Car extended warranties.. Recommendations?

[AnyMal]

I think we found our next family ride (2000 Grand Voyager SE) which has 39k miles on it, hence no warranty. Is it a worthwile to purchase an extended warranty? If so, how much should I expect to pay for it and what level of coverage to choose?

 

[Ryan]

Only if it's through the vehicle manufacturer. All 3rd party warranties are crappy and a pain in the ass.

 

[DainBramaged]

It is most definatly worth buying an extended warranty. A guy at work bought a 99 Chevy Venture with 65k on it and it cost him $2000 for a warranty up to 100k or three additional years. He has had his head gasket replaced and had a rebuilt tranny installed so far. Definatly worth it. Especially considering the tranny problems that Chrysler products tend to have.

 

[KenGr]

I never buy extended warranties. All they are is insurance. The only reason they are offered is that they can sell them for much more than they statistically expect repairs to cost. You might want to buy it if a failure would financially devastate you (which is why people buy life and health insurance) but I always trust my luck. It's worked out pretty well for the last 20 years or so.

 

[AnyMal]

Originally posted by: KenGr
I never buy extended warranties. All they are is insurance. The only reason they are offered is that they can sell them for much more than they statistically expect repairs to cost. You might want to buy it if a failure would financially devastate you (which is why people buy life and health insurance) but I always trust my luck. It's worked out pretty well for the last 20 years or so.

I agree, warranty is much like insurance, you assume the worst and hope for the best. However, as most of us know, car troubles somehow tend to pop up when our finances are not in best shape. Would anyone turn down medical insurance just because they still relatively young and healthy?

 

[dman]

Since you are out of most manuf. warranty period (3yr 36K miles) you most likely can NOT buy a manuf. warranty, but it's worth looking into.

3rd party warranties suck because (in general, read the contract not the pamphlet):

1) They must approve all repairs, and only at 'approved shops' or you won't get coverage. = PITA (See #3)
2) They don't cover many things you'd want, or only parts of things (if it's a wear part, then they won't cover it, so that takes out shocks, brakes, belts, hoses, etc). Most of the repairs they do cover, have a wear part associated so you'll usually end up paying for part of those as well.
3) Even if you know they do cover it, YOU have to negotiate between the shop and the warranty company to resolve 1 and 2.

If you figure in the cost of the warranty ($1-2k) + $50-100+ each repair, you can really afford a lot of repairs (at a good small shop) yourself before it pays off.

 

[CFster]

Buy a reliable vehicle, and you wont have to worry about it.

The guy who paid $2000 for a warranty up to 100,000 miles on his 65,000 mile Venture van is exactly the type these companies prey on - they just don't know any better.

 

[DainBramaged]

Originally posted by: CFster
Buy a reliable vehicle, and you wont have to worry about it.

The guy who paid $2000 for a warranty up to 100,000 miles on his 65,000 mile Venture van is exactly the type these companies prey on - they just don't know any better.

But that is exactly the point! He knew that the van had reliability issues and bought the warranty based on that. With at new tranny and new head gasket as well as brake work, it would have added up to more than $2500. Plus he is only at 85k on his van.

 

[CFster]

A reliable vehicle wouldn't have those problems at that kind of mileage. So he could have bought something reliable and saved himself the 2K in the first place.

 

[freebee]

Anyone that buys a crappy car like the Venture is beyond hope anyways..... And what about time wasted spent while the car is at the shop. You gotta drop it off, get a rental, pick it up....etc.

Extended warranties are really a psychological matter. If spending 2k makes you feel safer and more secure, go ahead and do it. As a financial decision, 2k invested over 5-6 years maybe more worthwhile. Depending on how much the vehicle is driven, exteneded coverage should be at least similar to the original 3 years/36k mile mark.

 

[RossMAN]

Originally posted by: CFster
Buy a reliable vehicle, and you wont have to worry about it.

The guy who paid $2000 for a warranty up to 100,000 miles on his 65,000 mile Venture van is exactly the type these companies prey on - they just don't know any better.

Agree. He should look into a Honda Odyssey or Toyota Sienna but I doubt he'll get as good of a deal.

After our 2002 Honda Accord's 3/36 warranty expires I won't worry, just routine maintenance, don't drive it like a rally car and 10 years from now it'll run just fine.