Bought An Extended Warranty-- Am I Nuts?

[donz26]

I got the same Nissan extended warranty when I bought my Frontier in 2001. It took 9 years for the truck to need any repairs. (driveshaft carrier bearing, brake caliper).

I have passed on the extended warranty for new vehicles since then (all Nissans, incidentally).

I wish I'd had an extended warranty on old '94 Grand Am. Engine failure at 7 1/2 yrs and 107k miles.

 

[Papa Bear]

If you asked this question BEFORE buying the warranty-- No, you are not nuts.

If you go and buy the warranty AND THEN ask-- yes, you are nuts.

 

[tom slick]

I bought an extended warranty and used it. The cost of the repairs would have been about the cost of the warranty so it was a wash.

 

[MrCritical]

The Nissan warranty is good at any Nissan dealer.

Most aftermarket policies aren't worth the paper they're written on.

 

[Whimsey]

Usually I'm not for "extended warranties". But my wife bought a new 2005 Eddie Bauer Explorer in July 2005. It had the 4.6 V-8, pretty bullet proof but I had heard about problems with the aluminum rear diff. I was also leary of all the electronics in that vehicle. Bottom line we got Ford's Premium ESP plan when we bought the Explorer. 5 years/75,000 miles, $100 deductible. It cost just over $900. She had ignition wire/spark plug problems, not covered. Rusty brake components, not worn mind you, not covered, a faulty GEM module, not covered because it was intermittent and "could not reproduce" non unlock from the FOB.

They finally had to pay for the loud whining rear diff under the ESP. It killed them. They said they all do it, [censored]! It's a factory problem and I paid extra to insure it's fixed after the factory warranty expired and I want it fixed!!! They had to tear the rear diff a part 3 times to get the whine less than what it was originally. It still whines somewhat but less than originally.

Since she paid around $900 for the Ford extended warranty she was a head since the rear diff work would have cost her $1,800++++ out of pocket.

Ford has it down to a science as to what's covered in their ESP's. It's not much. And as time goes on they will exclude more repairs as "wear".

Whimsey

 

[SevenBizzos]

Bought them on two Fords and more than made up for the cost. I think I paid around $1200-$1300 for them and used more in repairs than their value on both of them. For those kind of prices, I'd buy them again.

 

[bdcardinal]

I got one on my Volvo when i bout it used. It paid for itself when i got a new Angle gear with collar spline covered for the $100 deductible.

 

[The Critic]

Wow, definitely more responses...negative responses

than I had expected.

I guess over the last six years on this forum, I have evolved from being an avid DIY-er to someone who is no longer as thrilled about car repair. Perhaps later in life I will enjoy repair cars again, but for now, my interest in repair cars has definitely dropped a bit.

I feel that my vehicle ownership and/or maintenance views are also a bit different from most people on this forum. It appears that most members here are after the lowest possible transportation costs-- which means choosing a vehicle with a good reliability record (at the expense of fun, and for some, image), performing as much auto repair at home as possible, and finding the cheapest independent mechanics (even if they do not specialize in your vehicle) for all other repairs. For our family, this car was purchased for my mom and she wanted a car with good styling, good power, decent handling and a nicer interior. Of course, such specific requirements resulted in some sacrifices-- which in this case, resulted in purchasing a car that did not have the strongest reliability record.

Therefore, for those reasons and for the ones I mentioned in the original post, I purchased the extended warranty. Our family has never had a vehicle that did not have multiple issues before 100k-- just look at the Saturn for instance. Of course, I may be wrong and the car turns out to be bulletproof and I waste $1145. However, bretfraz does bring up a good point about a warranty being good for an individual who cannot afford a sudden high cost repair. My parents will be retiring in the next few years, and a sudden $700 repair is likely to be quite painful when they no longer have the same income as they do now; $50 is easier to swallow.

Also, Bill mentioned that I should be able to find a good independent mechanic who charges lower rates. From my experience, mechanics who charge rates in the 40-75/hr range are: 1) Complete hacks, 2) The newest vehicle they worked on was 10 years old, 3) Do not speak English 4) Are incredibly hard-headed and have no interest in performing the repair the right way. There are a few so-called Nissan specialists, but they charge nearly as much as the dealer and their Nissan-specific training is about 10 years outdated, so chances are, they are not familiar with your particular car. So for any quality repair or diagnostic work, the dealer is the only reliable option.

