Should We Buy An Extended Warranty?

[The Critic]

So, my mom recently purchased a 2010 Nissan Altima 3.5SR V6 with the Xtronic CVT.

The car comes with a 3-year/36,000 mile bumper-to-bumper warranty and a 5-year/60,000 mile powertrain warranty.

However, due to recent PR issues, Nissan has voluntarily extended the warranty on the CVT transmission to 10 years/120,000 miles.

At the time of purchase, my salesperson also "threw in" at no-charge, a "lifetime" powertrain warranty with Fidelity Warranty Services. Of course, if you google Fidelity Warranty Services, it becomes very clear that their warranties are not worth the paper they're written on.

So, the dilemma is, should we purchase a Genuine Nissan extended warranty policy?

For one, my parents have never owned a Nissan product before. I have absolutely ZERO experience with Nissan products and from what I have heard, it is not uncommon for Nissans to develop some minor issues (that are sometimes expensive) before they reach 100k.

Second, there is a good chance that I may not be in the area in the next few years, so I will not be around to handle minor or major out-of-warranty repairs. Having this warranty will keep costs predictable and also provide incentive for my dad to keep the car well-maintained. I know for a fact that if a car needs an out-of-warranty repair, unless the problem is causing a serious driveability issue, my dad will not take care of it. And yes, he is the type of person who will ignore a "small" transmission leak for years. So, having the warranty will force my dad (since he'll want to take full advantage of the warranty) to have all minor issues dealt with, which will ensure that the car stays well-maintained and will hopefully stop small issues from turning into bigger ones.

We can purchase a Genuine Nissan Security+Plus Gold Preferred (highest level) for 7-years/100k with $0 deductible for $1255 if we purchase it before the 12,000 mile mark. After 12,000 mile mark, it will cost an extra $75. This policy will be valid at any Nissan dealer and is backed by Nissan, NOT a 3rd party company.

I can see the warranty covering any powertrain or electrical issues that develop between 60-100k. I have read on the Murano forum that it is not uncommon for the VQ35 to need a set of motor mounts before 100k and that is usually an $800 job. Some people have had issues with some engine sensors as well, and of course with some diagnostic charges any sensor replacement would be a few hundred bucks per incident. I am a bit concerned because on the Saturn, I had nine component failures between 60k and 100k, and if I had not done the work myself, the cost of repairs would have amounted to around $1800.

So what do you guys think? What has your experience been with late-model Nissans?

Thanks!

 

[mrsilv04]

Quote:
We can purchase a Genuine Nissan Security+Plus Gold Preferred (highest level) for 7-years/100k with $0 deductible for $1255 if we purchase it before the 12,000 mile mark. After 12,000 mile mark, it will cost an extra $75. This policy will be valid at any Nissan dealer and is backed by Nissan, NOT a 3rd party company.


I'd wait, and pay the extra $75 if it appears that an extended warranty might be advantageous to have once the B2B coverage expires.

On a $1200+ purchase, an extra $75 is nothing. And it may not even be necessary to buy one at all. Only time will tell.

 

[demarpaint]

Read the fine print. In your Murano example certain warranties will not cover items like motor and transmission mounts, even the so called "Gold Warranties". Mounts are usually covered under the bumper to bumper portion of the original factory warranty.

Many extended warranties cover the engine block, heads, and internal components, which means no mounts, brackets, belts, and other goodies. Sensors are sometimes not covered either under extended warranties, and the diagnostics to find out if a sensor is bad might not be covered either. You really have to do your homework!

Make a list of questions and ask, you can also haggle on warranty prices as well. HTH

 

[The Critic]

Originally Posted By: mrsilv04
Quote:
We can purchase a Genuine Nissan Security+Plus Gold Preferred (highest level) for 7-years/100k with $0 deductible for $1255 if we purchase it before the 12,000 mile mark. After 12,000 mile mark, it will cost an extra $75. This policy will be valid at any Nissan dealer and is backed by Nissan, NOT a 3rd party company.


I'd wait, and pay the extra $75 if it appears that an extended warranty might be advantageous to have once the B2B coverage expires.

On a $1200+ purchase, an extra $75 is nothing. And it may not even be necessary to buy one at all. Only time will tell.


That's the only problem. Maybe the car will be perfect during the warranty period. On the Saturn, we had no warranty work. Shortly after the warranty expired, just about everything started breaking. The transmission leak, alternator failure, valve cover leak, vacuum hose leak, cruise control module failure and trunk wiring harness problem all occurred over the course of about a year between the 50-75k mark.

 

[The Critic]

Originally Posted By: demarpaint
Read the fine print. In your Murano example certain warranties will not cover items like motor and transmission mounts, even the so called "Gold Warranties". Mounts are usually covered under the bumper to bumper portion of the original factory warranty.

Many extended warranties cover the engine block, heads, and internal components, which means no mounts, brackets, belts, and other goodies. Sensors are sometimes not covered either under extended warranties, and the diagnostics to find out if a sensor is bad might not be covered either. You really have to do your homework!

Make a list of questions and ask, you can also haggle on warranty prices as well. HTH


Here are the covered items:

http://www.nissanextendedwarranty.com/docs/NissanWarrantyComponentCoverageChart.pdf

Gold preferred is in the second column. I spoke with Johnny248, who is a Nissan service manager, and he told me that the Nissan plans are pretty good about covering items.

Also, the price for the warranty was from a Nissan dealer that sells warranties online.

 

[demarpaint]

Well like all insurance it is a coin toss, you may or may not need it. Seems like it is pretty good in terms of what it covers. I like to haggle by nature have you printed it and discussed the price with your dealer? Maybe you can play the game and do a little better, it would be worth a shot.

