nextlevelcoupe

iTrader: (1)

how do you all feel about those aftermarket warranty companies,is it worth the policy? do they really cover any parts you need replaced?(with the exception of failure due to lack of maintenance). they claim if you have a part that needs to be changed like say the alternator,and it failed or was a defective part-they will replace it minus the $100 deductible,parts and labor included. they ask to have the repair facility call in the claim with the list of parts needed,labor rate ,etc and they will charge the amount to thier corporate card to cover the expenses-this includes 24hr roadside assistance and rental,etc....@ the full price of 1,600.00, (10% down...$120 month)this covers 2 years or 24,000 miles(whichever comes first).
does this sound worth it or are there hidden issues involved?
in the past i had purchased my car with an aftermarket warranty to go with it and never had a real problem. maybe because i didn't really use them too much. i guess it all depends on the adjuster releasing the funds..
anyone have any negative or positive experiences or insight on this subject matter??

legendary

moving to car chat for more visibility and responses (hope you do not mind)

agapepaga

I work in sales, and selling insurance on the product is all profit. It's a huge part of the business. I guess what it really boils down to is, do you think that $1600 worth of parts (+labor costs) are going to fail within the next two years? If not, I'd say just take care of your car and incur any costs yourself. Generally speaking, salesmen try to scare you into imagining the worst possible scenario when trying to sell you this coverage. More often than not though, the insurance is unnecessary. It's up to you though!

AaronE

I got a 3 year warrantee on my Formula Firebird when I bought it for an extra $900. They ended up replacing my entire tranny for $100 (including parts and labor). I thought it ended up as a good deal.

Right when the warrantee was about to expire, I tried to push through a few more minor things that needed repair (window regulator, power door locks, etc.) and they finally approved them, but deducted $100 for EACH ITEM. Also, be VERY careful to read exactly whats covered. I found that some very non-obvious things were excluded from mine as well as there being several loopholes that let them get out of stuff. Oh yeah, they also REALLY gave me a hard time about not going to THEIR service centers, but as there were none in my area (I moved) they finally gave in, but would only cover $50 an hour for labor.

All in all, it ended up saving me money. If you're buying an SC, make sure the alternator and PS pump are covered. Differential and tranny fluid leaks should be covered. Check intelexual for more common problems with the SC and make sure their covered. Add up all their costs and maybe divide by two (for good measure; they can't ALL go wrong, right?) and see if that comes up to more than $1600. Try and talk them down from that price. I was able to (that $900 was their cost, or at least they said it was, and it was a longer warr than yours, so maybe it was).

-Aaron

Ditto

Extended warranties are a big money maker these days.

If I was buying a Ford Taurus or a car that is not reliable, I'd definitely buy an extended warranty. No questions ask.
I would not buy one if it was a Toyota/lexus or a Honda/acura. But it all depends on the overall condition of the car and mileage.
I bought an extended warranty on my ES for $1900 and I never used it. (that was back then when I knew nothing about cars) As of now 6 years later after I bought it, I have yet to have a single problem.

mooretorque

Caveat emptor.

If pushed by the dealer, as has been pointed out, these are a big slush fund. And if offered by an aftermarket source, I'd be very pessimistic. At least one company has gone in the tank and left a large number of customers with useless warranties and no refunds. Edmunds Town Hall has had several rather heated forums regarding Warranty Gold, for example.

Pass.

nextlevelcoupe

iTrader: (1)

thanx for the enlightenment guys, i think i will pass on this offer.

mmarshall

This may sound like an obvious no-brainer, but the biggest question in buying an extended warranty is simply how long you intend to keep the car in the first place. I've seen people do this before...get a new car, buy an extended warranty, and then get tired of it and sell it or trade it even before the standard warranty is over, much less the extended one.
Or you can just buy a new Hyundai, Kia, or Mitsubishi and get the extended warranty on the house....from the factory. 10 year / 100,000 miles on the powertrain......5/60 on the rest of the car.

D2-AUTOSPORT

I can answer this one on NXTLVL's behalf, this car will be kept until one of 2 things happens:

1. The vehicle disentegrates into thin air (not a good chance of this one occuring)
2. Hell Freezes Over (this one may have more of a chance)

On a more serious note, when I purchased my car I bought a warranty from a company that you can only get it at the time of purchase. It was more as a piece of mind. A friend of mine has the same warranty on her 95 Altima and she has used it countless times, most of all the roadside assistance.

The name escapes me right now, (guess that shows how much I use it).

nextlevelcoupe

iTrader: (1)

ditto ... my man hit the nail on the head(thanx d)... i will be keeping the car,but there was no previous warranty on the car. i've owned this car for almost 6 years,bought an extended warranty at time of purchase(which was rarely used) and was offered the opportunity to get a warranty for 2 years as stated above...i just wanted to know if anyone had negative and positive input on this subject to better guide my decision.i know that my car is climbimg in mileage/age and i have replaced what seems like all the major component due to age, the warranty covers the car for the next two years, which may sound good initially but at the cost of $1600.00, i might not even spend that on the car in repairs due to a defective part...

lexusk8

I'm currently using my aftermarket extended warranty to fix the transmission problem on my ES. The dealership and I are trying to push for a new transmission, since this is the best solution under the circumstances, and as expected, the warranty company is lingering around this issue for a ridiculously long time (actually, only 8 days so far). The transmission warranty repair will happen; it's just a matter of time (from the warranty's perspective) If everything goes according as planned, this will be the first time I can honestly say that extended warranty is well worth it.

IMO, if you're purchasing a car (esp. used) in which you believe you will keep for more than 2-3 years and may require some tough maintenance down the road, look into obtaining an extended warranty.