Extended Warranty (Vehicle)

[CMA 5.110]

My factory warranty is about to expire. Is an extended warranty worth purchasing and if so, from whom?

 

[TexasEd]

Wait for them to call you on your cell phone.

Seriously, It probably isn't worth it.

 

[brntorng]

An extended warranty is just like any other insurance policy, it spreads the risk for a fee. Statistically speaking, you won't come out ahead unless your vehicle's reliability turns out to be somewhat below average.

For me, an extended warranty or insurance policy only makes sense if I'm unable or unwilling to absorb the potential loss.

 

[Stuck_At_Work]

I purchased the extended warranty when bought my first car after college. The warranty extended the factory warranty from 3 year/3600 mile to 7/100,000 miles. It cost $1800. I thought it was worth it for the peace of mind.

I am now at 88k miles on that car. I have claimed roughly $600 in repairs. I really regret having purchased the warranty. Most of the stuff that fails on your car over time is 'wear and tear' stuff that isn't covered.

 

[Blain]

What kind of car do you have?

 

[CMA 5.110]

I have a 2004 Hyundai santa fe. with 45OOO miles. So far I have only had a two warranty repairs (one in fact yesterday ).

 

[Stuck_At_Work]

I thought all Hyundai's had a 100k mile warranty.

 

[CMA 5.110]

Yes it does have the 10 year powertrain warranty. But what is covered under the 5 year warranty is what I'm concerned about. I can't seem to find exactly what is covered even on the Hyundai website. I'm more worried about engine repairs than anything else.

Please forgive my ignorance, this is/was my first new car and I guess I hear "warranty expiring" and I start having flashbacks to the costly old beast I used to drive before this thing.

 

[accuratehorn]

a) Make sure you buy a policy that allows you to have your vehicle repaired at any independent repair facility, not just at the dealership, which should be illegal (restraint of trade), but a few of those policies get around it somehow.
b) Know exactly what is covered, and know that it is not the same as the bumper to bumper factory warranty that expires after three years or so.
c) If the policy only covers part of what is needed at a shop, you will be expected to pay the rest. They usually don't pay for diagnosis, for example, which these days can be the majority of the time spent on the repair.
d) Beyond that, it is an insurance policy, and you may or may not get more than the value of the extended warranty from it over time. But if something major goes out, especially the transmission or engine, it may well be worth it.

 

[Stuck_At_Work]

I'm pretty sure the engine is included as part of the powertrain.

 

[brntorng]

The Santa Fe has been very reliable. With the 100K factory warranty there wouldn't be much left to cover with another warranty. Forget it and be grateful you chose a solid vehicle.

 

[CMA 5.110]

Cool. Going to avoid buying an extended warranty. Thanks for all the knowledgeable input.

 

[valencia]

Clark Howard on CNN was discussing extended warranties on his show last Saturday. Basically he did not advise them unless one could not afford the repair if it occurred.

 

[busterbrown16]

Check with your bank or lender. Sometimes they offer extended warranties on your car that are a fraction of the dealer price. They cover the same things and allow you the freedome to choose independent repair places. This is what I have done on all car purchases. Extended warranties that cost somewhere between $800 and $1,000 cost around $300 or $400.