Buy The New Vehicle Extended Warranty, But Shop It!

[Abraham]

I have yet to buy a new vehicle extended warranty that didn't ultimately more than pay for itself.

That said, such was offered at the dealership upon buying/filling out paperwork for my Tundra. I was also told I had to make the decision to buy the extended warranty there and then and couldn't take the time to think about and come back to buy it.

That was not true.

Without going into specific numbers, I bought a new vehicle warranty from a different dealership, same manufacturer, located in another state for roughly half the cost of the extended warranty where I bought the vehicle. I bought it 2/4 weeks after the purchase of the new vehicle. (I don't recall the time exactly as it was 6 years ago) That may sound a bit bizarre, but you can get such deals if you look for them.

So far, my Tundra has had 2 mechanical problems, occurring well out of the new vehicle warranty time period - one costly nearly $3000.00 (about 2/3 more money than I paid for the extended warranty) and not one cent out of pocket expense. In other words zero deductible.

So, when you buy a new vehicle, get the extended warranty...elsewhere, because chances are the dealership you're buying your vehicle will want to sell you one - for a lot more money than you have to pay.

Now, my question: Anyone else here bought an extended warranty outside the dealership you bought your new vehicle from or am I the only one to do so?

Thanks!

[WildBill]

Thanks for your post Abraham. A friend just bought a new Subaru w/o the warranty.
I will suggest that she check into this option.

I remember when I bought my last car I think the dealer wanted almost $400/month for the
extended warranty so I turned down their generous offer.

Did you buy the warranty from an out of state dealer just because of the cost was cheaper
than you could find from a Texas dealer?

[Mxrdad]

The only time I purchased extended warranty (years ago) was with a motor home I purchased (used) and got the warranty from them. I didnt know I had other options at the time. And that warranty paid for itself many times over. And over.

I have a Tundra as well as my son, my son in law and we have 1 Tundra as a work truck. The 1st Tundra I bought was back in 2002, with no extended warranty and the truck eventually went to my grandson which he still has today. Never bought extended warranty for that one. That 2002 Tundra just now rolled over at 400,000 miles and still going strong although he did have the transmission rebuilt a few months ago.

I have always figured Toyota is a good vehicle with no need for extended warranties and that worked out back in 2002. Out of the 4 newer ones (2013 and up to 2016) I'm not so convinced anymore. We have had small problems from our newer Tundras than we did with the older ones. I dont know if I will buy another Tundra when the time comes or not. Still debating that one.

Sorry, that was kinda off topic but thanks for the heads up. Now days, I think an extended warranty is a wise investment. Its just like any other insurance policy; hate to pay for it but if you need it, your very glad you had it. It doesnt take long to rack up a big repair bill now-a-days.

[Abraham]

WildBill,

At this point I don't remember. It's been 6 years plus since I bought the ext. warranty.

I could look it up if you want me to, but I remember it was another Toyota dealership located in Illinois, I think...but why I chose them or how, other than the cost is something me old noggin won't digest.

Mxrdad,

Given the large number of computerized gizmos in every vehicle now an extended warranty is a good investment no matter the make.

I recently had some sort of anti-lock brake thinga-ma-jig go bad and to replace it with labor and part replacement (computerized of course) cost nearly $3000.00. If I recall (roughly correct) the extended warranty cost about $1000.00 with no deductible. I am so glad I bought it.

My only complaint (mentioned in a previous thread) is the annoying email surveys (plural) and just this past Friday some Toyota entity mailed me a letter wanting more information. I filed it the round file drawer.

Honestly, the way they demand information you'd think I worked for them, I must comply, resistance is futile...my eye... or some other part of me...

[WildBill]

WildBill,

At this point I don't remember. It's been 6 years plus since I bought the ext. warranty.

I could look it up if you want me to, but I remember it was another Toyota dealership located in Illinois, I think...but why I chose them or how, other than the cost is something me old noggin won't digest.

No thanks, I was just curious. My friend's new car is a turbo [=expensive to repair] so I am suggesting the extended warranty to her.

As an aside, she lives in Houston, but bought her car in Bryan.
My friend's sister, a very skilled and tenacious negotiator, did all of the haggling and got the car for about $5K less than the local dealer.
All my friend had to do was sign the papers and drive away in her new car.

[TexasSully]

I did this on a Ford Expedition about 12 years ago. I purchased it from an out of state dealer for about half the cost of what the Austin dealer wanted. At that time as long as it was still covered under the factory warranty you could still buy the Ford extended warranty. I think I had 34K miles on it when we purchased it almost 2 years after the vehicle purchase.

[Mxrdad]

WildBill,

At this point I don't remember. It's been 6 years plus since I bought the ext. warranty.

I could look it up if you want me to, but I remember it was another Toyota dealership located in Illinois, I think...but why I chose them or how, other than the cost is something me old noggin won't digest.

Mxrdad,

Given the large number of computerized gizmos in every vehicle now an extended warranty is a good investment no matter the make.

I recently had some sort of anti-lock brake thinga-ma-jig go bad and to replace it with labor and part replacement (computerized of course) cost nearly $3000.00. If I recall (roughly correct) the extended warranty cost about $1000.00 with no deductible. I am so glad I bought it.

My only complaint (mentioned in a previous thread) is the annoying email surveys (plural) and just this past Friday some Toyota entity mailed me a letter wanting more information. I filed it the round file drawer.

Honestly, the way they demand information you'd think I worked for them, I must comply, resistance is futile...my eye... or some other part of me...

I hear ya, if that witch/criminal would've won, I bet she would've made it a law to fill them dam things out. LOL.

