just wanted to remind that most factory extended warranties can be bought anytime during the life of the original factory warrantee. You do not have to get them at time of purchase.

[Ken Fitzgerald]

Any extended warrantee or insurance program is a crap shoot. In 1986, my employer of 10 years was sold to GE. GE flew all service engineers in the NW to Seatle, where they wined, dined and pitched their employment and made us sign paperwork. One of the decisions I had to make was for an $8/per month long term disability insurance. I decided to buy it. I'd bet that less than 1% of all people who buy it end up qualifying and getting to use it. Then in July of 2010, I awoke deaf. I had paid $8/ month approaching for 24 years. Let's round up to $100/ year x 24. Total inflated expenditure $2400. It's a crap shoot! I got it back in the first month after the company's short term disability insurance ran out. You have to weigh the pluses and minuses and determine what is right for you! There is no right or wrong. What is right for you? How much risk are you willing to incur? Can you survive the expenditures if you choose wrong?