Extended Warranty on Certified Pre-owned Worth it?

[actionstan]

Hello All,

I recently have purchased a Certified pre-owned 13' Kia forte, and was talked into the Extended Warranty at the dealership. the cost of the car was roughly 14,5k and the warranty 2k extra.

Being that my car is a Certified Pre-owned, It does already come with the 100,000mi/10 year warranty, but nothing else is covered beyond the power train. The warranty I paid should Carry most other things out to 100,000mi/10 years as well. I put a link to the website below that will show what I purchased covers(I got the gold plus)

I was just curious what you guys thought about these types of warranties and if anyone has any first hand experience with them. The way I looked at it, during the pay back term its only a extra 30 dollars a month, however I could just put that 30 into a savings account in-case anything bad did go wrong. Not to mention that there are deductibles and also the fact that they may try to deny any possible claim. I know in the long run its a gamble either way, I guess I am more concerned if they typically stand by their warranties when something actually does go bad. The dealership told me I could get my money back at anytime(with a pro-ration of course)

Let me know your thoughts, good or bad, thanks!


Link to website:
http://kia-cpo.com/Information/JMAInformation.aspx?Page=KiaProtectionPlan.asp

 

[cmorr]

At 16.5 your in the lower price range of a new 2014

Everything is a negotiation

 

[actionstan]

Originally Posted By: cmorr
At 16.5 your in the lower price range of a new 2014

Everything is a negotiation



I should mention that I got a [censored] of a deal on the car IMO 14.5k for a 13' forte EX with only 10k on the clock. the 16.5k you refer to may be the lower model, possibly without a A/T

 

[oilmutt]

In my opinion extended warranty are rip off. the dealer sold you a warrenty for 2k.He made a 1k profit. Was the warranty from Kia? Go get your money back ,send it to me and i will split the profit with you in 10 years!

 

[actionstan]

Originally Posted By: oilmutt
In my opinion extended warranty are rip off. the dealer sold you a warrenty for 2k.He made a 1k profit. Was the warranty from Kia? Go get your money back ,send it to me and i will split the profit with you in 10 years!


Haha, acctually they lied to me and told me it was through Kia, after i did my research its from "JM & A" warranties. I cant find a TON of info on them, they have an good raiting with the BBB, then again Ive heard the BBB cant be trusted either.

 

[oilmutt]

Kiss your 2k good by! unless the warranty is form the mfg,in my opinion they are worthless.Most of these co. go out of business with in 5 years.I have some knowledge of this business.the dealer keeps 1k .the marketing co keeps $500. This leaves $500 to pay claims,which is not enough.AT the end 3 to 5 years the co goes out of business and start over with a different name.Do not buy a warranty unless it is underwritten by the same car co that you are purchasing. Get a warranty sponsored by Kia! Again go get your money back and send to me.I will take the risk and at the end of 10 years we will both be richer.

 

[oilmutt]

G0 to edmunds and google search for third party car warranty claims problems.After 3 days of readings you will under stand you have been ripped off.My offer is good until 10/20/13.In most states you have 3 days to get your fill money back.

 

[demarpaint]

Having sold cars, and at one time Kia, the extended warranty is a rip off. But then again it's your purchase and if you feel comfortable with it, that's really all that matters. I'd be more concerned why someone opted out of a 2013, or if it was a demo model. Just drive it in good health, and enjoy.

 

[WishIhadatruck]

I would never buy an extended warranty for $2k when you are highly unlikely to spend $2k in repairs over the next 90k miles on non power train issues. Even if you didn't already have the power train warranty from Kia I can't believe you should be spending that kind of money. You actually would need to have well over $2k in repairs since you'll still be paying deductibles. Just the hassle of making sure they cover what they are suppose to cover is not worth the headache. Warranties, even OEM warranties give me a headache and get my blood pressure up. I'm usually much happier when my cars are older and out of warranty. Put the money in a savings account and you'll likely have lots left over when you hit 100,000 miles.

 

[Roob]

Sure they are worth it, have you seen the cost of OEM replacement parts on new cars?
It's insurance, you hate paying for it but are thankful when the inevitable happens.
As an example; when a family member bought a pre owned Lexus he wasn't sure about the extended factory warranty.
A little research on costs of OEM parts changed that, drivers side heated side view mirror, $850 without install.
I use that as an example as his actually failed a year ago and he didn't have to pay a cent to repair it due to his zero deductible warranty. It was $1021 in total.
The only issue a lot of people get hung up on is their responsibilities to upkeep the warranty, such as regular oil changes. I don't understand that at all but humans are an effed up bunch....

