extended warranty
extended warranty
05-22-2010, 10:41 AM
#3
Senior Member
Join Date: 11-15-2008
Location: Newburgh, NY
Posts: 1,599
I have bought extended warrantees years ago for some of the vehicles that I owned, but never received the value from them that I thought I would.
I own 6 vehicles and a motorhome. Over the years, I analyzed the averages of the most expensive repair costs vs the cost of an extended warrantee. I found that under 100k mi, the cumulative repair bills were always less than the cost of the extended warrantee. The only expensive repair that I have done on 1 of the vehicles was a transmission, and in that case, the vehicle had over 100k mi on it. It is in excellent condition in and out, so it was worth the repair. But the extended warrantee that I would have bought for that vehicle would have already ran out anyway.
I own 6 vehicles and a motorhome. Over the years, I analyzed the averages of the most expensive repair costs vs the cost of an extended warrantee. I found that under 100k mi, the cumulative repair bills were always less than the cost of the extended warrantee. The only expensive repair that I have done on 1 of the vehicles was a transmission, and in that case, the vehicle had over 100k mi on it. It is in excellent condition in and out, so it was worth the repair. But the extended warrantee that I would have bought for that vehicle would have already ran out anyway.
05-22-2010, 11:28 AM
#4
Senior Member
Join Date: 07-05-2008
Location: Akron Ohio
Posts: 5,464
I Too have bought them in the past only to learn I spent more money on them than if I just paid for the repair.
The questions should be did you buy a warranty and then get more $$$ in repairs than what you paid for the warranty.
I think you will find extended warranties are like Vegas the odds are in the houses favore.
The questions should be did you buy a warranty and then get more $$$ in repairs than what you paid for the warranty.
I think you will find extended warranties are like Vegas the odds are in the houses favore.
05-22-2010, 09:08 PM
#5
Senior Member
Join Date: 03-27-2008
Location: Blue Springs Missouri
Posts: 471
actually for me........ i have already had enough work done on my HHR to pay for the extended warranty...... i am SO glad i purchased the extended warranty just wish i had paid a little more for a less deductable.....
my 07 has had more issues... than any other vehicle i have purchased..
i like my car..... just hate it that so MANY things have gone wrong... and not all the same issue.... just a LONG list.
my 07 has had more issues... than any other vehicle i have purchased..
i like my car..... just hate it that so MANY things have gone wrong... and not all the same issue.... just a LONG list.
05-22-2010, 09:29 PM
#6
Senior Member
Join Date: 07-10-2008
Location: Not necessarily Humbolt County
Posts: 421
The one time I bought the extended warranty (for my wife's SRX) it paid for itself on the first repair. As for the HHR, I am not sure what you can extend for 07 on. The powertrain is already 100k/5yrs. I guess you could extend the years. Is there a bumper to bumper extension available?
05-23-2010, 09:10 PM
#7
New Member
Join Date: 04-17-2010
Location: Vermont
Posts: 23
I bought it. I bought it with the zero deductible. If something goes wrong I just want to be able to call and know it's going to be fixed. I know the extended warranty doesn't cover everything but I think it's cheap insurance for what it does.
I had a 2004 Cavalair that when it hit 4 years old with about 90k it developed several problems that would have been covered by the extended warranty. The cost of the repairs was more than what my warranty cost.
I had a 2004 Cavalair that when it hit 4 years old with about 90k it developed several problems that would have been covered by the extended warranty. The cost of the repairs was more than what my warranty cost.
06-17-2010, 10:43 AM
#9
Member
Join Date: 02-17-2008
Location: minneapolis
Posts: 58
Had my head go out on my LT2 10 days after the mfg warranty expired (bought it used, so only had the 3/36). The dealer was kind enough to cover it, but if not that repair would have been DOUBLE the price of the warranty!
06-17-2010, 11:04 AM
#10
Senior Member
Join Date: 02-06-2010
Location: Shreveport, LA
Posts: 580
Extended Warranty
An extended warranty is insurance. I feel that insurance exists to pay for unlikely but potentially catastrophic risks. Medical care, destruction of one's home, a liability claim, and extended need for long-term care (most people admitted to nursing homes die relatively quickly, so this insurance covers fewer people than you might think) are such categories. If the cost of repairing an automobile is a potential disaster for you, then this could work. I would really wonder whether the expenses to own, maintain, and carry collision and liability insurance for it would be worthwhile if I were that financially insecure.
Additional considerations:
1. With the 2007+ cars, the power train is warranted for 5 years or 100,000 miles. Power train items are the most expensive to repair. Others, while significant, rarely will run over $1000 per incident.
2. Insurance is sold based on assumptions that overall, after claims are paid there will be profit left for the insurance company. That's why you should generally self-insure when possible. Failing that, the higher deductible you can afford, the better.
3. While GM's upper level has only limited exclusions, most extended warranties cover only certain items, and exclude FAILURE OF A COVERED ITEM DUE TO A NONCOVERED ITEM'S FAILURE. In other words, you pay up front and find out if you are covered later.
4. After deductibles, the actual amount paid by the extended warranty wil be less than you subconsciously presume it is going to be.
5. Extended warranties tend to be profit centers. The percentage of premiums paid out in claims tends to be disproportionately low compared to other lines of insurance. There are middle-men making a cut of the profit in addition to the insurer itself.
In summary, unless you feel you HAVE TO have an extended warranty, I would avoid it.
Additional considerations:
1. With the 2007+ cars, the power train is warranted for 5 years or 100,000 miles. Power train items are the most expensive to repair. Others, while significant, rarely will run over $1000 per incident.
2. Insurance is sold based on assumptions that overall, after claims are paid there will be profit left for the insurance company. That's why you should generally self-insure when possible. Failing that, the higher deductible you can afford, the better.
3. While GM's upper level has only limited exclusions, most extended warranties cover only certain items, and exclude FAILURE OF A COVERED ITEM DUE TO A NONCOVERED ITEM'S FAILURE. In other words, you pay up front and find out if you are covered later.
4. After deductibles, the actual amount paid by the extended warranty wil be less than you subconsciously presume it is going to be.
5. Extended warranties tend to be profit centers. The percentage of premiums paid out in claims tends to be disproportionately low compared to other lines of insurance. There are middle-men making a cut of the profit in addition to the insurer itself.
In summary, unless you feel you HAVE TO have an extended warranty, I would avoid it.