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Calling HollyS - Car Warranty Questions!

VRBeauty

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Holly - it was good to see you posting in TooPatient's thread about a car trade-in. One thing you posted caught my eye... I'd really appreciate the chance to get more of your insights on this:

HollyS|1436587087|3901527 said:
I worked many years in the car business, so here are my thoughts:

...

Also, NEVER again -- and this is for everyone reading this -- purchase extended warranties or other "insurances" on a new vehicle at time of purchase. They can be bought separately at any time, apart from your contract, so you are not paying interest on these "after market" add-ons. Really, only Gap insurance is worth buying. I know whereof I speak, I promise you.

My situation is this: I've bought two brand new cars in my lifetime, and in neither case did I buy the extended warranty. However, I've just bought a 2-year old used car, and for the first time ever I'm seriously considering the extended warranty. (I understand I have about a year, until the original 3-year bumper-to-bumper warranty runs out, to buy it.)

The car I bought is a 2013 Ford C-Max Energi, a plug-in hybrid, with about 20,000 miles on it. I'm the car's second owner (I suspect it came off lease). I was able to see both the 162-point inspection notes and the car's maintenance records. I bought the car from a Ford dealership so it's a certified pre-owned car. there were no major problems noted, they did replace the front tires... which could indicate either unusual wear or an un-diagnosed alignment issue. Ford has marketed the C-Max in Europe for about a decade, the 2013 model is the first to be offered in a plug-in hybrid version.

The dealership certification gives me 12 months of bumper-to-bumper coverage, and roadside assistance, from my purchase date. Because I live in California I also get 150K mile coverage on the emissions system. However, the hybrid engine is heavily dependent on the on-board computer, and I've been told that the computer is not considered part of the emissions system for warranty purposes. (Which I think is bunk - and an interpretation that will crumble at some point. I wouldn't want to be the one to make the case, however.)

My last car was a MINI Cooper, which I also bought in the first year it was introduced. What can I say? I''m a sucker for new and shiny! :wink2: But I did have to deal with two "new model" issues that leave me a little concerned about owning a new tech car again, even though I'm loving the car and especially the plug-in hybrid aspect of it.

So I'm considering getting the extended warranty - which would give me full coverage to ten years - because I'm essentially dealing with a new model and new-to-Ford technology. I wouldn't do that The extended warranty would be transferable, for what that's worth. I would wait as long as possible to purchase the extension, however... I do have a few reservations about this car generally, :???: and there's a slim possibility that I'll trade it in before my first year is up.

So... under those circumstances, would you still argue against the extended warranty?
 

Dancing Fire

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IMO, buying an extended warranty on any products is a sucker bet!... :bigsmile:
 

amc80

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We bought an extended warranty on a car we bought a couple of years ago. I can't even tell you how much money that warranty has saved us. The car sucks, and we would have spent thousands and thousands of $ fixing it.
 

katharath

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When we bought our Mazda 3 about 4 years ago (new), we caved to the pressure and bought the expensive "supposedly covers every single tiny thing" warranty from the dealership. We haven't had many issues with the car, but we've had to bring it in a few times. NOT ONE SINGLE THING has actually been covered. Any expenses had to be covered by us. If I had to do it again (and we recently did, when DH bought his new Mustang this year) I would never again spring for the expensive warranty. I told DH that under no circumstances was he to get it, lol. I had just seen an article about how it was a total rip off too.

(I think we have the 10 year/100,000k warranty on our mazda, so it could still potentially help us out at some point - so far we have probably put about $700 into the car outside of normal expenses, so nothing major - but we only have 32k miles on the car nearing the 4 year mark).

ETA - I'm not sure that it's still a bad idea to get the warranty in your situation VRB - I think yours is a good question.
 

TooPatient

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VR -- The reason we got the warranty on this car is because it saved us HUGELY on our previous car. We really went back and forth on that one and I am so glad we got it on that car. It was the first year model in the US and had a turbo charger so the engine was not just a basic thing. All was good for the first 30,000+ miles and then it all started to go bad. The warranty cost us about $3000 but saved us that many times over. The first repair (air conditioning pump) alone was more than that. By the time we traded it in at 80,000 miles we had even had a brand new turbo charger out in.

