Extended Warranty ?

I recently bought an 05' Legacy 2.5GT 5MT Wagon (25K on it) and it still has around three months left on the warranty. Subaru said that I could extend the warranty, but have to do before the present one expires.

 

What is the opinion on the extended warranty and what about cost?

 

Bob

Congrads on the new purchase. I bought an 05' GT new and purchased the 6/60K extended warranty for the invoice price of $900 (most dealers should give you this price as opposed to the msrp price of $1200). I would say that it is a good idea, but I have probably only saved around $250 because of it so far (tire malfunctions and free loaners are included in the extended warranty), although I have only had the car for two and a half years. I am not sure if I am going to keep it for much longer - might trade it in for a new spec B., but once the standard warranty has expired I am sure it will come in handy.

The warranty that is expiring is the bumper to bumper however you have powertrain coverage till for 2 more years or up to 60k miles(whichever first).

 

My opinion is that you would do far better putting the money into an ING savings account as your own warranty program. I have a strong feeling you will end up at least half if not all + interest.

 

The problem with extended warranty's is that your not ahead until you have repair that meets its cost. Even if it meets cost your not ahead until it exceeds the purchase price by far.

 

The odds are that you won't use full purchase price, the warranty company know this.

 

My brother in law is a finance director for a major dealership chain and tells me don't waste your money on these. The dealer and warranty companies make good cash on them. They do however offer peace of mind albeit pricey one IMHO.

Congrads on the new purchase. I bought an 05' GT new and purchased the 6/60K extended warranty for the invoice price of $900 (most dealers should give you this price as opposed to the msrp price of $1200). I would say that it is a good idea, but I have probably only saved around $250 because of it so far (tire malfunctions and free loaners are included in the extended warranty), although I have only had the car for two and a half years. I am not sure if I am going to keep it for much longer - might trade it in for a new spec B., but once the standard warranty has expired I am sure it will come in handy.

 

Did you have $900+$250 in repairs or are you $650 in the hole?

 

Another point is that the price goes up considerably when the vehicle is older from the original low offer you got of ($1200retail/$900 invoice).

I got the 6/60 for 900

I just got the 7/100k gold for 795, as my car was already a certified preowned. For the non certified price it was 1260 for 7/100k

Just my .02 cents. I was quoted $750 for the gold 6/60K warranty just this morning. This is on a 05 GT 5EAT with 13k miles.

 

I was thinking that since it includes towing, it's like getting AAA+ for an extra 3 years. So that's $225 ($75x3, duh).

 

So I'll be spending an extra $525 for 3yrs and about 35K more of a warranty. Not too bad if you ask me. If I had that on my last car (an Acura TL) I would have made out. A bad Power Steering pump and a few other minor items and I was out $900.

 

It's a crap shoot really, but piece of mind is a nice thing.

 

Matt

Doesn't your insurance cover towing?

 

I agree. Don't waste your money on one of these. Like rjundi says, put the money in a high yeild savings acount. That way if you need it for car repairs it's there but if you don't end up needing it, it's still in your pocket and not some insurance company's.

 

Cheers!

-Ian

My insurance doesn't cover towing for mechanical problems, does yours?

 

Insurance is VERY EXPENSIVE in NJ and I'm sure if I asked for that coverage ithey would raise it still again. Plus they reimburse you for towing, you have to pay for it and then request it. My time is expensive, don't want to waste it filling out forms and hassling with the Ins. company. With the warranty you just don't pay for the towing. Much easier.

 

Like I said it's a crap shoot. But I like the piece of mind of not having to pay for any repairs. I would think it is highly unlikey that in 60K or 6 years of driving there is not going to be one repair or item you want replaced under warranty. If you are cool with your dealer things like rotors can be warrantied out. Believe me I've had in done (in an Audi, where brakes where $$$).

 

And I wouldn't do it for much more than the $750 I was quoted.

 

I'm sure the dealers do make a lot of money on them (especially when they quote $1200 for them) but if you add it all up, it's not too bad a deal. Especially if you have one repair in that time. If the failure leaves you stranded you make up the difference really quickly, what with a loaner car and the free towing. And no my insurance company does not cover rental reimbursement for mechanical repairs. And if they did it's probably 25-35 dollars a day. That gets you a 2 door spec.

 

With inflation and cost of living increases you really get no interest from money over the three years. You would be better off buying gas with the money and storing it for use in 3 years.

 

Here's an intersting question? With the warranty from subaru you get prorated tire replacement under the tire hazard protection clause. Let's say your tires are worn enough that you can't replace just one (the specification for this is in some other thread) do you get all 4 at a prorated price??? Really doesn't pertain to this thread just wondering.

 

Matt