New Car buying and the extended "warantee" plan - long

[fossil]

I've never purchased an extended warranty on anything, nor have I ever regretted that. I bought a condo in San Diego back in 1986, and the seller had paid for a "Homeowners' Protection Policy" as part of the sale. Sometime later I got to reading that thing, and so far as I could tell, with all the exceptions, caveats, restrictions and other fine-print BS, the thing was basically worthless. Worthless to me, that is...but worth something to the company that sold it to the guy I bought the condo from. Rick

 

[BrotherBart]

Yeah Rick. Like the HOW Home Owner's Warranties on new houses. Don't even know if they are still around. The building industry put them out there so the Feds wouldn't start making them keep houses from falling down and holding them responsible. Read mine like you did that one and couldn't find one thing that could reasonably happen that was covered.

 

[Lighting Up]

Many folks dont realize that the finance guy is on commission and is a major portion of the profit on the vehicle. A good finance guy can get a customer to drop their guard down and think that he is trying to do them a favor by selling you all these "wonderfull" add ons. Realistically the need for major repairs on new vehicles is usually a sign of a factory defect that ends up being covered by a Technical Service Bulletin and some sort of factory recall/adjustment.

Bingo...They all do it and the Dealer associates all train them on how to make more money...floor mats, interest rates, oil changes for life...don't worry I'll bet if you decline the extended warranty you will receive offers in the mail for 1-2 maybe 3 years after your purchase. If the cars been a lemon then get it...
md

 

[btuser]

My wife likes the warranty, so of course we get them on her car. Me? I live on the edge.

What I did find is the warranty will help the resale if you're going to a dealer and you trade before the warranty is up. I had a dealer give us retail price (6k over wholesale, no bickering at all) on our last trade-in because it meant he could rip through the car and charge 5-8k in bogus repairs before selling it on his lot. Even if the warranty was 30 days away from going under it is still worth a boatload of money to an unscrupulous dealership. Our last warranty was $1000 and if you count up all the repairs done on it in the 5 years it lasted I'd say they must have racked 6-8k, for everything from a head gasket on the last trip before expiration to strut replacement at 20k. Whatever, the loaner is nicer than her car and comes with a free tank of gas!

Does it save money? Can't say for certain. At least with this type of insurance I get the chance to profit from it before I'm dead.

 

[daveswoodhauler]

Does it save money? Can't say for certain. At least with this type of insurance I get the chance to profit from it before I'm dead.

I think that was my point...this isn't a warrantee, as there is a cap on the total payments the plan will pay. For example, if the plan costs $1950, the most the plan will pay is $1950, do if you tranny/engine goes...they pay the $1950 and you are left to foot the rest of the bill. (Also, the $1950 they pay is basically what you already paid at the purchse of the car)
Basically, the program I was offered was essentially pre paying for possible repairs on the car. Thanks but no thanks.

 

[JDC1]

Does it save money? Can't say for certain. At least with this type of insurance I get the chance to profit from it before I'm dead.

I think that was my point...this isn't a warrantee, as there is a cap on the total payments the plan will pay. For example, if the plan costs $1950, the most the plan will pay is $1950, do if you tranny/engine goes...they pay the $1950 and you are left to foot the rest of the bill. (Also, the $1950 they pay is basically what you already paid at the purchse of the car)
Basically, the program I was offered was essentially pre paying for possible repairs on the car. Thanks but no thanks.

Was this "warranty" through Suburu or a third party?

 

[daveswoodhauler]

Does it save money? Can't say for certain. At least with this type of insurance I get the chance to profit from it before I'm dead.

I think that was my point...this isn't a warrantee, as there is a cap on the total payments the plan will pay. For example, if the plan costs $1950, the most the plan will pay is $1950, do if you tranny/engine goes...they pay the $1950 and you are left to foot the rest of the bill. (Also, the $1950 they pay is basically what you already paid at the purchse of the car)
Basically, the program I was offered was essentially pre paying for possible repairs on the car. Thanks but no thanks.

Was this "warranty" through Suburu or a third party?

Through a third party...Warrantech.....

 

[JDC1]

Does Subaru offer one directly? Sounds like the finance manager gets a nice commission from Warrantech. The Ford ESP that I bought did not have a limit and I am glad that I did have it.

 

[daveswoodhauler]

Subaru does offer one, but you have to contact the dealer. Howver, my dealer did not present any of the ones backed by Subaru.
Picking up the car next week, and my meeting with the finance guy should be interesting now knowing what I do