Bought An Extended Warranty-- Am I Nuts?

[The Critic]

I never thought I would do this, but I purchased a Genuine Nissan extended warranty for the Altima in our family's fleet.

I realized that I will not always be around to fix car problems for my parents, therefore, it is a good idea for the Altima to be under warranty for most of their ownership. My parents are not the type of owners to quickly address problems as they arise, which often results in more serious issues later on. In addition, my dad no longer works on cars, so any DIY repair is out of the question. Hopefully, this warranty will allow them to keep their cars in better condition, resulting in a longer service life.

Surprisingly, the price of the policy was low compared to manufacturer-backed policies for Toyotas, VWs, Hondas and GMs. I paid $1145 for an 8 year/120,000 mile policy with a $50 deductible from an online seller of Nissan warranties. MSRP was $2460 and their asking price was $1230, but I asked the seller if they had any coupons available and I was given a coupon for an additional $85 off-- which brought the total down to $1145. The local dealer wanted $2k and was unwilling to pricematch. It is amazing how profitable these policies can potentially be, as I purchased mine for $1315 (or about 53.5%) OFF MSRP! I feel sorry for owners who did not do any comparison shopping.

The policy I purchased is called a Nissan Security Plus Gold Preferred Policy, which is the most comprehensive policy available from Nissan. Unlike most policies, it also covers belts and hoses-- so if a hose suddenly fails and takes out your engine, you're covered. This is unheard for most extended warranties, as belts and hoses are considered wear and tear items. Strangely, the component coverage chart says strut assemblies are covered, but not shock absorbers.

http://www.vadennissanwarranty.com/cover...art-by-area.pdf

http://www.nissanextendedwarranty.com/docs/Gold-Preferred-New-Vehicle-Service-Agreement.pdf

Statistically, the odds are against me and the cost of repairs will probably not exceed the policy cost. However, Nissans definitely do not have the best reliability history, especially the previous generation of Altimas. Considering the high dealer labor rates ($115/hr) and the labor intensiveness of performing repairs on a Altima V6, it is also possible that just one repair will allow the warranty to pay for itself. So, we'll see, maybe I made a mistake. Or not.

So for discussion, have any of you purchased an extended warranty recently? How much did you pay for your policy? Did you shop online for your policy?

 

[Oregoonian]

Answer to original question: YES

 

[bretfraz]

I sell them so I'm a bit biased, but I really do think they are beneficial for some people, and on some cars.

Most any European make should have one. People who live paycheck to paycheck should have one. People who a several thousand dollar repair would be in financial trouble should have one.

You got a great deal on the warranty, esp for the length of coverage. As long as maintenance is kept up and records are provable, you should have little trouble submiting a claim in the future.

 

[HTSS_TR]

No, I did not buy extended warranty for any of my 3 cars. MB dealer wants $4500 to cover the E430 to 10 years/100k miles, which is 6 years/52k miles beyond the factory warranty. The E430 did not have any major problem from 48k miles (factory warranty) to 100k miles. The only money I spent on E430 during that period was: tires, brake pads and rotors, oil and filters, brake fluid, trans fluid, coolant ... all the regular maintenance.

My LS400 did not have any major problems in the first 100k miles either, My S2000 is similar.

You already know, statistically the odds are against you and the cost of repairs, if any, will probably not exceed the policy cost. But if you happen to own a Nissan that brake down more often than average, then extended warranty is a good choice. Remember, the seller of EW makes a profit even at $1200, otherwise they don't sell EW.

 

[demarpaint]

Lots of profit in extended warranties, dealers and finance managers love them. I stay away from having sold cars, but then again I do most all of my work anyway. If you see value in it, got what you feel is a good deal on it, in the end that is all that matters anyway! Not what someone else thinks.

 

[Corvette Owner]

I purchased one for my (then 4 year old Corvette) with 46,000 miles on it (for 3 yrs another 36,000 miles, think it was $1700) and never used it. It was piece of mind insurance, knowing that Corvette maintenance could be expensive. Now at 128,000 miles without any major problems!

If you can afford to "self warrenty", it is cheapest (statistically).

 

[Spector]

Sounds like, from your description of it, belts and hoses are onlycovered if there is a catastrophic failure, not normal wear and tear? Only question that I would have is this, is it exactly the same as one sold by the manufacturer and will Nissan honor it? If yes and gives you comfort than all is well.

 

[crinkles]

they are not worth the paper they are written on. also usually forced to service at the same dealer for the life of the car. what if they move?

 

[Pop_Rivit]

Complete waste of money.

