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Posted: 3/13/2011 10:56:39 AM EDT
[#1]
Never bought an extended warranty on a new car, but then again I've only bought three new vehicles. Most expensive one was $13K & I just couldn't fathom paying up front for problems that might never happen....
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Posted: 3/13/2011 10:57:56 AM EDT
[#2]
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On an American car I would certainly buy the extended warranty. On my Honda I did not. I am not up on Hyundai's long-term reliability, YMMV. -WhyTanFox That's a crock of shit if I ever heard one, especially talking Hondas and some of the transmission problems they've had. ::shrug:: You make your bets and I'll make mine. Your Mileage May Vary. -WhyTanFox Ain't really any bets about it. Plug it into your favorite search engine, "Honda" and "transmission problem." Fix you a sandwich and a cold drink, you'll be reading for a while. Posted Via AR15.Com Mobile |
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Posted: 3/13/2011 10:59:13 AM EDT
[#3]
I look at whether I can afford to be without a car for a while if I need to save money to buy a new whatever it needs. I'm not concerned about a U-joint or a shock absorber/strut, I'm concerned about a transmission or control computer.
I want the vehicle to be under warranty as long as I'm paying on the loan. After that point, I can put what I was paying on the loan into a savings account earmarked to either a.)fix something that goes wrong, or b.) put a down payment on a replacement. Someday I may have enough cash and reduced debt to be able to pay cash for the vehicle and not worry about an extended warranty, but for now...spending $800 to extend my warranty to 7 yr/100,000 mi made sense. |
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Posted: 3/13/2011 11:02:53 AM EDT
[#4]
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I had one on my truck when I bought it new, and never used it. $1400 wasted. I think you'd be better off taking the money you would have spent for an extended warranty, and putting it in a rainy-day, shit-happens fund. How long did you own the vehicle? It's an '04 F150 I've owned since new. So 6-7 years and 115K miles so far. Posted Via AR15.Com Mobile I think you are lucky! I had an 01, no extended warranty, Seat belts would unfasten themselves, the windshield wipers would not work below 60° and it only had 72k miles when I sold it,oh I had to unhook the cruise control deactivation switch because they were causing vehicle fires and FORD was denying there was a problem. No, not lucky, just one of the few who can't figure out what the fuck you people do to your vehicles to make them blow up and fall apart in less than 100K miles. Posted Via AR15.Com Mobile WOW, I ask an honest question and all you can come up with is an insult. Karma is a bitch No insult intended, and I apologize if you interpreted it that way. I'm just saying, in 15-plus years as a professional auto tech, and owning several Ford vehicles, and servicing and repairing all makes and models, typically, with a few exceptions aside, when something breaks, its usually a result of neglect or abuse. Not really the vehicle's fault. Posted Via AR15.Com Mobile |
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Posted: 3/13/2011 11:05:00 AM EDT
[#5]
I have an 05 corolla with 225k on it, had a computer issue that took $600 to get resolved, but besides that, 0 issues. I can't see extended warranty being a positive in this case.
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Posted: 3/13/2011 11:24:33 AM EDT
[#6]
Just bought one for our vehicle. I plan to keep the thing until the body rots off the frame so I will most likely get my money out of it.
I damn sure did with my other car. It paid for itself 12x (no joke) |
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Posted: 3/13/2011 11:25:52 AM EDT
[#7]
Just be sure what the 'bumper to bumper warranty' covers.
I was in a Pontiac dealership service garage once with some questions. A couple was in there with their car. IIRC, there was a leak around the windshield, which dripped down onto the ECM (or maybe the heater motor... some electronic component) and ruined it. They had a 'bumper to bumper extended warranty' which covered the leak, but wouldn't cover the electronics, because that was 'water damage'. |
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Posted: 3/13/2011 11:28:22 AM EDT
[#8]
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They do not sell these policies because they lose money on them. 
