Originally Posted By: otis24
The point of extended warranties is that automobiles can fail at any time with unknown costs that can range into the thousands. The people that get me are the ones that purcase a used automobile and expected that it will automatically be covered by the dealer because "we just bought it". How people have gotten the idea that their automobile "is supposed to be covered" is beyond me. Covereage is under the factory warranty or by extended warranty. I've seen "used" automobiles with less than 50k miles that needed major repairs. It happens. The customer always feels cheated when you explain that their vehicle does not have a warranty. No matter how much you try to explain it at the time of purchase, they think they will be o.k. because the vehicle is fairly new. But when a failure happens, they feel that you "ripped them off" because you won't write a check for the repairs. Warranties are always a bad deal, until you need one.
Couldn't have said it better!
Also, people seem to think the only expensive repair on vehicles is powertrain related. They think because they have a 100K Powertrain Warranty(PTW) they don't need more. I disagree with that 100%. There are so many other areas that can run into the thousands to repair it isn't funny. Especially on the electronics side which are far more likely to fail than powertrain components. Other things such as internal dash stuff, ABS system parts, suspension stuff, etc... can be crazy expensive to fix too.
If I buy a new vehicle and am unsure if I will keep it beyond the mfg's bumper to bumper warranty then I do not bother with Extended Warranty(EW) coverage. However, if I plan to keep it beyond that period I extend the warranty out to the time I expect to get rid of the vehicle, maybe to match the PTW, or it is paid off at the minimum. Just depends on what I feel is smart at the time.
If you plan to add an EW it is generallly best to do it at the time of purchase as it will be cheapest then( unless the dealer is a real rip off joint ). The longer you wait the more expensive it will be to add it. If I don't buy an EW at purchase I always try and do so before 12/12K as after that it goes up rapidly.
I added an EW to my Jeep Patriot just a few months ago. I added Chrysler's MaxCare extended warranty plan that covers almost everything out to 5/100K( $100 deductible )to augment the 5/100K PTW it came with. I didn't do it at purchase because I wasn't sure how I would feel long term about the vehicle after downsizing from years of full sized trucks to a small'ish SUV. After driving it for a bit I have decided I can live with it for a while so I got the EW to cover me a year past pay off. No way I would keep a vehicle longer than 5 years or 100,000 miles so I am covered while owning it for like 95%+ of any failures. Certainly the major ones anyway.
I paid $1300( dealer discounted it - Chrysler wanted $2500 ). Yes it is a lot of money but no it is not wasted money even if not used. Vehicle warranty coverage is no more of a waste than auto or home insurance. You almost never need those but when you do you are glad you have it. A common issue with the Patriot's is front suspension issues( ball joints/control arm assembly faiilures, tie rod failures, etc... ). Generally runs $500-$700 or so to repair and it is pretty much a sure thing at some point on this vehicle it will be needed. One failure and I am already 1/2 way to my cost on the EW as another member pointed out. The rest is my safety net against other failures. Pretty much 2 issues and I am even or ahead. If I sell the vehicle earlly I can at least get a partial refund.
IMO EW's on modern vehicles that are so expensive to repair is a no brainer. I would rather spend $1500 and not need to use it than have a repair that costs $5000 and not have coverage.
