Since someone started a conversation re how to best purchase a car, what are your thoughts on extended warranties? Purchase direct from the dealer at time of sale? Third party? Or is it a sucker’s bet?
Every time someone tries to sell me an extended warranty. I simply tell them your product sounds like it's prone to fail. I better buy elsewhere. And walk away.
I purchased the policy offered through my credit union. The first time I financed a car through them it was a very slightly used, 5200 mile sedan that was 2 years old, did not get driven much. The main computer module went after 2 years of me owning it and it only cost me $50 out of pocket to replace.
Without the policy it would have been $1,150, The policy cost around $800 and it wad added on to the financing so I really did not notice the increase. 2 engine mounts went bad about 3 months before the policy expired and that again costs me $50, can not remember what the whole cost was. In my case the policy was a good thing.
Read the fine print, for sure. Most extended warranties cover sturdy, long-lasting drive train parts such as engine and transmission and rear axle assemblies. Those can last hundreds of thousands of miles and rarely fail during the first owner's tenure and quite often not during the 2nd owner's tenure with the vehicle.
But there are some that are offered which cover more sensitive and failure-prone parts. When my Harley Road Glide Ultra had 52,000 miles and was no longer under warranty, I bought an extended warranty for 3 years and another 30,000 miles thru the Harley dealer. I read the fine print and it was comprehensive, even covering electronics and electric motors. I paid around $1200.
Not 6 months later I needed a new transmission and the EW paid for the whole thing. $1600 worth, which paid me back for the EW, and then some.
So now at 56,000 miles I have a wholly new transmission and clutch and my warranty is still good until 82,000 miles.
i have always gotten them for the flat screens....the last two paid off in the last year with dollar amt paid for old tv and i got to roll into new one...got two months to go on latest one and they are home free
i believe you can extend warranty all the way up to before the original expires with the same one they would sell you at the dealership...lot of expensive things on these cars today with all the electronics and safety equipment
A radio for $3000...? I knew Jeep purchasers were suckers but ARE YOU KIDDING ME? You could probably go to a car stereo store and get a way better one for half that. I mean it's not like you're getting hi fidelity sound in a Jeep.
If it's Dennis Quaid, then I take back my comment with apologies. If it's Randy Quaid, then I could believe Jeep would be desperate enough to have him as their spokesperson.
I could tell you that Jeep is crap without going through Chrysler. Their Consumer Reports rating is and always has been in the toilet...which is probably why a real valid bumper to bumper add on warranty might be a good idea if it doesn't soak your wallet.
I have purchased reliable SUV ‘s and trucks previously with the manufacturer warranties and have not experienceed any major repairs but I have always done my homework for reliability on the intended vehicle. I still have the SUV purchased 19 years ago with just schedule maintenance 290,000 miles and I still use it for weekend camping , skiing and fishing trips.
The last two vehicle purchases have been for high performance cars and I opted for the extended warranties and it was a wise afterthought to purchase extended warranties. The 392 Hemi cracked cam and broke lifter 38000 miles. Warranty covered a new engine $ 15,000.00. The 911 , CPU and emission failure 39,000 miles $ 9000.00 repair and extended warranty covered it.
Bottom line do your homework, find a good mechanic and only purchase what you can afford and maintain.
The only service contract worth buying is one from the manufacturer period. I was a finance manager and there's loopholes everywhere if it's not a Ford warranty for a Ford. Chevy-GM, Subaru-Subaru and on and on.
"Like new parts" means a transmission out of a junk yard most likely.
If you get one get the right one. The guy will sell you whatever he has to sell. Don't fall for it!
Of course with leasing, you always have a car payment...for the rest of your life.
If you purchase a quality vehicle, maintain it properly, you might be able to put a few years between those car payments. Save that money and put a larger down payment reducing your payments.
