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Extended warranty worth it?-Yes.


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All,

I know a ton of people on this board are always wondering about if an extended warranty is worth it or not. My friend has a 00 legacy wagon, auto. he bought it last June from a GM dealer and got the GM "Major Guard" warranty which is the best warranty they offer. He brought it in the other day to a Subaru dealer because he heard an odd sound when he turned the wheel all the way to the left and was accelerating. (car has 61k miles) After the subaru tech drove the car he discovered the following:

 

1. power steering lines need to be replaced. (this was causing noise)

2. front sway bar end links need to be replaced.

3. Turns out pistons A and B in the engine needed to be replaced as well as the engine was making some odd noises.

 

Gm sent an inspector to look at the car at the subie dealer to make sure the car was properly cared for. They said it was, so no problem, they didnt deny the claim. My friend only had to pay his deductible of 50$. It seems that in this case the warranty saved him a ton of dough. I think he said he paid maybe $1500 for it or maybe $1700, for a 2 year warranty. Who knows what those repairs would've cost though.

 

I'm sure there are a ton of people who haven't used their extended warranties as well. This is one case though where it was definitely worth it. Who would have thought all of this on a car with only 61k miles.

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i got a flyer in the mail to buy an extended warranty for my last Olds. the thing was the funniest piece of propoganda i've read in quite some time.

 

average cost to replace starter $958.

average cost to replace window motor $1051

 

i mean just the most ridiculous prices, called them so they would stop sending this crap and asked the guy where in the world they got these prices from....

the best he could come up with is "we spend thousands of man hours blah blah blah researching mercedes blah blah to hyundai and geo's blah blah blah..."

 

i just had to laugh......

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Aftermarket warranties are good if:

- you put a decent amount of miles on your car.

- you plan on keeping the car for a long time.

- you plan on leaving the car stock.

 

Most aftermarket warranty companies first question when starting a claim is; "is the car modified?" If the answer is "Yes" the policy is Void and you lose all your money.

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I did get the 80K extended powertrain warranty for my LGT. Considering the thousands and thousands of dollars worth of warrantied transmission work that went in to my WRX I figured it would be a good idea. I have an AP and a gutted stock downpipe. When it comes time to cash in on that warranty my hope is they don't notice.

 

Dealer: "Is the car modified?"

Me: "Do you see any aftermarket parts on the car?"

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My friend worked for sears....he said that if a appliance had more than at 3% call back rate they would stop selling it. They make Millions upon millions off of warranties and service very few of them in the end. Its hard to say with cars. For me...i barely keep cars longer than three years anyway.
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We had about $230,000 in extended warranty claims last year between Pontiac, Jeep, and Subaru. That is $230k that the customers saved because of the extended warranty they had.

 

extended warranties do offer a peace of mind in most cases and many people might never use them but to those that do not have it and have something major happen, they have to pay a ton of money for a fix...

 

i always look at it if you have the cash available to pay $2000 for a breakdown on the car, then dont bother with the warranty, but if that kind of breakdown would hurt the bank flow, then buy the warranty and stick it in the payment..an extra $10-20 a month will not be noticed in that case and could save a ton of money down the road...

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No idea. I am sure we made some money. We are a business so we are here to make money, not lose it. Of course there are deals where we end up losing money as well, but in the end, any business that wants to stay in business has to be in the black.

 

I typically price my online customer warranties halfway between retail and cost.

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When I purchased my LGT, the dealer gave me the extended warranty at cost but I think he was trying to get the cars out the door. Wound up paying 26500 for a car that was stickered at 31200. Still have not used the extened warranty yet as my car has only been in for routine service. That is about to change, I think my left rear shock is shot and my wheel bearings are about to go...should be taken care of this Monday.
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I got Subaru Added Security Gold Plus Plan. I think is is worth it b/c they replaced my clutch for a second time and my bov and a few other stuff. They also give me a rental car until my car is done being fixed.

 

Aftermarket warranties are good if:

- you put a decent amount of miles on your car.

- you plan on keeping the car for a long time.

- you plan on leaving the car stock.

 

 

He is right on about warranties.

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I got Subaru Added Security Gold Plus Plan. I think is is worth it b/c they replaced my clutch for a second time and my bov and a few other stuff. They also give me a rental car until my car is done being fixed.

 

 

 

 

He is right on about warranties.

 

How much was it?

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Guest subiecity
i got extended warranty..it was goddam 6k extra im covered for i think 200k miles and i gota buncha other goodies im probably never even gonna live to see i didnt realize i drive my car about 5k miles a year lol
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Guest subiecity
no mine was 200k im 100% sure i remebr reading it and the guy at the dealer told me i covered for 200k miles for an extra 6 thousand
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Does anyone know what the warranty covers past 35K? I have the Extended "Gold" Warranty as well - covers up to 60K. I had to pay a $100 deductible on recent work done (fan relay). I still want to fix the "dash rattle" and the auto-dimming mirror that is on my car looks like it has a very bad int job on it.
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