Extended warranties? worth it?

groebuck

groebuck

New member
So I just got a used 2001 Oldsmobile Aurora with 28K miles on it - loaded to the gills. The Olds warranty is 5/60000 and about up (bought in 10/2001). I called GM to see if I could extend it and they only offer that in the first three of the warranty. So...anyone have any luck with third party? Should I do it or not? Quotes I have seen are in the 1500 range for 5 years 75K miles which covers a lot but not all with 100 deductable.
 
groebuck said:
So I just got a used 2001 Oldsmobile Aurora with 28K miles on it - loaded to the gills. The Olds warranty is 5/60000 and about up (bought in 10/2001). I called GM to see if I could extend it and they only offer that in the first three of the warranty. So...anyone have any luck with third party? Should I do it or not? Quotes I have seen are in the 1500 range for 5 years 75K miles which covers a lot but not all with 100 deductable.
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Just my take.
If the warranty you are considering is sold by a new car dealer, then it might be OK. Many third party warranties are hard to collect from. My mechanic doesn't honor them at all. He says they always want to argue, have him install used parts, hold the vehicle until the company can have one of their reps check it out, etc. He will fix the car, you pay the bill and you can try to get the money from the warranty company.:)

One of the biggest third party companies, Warranty Gold, went belly up not too long back and left a lot of people without coverage.

Personally, I'm not a fan of extended warranties from either the dealer of third party, but that's just me.:)

Charles
 
I'm not a fan of them either. As long as you do enough preventative maintenance yourself and don't beat on the vehicle, it will hold up pretty well.
 
Ask your local GM dealer service department what ones they take and which is the best. When I was in the dealers We would work with most aftermarket warranties. The best aftermarket one at the time was GE Capital and the worst one was Addesco. Do a lot of research. You also might want to try AAA they used to offer warranties to members and alot of garages are AAA cert.
 
from my experience in the dealership industry i feel they are worth it. i have seen people have to pay $1-3,000.00 bills that they would have had to pay only $100.00 deductable. not to scare you but on the late model aurora's the engine and transmission must be removed to work on one or the other. a 7 hour job can turn into a 15 hour job real quick on either. check with your local g.m. dealer and see if you can purchase g.m.p.p(general motors protection plan). warrenties are like insurances, a gamble on whter you need it or not. good luck and enjoy your new car.
 
CharlesW said:
Just my take.
If the warranty you are considering is sold by a new car dealer, then it might be OK. Many third party warranties are hard to collect from. My mechanic doesn't honor them at all. He says they always want to argue, have him install used parts, hold the vehicle until the company can have one of their reps check it out, etc. He will fix the car, you pay the bill and you can try to get the money from the warranty company.:)

One of the biggest third party companies, Warranty Gold, went belly up not too long back and left a lot of people without coverage.

Personally, I'm not a fan of extended warranties from either the dealer of third party, but that's just me.:)

Charles
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I agree with almost everything that was said by Charles. DO NOT buy a aftermarket warranty most are nothing more than shames to get your money and when you try to file a claim they have little hidden things within them such as mandatory additives all oil changes must be within 50 miles of the 3k mark and if you miss one or cannot show proof of doing they deny the claim. Most of them do there best to deny claims. Honestly stay away you will be throwing 2k away that would be better spent on a good bit of maintenance.

I would ONLY go with a FActory Warranty Nothing else

Richard
 
Yeah I have been researching - there is also the semanitc they use - BREAK is always in bold - I read some will claim wear and tear rather than break to get out of paying - and they all seem to have arbitration clauses - you can't sue you have to use binding arbitration.

I will look up GE capital though - I tried GMPP but they will only if the car is currently in it's 3/36 time frame.
 
I bought my used buick from a Lexus dealer and purchased the Extended Warranty from them for a $1,100. One week after having the car the dealer replaced the power antanna for free and let me use a brand new Lexus with 400 miles on it for 3 weeks while they waited on the part, the cost to me Nothing.One year before the warranty was up the transmission went out,lexus dosn't work on Buicks so they had it towed to a Buick Dealers ship and replaced the trans there ,cost of replacement $ 3,000. The trans was warranted by Buick for one year before the year was up the trans went again,this time Buick honored the warranty and replaced the trans. i don't think it cost me a dime.So IMO the $1,100 paid for itself.BTW why wife purchased an extended warranty on her 2001 dodge, that aslo paid off.

It is up to you if you want to roll the Dice or not..
 