Our current car has not had the slightest issue so far. We may have spent $3000 for nothing.

That said, the warranty is very good. Covers everything but normal wear and tear. Even includes loaner car for however long any repairs take at the dealership (which can add up really fast at $100+/day).

We do take our car to dealership for oil and all service appointments. It b is easier because if we do need the warranty to cover something, they need the service record submitted. Receipts and a signed maintenance log were not enough. I had to call and have more detailed records faxed from the "authorized service centers" we had used. They were able to do that, but it was a pain. Thankfully the dealership dropped prices so service is reasonable price now. They also added an espresso shop to waiting room.....

Oh! And one big benefit to going through the dealership service center was the support. The warranty was not going to cover one of the BIG repairs for some tiny technicality. The manager called them up and let them know that if they did not cover, the biggest dealership in the area might just quit using their coverage. Our repair was covered...


So I guess that ramble was to say for an early model or a different sort of engine, I would absolutely buy the coverage again. Maybe or maybe not through the dealership. Worth considering other plans especially if the dealership plan isn't as good.
 

VRBeauty

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DF - Normally I'd agree, and I do routinely turn down extended warranty "offers." I wouldn't be considering this one either, except that this car uses new-to-Ford technology.

amc80 - Thanks for sharing your experience! If I'd had an extended warranty on the MINI, and assuming it would have covered the major repairs needed before the car turned 10, it would have more than paid for itself.

Katharath - That is of course the concern - you're still at the dealership's mercy when it comes to determining what's covered. The MINI had a 3-year bumper-to-bumper, and the dealership did take care of a few fit-and-finish issues without protest. But those are issues they should have corrected anyway, even without the warranty. There was one issue that turned out to be expensive that I believe started within the 3-year window and came to an costly head a few years later, but I blame myself for not being assertive enough to get that addressed or documented...

Too Patient - Your turbo experience is exactly why I'm mulling this over. My car is a 2013 make, the first model year in which Ford offered this technology. I bought it two years later - and when I first went in for a test drive, the aux. battery hadn't been charged - someone in the service dept. was still not familiar with the plug-in technology! :roll: Extending the comprehensive to the car's 10-year mark, or 7 years, would cost me about 7% of what I paid for the car. But - it includes 24/7 roadside assistance. If I deduct the cost of AAA membership during that time period the extended warranty would cost me about 5% of what I paid for the car. Still, way more than chump change. Thanks for the hint about keeping comprehensive service records or, alternatively, using the dealership for all repairs. I'm not the best when it comes to record-keeping, but for something this (potentially) expensive, I can make an exception!
 

TooPatient

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VR -- keep the records but also try to stick to one location for service. We had to have additional directly from the service,place...

New to them technology would be something i would definitely lean towards purchasing additional coverag. A few thousand (and more) was the price of each of several issues we faced...
 

Dancing Fire

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amc80|1436891270|3902697 said:
We bought an extended warranty on a car we bought a couple of years ago. I can't even tell you how much money that warranty has saved us. The car sucks, and we would have spent thousands and thousands of $ fixing it.
Then you bought a POS in the first place... :bigsmile: like we did when we bought a 3 yr old POS 1995 BMW 540i ...paid $30K for the car then spent over $20K on repairs after 9 yrs of ownership with only about 82K miles on the clock, then in 2007 we traded in the POS for a brand new 07 Honda Civic for our daughter. I was so happy that we received $8K trade in credit towards the new Honda... :appl:
 

Dancing Fire

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TooPatient|1436958479|3903041 said:
VR -- The reason we got the warranty on this car is because it saved us HUGELY on our previous car. We really went back and forth on that one and I am so glad we got it on that car. It was the first year model in the US and had a turbo charger so the engine was not just a basic thing. All was good for the first 30,000+ miles and then it all started to go bad. The warranty cost us about $3000 but saved us that many times over. The first repair (air conditioning pump) alone was more than that. By the time we traded it in at 80,000 miles we had even had a brand new turbo charger out in.

