Should I get a Extended Warranty?

[Passport1]

Not a Hyundai but a Ford anectote. Son bought a new 2020 Explorer. Got the Ford extended warranty which added about another three years to the factory one. His engine needed new cam phasers and a few other bits. It was a very $$ engine out repair. Ford was very good about covering almost everything. Car has almost 100K now and has been uber reliable since. He could document all the oil services were done at the local Valvoline quick lube shop.

 

[AZjeff]

“putting money away” sounds responsible until something breaks in 4 months and you have $400, $800, or whatever and the repair is $4000. Better to say I’ll self insure and have money available in case something breaks. Either it breaks or it doesn’t in Your planned ownership. 3rd party warranties sound like a real gamble and hassle. You’re rolling the dice either way. If you can get a Hundy warranty listen to Nick if you can’t afford out of pocket.

 

[JavierH19]

Anything but a hyundai extended warranty isn't worth the paper it's printed on but as it turns out even the OEM warranties aren't worth much either. There's a reason they're called the most voided warranty in America and what's worse is that if you buy it used and it fails because the previous owner went even 1000 miles over on the intervals you won't get it warrantied because of the last guy.

Many third party warranties only cover up until what you've paid but once you exceed what you've paid in they refund you the difference and give you the boot. They get to take money from those who never had an issue or requested very little but those that ask for too much don't get to drain their cash and they're out flat with those customers.

 

[JavierH19]

You'd be better off using euro 30/40 and changing it every 3-5k. Better yet run VRP 5w-30 for a 3 or 4 intervals now in case there's even some build up as they will void an engine warranty if it isn't spotless when they take the VC off in many cases and service the transmission, radiator, and brake fluid too.

I think the trans is sp-iv for that year and valvoline extended protection atf should be good for it but check the owners manual for the trans and diff specs as that should be serviced too.

 

[Snagglefoot]

I just realized I no longer get Emails from companies reminding me I can still get an extended warranty? What spooks them about the 18 year age of my truck?

 

[D1dad]

I’ve never bought one and probably never will. My son in law, good guy but lazy as the day is long and an absolute know it all insisted on it when they bought new cars. His was an f150 platinum and she got a dodge journey. Again, he knows everything. Long story short, they denied his turbo leak and her transfer case which was already replaced under warranty. These warranties aren’t cheap and usually the only person that benefits is the company and the high pressured finance guy. They traded off their cars, he actually made out on his truck as supply was down after Covid and they didn’t catch it. She took an absolute beating.

 

[duck__dodgers]

If you have/know a regular mechanic, ask them which aftermarket warranties give them the least hassle. Mechanics don't want to deal w/insurers-adjusters who drag their feet on claims either

If it was me, I'd just put the $xxxx cost of the warranty would cost in a savings account and not touch it.

 

[brages]

Put the $100 a month in the S&P500! in three years, you'll have $1500 for whatever problems you might have!


Anyway, I believe you "should" only insure against losses that you are unable to afford (would be life-altering). Unless you think you know the odds better than the "house"... do you?

On the other hand, I just added comprehensive coverage to my high-miles 2019 HAH. Peace of mind, I guess. I suppose I'm not as logical as I think. I contain multitudes.

 

[Patman]

Keep in mind that the odds are always in your favor that you won’t need the amount of repairs of your warranty. Otherwise all of the places selling the warranty would be out of business.

I never buy extended warranties on any purchase that I make. My lifelong history has been way in my favor too, because I haven’t needed any expensive repairs on anything.

I’m sure that if I had purchased extended warranties on everything in my life I would have spent $30,000+. But yet I haven’t incurred anything close to that amount in repair costs.

 

[2005jettatdi]

“putting money away” sounds responsible until something breaks in 4 months and you have $400, $800, or whatever and the repair is $4000. Better to say I’ll self insure and have money available in case something breaks. Either it breaks or it doesn’t in Your planned ownership. 3rd party warranties sound like a real gamble and hassle. You’re rolling the dice either way. If you can get a Hundy warranty listen to Nick if you can’t afford out of pocket.

