Automobile extended warranties/service agreements

[dennis thompson]

That must not be a Subaru extended service contract as the manufacturer contract starts from day one and a 5 year contract would only give you two additional years. Subaru does offer an 8 year 120K mile contract. The 10 year, 100K miles, zero deductible plan is likely the most popular, however and comes in at about $2.1 K competitively when folks shop around for it. That's what I opted for.

I checked my extended warranty , it is an eight year Subaru warranty, with a $100 deductible.

[Jim Becker]

I checked my extended warranty , it is an eight year Subaru warranty, with a $100 deductible.

Very good, Dennis. The Subaru Added Care Gold extended service contract is a very good contract, unlike the majority of the third party "caa caa" that many dealers sell because they are more profitable.

[Derek Meyer]

No, I did not finance the car. We paid for both vehicles outright.

The extended warranties we bought have no deductible or copay - they act exactly like the factory warranty, only they cover pretty much the entire vehicle for the duration of the warranty term - in this case, I believe it is 6 years/100,000 miles. I thought it was a pretty good deal. The dealer we bought from is reputable in this area, and has treated both of us well so far, so I feel pretty good about everything so far.

[Earl McLain]

Recently one of the Chicago area Kia dealerships has been TV advertising an extended service of 20 years/200,000 miles if you buy from them. I've not done any research on it, nor will i spend my time doing so--i've got no interest in buying a Kia. If i need to buy a car in the next few years, it will likely be a Subaru Outback or Ascent. Just found the TV ads interesting in light of this discussion. Don't recall the dealership name, but it's the guy who closes with "You're gonna like buying a car this way"--and i always get the feeling i wouldn't!!
earl

[Doug Garson]

Recently one of the Chicago area Kia dealerships has been TV advertising an extended service of 20 years/200,000 miles if you buy from them. I've not done any research on it, nor will i spend my time doing so--i've got no interest in buying a Kia. If i need to buy a car in the next few years, it will likely be a Subaru Outback or Ascent. Just found the TV ads interesting in light of this discussion. Don't recall the dealership name, but it's the guy who closes with "You're gonna like buying a car this way"--and i always get the feeling i wouldn't!!
earl

I'm sure the dealership is counting on the fact that the vast majority (all?) who buy will not keep the car for 20 years, most will keep it 5 years, a few 10 years and I'll bet the warrantee is not transferable. Still, it's a good deal if the price is competitive and the dealer is reputable especially if you keep cars long term.

[Rick Potter]

I would have been all over that 20 year warranty 20 years ago. I currently have three cars that I have had over 20 years, and last year I sold my pickup to my grandson, after having it 16 years.

Of course, being 81 in a few weeks, somehow the extended warranty doesn't excite me too much.

[Bill George]

I would have been all over that 20 year warranty 20 years ago. I currently have three cars that I have had over 20 years, and last year I sold my pickup to my grandson, after having it 16 years.

Of course, being 81 in a few weeks, somehow the extended warranty doesn't excite me too much.

Same here, when your 80 Lifetime Warranty kind of is a non selling point!

[Jim Becker]

A 20 year extended service contract on a vehicle certainly paints an interesting marketing picture, but it's worthless without knowing what it actually covers. 10 year, 100K miles, $0 deductible contract from the vehicle manufacturer that covers everything except wear items and cosmetics makes a more compelling functional picture. Especially when the up front premium is just over two grand. That's about $200 a year equivalent in cost to eliminate a lot of risk for someone who holds onto the vehicle for up to ten years, especially with a pro-rated refund if one disposes of the vehicle sooner.

[Jerome Stanek]

Extended warranties are only as good as the paper they are writen on. Just like tha gas station that has $1.00 gas but they are out of it. What happens if the company that holds the warranty goes out of business or changes names. like some of those that advertise on TV.

[Bill Howatt]

No "What if" about it, it has frequently happened which is why a lot of posters in favor of them have specified getting a warranty linked to the manufacturer.

[Bill George]

Extended warranties are only as good as the paper they are writen on. Just like tha gas station that has $1.00 gas but they are out of it. What happens if the company that holds the warranty goes out of business or changes names. like some of those that advertise on TV.

Jerome what happens if your house gets blown away with tornado, you have no Insurance because you do not believe in it? After all its only as good as the paper its written on. Intelligent people here weigh the risks and buy from companies who are legit, and that's what we are discussing here. Anytime you can get a manufactures warranty for $200 per year (10 years for $2000) and no deductible its kind of a no brainer for most people.

[Jerome Stanek]

Jerome what happens if your house gets blown away with tornado, you have no Insurance because you do not believe in it? After all its only as good as the paper its written on. Intelligent people here weigh the risks and buy from companies who are legit, and that's what we are discussing here. Anytime you can get a manufactures warranty for $200 per year (10 years for $2000) and no deductible its kind of a no brainer for most people.

Does your insurance cover acts of god

[Jim Becker]

Does your insurance cover acts of god

Within some specific limitations, yes, it does. That's what it's for.

[Stan Calow]

Forgive me for beating the dead horse.

What I cant get past is this: for new cars, there is already a manufacturers warranty that cover most things, for 3-5 years (does Hyundai still have 10 years?). And emissions-related stuff for 10 years by law, right? So it seems to me that there is no value added by the extended warranties for the first several years anyway. And most people dont keep their cars that long. Salespeople have told me that transferrable warranties increase re-sale value, but I also point out that none of those dealers asked me whether my trade-in had an extended warranty. What am I missing?

[Bill George]

Forgive me for beating the dead horse.

What I cant get past is this: for new cars, there is already a manufacturers warranty that cover most things, for 3-5 years (does Hyundai still have 10 years?). And emissions-related stuff for 10 years by law, right? So it seems to me that there is no value added by the extended warranties for the first several years anyway. And most people dont keep their cars that long. Salespeople have told me that transferrable warranties increase re-sale value, but I also point out that none of those dealers asked me whether my trade-in had an extended warranty. What am I missing?

When you keep a car past the factory 3 year? We let the folks who buy every 3 years take that big hit on deprecation and we keep them for perhaps ten years. Buying new tires, replacing the oil and filters and battery is lots cheaper than taking a that big hit and the price increases on a new car. That insurance in the extended warranty protects us from the $4000 Transmisson, ECU or electronics related issues.