Our current car has not had the slightest issue so far. We may have spent $3000 for nothing.
Rule #1...never to buy a turbo charged engine.
 

amc80

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vtigger86 said:
Then you bought a POS in the first place... :bigsmile: like we did when we bought a 3 yr old POS 1995 BMW 540i ...paid $30K for the car then spent over $20K on repairs after 9 yrs of ownership with only about 82K miles on the clock, then in 2007 we traded in the POS for a brand new 07 Honda Civic for our daughter. I was so happy that we received $8K trade in credit towards the new Honda... :appl:

Yes, yes we did. We hate this car but are stuck with it for another year or so.
 

TooPatient

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Dancing Fire|1437002439|3903313 said:
TooPatient|1436958479|3903041 said:
VR -- The reason we got the warranty on this car is because it saved us HUGELY on our previous car. We really went back and forth on that one and I am so glad we got it on that car. It was the first year model in the US and had a turbo charger so the engine was not just a basic thing. All was good for the first 30,000+ miles and then it all started to go bad. The warranty cost us about $3000 but saved us that many times over. The first repair (air conditioning pump) alone was more than that. By the time we traded it in at 80,000 miles we had even had a brand new turbo charger out in.

Our current car has not had the slightest issue so far. We may have spent $3000 for nothing.
Rule #1...never to buy a turbo charged engine.

Yep! They quit doing the turbo the next model year. Drove nice though. (of course the driving we do the turbo almost never came on so would have been better without!)
 

HollyS

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I'm sorry I missed this thread. All dealerships will sell after-market extended warranties, and there are literally hundreds of different companies providing the "warranty" coverage. And the coverage will vary from company to company. Without seeing the contract myself, I hesitate to advise you in concrete terms.

Computer systems are rarely included in the covered repairs, or so my experience tells me. If that helps you decide . . .

Read the fine print, usually located on the back of the contract. It should outline everything they will cover, and specifically point out what will not be covered; they must be upfront per the law. If you don't understand the terminology, or there seems to be gray areas, take the contract directly to the service manager at the dealership and ask him point blank what will and will not be covered.

Extended warranties for cars are not, as DF suggests, worthless. I've seen them be a godsend for many folks needing major repairs after factory warranties have expired. Just remember, buyer beware.
 

Dancing Fire

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HollyS|1437286298|3904696 said:
Extended warranties for cars are not, as DF suggests, worthless. I've seen them be a godsend for many folks needing major repairs after factory warranties have expired. Just remember, buyer beware.
b/c they bought a POS from the get-go... :tongue: Every new car that I have had purchased I told the SA to skip the extended warranty BS part. 3 yr/36K or 4 yr/50k is good enough for me. Last year when my daughter bought her new Honda, Honda SUCKERED her into purchasing an extended warranty for like $1450... :knockout: kids are so gullible!.. :rolleyes:
 

VRBeauty

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HollyS|1437286298|3904696 said:
I'm sorry I missed this thread. All dealerships will sell after-market extended warranties, and there are literally hundreds of different companies providing the "warranty" coverage. And the coverage will vary from company to company. Without seeing the contract myself, I hesitate to advise you in concrete terms.

Computer systems are rarely included in the covered repairs, or so my experience tells me. If that helps you decide . . .

Read the fine print, usually located on the back of the contract. It should outline everything they will cover, and specifically point out what will not be covered; they must be upfront per the law. If you don't understand the terminology, or there seems to be gray areas, take the contract directly to the service manager at the dealership and ask him point blank what will and will not be covered.

Extended warranties for cars are not, as DF suggests, worthless. I've seen them be a godsend for many folks needing major repairs after factory warranties have expired. Just remember, buyer beware.

Thanks Holly - I think I will get a copy of the extended warranty to review, and then see if I want to go back with questions.

(I know, what a concept, huh? But in reality, there's never time to do this during the sales pitch you get when you think you're supposed to be closing a deal!)
 