 

[BigCahuna]

I guess its all about piece of mind. When my daughter was living in Texas, she had an old clunker that would die almost every time she used it.Then when it was time to replace the clunker, she was looking at a used Honda from a dealer. They offered the extended warranty, and didn't want to spend more $$$ on it. I said being I'm 1800 miles away and can't help her when her car breaks down, I told her to get it. She did and wasn't thrilled about spending the cash for it until she used it several times. The biggest thing she had fixed was the transmission that died at just past 99k miles. The warranty more then paid for itself just with that repair.With a new car I would pass on it, but with a used one sooner or later something will quit on ya.,,

 

[Bluestream]

I had a 1990 Mercury Topaz that was bought used and the PO had purchased extended warranty. That warranty was used many times by me, and I am glad the PO spent the $800 to get it. Car was always in to have something fixed. Axel seals would be replaced almost every time it was in.

 

[NHHEMI]

Originally Posted By: The Critic
I never thought I would do this, but I purchased a Genuine Nissan extended warranty for the Altima in our family's fleet.

I realized that I will not always be around to fix car problems for my parents, therefore, it is a good idea for the Altima to be under warranty for most of their ownership. My parents are not the type of owners to quickly address problems as they arise, which often results in more serious issues later on. In addition, my dad no longer works on cars, so any DIY repair is out of the question. Hopefully, this warranty will allow them to keep their cars in better condition, resulting in a longer service life.

Surprisingly, the price of the policy was low compared to manufacturer-backed policies for Toyotas, VWs, Hondas and GMs. I paid $1145 for an 8 year/120,000 mile policy with a $50 deductible from an online seller of Nissan warranties. MSRP was $2460 and their asking price was $1230, but I asked the seller if they had any coupons available and I was given a coupon for an additional $85 off-- which brought the total down to $1145. The local dealer wanted $2k and was unwilling to pricematch. It is amazing how profitable these policies can potentially be, as I purchased mine for $1315 (or about 53.5%) OFF MSRP! I feel sorry for owners who did not do any comparison shopping.

The policy I purchased is called a Nissan Security Plus Gold Preferred Policy, which is the most comprehensive policy available from Nissan. Unlike most policies, it also covers belts and hoses-- so if a hose suddenly fails and takes out your engine, you're covered. This is unheard for most extended warranties, as belts and hoses are considered wear and tear items. Strangely, the component coverage chart says strut assemblies are covered, but not shock absorbers.

http://www.vadennissanwarranty.com/cover...art-by-area.pdf

http://www.nissanextendedwarranty.com/docs/Gold-Preferred-New-Vehicle-Service-Agreement.pdf

Statistically, the odds are against me and the cost of repairs will probably not exceed the policy cost. However, Nissans definitely do not have the best reliability history, especially the previous generation of Altimas. Considering the high dealer labor rates ($115/hr) and the labor intensiveness of performing repairs on a Altima V6, it is also possible that just one repair will allow the warranty to pay for itself. So, we'll see, maybe I made a mistake. Or not.

So for discussion, have any of you purchased an extended warranty recently? How much did you pay for your policy? Did you shop online for your policy?


What you paid for a genuine Nissan warranty of that length is a very good deal. One major issue and you will be very glad you have it. You may not ever need it and if so then you lose out on the cash true. However, with the cost of auto repairs so darned expensive these days it is definitely worth it IMO.

I personally have no interest whatsoever in aftermarket warranty's. For every person who has a good experience you get 50 that were screwed over. I would only purchase a mfg's extended warranty. I used to buy one with every new vehicle but I stopped because I seldom keep a vehicle past the standard warranty period. Just didn't make sense to pay for warranty I would never use( I always got a little back on a pro rated basis but it was a waste ). I will consider purchasing an EW for my 08 Ram if it looks like I will keep it past 3/36. It does have the lifetime powertrain warranty however so that takes care of the big stuff. However, an EW covering electronics and emmissions may be worth my $$$ if I can get a good deal like you did.

I have never purchased online. Always got it from the dealer at time of sale. If I get one for the truck I will give the selling dealer first shot but I will have some prices on hand to compare with.

My Brother in law just had to use his extended warranty on his truck twice in about a 3 week span. They paid like $2500 for it when they got the truck and it has saved them some $$$. He puts a ton of miles on( 25-30K+ p/year )and quickly runs out of factory coverage so it is a good idea for them to get the EW. His transmission went at a cost of $3900 to replace with a rebuilt. They only had to pay their $100 deductable.

So right there they saved $1300( $3900 - $2500 - $100 ). The other issue was some part of the emmissions system. I don't know what was replaced but the bill totaled just under $450. Again, they only had to pay their $100 deductible. So that is another $350 saved. So it has cost them $2700 for those 2 repairs. If they hadn't purchased the EW it would have been $4350. Big difference.

