warranty?
04-05-04, 10:14 AM
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warranty?
hey guys,
just realized that my mom's rx300 is at 51500 miles and therefore the warranty has expired. should i get the extended bumper to bumper warranty? they told me it would cost more since the original warranty has expired. anyone know how much we're talking about here? is it worth it?
thanks,
peter.
just realized that my mom's rx300 is at 51500 miles and therefore the warranty has expired. should i get the extended bumper to bumper warranty? they told me it would cost more since the original warranty has expired. anyone know how much we're talking about here? is it worth it?
thanks,
peter.
04-05-04, 01:57 PM
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I used to do software work for extended warranties on Electronics claims. And I'm confident that the same general rules hold true for auto warranties. Statistically -- they are a terrible deal. These warranties exist for two reasons:
1) To make money off of you
and 2) To make money off of you
Having said that, it feels good when something goes wrong, and you have the warranty to fall back on.
Some dealerships like Ourisman Fairfax Toyota had a no-lose deal when I bought a Toyota a while back. It came with an extended warranty guarantee. If your contract expires, and no claim was ever made....you will get a full refund. The catch? You have to write the manager directly within 30 days AFTER expiration, and drive the car to the dealership in person to validate the odometer. Does anybody remember 5, 6, or 7 years later to return in that timeframe? No way. But I did, and the secretary that took my phone call sounded stumped -- as if I was the first person on the planet to ever remember to return to the dealership to get my claim. But as promised, I had a check in the mail for the exact amount I had paid. (of course the same amount is worth less 6 years later...but I'm happy)
But it's a gamble. You are betting that you are the 1 in 10 person that will need major work in excess of the warranty fee (approx $1500-$2500). If your engine, or tranny dies...that should cover it. Otherwise, everything else on the car is probably less than the warranty cost.
IMHO - I think a warranty after-the-fact isn't a cost effective deal unless you are buying somebody else's car and you need it for peace of mind.
1) To make money off of you
and 2) To make money off of you
Having said that, it feels good when something goes wrong, and you have the warranty to fall back on.
Some dealerships like Ourisman Fairfax Toyota had a no-lose deal when I bought a Toyota a while back. It came with an extended warranty guarantee. If your contract expires, and no claim was ever made....you will get a full refund. The catch? You have to write the manager directly within 30 days AFTER expiration, and drive the car to the dealership in person to validate the odometer. Does anybody remember 5, 6, or 7 years later to return in that timeframe? No way. But I did, and the secretary that took my phone call sounded stumped -- as if I was the first person on the planet to ever remember to return to the dealership to get my claim. But as promised, I had a check in the mail for the exact amount I had paid. (of course the same amount is worth less 6 years later...but I'm happy)
But it's a gamble. You are betting that you are the 1 in 10 person that will need major work in excess of the warranty fee (approx $1500-$2500). If your engine, or tranny dies...that should cover it. Otherwise, everything else on the car is probably less than the warranty cost.
IMHO - I think a warranty after-the-fact isn't a cost effective deal unless you are buying somebody else's car and you need it for peace of mind.
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