VRBeauty

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Dancing Fire|1437289740|3904706 said:
HollyS|1437286298|3904696 said:
Extended warranties for cars are not, as DF suggests, worthless. I've seen them be a godsend for many folks needing major repairs after factory warranties have expired. Just remember, buyer beware.
b/c they bought a POS from the get-go... :tongue: Every new car that I have had purchased I told the SA to skip the extended warranty BS part. 3 yr/36K or 4 yr/50k is good enough for me. Last year when my daughter bought her new Honda, Honda SUCKERED her into purchasing an extended warranty for like $1450... :knockout: kids are so gullible!.. :rolleyes:

I did my homework on this car and I think I got a good one, but I do seem to prefer cutting edge cars to tried and true. Somebody has to step up and be first to try something new! :bigsmile:
 

HollyS

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VRBeauty|1437320282|3904808 said:
Dancing Fire|1437289740|3904706 said:
HollyS|1437286298|3904696 said:
Extended warranties for cars are not, as DF suggests, worthless. I've seen them be a godsend for many folks needing major repairs after factory warranties have expired. Just remember, buyer beware.
b/c they bought a POS from the get-go... :tongue: Every new car that I have had purchased I told the SA to skip the extended warranty BS part. 3 yr/36K or 4 yr/50k is good enough for me. Last year when my daughter bought her new Honda, Honda SUCKERED her into purchasing an extended warranty for like $1450... :knockout: kids are so gullible!.. :rolleyes:

I did my homework on this car and I think I got a good one, but I do seem to prefer cutting edge cars to tried and true. Somebody has to step up and be first to try something new! :bigsmile:


If buying a new car, extended warranties should be purchased only when the original warranty is close to running out. Pay cash for the warranty 3 years after buying a new car; never finance the warranty and pay interest on it.

I suspect that DF has more money than God, and therefore can afford not to need the security of an extended warranty. :cheeky:
 

VRBeauty

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HollyS|1438629947|3910564 said:
VRBeauty|1437320282|3904808 said:
Dancing Fire|1437289740|3904706 said:
HollyS|1437286298|3904696 said:
Extended warranties for cars are not, as DF suggests, worthless. I've seen them be a godsend for many folks needing major repairs after factory warranties have expired. Just remember, buyer beware.
b/c they bought a POS from the get-go... :tongue: Every new car that I have had purchased I told the SA to skip the extended warranty BS part. 3 yr/36K or 4 yr/50k is good enough for me. Last year when my daughter bought her new Honda, Honda SUCKERED her into purchasing an extended warranty for like $1450... :knockout: kids are so gullible!.. :rolleyes:

I did my homework on this car and I think I got a good one, but I do seem to prefer cutting edge cars to tried and true. Somebody has to step up and be first to try something new! :bigsmile:


If buying a new car, extended warranties should be purchased only when the original warranty is close to running out. Pay cash for the warranty 3 years after buying a new car; never finance the warranty and pay interest on it.

I suspect that DF has more money than God, and therefore can afford not to need the security of an extended warranty. :cheeky:

I'm not sure he has more money than God, but he does seem to have a good sugar momma! ;-) :lol:

Thanks for your input and suggestions. I especially like your suggestion re timing, since it does give me a bit more time to decide! :D
 

Dancing Fire

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[quote="HollyS|

If buying a new car, extended warranties should be purchased only when the original warranty is close to running out. Pay cash for the warranty 3 years after buying a new car; never finance the warranty and pay interest on it.

I suspect that DF has more money than God, and therefore can afford not to need the security of an extended warranty. :cheeky:[/quote]



That's fine, but don't purchase the extended warranty on the same day you purchase the new car since it is covered by the factory for at least 3 yrs/36k miles. IMO, purchasing an extended warranties on any products is a sucker bet.
 

Dancing Fire

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[quote="VRBeauty|

I'm not sure he has more money than God, but he does seem to have a good sugar momma! ;-) :lol:

[/quote]



And her name is VRB!... :praise:
 
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