I had almost the same thing but it was a light that came on directly located under the RPM needle that said TRAC OFF. (Should I be offended when my truck tells me to TRAC OFF?) Lol. Luckily, I have a very honest mechanic that I've been dealing with for 12 years and I trust him. He said dont worry about it, has something to do with emissions and computer. He told me go ahead and drive it and scheduled it to come to him in 3 days. Well, the light went out by itself before I could take it in to him. He said dont worry about driving it, no worries. I just wonder if I would have got the same response from the dealer. Dunno. But I bet just that 1 light would be worth the extended warranty.

On a side note, I took my truck into dealer for maintenance (it was free) and while there, truck was running, door open and that beeping from the seat belt (not being buckled) was annoying as all get out. They asked if I wanted to disable it, and of course I said YES. They brought computer out, hooked it up and disabled that annoying sound. They tweeked a few other settings and while it doesnt change the performance, it sure makes life easier. I always buckle up when driving and dont need no stinking beeping noise to remind me. haha.

[rotor]

Most studies on this topic show it does not pay for itself. At least that's what Consumer Reports says. I personally have never bought one for a car. I have bought the extended warranty for some items including my house and when I tried to collect the company had gone bankrupt. Let the buyer beware and just because the dealer is selling it does not mean that the extended warranty is not a 3rd party.

[priusron]

I paid cash for my new jeep in 2014. It is a Rubicon Wrangler X. It has a lot of electronics on it. Since my brother also bought one we got the zero dedictable warranty for $100 over cost. It is a very complete warranty, even covering the shocks. Well worth it for today's vehicles that the average person is not able to repair.

[Dadtodabone]

I purchased extended warranty coverage for both my Sierra and my wife's Acadia. Our dealer had a plan for both that would set us back $3400.
We opted to not purchase these plans. I instead shopped coverage and cost from dealers as well as third party providers.
We wound up purchasing a factory GMPP Major plan for both at a cost of $1903 from Smith Chevrolet in Indiana. Best price, although an Georgia dealer was close, good service, and our warranty info is on every GM service computer in the country.(With some third party plans contact and negotiations fall to the car owner)
Timing is important for pricing and coverage. GM views a vehicle as new for it's first year of life as long as mileage is below 10k(verify it may have changed in the last 4 years)so you can purchase , for example, a 6 year/70k mile New car plan, at New car pricing that will cover your vehicles until they are near 7 years old and approaching 80k miles. If you buy a plan when you buy the car you get 6/70.

[FL450]

We buy our warrantys directly off the manufactors web site at a price far less than dealers pricing without having to negotiate and most manufactors offer 0% financing on warrantys as well. After trading several vehicles we requested and received prorated premium refunds on the remaining warranty.

[mrvmax]

Warranties are insurance policies and they are never worthwhile unless you have a claim. I purchased the extended warranty on my then new 2007 accord and I sold it with 97k and never used the warranty. I purchased the warranty on my 1996 Powerstroke F350 I bought used (spent 1500 on the warranty) and never used it. I never bought it on my 2014 Subaru Outback I bought two years ago. It's all a gamble but if you can get one reasonably priced it may be worth it. I don't like buying extended warranties, you should not need to if a product is built right. I buy vehicles with high reliability ratings so I avoid potential problems but I realize stuff still happens. Warranties are a money maker for companies and personally I hate them since I think they are a scam. If they would build their products right they would rarely be needed.

[Abraham]

Buying an extended warranty for a new vehicle is THE only type extended warranty I buy.

So far every one I've bought, (my first was for a Ford F150) have paid for themselves and then some.

With the Ford pickup, the AC went out at 70,000 miles or so and the cost to fix it was far beyond the original cost of the extended warranty. This was my first vehicle extended warranty. BTW, I'm a fanatic maintenance buff, so my vehicles are well taken care of.

Yes, the manufacturer gambles you will never use the warranty so they profit immensely if you don't have something go awry. You gamble something will eventually go awry.

Now, new vehicles are so very complex and parts so very expensive, I gamble complexity is rife with breakdown potential.

My wife is a warranty derider, she absolutely detests buying warranties, but given our experience with three different vehicle mfg's, (Ford, Honda, Toyota) we've come to realize, galling as it may be, buying this insurance policy (yes, it is a form of insurance) is both comforting and something (so far anyway) that has for us been a great investment.

On a side note: I've a friend who buys nothing but very high end vehicles i.e., Aston Martin as one example. His cars constantly break down. One would expect a $125,000.00 car to hold up, but even these pricey models are so complex with computer this and that - they are going to go belly up more often than when simpler vehicles were made...

[karder]

I have never bought the extended warranty on a vehicle. I can do most of my own repairs and it is rare for something to break that I can't fix with a quick trip to autozone. I can't rebuild a transmission or an engine and I even shy away from timing belt changes (those can be a hassle depending on what vehicle you own), but otherwise I will do my own repairs and maintenance. I can understand the reassurance of having one though and I might consider it in the future, especially as I read these stories about folks that have major problems with low mileage vehicles.

[Jeff B.]

We've done several of the extended warranties. Interestingly, the one that I never used was on my 2003 F150. It's been a very good truck and latley needed a few things that I consider normal wear and tear items.

On the other hand, my wife had to have a Volvo S60. I bought the extended warranty (wish I had seen this post back then :)) and man 0 man was I glad. We fought AC and electrical on that thing until it got totaled sitting at a light. Wife now has a Lexus with the Extended, but haven't had to use it. I'll be looking for a new truck relatively soon and whatever I get (F150, F250 or Tundra), I'll get one. I've also seen some stuff from USAA that they are offering them as well.

Jeff B.