 

[Brybo86]

yea I would go ask for your money back, also look up any tsb's and have them fixed

 

[Pop_Rivit]

Extended warranties are a waste of money.

You'll be far better off putting that $2,000 into an account and letting it earn a little interest over the life of the car. Then you have it available should you ever need it, and if you don't need for the current vehicle you'll still have it, still earning interest for your next vehicle.

Unfortunately many people wind up financing not only the cost of the car, but also the cost of the warranty. Not only will they get roped into monthly payments for years, but they'll also be paying interest on the car and the warranty, making both much more expensive.

Originally Posted By: Roob
A little research on costs of OEM parts changed that, drivers side heated side view mirror, $850 without install.
I use that as an example as his actually failed a year ago and he didn't have to pay a cent to repair it due to his zero deductible warranty. It was $1021 in total.


But I suppose if you're foolish enough to pay over a thousand dollars for a rear view mirror then you probably need an extended warranty, because there's no telling for what else you'll grossly overpay.

Originally Posted By: Roob
I don't understand that at all but humans are an effed up bunch....


Agreed. Your example of the person getting rooked into a thousand dollar rear view mirror is a prime example.

 

[sciphi]

Aftermarket extended warranty? Go get your money back, if you can.

Kia's bumper to bumper warranty is pretty lengthy as it is. 5 years/60k miles. You still have that warranty, even though the car is a CPO car.

 

[Donald]

The warranty you got with the car already covered the expensive parts like an engine or transmission. Although on some drivetrain warranties they would cover a piston, but not the ECM or fuel injector.

The extended warranties are almost always a big money maker for whoever sells it.

Look at it this way, you are betting that the repairs will cost more than $2K, and the company is betting they will cost less. They probably have the numbers to say they will make a profit on the deal.

I seldom get extended warranties or service contracts unless the vehicle or appliance turns out to be a lemon or just needs many expensive repairs.

 

[salv]

On a certified Kia, you have the balance of the 10/100 powertrain, but that is powertrain only. You also have the balance of the 5/60 bumper to bumper, 3/36 radio warranty, etc.
The contract you purchased is what is referred to as a powertrain wrap. it ties many of the non-powertrain items in for the 10/100 term.
What extended warranties do is to allow for reduced repair costs when needed. Nothing on a car fails on a schedule. Repairs often times are needed at inconvenient times. $800 a/c repairs during a heatwave right after you spent money to put a new liner in your pool, for example. You may not see your $2k back during your ownership of the vehicle, but it is nice to know that help is there if money gets tight and you car needs work.

 

[Spector]

I agree that not worth in in most cases. However, on one of my cars, a hybrid with tons of electronics, nav, etc I felt it was worth it however, purchased it online from a dealer ( mfg warranty) for about half the price the selling dealer wanted for it. Shop online if you really want one but yes, I agree it should be the mfg warranty not a third party

 

[eljefino]

So you already bought it and are asking us?

For two grand, excuse yourself from the table, go look it up. Tell the salesman you'll be back in an hour.

 

[rjundi]

I believe those warranties cost around $1000 with the dealer making a bit of profit. If you can get your money back fully do it now. Basically the dealer is making a $1000+ profit on this.

 

[k24a4]

My vote, get your money back, for all of the above reasons...

 

[Mustang2008Z]

I remember buying, I think it was, a 1991 Used Cadillac Seville from a Cadillac dealer, and when they offered me a warranty on repairs I accepted their offer and paid for the extended warranty.
I had done extensive research on that type of vehicle and knew that they had a horrible reliability history.
Well, sure enough, the engine and transmission, as well as other parts decided it was time for major replacement. So I took the vehicle in to get an estimate on how much it would cost to repair.
The service adviser and the mechanic, after going through the car provided me with a nice BIG cost estimate on all of the repairs needed.
I kind of knew what they were thinking, and after the estimate was explained to me, I gladly signed on the bottom line for the repairs. The service adviser and mechanic were so excited that they were going to get a ton of money from me. Then, I told them that I had a warranty for all of the items they listed with zero deductible, and after they heard that and saw the warranty, their excitement subsided. The service adviser said that he would repair it under the warranty. It was the best deal for me.
I got my money's worth and more. I laugh to this day about the interaction between the people at the dealership and myself about the repair. Just do your homework prior to purchasing any used vehicle and if an extended warranty is needed then purchase it, of not, then don't buy that extended warranty. Just my two cents.