 

[rszappa1]

I have had three Honda and never even thought of getting one and never needed it. When I used to purchase Chryler product and one Ford....It was always part of the deal.....and they came in very handy on them.....

 

[demarpaint]

I was given an extended warranty on a Ford years ago as part of the negotiation leading up to buying it. I needed an oil pan gasket replacement about 3 months before the end of the factory warranty. In 35+ years of driving I haven't had a part fail within 100,000 miles that would equal the cost of the warranty. Luck of the draw, maybe. If the car is prone to problems then it might be worth it.

 

[Pop_Rivit]

Put the money you're planning on wasting on an extended warranty and place it into an investment that will yield a moderate return, but remains liquid enough should you need to withdraw money for a repair.

Over the life of the vehicle you'll be much further ahead financially.

 

[levi]

Originally Posted By: Pop_Rivit
Put the money you're planning on wasting on an extended warranty and place it into an investment that will yield a moderate return, but remains liquid enough should you need to withdraw money for a repair.

Over the life of the vehicle you'll be much further ahead financially.



+1

You're purchasing an insurance plan, and the insurance company is betting they can make money on you.

Set the same amount aside, add to it regularly if possible. If not needed, apply toward your next car purchase.

 

[SrDriver]

Over the years I just stuck the extra money I would have spent on any extended warranty in a Money Market.......... Have quite nest egg there now.

We normally don't keep a vehicle more than 3 years and wife and I both have a vehicle so neither gets more than 36,000 miles on them.

 

[eljefino]

Look at the flipside...

Let's say Nissan makes a junk motor mount that you can change yourself in five minutes, and the aftermarket develops a "problem solver" solution. But if you're locked in to using the dealer they'll keep putting the junk OEM part on over and over again. Your dad won't want to fix it "right" because it's so much fun getting fixed for "free".

Then they scratch your paint or otherwise violate your car.

Negotiations always go better when you have the upper hand. When you're holding cash, you have the upper hand, compared to someone who already paid and is fighting to get their money put to use.

 

[mrsilv04]

Originally Posted By: The Critic
Originally Posted By: mrsilv04
Quote:
We can purchase a Genuine Nissan Security+Plus Gold Preferred (highest level) for 7-years/100k with $0 deductible for $1255 if we purchase it before the 12,000 mile mark. After 12,000 mile mark, it will cost an extra $75. This policy will be valid at any Nissan dealer and is backed by Nissan, NOT a 3rd party company.


I'd wait, and pay the extra $75 if it appears that an extended warranty might be advantageous to have once the B2B coverage expires.

On a $1200+ purchase, an extra $75 is nothing. And it may not even be necessary to buy one at all. Only time will tell.


That's the only problem. Maybe the car will be perfect during the warranty period. On the Saturn, we had no warranty work. Shortly after the warranty expired, just about everything started breaking. The transmission leak, alternator failure, valve cover leak, vacuum hose leak, cruise control module failure and trunk wiring harness problem all occurred over the course of about a year between the 50-75k mark.


Then buy the extended warranty now, and get it over with.

 

[javacontour]

Originally Posted By: Pop_Rivit
Put the money you're planning on wasting on an extended warranty and place it into an investment that will yield a moderate return, but remains liquid enough should you need to withdraw money for a repair.

Over the life of the vehicle you'll be much further ahead financially.



+2

Be your own insurance company. Extended Warranties are mis-named. If you have to buy it, it's not a warranty, but an insurance policy.

Insurance companies invest the premiums and price them with the idea they will make a profit after paying claims.

So if they can do this, why can't you, or in this case your parents invest the $1200-$1300 each time a new car is purchased and if any repairs happen, they can fund the repairs from this fund.

The nice thing about this strategy is eventually, you'll have enough to actually buy the new car, then you can contribute what you would have made in payments back to the fund since you've paid cash for the car.

Or if you get low rate financing, you can keep the money parked, earning interest while you pay off the vehicle.

The point is, it's not a warranty, but insurance. Buying it means you are betting you'll have more repairs than what you are paying.

 

[Cutehumor]

On my dad's 03 Sentra, he bought the nissan 75k extended warranty when he bought new. he used it once on the headgasket failure, but we had to fight tooth and nail to get the nissan dealer to fix his headgasket using the "genuine nissan extended warranty". He bought the vehicle and warranty at that dealership too. I bet Nissan pays bumpkus on warranty repair and even lower than bumpkus on extended warranty repairs.

 

[HARTZSKY]

No, I would not pay 1200 for an extended warranty.

 

[PT1]

Since Nissan is already covering the CVT for 120k I would not get the warranty. But I would put the cash into preventative maintenance instead. I have had 3 extended warranties...all were a complete fight with the insurance company to get a repair approved.

 

[Bill in Utah]

How many miles driven per year?

I'd pass on the warranty. There are very little liquid investments that pay anything on $1200 so that is out of the mix. (Wait till inflation hits but then your $$ will be worth less but that is another subject)

Your statement that Dad will not maintain the outfit is interesting. If that is the case I really don't think him having a warranty will help him if this is his MO.

The only time in my left I bought a extended warranty was on my 1990 F150 which had MANY issues in warranty and if I did not use it I could get 100% of the price back. I paid out of pocket for one PS pump @ 57k miles so I could cash out on the $1000 @ 60k when it ran out.

The Nissan should be a fairly good vehicle. The transmission is the only *possible* weak link and its covered past any extended warranty.

Bill

 

[benjamming]

The engine can be a weak link as well Bill with the pre-cat breaking apart & coating engine internals & all.

 

[Bill in Utah]

Originally Posted By: benjamming
The engine can be a weak link as well Bill with the pre-cat breaking apart & coating engine internals & all.


The V6 has that problem?

I thought the only Nissans with that problem was with the older 2.5l I4 cyl...