I decided to start putting at least $100 per month in my warranty/deductible account in 2009. It now has around $110,000 in it. I have never bought extended warranties and almost never bought "product protection." Why would I buy a car that immediately needs an extended warranty? As for product protection, they cost enough that it averages out in my favor not to buy them even when I have dropped and broken a tool.

Dave Ramsey is right, everyone should have a rainy day fund.

 

[rijndael]

Put the $100 a month in the S&P500! in three years, you'll have $1500 for whatever problems you might have!

Or, get over 2X that from a regular savings account! You can have a hair over $3800 if you count for a little bit of interest.

 

[brages]

Or, get over 2X that from a regular savings account ... so you can have a hair over $3800 if you count for a little bit of interest.

It was a joke because the market is dropping fast. Investing short-term money in stocks is pretty iffy, as the current dip (crash?) shows.

It's quite possible we come roaring back out of this and you'd make out like a bandit... or not

 

[rijndael]

We really need a sarcasm color defined for this forum.

 

[John105]

Generally speaking, never. But I do acknowledge something--peace of mind has some value.

We know that "insurance" is a losing proposition, period. Who here wouldn't cringe if they added up what they've paid for life insurance, car insurance, homeowners, etc. It's well over six figures down the drain.

At any rate, what's it worth to have a nagging issue with a car, and feel that you'd be covered. I used to say oh this costs what an unplanned lunch or dinner with the family does, so I can mentally let it go.

I'll be transparent--I bought a factory extended warranty on a 2007 BMW 335i. The list was $3300 and I got it for $2800. It was basically pouring $2,800 down the storm drain, nothing broke. Was supposed to be a sure thing. That's 7/100 to make it even stupider, 1 more year!

I also bought it on a 2011 GM SUV--that had a lot of repairs--remember, it has a deductible. So once again, financially, didn't make sense.

Example, water pump failed as expected after the extended warranty expired. Of course. I was able to buy the pump for $114 online (OE hope the issue was corrected). When all was said and done it cost me $145 and my Labor Day 2019 as I took my time. With the factory extended warranty it would have been $106. Real life example. Is it worth saving $39? Absolutely if DIY is not an option as I read it's a $700+ job. But maybe it's worth peace of mind. the GM was way cheaper I don't remember what but nowhere near $3k like the BMW was.

If one can "throw away" the price of the warranty, then no worries--sometimes we do that to avoid risk. Nothing to be embarrassed about.

 

[Exhaustgases]

Put the $100 a month in the S&P500! in three years, you'll have $1500 for whatever problems you might have!


Anyway, I believe you "should" only insure against losses that you are unable to afford (would be life-altering). Unless you think you know the odds better than the "house"... do you?

On the other hand, I just added comprehensive coverage to my high-miles 2019 HAH. Peace of mind, I guess. I suppose I'm not as logical as I think. I contain multitudes.

100 per month times 12 is 1200
1200 per year times 3 is 3600
It looks like sticking 100 a month in an old sock gains more than the sp500 does.

Gosh with the old sock, I could afford $1000 of new tools every 3 years and have more than the sp500 for the car.

 

[AZjeff]

I decided to start putting at least $100 per month in my warranty/deductible account in 2009. It now has around $110,000 in it.

That's incredible and way above and beyond what most people would do. You decided to keep going after you had a nice amount saved that would cover most anything. Hope it's getting a little interest. Wow.

 

[Paco Pena]

I never have and never required one. I'd put the money away for repairs instead.

Paco

 

[2005jettatdi]

That's incredible and way above and beyond what most people would do. You decided to keep going after you had a nice amount saved that would cover most anything. Hope it's getting a little interest. Wow.

Thanks. The money is in a Treasury Direct account invested in I-Bonds. Interest is adjusted for inflation rate plus a factor, usually 1% plus inflation. Interest is not taxable until you cash a bond.

 

[brages]

100 per month times 12 is 1200
1200 per year times 3 is 3600
It looks like sticking 100 a month in an old sock gains more than the sp500 does.

Gosh with the old sock, I could afford $1000 of new tools every 3 years and have more than the sp500 for the car.

The old sock (NSYE:SOCK) has been handily outperforming the S&P500 for the last month or so (thatsthejoke.gif)