Extended Warranty on Certified Pre-owned Worth it?
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Originally Posted By: 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 $1021 in total.
But I suppose if you're foolish enough to pay over a thousand dollars for a rear view mirror then you probably need an extended warranty, because there's no telling for what else you'll grossly overpay.
Originally Posted By: Roob
I don't understand that at all but humans are an effed up bunch....
Agreed. Your example of the person getting rooked into a thousand dollar rear view mirror is a prime example.
+1
I know people who bring their car to the dealer for everything. If you cant be bothered to do your own research than you will be had by paying 1000$ for a side view mirror. First of all, after the original warranty is up, why would you buy a brand new mirror? I dont drive a lexus, but i replaced my own side power mirror for 100$. (It wasnt even a great deal). 2nd of all its a Kia, so its not a luxury car.
I would get your money back and put it in savings. Dont bother with extended warranties. They are all sold to make additional profit. I used to work somewhere that sold extended warranties..$$$$ good way to increase my commission..only thing it might be worthwhile on is portable electronics.(depending on warranty price)
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.
+1
I know people who bring their car to the dealer for everything. If you cant be bothered to do your own research than you will be had by paying 1000$ for a side view mirror. First of all, after the original warranty is up, why would you buy a brand new mirror? I dont drive a lexus, but i replaced my own side power mirror for 100$. (It wasnt even a great deal). 2nd of all its a Kia, so its not a luxury car.
I would get your money back and put it in savings. Dont bother with extended warranties. They are all sold to make additional profit. I used to work somewhere that sold extended warranties..$$$$ good way to increase my commission..only thing it might be worthwhile on is portable electronics.(depending on warranty price)
Very few people ever use the extended warranty they purchase. Cost is low to them for that reason. Its insurance that you wont likely need.
Read the fine print. Usually those warranties are a ripoff. They cover the ac compressor but don't cover leaks. 99% of ac problems are leaks.
Btdt with my boss's motorhome.
Btdt with my boss's motorhome.
Originally Posted By: actionstan
Haha, acctually they lied to me and told me it was through Kia, after i did my research its from "JM & A" warranties.
Lied to you ?
What was the name of the company on the warranty purchase agreement you signed ?
The only thing that is more worthless than a third party car warranty is the BBB. People think they are somehow associated or regulated by the government.
http://www.edmunds.com/auto-warranty/third-party-extended-warranty-scams.html
Would highly recommend you educate yourself in advance of any purchase this large
Haha, acctually they lied to me and told me it was through Kia, after i did my research its from "JM & A" warranties.
Lied to you ?
What was the name of the company on the warranty purchase agreement you signed ?
The only thing that is more worthless than a third party car warranty is the BBB. People think they are somehow associated or regulated by the government.
http://www.edmunds.com/auto-warranty/third-party-extended-warranty-scams.html
Would highly recommend you educate yourself in advance of any purchase this large
Originally Posted By: cmorr
Originally Posted By: actionstan
Haha, acctually they lied to me and told me it was through Kia, after i did my research its from "JM & A" warranties.
Lied to you ?
What was the name of the company on the warranty purchase agreement you signed ?
The only thing that is more worthless than a third party car warranty is the BBB. People think they are somehow associated or regulated by the government.
http://www.edmunds.com/auto-warranty/third-party-extended-warranty-scams.html
Would highly recommend you educate yourself in advance of any purchase this large
I agree. As for the lie, what the salesman meant to say was the warranty was sold through the Kia dealership. He left out and changed a few words.
Originally Posted By: actionstan
Haha, acctually they lied to me and told me it was through Kia, after i did my research its from "JM & A" warranties.
Lied to you ?
What was the name of the company on the warranty purchase agreement you signed ?
The only thing that is more worthless than a third party car warranty is the BBB. People think they are somehow associated or regulated by the government.
http://www.edmunds.com/auto-warranty/third-party-extended-warranty-scams.html
Would highly recommend you educate yourself in advance of any purchase this large
I agree. As for the lie, what the salesman meant to say was the warranty was sold through the Kia dealership. He left out and changed a few words.
The price on them is negotiable like everything else and combing them into the car price is a good tool
I've only paid $1k on two different cars. The first time I needed about $1600 in repairs during the warranty and the second time it was close to the $1000, if not over.
I'm certainly not saying you should buy one or you shouldn't. I'm just saying $2000 is a high price to pay for one.
I've only paid $1k on two different cars. The first time I needed about $1600 in repairs during the warranty and the second time it was close to the $1000, if not over.
I'm certainly not saying you should buy one or you shouldn't. I'm just saying $2000 is a high price to pay for one.
Details are always important in every aspect of life. If my family member is "foolish"enough to have an expensive SIDE VIEW MIRROR replaced under warranty, then I guess you can misread posts all day long.
When he bought the Lexus, he wrote a cheque for the car and warranty. It wasn't cheap, it's a Lexus, but it's peace of mind, worry free driving at his age and he can afford it. I can understand why people might be annoyed at that, not everyone is in his position.
