topic Re: EXTENDED WARRANTY ON USED CARS? in Auto Loans

EXTENDED WARRANTY ON USED CARS?

Booner72 — Mon, 31 Oct 2011 18:23:40 GMT

What is everyone's advice on these?

Rip off? Something we need?

thanks!

Re: EXTENDED WARRANTY ON USED CARS?

MarineVietVet — Mon, 31 Oct 2011 19:59:33 GMT

I've never had an extended warranty on a used or new car. I have an emergency fund for auto repairs. I see the EW's as a waste of good money but that's just me. Others might have a different opinion.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: EXTENDED WARRANTY ON USED CARS?

Noctilum — Mon, 31 Oct 2011 20:42:15 GMT

I think they are a waste, however, for peace of mind, you may want to consider 3rd party warranty services that you can cancel before a certain milage and not have to pay a dime unless you make a claim.

Re: EXTENDED WARRANTY ON USED CARS?

Booner72 — Mon, 31 Oct 2011 20:55:34 GMT

@MarineVietVet wrote:
I've never had an extended warranty on a used or new car. I have an emergency fund for auto repairs. I see the EW's as a waste of good money but that's just me. Others might have a different opinion.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

I always thought this, too. But I'm scared not to.

Re: EXTENDED WARRANTY ON USED CARS?

pizzadude — Mon, 31 Oct 2011 22:07:25 GMT

Many salespeople will push you to get the extended warranty, they are compensated for selling them as an add-on.

If you are interested in an extended warranty, shop around because you may be able to get a better deal elsewhere.

If you are using financing, do the math to see what the true warranty cost will be when financed over the life of your loan.

For example, a $1,500 warranty financed over 5 years at 7% will cost you almost $1,800.

Read the fine print for exclusions, deductibles, transferability, authorized service providers, etc.....

Re: EXTENDED WARRANTY ON USED CARS?

Anonymous — Tue, 01 Nov 2011 17:13:35 GMT

As pizzadude said make sure you understand the details of what is covered and not, but after that you need to look at it as an insurance policy of sorts. I had one that paid for several thousand dollars of repairs (6K+) including rental car during the repair and it was well worth it. The extended warranty on my current vehicle just ended with no claim during the four years. But the peace of mind was worth the cost to me. If it has a major problem at this time it's on to the next vehicle since this one is paid off.

Most financial gurus will tell you that extended warranties are a losing proposition and as MVV said you should just have an emergency fund to pay repairs. But I'm not that disciplined and I'll pay for the insurance and peace of mind. BTW both of mine were purchased through the selling dealer at the time of financing. I am aware you can get cheaper after market deals. I just didn't want to spend a lot of time comparison shopping.

Re: EXTENDED WARRANTY ON USED CARS?

Booner72 — Wed, 02 Nov 2011 01:03:56 GMT

Thanks Holding - I have decided the peace of mind is worth it to me. The bummer is I have to do all the maintenance as recommended by Subaru at every mile they recommend (Overkill I think) and keep receipts of the repairs. I called today and DH can do the maintenance himself but we just need to make sure to keep the receipts.

I've learned from this forum that receipt-keeping is something I definitely need to do more of!

Thanks for your reply.

Re: EXTENDED WARRANTY ON USED CARS?

babbles — Tue, 08 Nov 2011 14:21:50 GMT

My wife bought a car from Nissan in S. Cali in August and they used a $4200 service and maintenance warranty to get the deal done because she was far upside down on her ford escape. We knew what they were doing and went with the deal and knew if we objected the deal wouldn't get done. Less than 30 days later we went back to the dealer and attempted to cancel the warranty. The finance mgr or whoever did her paperwork that night said this deal was done on "good faith" that we wouldn't cancel and to get the deal done we had to do it this way(wouldn't honor the request to cancel). Had 60 days to cancel the contracts and on about the 53rd day (Oct 3rd or so), I wrote one letter to the local dealership and Nissan North America who sponsors the warranty stating our desire to cancel. Sunday we were looking at her online statement from Nissan and there was a $4200 credit to her principal balance. The actual letter from Nissan in Tn came yesterday.

Bottom line, no I would never get an extended warranty. In our situation, from what I understand, something about the commission is charged back (they loose the commission on that sale).

That was risky business!

Re: EXTENDED WARRANTY ON USED CARS?

pizzadude — Tue, 08 Nov 2011 22:46:36 GMT

----> $4200 service and maintenance warranty

Wow ~ I don't know what type of car you purchased, but that seems excessive. Good call in deciding to jettison the warranty.

I'm sure there was a significant commision for selling this warranty, so very likely the sales rep will lose out on it.