They are very profitable for the car companies. I wonder why? Set up an Emergency Fund and don't waste money on such a policy. An excellent indicator of the profit on such hijinks was that I needed to tell not one, but four separate jackoffs at the local dealership that we didn't want it when we bought Mrs. Smith's new car. |
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Posted: 3/13/2011 11:35:03 AM EDT
[#9]
Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: Quoted: I had one on my truck when I bought it new, and never used it. $1400 wasted. I think you'd be better off taking the money you would have spent for an extended warranty, and putting it in a rainy-day, shit-happens fund. How long did you own the vehicle? It's an '04 F150 I've owned since new. So 6-7 years and 115K miles so far. Posted Via AR15.Com Mobile I think you are lucky! I had an 01, no extended warranty, Seat belts would unfasten themselves, the windshield wipers would not work below 60° and it only had 72k miles when I sold it,oh I had to unhook the cruise control deactivation switch because they were causing vehicle fires and FORD was denying there was a problem. No, not lucky, just one of the few who can't figure out what the fuck you people do to your vehicles to make them blow up and fall apart in less than 100K miles. Posted Via AR15.Com Mobile WOW, I ask an honest question and all you can come up with is an insult. Karma is a bitch No insult intended, and I apologize if you interpreted it that way. I'm just saying, in 15-plus years as a professional auto tech, and owning several Ford vehicles, and servicing and repairing all makes and models, typically, with a few exceptions aside, when something breaks, its usually a result of neglect or abuse. Not really the vehicle's fault. Posted Via AR15.Com Mobile I did interpret it as an insult and do accept your apology, but how could I be at fault for the defective parts and design of the parts that I said did not work correctly on my 01? I have seen many A/C evaporator cores fail on all makes. Failed twice on my 86 Mustang GT. Again, not a part that a driver could abuse or cause to fail. Using a vehicle as it is designed is not abuse either. Vehicles used to tow are more apt to fail than one that only carries passengers. In your other posts you point out the Honda Transmission problems. But you think that Ford does not have problems. I issued a few hundred thousand dollars in settlement payments related to Ford vehicle fires. Ford finally admitted they had a problem years after the first complaints. I sent certified letters to Ford pointing out the problems and inviting them to come inspect the vehicles I had preserved at the Salvage Yards. Ford declined and more fires occurred, some of the fires killed the owners of the vehicles because they started the owners house on fire while parked in the garage. All vehicles are subject to a mechanical failure and I feel you are being disgenous in your evaluation of Ford products. I think you are conveniently forgetting about the spark plug problems on the 5.4 engines or the reports of problems with the variable valve timing in the newer 5.4's. |
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Posted: 3/13/2011 11:43:52 AM EDT
[#10]
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On an American car I would certainly buy the extended warranty. On my Honda I did not. I am not up on Hyundai's long-term reliability, YMMV. -WhyTanFox That's a crock of shit if I ever heard one, especially talking Hondas and some of the transmission problems they've had. ::shrug:: You make your bets and I'll make mine. Your Mileage May Vary. -WhyTanFox Ain't really any bets about it. Plug it into your favorite search engine, "Honda" and "transmission problem." Fix you a sandwich and a cold drink, you'll be reading for a while. Posted Via AR15.Com Mobile If you do that with my Honda and it's transmission, you'll be reading a lot about very happy customers getting lots of miles out of theirs.  I know what you mean though. Any but the early adopters could have avoided the models affected with research, but I don't think the average consumer does that much research, they buy based on other factors. Often really, really dumb factors.
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Posted: 3/13/2011 11:51:53 AM EDT
[#11]
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Don't buy a warranty. Depends on what make vehicle.I work for Mercedes-Benz and when cars are out of warranty and work is needed I have seen clients cry.On MB"s and other high end cars I would highly recc. it |
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Posted: 3/13/2011 11:53:46 AM EDT
[#12]
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One thing that no one here is taking into consideration is the much, much lower price that warranty companies pay for service. You may pay $1,500 for a warranty. In that time period you have work done that totals $2,000 that you would have paid yourself if you didn't have a warranty, but the warranty covered it so you are $500 ahead. However, the warranty only paid $1,200 for that service, so they made $300 off of you. In that instance, you both won. There are many instances in life in which you'll find paying someone else to do something for you can lead to you paying less in total. I had the same car insurance company for 10 years at the time, I had gone to a local agent to find a better price, they offered me the same company I was already with for $200 less  The agent was given a discount that was so much less that she could take a cut for herself and still give me a $200 discount. The insurance company doesn't offer the customer that directly.