I say you did good.

 

[tmorris1]

Quote:
Statistically, the odds are against me and the cost of repairs will probably not exceed the policy cost. However, Nissans definitely do not have the best reliability history, especially the previous generation of Altimas. Considering the high dealer labor rates ($115/hr) and the labor intensiveness of performing repairs on a Altima V6, it is also possible that just one repair will allow the warranty to pay for itself. So, we'll see, maybe I made a mistake. Or not.

Why did you buy the Nissan if you new these things about it? Sounds like you bought a car with known problems and bought the warranty to justify the car.

 

[eljefino]

I'm curious if the warranty pays well enough for the dealer to make money fixing marginal stuff. The above-mentioned axle seals sound like a great example of something that would be hard to convince a dealer that they actually need fixing.

Critic seems like the sort to notice odd noises or fluid stains, so he'll be on Nissan like white-on-rice to keep his parents' car perfect. However, what if he visits on Christmas and says, yeah, you should get that (minor thing) looked at, but his dad says "sure", then doesn't go in... that's money left on the table. Just like my stretching the 6 months between (free after insurance) dentist visits.

The weasely stuff I expect is for them to exclude computer issues, so a transmission acting up was doing it because the computer commanded it to, and therefore is not covered. It's like a house having its roof blow off in a hurricane, then getting soaking wet, then the insurance doesn't pay for "flood damage".

 

[doitmyself]

I am cynical when it comes to thinking that dealers/mfg. have the best interest of the car owner in mind.

We successfully returned a Neon through our states Lemon Law AFTER a long struggle, and hiring a lawyer.

When push comes to shove, you MUST have all the i's dotted and T's crossed. I would make sure you understand and heed all the fine print, especially this one about maintenance and records:

"FAILURE TO PROVIDE SUCH EVIDENCE, OR FAILURE TO PROPERLY MAINTAIN THE VEHICLE IN ACCORDANCE WITH YOUR OWNER’S MANUAL, MAY DISQUALIFY YOU FROM COVERAGE."

I think your attitude about the purchase and how it may or may not pan out is very enlightened. It annoys me that your maturity level is equal to many here twice your age

 

[Bill in Utah]

I try to purchase vehicles that don't require major repairs (back to the simpler/less optioned vehicles with less to go wrong) and drive them to 200k or beyond before I sell them to family/friends/co-workers and go to another same type of vehicle.

Other than 1 vehicle that burnt to the ground (they finally covered it) and one that required 2 sets of head gaskets within its first 108k miles (first set was (again) finally covered, 2nd was not) I've never had any "major" (more than a couple hundred $$) is anything I've owned in the past 30 plus years.

So when I buy new vehicles (about every 3 years) I pass on the warranty. If what I'm buying requires one, I NOT going to buy it. IF down the road something happens, I'll take that chance and still come out way ahead.

Also I would NOT go to any place that has labor @ $115 an hour. Many other places all over the USA in every city that have competent mechanics for less that half that rate and even with that they look at a job and not book you to death.

So bottom line for ME, PASS on the warranty.

Bill

 

[bigmike]

I feel sorry for my extended warranty company.

So far on the list for my Silverado they paid out:

1. A GM reman. A/T.
2. The A/C control unit.
3. Driver's side lower ball joint.
4. EVAP canister and retro fit. Required dropping the gas tank.
5. Rental cars for various jobs above.

If I had to estimate, they're in the hole well over 3 grand.

 

[Vikas]

Critic,

Have you counted how many people here are routinely driving cars with 150K+ miles in this forum? I have three in my fleet.

Your warranty has deductible and probably has lots of weasel words in it. If you buy a vehicle which statistically will NOT break down, you are way better off banking that money in your account for rainy day.

Looking at the "list price" of the warranty is fools way. This is like buying mattress or furniture or hotel room. They are always on "sale". Do not fall for 50% off.

If it were zero deductible and extension of bumper to bumper warranty with no exclusion, the $1200 *might* be just worth it. However, if you think Altimas are known to blow their engine/transmission/ABS etc at 80K miles and want to be protected, you don't buy the extended warranty. You just don't buy that model!

SO, yes to your original answer.

- Vikas

 

[Audi Junkie]

My 20-something male cousin had one on a Cherokee (iirc). He did very well with the policy since he beat the heck out of it.

My wife and I would joke when we saw a TV ad for financial services, insurance or whatever that had a disclaimer "not available in the following states...", we'd say "also not available to Anthony G."

 

[mechtech2]

A waste of money.
Remember they are in business to make money.. from you!!