Now back to the details. You failed to notice it is a "side view mirror" not a "rear view mirror"
Maybe you noticed the hint at the beginning of this post? It's a stretch, but I bolded it for you
No one gets rooked into anything, expensive car, expensive parts, common sense no??? For most anyways.
Speaking of prime example, my human statement definitely applies here, but not for my family member.
When he bought the Lexus, he wrote a cheque for the car and warranty. It wasn't cheap, it's a Lexus, but it's peace of mind, worry free driving at his age and he can afford it. I can understand why people might be annoyed at that, not everyone is in his position.
Now back to the details. You failed to notice it is a "side view mirror" not a "rear view mirror"
Maybe you noticed the hint at the beginning of this post? It's a stretch, but I bolded it for you
No one gets rooked into anything, expensive car, expensive parts, common sense no??? For most anyways.
Speaking of prime example, my human statement definitely applies here, but not for my family member.
Man Some people like busting others here ..over an extended warranty?
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Not everyone can do their own work. Some are way to busy with their business to bother with it and want it taken care of and ready to go when they need it. My family member is definitely a user when it comes to anything. He doesn't care for the maintenance aspect, he just wants it to work perfectly every time he uses it. That's why I am the lucky son who gets to deal with all the maintenance and upkeep for the warranty.
In all honesty with his business time is money. For him to take the down time of an oil change is equivalent of a loss of $500-$2500, much more when he's on a project or projects. So as a family we all help out and he's kind enough to share the wealth.
In our instance the warranty makes perfect sense.
In all honesty with his business time is money. For him to take the down time of an oil change is equivalent of a loss of $500-$2500, much more when he's on a project or projects. So as a family we all help out and he's kind enough to share the wealth.
In our instance the warranty makes perfect sense.
With a simple inexpensive vehicle like that a warranty is worthless, nothing can break that will cost that much to fix.
OTOH with more complicated and expensive vehicles its a really good idea to warranty up.
OTOH with more complicated and expensive vehicles its a really good idea to warranty up.
Originally Posted By: Roob
A little research on costs of OEM parts changed that, drivers side heated side view mirror, $850 without install.
Fair enough, but in a case like this, the real issue is having ridiculously expensive non-essential equipment. The only vehicle I've had that had heated mirrors was the old Town Car, and I've lived in Saskatchewan my whole life and somehow survived.
The ironic thing is that so many vehicles have these navigation and "high technology" packages that don't work properly from new. People are paying large dollars for these useless goodies, and then paying similarly large dollars for warranties on things that shouldn't even be there in the first place.
It's also been mentioned how people are afraid to get their hands dirty. I don't doubt that a dealership would gladly sell someone an $850 mirror and a $1 fuse, even if a $1 fuse was all that was really needed. I don't like going to the shop confused about what my vehicle's problem is.
That's not to say there's no place for extended warranties. Some places are good about giving credit if it's never used. And, if a line of vehicles has a sketchy history, fine. But plenty have ridiculous conditions for maintaining the warranty. If I'm not going to be a slave to my vehicle, I'm sure as heck not going to be a slave to its warranty.
A little research on costs of OEM parts changed that, drivers side heated side view mirror, $850 without install.
Fair enough, but in a case like this, the real issue is having ridiculously expensive non-essential equipment. The only vehicle I've had that had heated mirrors was the old Town Car, and I've lived in Saskatchewan my whole life and somehow survived.
The ironic thing is that so many vehicles have these navigation and "high technology" packages that don't work properly from new. People are paying large dollars for these useless goodies, and then paying similarly large dollars for warranties on things that shouldn't even be there in the first place.
It's also been mentioned how people are afraid to get their hands dirty. I don't doubt that a dealership would gladly sell someone an $850 mirror and a $1 fuse, even if a $1 fuse was all that was really needed. I don't like going to the shop confused about what my vehicle's problem is.
That's not to say there's no place for extended warranties. Some places are good about giving credit if it's never used. And, if a line of vehicles has a sketchy history, fine. But plenty have ridiculous conditions for maintaining the warranty. If I'm not going to be a slave to my vehicle, I'm sure as heck not going to be a slave to its warranty.
Spend the 2k on the warranty help the dealer out
Originally Posted By: actionstan
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.
How many miles are on this car?
Hyundai/Kia vehicles come with a 60k mile bumper-to-bumper warranty that is transferable. So, assuming your car is under 60k, you should still have bumper-to-bumper coverage until 5 years/60k miles. I'm assuming they didn't point this out as they were trying to sell you the extended warranty. Here's the 2013 Kia warranty booklet:
http://www.kia.com/us/content/media/en/manuals/2013_warranty.pdf
The Kia factory 10 year/100k mile powertrain warranty on a new Hyundai/Kia is not transferable. So normally, unless you buy a CPO, you don't get the 100k mile warranty.