Who was your warranty provider? I checked WarrantyDirect they want almost 2000 for 3 years. 2300 if I want the plus. Smartautowarranty is much less but I don't know if they cover wear and tear.
 
groebuck said:
Who was your warranty provider? I checked WarrantyDirect they want almost 2000 for 3 years. 2300 if I want the plus. Smartautowarranty is much less but I don't know if they cover wear and tear.
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Im not sure .I think it was the same deal lexus gives to their customers who purchase used lexus through their dealership. i think it was called Lexus Gold.I had zero problems when making a claim and i couldn't beleive they would give me a new lexus for a rental at no charge..
 
Believe it or not I purchased mine from GEICO, the onlr draw back is that it has a $250.00 deductable. But it has saved me a couple of times.
 
My 2 cents: Third party warranty companies make a good living by playing the odds that they will take in more than they will pay out in claims. They wouldn't be in this game if it wasn't in their favor; however, if you cannot financially handle a $1000-3000 repair bill, an extended warranty may give you some peace of mind.

If you feel the vehicle you are purchasing has a problematic history, try to stick with a dealer supplied warranty. Watch out for sneakey salesman who try to scare you into buying extended warrantys because of expensive parts/labor costs. They often pitch that it only adds a few dollars to your monthly payments. Remember, you will be paying upfront for your future repair costs + interest if it is included in your loan. Find out exactly what their policy will cover and don't let them hurry you into making a hasty/impulsive decision by saying that the "great deal" they are offering you is only available today. Salesmen often gloss over deductibles and other fine print warranty details.
 
well I have really done some research into it - I have found one that is acutally local (a national company HQ is here) I spoke with someone who was very knowledgable and friendly with zero pressue. He went over "wear and tear" and what that really means as far as the car. How some warranties have Labor included but only to a certain amount etc. The other thing is to check their am best rating...he pretty much told me it was a gamble and that was how they made their money. I pay 1300 for 6 years/60000 miles for coverage - they are betting that nothing will go wrong in that time, I am hoping the same thing, but if it does I am covered. And it's transferrable for a small fee so if I sell the car before the 90K miles are up I have one more selling point...
 
groebuck said:
well I have really done some research into it - I have found one that is acutally local (a national company HQ is here) I spoke with someone who was very knowledgable and friendly with zero pressue. He went over "wear and tear" and what that really means as far as the car. How some warranties have Labor included but only to a certain amount etc. The other thing is to check their am best rating...he pretty much told me it was a gamble and that was how they made their money. I pay 1300 for 6 years/60000 miles for coverage - they are betting that nothing will go wrong in that time, I am hoping the same thing, but if it does I am covered. And it's transferrable for a small fee so if I sell the car before the 90K miles are up I have one more selling point...
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One thing i learned from Dodge and their warranty. If the car has any major problems and was not serviced by Dodge ,they wanted to see receipts to prove the car was fully maintained ,If you maintain your car yourself or through your mechanic make sure you save the receipts Example: oil changes, Tunes up Etc. Otherwise your giving the warranty holder an excuse to deny your claim.. Good Luck
 
Oh yeah - he told me that too - just follow your manufacturer's guide...he even told me that if you do your own oil changes then just keep the receipts in a folder or with the car.
 
groebuck said:
Oh yeah - he told me that too - just follow your manufacturer's guide...he even told me that if you do your own oil changes then just keep the receipts in a folder or with the car.
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i have a folder i store all my receipts in,then i put down on a notebook pad who done the work and where, the mechanic who performed the task,mileage,date,and location,how much $$$. Good job on all the work you put into this.The Warranty is just like car insurance,we hope we don't have to use it but it is their just in case..
 
if its an american car get the warranty....if the warranty covers ALL major electrical and mechanical parts and systems it is definately worth it
 
I did actually get a warranty. 5starwarranty.com - they are directly insured (important - if you seen Risk Retention Group in a contract - run). Insurer is AM Best A+ rated, D&B Listed. They only offer one type of warranty, exclusionary. That means only the things they list are NOT covered. That actual list was pretty small - normal stuff, breaks - shocks - exhaust etc..things you would replace anyway.

It was 1300 for 3 years /36000 miles. That is 3 years from now and 36000 miles from now (be sure that is what you get and not total mileage). Even if I never use it - it's piece of mind. I figure I pay car insurance IN CASE I have an accident.
 
If it made it this long with no major problems, the chances are it will go three more years with limited or no problems, especially since it is low mileage.
I personally would pass on it as I about to do with my 3 year old van which also have low mileage. I keep getting offered an extended warranty but I won't even hit the original 36K covered for 5-10 more years to come:)
 
You know my luck PB - remember what brought me to DC in the first place?? my Brand New Acura with the acid rain damage ?? :lol
 
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