Anyway, I appreciate all of the comments. You guys really did make me rethink what I purchased, but hopefully it was the right choice for the circumstances.

 

[bigmike]

I agree with everything you said, actually. Taking your location into consideration, I think that kind of dollar range for a mechanic isn't possible either.

I think this thread could be summarized:

1. People that have (or may not have) an extended warranty and didn't use or need it, think it's a waste of money.
2. People bought one and had alot of hassle think it's a waste of money.
3. People bought one and used it think it broke even or saved them alot of money.

From the list of everything the warranty company had to pay out for my truck, obviously I am glad I purchased one. That list might still be on-going. My warranty doesn't run out until July 2012.

Personally, I think the warranty company tends to get the shaft in these kinds of reviews or questions. I've found, in my experiences, it is the dealer that makes or breaks you. They are the middle man and need to advocate for your repair to be paid for by the warranty company. Finding the right service guy that is persuasive and has a good relationship with the warranty company can make the difference!

 

[kb01]

Originally Posted By: The Critic

Also, Bill mentioned that I should be able to find a good independent mechanic who charges lower rates. From my experience, mechanics who charge rates in the 40-75/hr range are: 1) Complete hacks, 2) The newest vehicle they worked on was 10 years old, 3) Do not speak English 4) Are incredibly hard-headed and have no interest in performing the repair the right way.


It can be frustrating sometimes but seeing stuff like this makes me glad that I live in a state with a low cost of living. If I were to open up the yellow pages and call 10 random mechanics, I'd be willing to bet that all of them are in the $40 - $75 range.

 

[MrCritical]

I'm in one of the cheaper places to live, and guys who work from their homes here get $65 hr, and their latest training was how to rebuild carburetors and distributors.

I don't know about Nissan's service contract coverage. If I was buying a vehicle like an Altima with a CVT, you bet I'd buy the contract too. GM's policies wear items include maintenance items, which aren't covered, but pretty much anything mechanical or electronic is. That is, unless you get the most basic coverage.

 

[bdcardinal]

Originally Posted By: MrCritical
I'm in one of the cheaper places to live, and guys who work from their homes here get $65 hr, and their latest training was how to rebuild carburetors and distributors.


so true. when i was taking auto classes in college we spent 2 months of the semester long Engine Performance/Tune Up class learning GM feedback carbs. guess when the teacher retired from turning wrenches. i talked to him at an ASE test and was telling him some of the stuff we can do with an IDS, command modules, run on the fly power balance, relative compression tests, and his head was spinning.

 

[bowlofturtle]

i guess this would be more of add on question, you guys state statistically your losing money, how much does a extended warranty have to cost for you to statistically break even?

On a car if you offer me $500 for a warranty 3years/36k from today, i will take it and make you eat it with repairs either the car really needs or for you to make me leave.

I know the OP came out FAIR, when i bought my 3 year old infiniti g35, they offered me extended that would take it 10 years/100k, the car had 32k. But they wanted $3100 for it and a $100 deduct, they told me if used it at THAT dealership they will wave the deduct.

So my thought process was i still have power train which is 5/60k to cover major trans issues. I'm fairly handy, a DIY guy and plus i did plan on modding the car a little. $3100 would of been like $500 a year. That would mean a car part would have to fail EVERY year i own the car for me to get my money worth. I thought to myself the more expensive parts are like $300ish, as long as my navi system controls dont break. Then is saw control switches are not included, also rattles, squeeks and road noise aren't covered. I thought wheel bearings would be road noise and somewhat wear and tear type of item. Pretty much i can do all the repairs on this car and save $3100. 2 years and 20k have past now, NOTHING is wrong with the car.

But yes i do agree that warranties are good for some people but most likely not if your a member on here.

 

[MrCritical]

A PCM for your G35 is over a grand easily. The nav is probably $2500 or more for the part alone. A tranny is over $4000 parts only. A major a/c repair $2000 easily. I doubt you can buy the smallest ABS part for less than $300.