I would say it's worth the extra to get a CPO with the 100k mile factory coverage. But I personally would not pay $2,000 for an extended warranty.
The 60k bumper-to-bumper and 100k drive train warranty you get with the CPO vehicle is probably enough warranty for me. But it's your money, spend it how you like.
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.
How many miles are on this car?
Hyundai/Kia vehicles come with a 60k mile bumper-to-bumper warranty that is transferable. So, assuming your car is under 60k, you should still have bumper-to-bumper coverage until 5 years/60k miles. I'm assuming they didn't point this out as they were trying to sell you the extended warranty. Here's the 2013 Kia warranty booklet:
http://www.kia.com/us/content/media/en/manuals/2013_warranty.pdf
The Kia factory 10 year/100k mile powertrain warranty on a new Hyundai/Kia is not transferable. So normally, unless you buy a CPO, you don't get the 100k mile warranty.
I would say it's worth the extra to get a CPO with the 100k mile factory coverage. But I personally would not pay $2,000 for an extended warranty.
The 60k bumper-to-bumper and 100k drive train warranty you get with the CPO vehicle is probably enough warranty for me. But it's your money, spend it how you like.
Originally Posted By: hattaresguy
With a simple inexpensive vehicle like that a warranty is worthless, nothing can break that will cost that much to fix.
OTOH with more complicated and expensive vehicles its a really good idea to warranty up.
Sometimes the answer is yes, but the overwhelming majority of car owners would do better to simply save the cash. Most of it is commissions and every 'expert' car rag insists they are not cost effective. Especially the third party ones...
With a simple inexpensive vehicle like that a warranty is worthless, nothing can break that will cost that much to fix.
OTOH with more complicated and expensive vehicles its a really good idea to warranty up.
Sometimes the answer is yes, but the overwhelming majority of car owners would do better to simply save the cash. Most of it is commissions and every 'expert' car rag insists they are not cost effective. Especially the third party ones...
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The way I see it it's like paying for a major repair whether you need it or not. Personally, I'll take the gamble and not get the warranty. I do understand why people get them, though. Just add it to the pymt and you drive for the next 5-7 years worry free.
I'd say $2k is not a good deal. Ford has an active extended factory warranty business and their 7yr 100K "Basic" warranty runs around $750 through a discounter. (Ford for some reason allows any dealer to sell an extended warranty to any buyer--hence, on-line discounters).
I doubt that Kia has a substantially worse claim history than Ford. So there is at least a $1,000 rip-off component built in. I'd be leery of any non-factory extended warranty. Even with an extended factory warranty you have to be careful. Some Japanese cars have such intricate maintenance requirements as the cars age that you are roping yourself into years and years of expensive dealer service
I doubt that Kia has a substantially worse claim history than Ford. So there is at least a $1,000 rip-off component built in. I'd be leery of any non-factory extended warranty. Even with an extended factory warranty you have to be careful. Some Japanese cars have such intricate maintenance requirements as the cars age that you are roping yourself into years and years of expensive dealer service
Originally Posted By: SteveSRT8
Originally Posted By: hattaresguy
With a simple inexpensive vehicle like that a warranty is worthless, nothing can break that will cost that much to fix.
OTOH with more complicated and expensive vehicles its a really good idea to warranty up.
Sometimes the answer is yes, but the overwhelming majority of car owners would do better to simply save the cash. Most of it is commissions and every 'expert' car rag insists they are not cost effective. Especially the third party ones...
I agree I would never consider a third party warranty, total scam.
Most new vehicles come with a very generous manufactures warranty. 60k-100k is certainly long enough of a "test" drive to figure out if the vehicle is any good or not.
On a used vehicle most manufactures offer fantastic CPO warranties. I know Mercedes does this, their CPO warranty is almost better than there new car warranty. Those are the only kinds of warranties worth anything.
Bottom line is if the vehicle is such a big POS buy something else, pretty much every new/er vehicle sitting on a car lot should be able to turn over 200k without much drama these days...if its any good...
Originally Posted By: hattaresguy
With a simple inexpensive vehicle like that a warranty is worthless, nothing can break that will cost that much to fix.
OTOH with more complicated and expensive vehicles its a really good idea to warranty up.
Sometimes the answer is yes, but the overwhelming majority of car owners would do better to simply save the cash. Most of it is commissions and every 'expert' car rag insists they are not cost effective. Especially the third party ones...
I agree I would never consider a third party warranty, total scam.
Most new vehicles come with a very generous manufactures warranty. 60k-100k is certainly long enough of a "test" drive to figure out if the vehicle is any good or not.
On a used vehicle most manufactures offer fantastic CPO warranties. I know Mercedes does this, their CPO warranty is almost better than there new car warranty. Those are the only kinds of warranties worth anything.
Bottom line is if the vehicle is such a big POS buy something else, pretty much every new/er vehicle sitting on a car lot should be able to turn over 200k without much drama these days...if its any good...
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