I was caught speeding in a speed trap, I went to court and found 6 other people there for the same speed trap, I was the only person who paid for a lawyer. The 6 other people got a deal for 3 points and a high fine, I was the only person who got a different deal, my lawyer got me no points and a smaller fine. In the end, without the points and raise in insurance that I would have received, I saved money by paying a lawyer. The lawyer didn't do any fancy lawyering, he just received professional courtesy. Anyone with a lawyer also went first while everyone else waited. Excellent point. Many here seems to be following the "they're making money on it, so I'm getting screwed!" train of thought. |
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Posted: 3/13/2011 11:55:07 AM EDT
[#13]
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They do not sell these policies because they lose money on them.
They are very profitable for the car companies. I wonder why? Set up an Emergency Fund and don't waste money on such a policy. An excellent indicator of the profit on such hijinks was that I needed to tell not one, but four separate jackoffs at the local dealership that we didn't want it when we bought Mrs. Smith's new car. You're right, there is a lot of profit and therefore they offer commission that everyone at the dealership is very aggressive to get. However, as I mentioned in my last post, warranty companies are able to get work done at a very low price, which means both you and the company may win in the end. I still don't purchase warranties, but it's important to remember that it's not a $1 for $1 comparison. |
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Posted: 3/13/2011 12:23:29 PM EDT
[#14]
I do have to add that I bought a new Jeep last year. I did not buy an
extended warranty because I will being doing modifications along the way that would most likely void the warranty. |
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Posted: 3/13/2011 1:00:31 PM EDT
[#15]
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I bought one for the wife's car last year. The big thing I figure it is insurance against is the damn electronic parts. I can handle a lot of the mechanical stuff but the price of the components is what I got the insurance for. One part goes bad and it pays for itself. Bought one on the latest new car for this exact reason. The thing is loaded with electro goodies and if one of those goes bad it'll pay for itself in no time. It's not so much the big components I worry about, it's all those freaking computers and electronic controls these days. 
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Posted: 3/13/2011 3:18:58 PM EDT
[#16]
UPDATE: Well, I thought long and hard about it as well as read your comments here (thank you!), crunched some numbers, did a lot of research, and decided to cancel the warranty.
Reasons: 1 - $2500 is a LOT of money (more than 10% of the car's price) - with a $100 deductible, if I took it in for repairs only 3 times in 10 years I'd end up paying $2800 total due to the $300 in deductibles. And that is assuming that these repairs were ones that wouldn't have been covered by the 10/100k power train warranty. Or it is also possible that those repairs wouldn't be covered by the warranty. 2 - The Hyundai Sonata is VERY reliable, I always follow the PMs and oil change schedule, keep my tires properly balanced, rotated, etc., and am going to put less than 7000 miles a year on my car. So in 10 years I'm going to be at about 70,000 or less miles. There is a VERY low chance that anything is going to happen given these factors. 3 - The warranty is NOT from Hyundai. It is a third party named Fidelity Warranty Services out of Pembroke Pines, FL. Google them - you will seem some horrendous business practices, denied claims, downright criminal behavior, etc. That was more than enough to make me cancel even if I hadn't considered the other factors listed above. So, I'll take the $2500 and set it aside for the unlikely repairs that won't be covered by the factory warranty. |
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Posted: 3/13/2011 3:28:51 PM EDT
[#17]
Holy cow! $2500 & it's NOT thru the OEM??? AND you have to pay a deductable for each event! Fawk me stiff or I'm just a cheep bastad....