A contract that doesn't cover all switches, bearings, assemblies, gaskets, ect. is useless. None of them cover interior or exterior trim, squeaks, rattles, water leaks (not coolant) or wind noises. They're mechanical breakdown policies.

I like to do my own minor repairs. Sounds like you're a step ahead of me turning the wrenches, which is great. But wait until you're car has a value of say $7000, and a $10,000 engine throws a rod through the block. I've seen it happen, and it's financially catastrophic to many people.

 

[The Critic]

Just realized this...

My Nissan ext warranty includes roadside assistance. Up to $100 per incident for towing, lockout, flat tire and jump start at $0 deductible.

Right now, AAA costs us 89/year. 89/yr * 8 is $712.

The Nissan ext warranty covers roadside assistance for the full duration of the 8/120k warranty. I paid $1145 for the warranty.

$1145-$712 is $433!

So if you look at it this way, the extended warranty is only costing me $433. At that price, not bad.

 

[Bill in Utah]

I can count how many times I've had to use a tow truck on one hand... With most of the fingers cut off in over 30 years. (once with the Jetta when the clutch cable broke..) Did have to tow the Subaru when the semi hit it but normal insurance covers that.

Lock out? Never...

Flat tire? A few times but they are easy to do since its in a parking lot or home when they are flat.

Jump start? Never and with today's computers, pass on your average tow truck to do it.. Seen major issues doing it..

Don't run out of gas...

I'll also bet that your parents keep the AAA. Plus how come so much? Here its $54.

How often do you use AAA?

Take care, bill

 

[CharBaby]

Although Critic's warranty sounds pretty good, I have never myself been offered an extended warranty at that price so, of course I passed on the warranty.

I do my own maintenacne, never run out of gas, replace battery's sooner than later but, I have had them die on me, no biggy! I do just about all of my own repairs and have never had those large items go...Engines/trannys, computers etc. Lots of little stuff like sensors, rusty lines, suspension parts. Most thing that might not be covered anyway unless you really read the contract.

For those who don't work on their own vehicles and keep the vehicle for at least the duration of the extended warranty and read their contract...By all means, get the contract!

 

[CharBaby]

Also, included in any car insurance policy that I have had in the last 20+ years, there was Road Side Assistance. Yeah, it only covers towing for a certain amount of miles then there is an extra cost. I have had the car towed to a garage(winter time) but most of the time I had it towed to my house where I could repair it. I used it several times(4-5 x) in twenty + years. Good to have! Mainly with this one car that was causing me to go gray, but I have used it when AAA couldn't show up so I dumped AAA. The insurance RSA was better! The car(s) I'm refering to wouldn't have been under any warranty(factory or extended), too old, in their teens!

I also know that there are extended warranty's for older vehicles that we have all seen on TV. "Less than 15 years old w/less than 250,000 miles". I would rather give away my car to someone in need before spending money on a warranty for a 15 year old car. Now, these people are just after your money, IMHO!

 

[Bill in Utah]

Same here as far as the road side assistance. Its in my insurance for $4 per vehicle per 6 month period. So $8 a year and never used it. (The Jetta was in my sister in law's hands when the cable broke)

Since we were going on a trip across the US this summer, I signed up for AAA mostly for the discounts on the Hotels (I saved $95 on 3 days in Wash DC to pay the $54 fee alone) but doubt I'll renew.

Hopefully for Critic his vehicle needs work to justify the warranty? (See, I'd rather not need something) But his parents do depend on him to take care of things and he may not be around to make sure things are correct so maybe the for them, its worth the possible problems...

 

[ekpolk]

I bought both of our hybrids (Prius and Camry) Toyota Certified Used. These cars (all TCU) come with a very robust 7/100 wty. For like a hundred bucks or so (I forget the exact amount), you can upgrade that to full bumper-to-bumper coverage for the duration.

I'm generally ambivalent on extended wtys. I'm sure that the car companies, and 3rd party sellers, price them carefully based upon their actuarial data (and not to the advantage of customers...). That said, given the still sort of new technology on the hybrids, I'm happy to have a wty that will fix all for the price I paid. Yes, I'm aware that the full cost was probably camoflaged in the price of the car.

If you buy one and have a covered disaster, you'll love 'em forever. If you don't, you'll probably forget what you paid. . .