3rd Party Extended Auto Warranty

Discussion in 'Tech Talk' started by Paul53, Aug 26, 2020.

  1. Paul53

    Paul53 You local friendly Skynet dealer

    Messages:
    13,616
    Likes Received:
    20,523
    Joined:
    Nov 27, 2011
    Location:
    ME, TX, NM.
    The ads are getting more and more common. Information about them is plentiful except for the cost. Just wondering if anybody has experience with them?

    In the 70's I bought a new car along with the dealers "Undercoating." The written warranty had lots of promises about what they would do if a panel rusted through. Lots of lawyer talk too. After a few months I noticed the tiny print saying I could only file 1 claim, and they would do the repair or refund what I'd paid for thw wonderful undercoating at their option. Well, I'd been had.
     
  2. Cirdan

    Cirdan

    Messages:
    2,222
    Likes Received:
    1,651
    Joined:
    May 16, 2013
    They wouldn't sell the extended warranty if they weren't making money off from them. Therefore, on an expected value basis, they aren't worth it to the buyer.

    Having said that, insurance is for people who can't take the hit of a major expense. That's when it makes sense.
     
    Paul53 likes this.

  3. Paul53

    Paul53 You local friendly Skynet dealer

    Messages:
    13,616
    Likes Received:
    20,523
    Joined:
    Nov 27, 2011
    Location:
    ME, TX, NM.
    Thanks. I have an 08 Saturn. Insurance id dirt cheap because the book value is less than my deductible! However, getting cured of cancer has put me so deep in debt that if my Satan tanks I'll have to walk everywhere. Such is life. I beat the cancer so owing hundreds of thousands dollars doesn't seem so bad.
     
    Out West likes this.
  4. Pistolay

    Pistolay Wut?

    Messages:
    2,328
    Likes Received:
    4,950
    Joined:
    Jan 4, 2018
    Location:
    New Hampshire
    I buy American cars. And because I buy American cars, I always buy the longest extended warranty I can get from the manufacturer. On our previous 2 cars, a 2003 Ford Eddie Bauer Explorer and 2003 Ford Explorer Sport Trac, we more than made our money back on both of them.

    That said, I probably wouldn't buy an extended warranty on a new Japanese car, and I definitely wouldn't buy one for any used car.
     
    Paul53 likes this.
  5. peng

    peng

    Messages:
    8,680
    Likes Received:
    14,856
    Joined:
    Nov 16, 2011
    Location:
    Dearborn, Michigan
    It's a math equation with unknowns so the best I can tell you is chances are it will be a waste of money but there is a chance it could save you serious money also.

    They do not sell policies to lose money so they do pay out sometimes, but the odds are against you. If you want one read the fine print so you can be sure it is covering what you want and get one from a good company that will pay.

    It is the age old balance of possibility vs. probability.
     
    Paul53 likes this.
  6. FCastle88

    FCastle88

    Messages:
    2,402
    Likes Received:
    603
    Joined:
    Sep 24, 2009
    Location:
    PA
    Regardless of whether extended warranties in general are worth it, good luck actually filing a claim with many third party warranties. Personally if I buy an extended warranty on anything it's only one from the manufacturer.
     
    Paul53 likes this.
  7. Paul53

    Paul53 You local friendly Skynet dealer

    Messages:
    13,616
    Likes Received:
    20,523
    Joined:
    Nov 27, 2011
    Location:
    ME, TX, NM.
    Good advice one and all, thanks.

    My Saturn ran wonderful for 100,000 miles. Ever since it's a hole in the ground I must throw money in. I've repaired my own until now. Alternator craps out? A new one was surprisingly affordable. I couldn't even find it under the hood. Spoke with a mechanic, turns out step 1 is raise the car on a lift. It's not a difficult job when you can access the alternator while standing under it!

    Medical bills tanked my credit rating. I'd otherwise plan to buy another vehicle before doing a $500 repair on a car with a $500 book value. $185/month for an aftermarket warranty that's a scam. Sorry to dump my problems on you my friends, I still am hoping there's a reasonable choice I haven't thought of.

    Before someone suggests it, male stripper is out. Too old, too fat, and my artificial knee would never work on a pole dance.
     
    Out West likes this.
  8. bdcochran

    bdcochran

    Messages:
    11,595
    Likes Received:
    10,899
    Joined:
    Sep 23, 2005
    Location:
    Los Angeles
    1. extended warranties are not insurance policies.
    2. companies that offer extended warranties are not regulated by the department of insurance and if they go belly up, you are out of luck.
    3. before you go to a dealership or buy a warranty through the dealer, understand it will be generally more expensive than if you buy elsewhere.
    4. I purchased a warranty on my new car only because my sister said I was a lousy driver. I used it to buy an $800 part that the dealership said that I needed. Of course, afterwards, I learned that the authorized dealership had lied, that the new $800 part was unnecessary and I am still holding the "bad part" that was removed. It is now 16 years later and my Japanese made car is still running when a lot of "buy American" cars have gone to junkyard heaven.

    I would give you the name of the dealership that lied to me except the other authorized dealer of the same car line in town is worse. An Administrative Law Judge bought his car at the other dealership. He took it in for the 500 mile oil change. After two hours, he asked what was up. The car had been destroyed. The dealership started claiming that he drove it in damaged. After he showed his tatoos (really had some) and threatened to drive it in the dealership window, the dealer admitted they crashed it putting it into the bay.

    I don't know about buying extended warranties, but avoid service at authorized dealerships like the plague.
     
    Paul53 likes this.
  9. Paul53

    Paul53 You local friendly Skynet dealer

    Messages:
    13,616
    Likes Received:
    20,523
    Joined:
    Nov 27, 2011
    Location:
    ME, TX, NM.
    Well my transmission is slipping at unpredictable times, and the correct way to check fluid level require a lift so I guess it's time to treat the car as disposable. Thanks for the wisdom you've shared.