Purchasing Extended Warranties on a Vehicle
- Thread starter KYG
- Start date
I guess it would depend on the vehicle and how long you plan to have it.
Alot of people change vehicles every 3-4 years. With new car bumper to bumper warranties being within that range, it might be a moot point.
Laterly there seems to be a bit of a trend towards people buying used cars that are 2-3 years old. With that, you may want to consider an extended warranty. Depending on the mileage on the vehicle when you buy it, you could possibly get protection to take you to the 3-4 year point where you trade it off again.
I guess the thing to remember about extended warranties is that they usually come with a deductable amount that you would have to pay regardless. But by that time, anything that goes wrong with thew vehicle would cost considerably more to fix than the deductable amount, so the choice would be up to you.
eg: a smaller FWD car... the CV joints go out on you... $1000 - $1400 to repair... do the math, you could pay full pop yourself or just pay $200 and still get the problem fixed.
Alot of the times, the problems may be minor, so you may be able to band a few minor issues together, and just pay the deductable amount and get it all fixed at the same time.
That's my take on your question KYG. Hope it holds bearing for you.
Alot of people change vehicles every 3-4 years. With new car bumper to bumper warranties being within that range, it might be a moot point.
Laterly there seems to be a bit of a trend towards people buying used cars that are 2-3 years old. With that, you may want to consider an extended warranty. Depending on the mileage on the vehicle when you buy it, you could possibly get protection to take you to the 3-4 year point where you trade it off again.
I guess the thing to remember about extended warranties is that they usually come with a deductable amount that you would have to pay regardless. But by that time, anything that goes wrong with thew vehicle would cost considerably more to fix than the deductable amount, so the choice would be up to you.
eg: a smaller FWD car... the CV joints go out on you... $1000 - $1400 to repair... do the math, you could pay full pop yourself or just pay $200 and still get the problem fixed.
Alot of the times, the problems may be minor, so you may be able to band a few minor issues together, and just pay the deductable amount and get it all fixed at the same time.
That's my take on your question KYG. Hope it holds bearing for you.
If buying a vehicle with manufacturer's warranty left on it, and assuming you plan to keep the car for a few years, it's a good idea to get a premium extended warranty plan but only from the manufacturer.
I drive hard and a whole lot of kms, so I choose the maximum period of kms/time. I've always gone for the no deductible option, and always the math has worked out more than very well for me.
The third party warranties are risky with lots of horror stories and lost money.
I drive hard and a whole lot of kms, so I choose the maximum period of kms/time. I've always gone for the no deductible option, and always the math has worked out more than very well for me.
The third party warranties are risky with lots of horror stories and lost money.
here's an idea, go look at what a guy who actually knows/does this kinda thing for a living, Phil Edmonston of the lemonaid car books
http://www.lemonaidcars.com/secretwarranties.html
they don't warranty anything they expect to fail in the time or km frame they sell you, if they did they wouldn't make any money off you
http://www.lemonaidcars.com/secretwarranties.html
they don't warranty anything they expect to fail in the time or km frame they sell you, if they did they wouldn't make any money off you
In my case an emphatic yes.
Never again will I buy a first year production vehicle but I did once and also got the manufacturers extended warranty for an additional 100 k KM's with seven years total warranty. I knew I was going to be doing a lot of driving and the regular warranty would be over in about 2 years for me.
I had the transmission replaced twice and both were covered. If I hadn't bought the warranty I would have lost big time.
So for $1700 I got two transmissions installed for $3500 each. Those weren't the only problems but their costs stick out in my mind.
I would think with your forum name you would be well acquainted with these problems by now.
ound:http://wheels.blogs.nytimes.com/2011/01/08/honda-transmission-problems-seem-to-persist/
I still frequent the Honda forums. The current owners are very displeased with the direction of Honda cars. The new Civic is looks worse and according to reviews drives less sporty than the past. The Accord is considered big and bloated and Buick like now. The 2 door CRZ is way overpriced. I left that wagon this year. I jumped on a Mazda and I will tell anyone who will listen that Mazda knows how to make sporty cars for average joe prices.
I have been actively researching my next vehicle and it is quite surprising what you find out via google. It was not just Toyota or Honda but also VW. VW had the largest sale of their cars when Toyota's problems arose last year. Now the focus is on VW's poor quality record too.
You make a good point about Mazda. When I went to buy a Honda the sales rep had data about resale values compared with Honda. His point was Honda retained its value as well as Toyota but Mazda's value declined more than the rest. On reflection, I don't buy cars with resale as one of my criteria. I tend to hold on to them for a long time if they are good cars.
I ended up buying a Mazda and it was one of the least maintained cars I have ever owned. Couple of minor things went wrong but still a very reliable car.
I have one of my cars in the body shop right now and have a 2011 Mazda 6 rental. Great car and IMHO kicks the Accord's ass. Looks great and drives great too. Much less cost than a Camry or an Accord too.
I guess bottom line for the OP is to really consider getting an extended warranty since even reputable companies like Honda and Toyota have their bad years and an extended warranty is a good safety net to have after the regular warranty expires.