Take the money & buy a $2500 beater car to keep the miles off the new one & you'll get 15 years out of it. I think you did the right thing. ETA: So you now have to cancel, eh? Prepare from the sheetstorm coming from this company of questionable business practices. They ain't gona let go easily. Good luck getting your cash back! |
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Posted: 3/13/2011 3:35:23 PM EDT
[#18]
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Holy cow! $2500 & it's NOT thru the OEM??? AND you have to pay a deductable for each event! Fawk me stiff or I'm just a cheep bastad.... Take the money & buy a $2500 beater car to keep the miles off the new one & you'll get 15 years out of it. I think you did the right thing. ETA: So you now have to cancel, eh? Prepare from the sheetstorm coming from this company of questionable business practices. They ain't gona let go easily. Good luck getting your cash back! I haven't gotten the car yet or signed final papers or traded in my other car, since the car I bought is being delivered tomorrow to the dealership. Called my salesman (he didn't push the warranty or even discuss it, it was the finance guy) and had him put a note on the paperwork to not even submit it, so it hasn't even made it into the mix yet. The finance guy is on vacation as of yesterday (when I filled out all the paperwork) and so nothing has been submitted. I'll not hand over my car or sign final papers until I have a CANCELLED contract in my hands for the warranty. |
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Posted: 3/13/2011 3:41:27 PM EDT
[#19]
I've only had one extended warranty pay off and it did that only at a couple hundred over what the warranty cost me. I will likely buy one on my 2010 Tundra as it is not the quality of truck that toyota has put out in the past and repairs are stupid expensive on it.
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Posted: 3/13/2011 3:45:45 PM EDT
[#20]
Quoted: Quoted: Holy cow! $2500 & it's NOT thru the OEM??? AND you have to pay a deductable for each event! Fawk me stiff or I'm just a cheep bastad.... Take the money & buy a $2500 beater car to keep the miles off the new one & you'll get 15 years out of it. I think you did the right thing. ETA: So you now have to cancel, eh? Prepare from the sheetstorm coming from this company of questionable business practices. They ain't gona let go easily. Good luck getting your cash back! I haven't gotten the car yet or signed final papers or traded in my other car, since the car I bought is being delivered tomorrow to the dealership. Called my salesman (he didn't push the warranty or even discuss it, it was the finance guy) and had him put a note on the paperwork to not even submit it, so it hasn't even made it into the mix yet. The finance guy is on vacation as of yesterday (when I filled out all the paperwork) and so nothing has been submitted. I'll not hand over my car or sign final papers until I have a CANCELLED contract in my hands for the warranty. Usually you decline the add-ons when you do the paperwork in the Finance Manager's office. |
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Posted: 3/13/2011 3:51:08 PM EDT
[#21]
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Don't buy a warranty. Depends on what make vehicle.I work for Mercedes-Benz and when cars are out of warranty and work is needed I have seen clients cry.On MB"s and other high end cars I would highly recc. it If you can afford a high end MB, then paying for service should not be an issue. |
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Posted: 3/13/2011 3:52:27 PM EDT
[#22]
Sounds like you've got a handle on things, then. Be firm, you might still get pressured.
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Posted: 3/13/2011 4:43:18 PM EDT
[#23]
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The Warranty companies make money by investing the premium payment. They make money by taking in a lot more money than they every pay out. According to Dave Ramsey, only 17 percent of the average premium is ever paid out on repairs. A majority of the other 83 percent goes to sales commissions for the dealers and dealerships. Why do you think dealers are so eager to push these warranties? You think they're really doing it as a public service? |
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Posted: 3/13/2011 5:12:50 PM EDT
[#24]
Quoted: Quoted: The Warranty companies make money by investing the premium payment. They make money by taking in a lot more money than they every pay out. According to Dave Ramsey, only 17 percent of the average premium is ever paid out on repairs. A majority of the other 83 percent goes to sales commissions for the dealers and dealerships. Why do you think dealers are so eager to push these warranties? You think they're really doing it as a public service? Well they have paid put far more than 100% on everyone I purchased. I know the Dealers make their cut, it is just like an insurance agent. You need to prove to me what the combined underwriting ratio is. Paid out includes all expenses, salaries etc, not just what was paid out on repairs. Could you run a business like that and pay no salaries? They can't either so 83% of the premiums cannot be paid back to the dealers and sales commisions. That shoots Ramsey's numbers out of the water. |
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Posted: 3/13/2011 5:22:17 PM EDT
[#25]
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Paid out includes all expenses, salaries etc, not just what was paid out on repairs. Could you run a business like that and pay no salaries? Couldn't care less how much their overhead is. What I care about is the fact that only 17 percent of the money they take from consumers is ever paid out in warranty claims. That's a hideous risk-to-payback ratio, even by Las Vegas standards. |
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Posted: 3/13/2011 5:24:53 PM EDT
[#26]
Quoted: Quoted: Paid out includes all expenses, salaries etc, not just what was paid out on repairs. Could you run a business like that and pay no salaries? Couldn't care less how much their overhead is. What I care about is the fact that only 17 percent of the money they take from consumers is ever paid out in warranty claims. That's a hideous risk-to-payback ratio, even by Las Vegas standards. Then I must have exceptional luck getting back every dollar I paid back and then some. And you still have not proved your claim of 17% and 83% to the dealer. Your claim makes no sense. |
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Posted: 3/13/2011 5:28:49 PM EDT
[#27]
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Paid out includes all expenses, salaries etc, not just what was paid out on repairs. Could you run a business like that and pay no salaries? Couldn't care less how much their overhead is. What I care about is the fact that only 17 percent of the money they take from consumers is ever paid out in warranty claims. That's a hideous risk-to-payback ratio, even by Las Vegas standards. Where did the 17% figure come from? |
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Posted: 3/13/2011 5:31:58 PM EDT
[#28]
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On an American car I would certainly buy the extended warranty. On my Honda I did not. I am not up on Hyundai's long-term reliability, YMMV. -WhyTanFox That's a crock of shit if I ever heard one, especially talking Hondas and some of the transmission problems they've had. ::shrug:: You make your bets and I'll make mine. Your Mileage May Vary. -WhyTanFox Ain't really any bets about it. Plug it into your favorite search engine, "Honda" and "transmission problem." Fix you a sandwich and a cold drink, you'll be reading for a while. Posted Via AR15.Com Mobile heh...I did two of them myself in the last month. |
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Posted: 3/13/2011 5:37:14 PM EDT
[#29]
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I do have to add that I bought a new Jeep last year. I did not buy an extended warranty because I will being doing modifications along the way that would most likely void the warranty. Your warranty can NEVER be "VOIDED". EVER. You can modify away and not worry. So long as what you modified does not cause something else to break that would be covered. As in, install a turbo kit then blow the engine = NO new engine under warranty. Install the turbo and your power steering dies = Covered. |
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Posted: 3/13/2011 5:40:25 PM EDT
[#30]
Quoted: Quoted: I do have to add that I bought a new Jeep last year. I did not buy an extended warranty because I will being doing modifications along the way that would most likely void the warranty. Your warranty can NEVER be "VOIDED". EVER. You can modify away and not worry. So long as what you modified does not cause something else to break that would be covered. As in, install a turbo kit then blow the engine = NO new engine under warranty. Install the turbo and your power steering dies = Covered. I disagree and have seen evidence of warranties voided for putting a lift on them. What you are saying is the way it should be, but things are not always the way they should be. |
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Posted: 3/13/2011 5:40:56 PM EDT
[#31]
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Then I must have exceptional luck getting back every dollar I paid back and then some. Yeh, everyone thinks they're exceptional. Everyone makes money on the deal, just like Vegas. It's fuckin' magic. 
And you still have not proved your claim of 17% and 83% to the dealer. Your claim makes no sense.
As I previously posted, it's Dave Ramsey's claim. If it confuses you, then give him a call. |
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Posted: 3/13/2011 5:46:07 PM EDT
[#32]
Quoted: Quoted: Then I must have exceptional luck getting back every dollar I paid back and then some. Yeh, everyone thinks they're exceptional. Everyone makes money on the deal, just like Vegas. It's fuckin' magic. And you still have not proved your claim of 17% and 83% to the dealer. Your claim makes no sense. As I previously posted, it's Dave Ramsey's claim. If it confuses you, then give him a call. You made the claim, it makes no sense and I give it no credence without proof. If they are paying out 83% for salaries and expenses they are doing it very wrong. I am in the Insurance business and the numbers you claim are abysmal. We would be out of business in no time with numbers like that. |
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