Don't buy warranties/extended-warranties, ever. With the money you'll save, you can repair/replace items if need be; and you'll still be far, far ahead.
If you buy a POS like a Range Rover, get the warranty. Guy buys a 6 year old Ranger Rover from CarMax. Gets a 6 year bumper to bumper no deductible warranty for $3900. Is the first four years CarMax has paid over $9000 for repairs.
I could buy a brand new Range Rover, and I'd still be money ahead with all the money I've saved by not ever buying warranties.
99.9% of the time I would say no, and in this case I would say no. Buying a new diesel and planning on putting a zillion miles on it quickly, you may have a very good chance at coming out ahead with the extended warranty.
It is obviously a better deal for those selling the warranties than those buying or they would not offer them. My guess is, maybe a good deal for 1 in 10 or so.
I remember one time I was buying a new Honda and the salesman tried to push an extended warranty on me and I said, "If the car is that bad that I need an additional warranty, I'm no going to buy the car." He quickly quieted and didn't mention the matter again and I bought the car and drove it 60,000 miles before I traded it off for another Honda-sans extended warranty.
I don't buy them, they are a money maker for the dealership, everything is geared toward them and their profit margin and nothing is geared toward the consumer.
I don't buy them, they are a money maker for the dealership, everything is geared toward them and their profit margin and nothing is geared toward the consumer.
I think it was mentioned already, but good luck getting anything done. Better take the money and put it in a jar and use it when you have a problem.
Read the 28 page document on what's not covered and you will see. That's if you can see the print that is the size of a pinhead and in Aramaic
Read the 28 page document on what's not covered and you will see. That's if you can see the print that is the size of a pinhead and in Aramaic
If you get a lemon, it's a good deal. If you get a good vehicle (and maintain it), there's no return on your investment. However, the same could be said for house/life or any other insurance.
Insurance is a bit like gambling, and in like manner, Vegas rules apply. Odds always favor the house.
Insurance is a bit like gambling, and in like manner, Vegas rules apply. Odds always favor the house.
The critical difference being that most of us can afford to suffer a significant vehicle repair. It might be painful for a bit, but most of us could recover. The loss of a house, on the other hand, or of a spouse's/parent's/etc. earning capability, not so much.If you get a lemon, it's a good deal. If you get a good vehicle (and maintain it), there's no return on your investment. However, the same could be said for house/life or any other insurance.
Insurance is a bit like gambling, and in like manner, Vegas rules apply. Odds always favor the house.
I've bought some over the years and didn't need them. Bought a couple and just abused the hell out of the dealership with it (both Fords, just sayin'). I agree it's a profit maker for the dealer, but if you actually use it, you generally finish ahead.
I had one from CarMax that got intake manifold gaskets replaced five times. Then, just before the warranty went out, I took it in and got $3k worth of repairs done for $75. Granted, that Windstar was a "problem child".
Mrs. Zap drives an Explorer with a warranty. It's been in several times, including when the friggin' front axle fell out as she was driving down the highway (note: front wheel drive vehicles stop really fast when the front axle falls out....who knew?). It is kinda nice to call AAA, have them drag the thing to the dealer, walk in, toss them the keys and say "fix it, please", along with "Where's my rental?" and not worry about the cost.
The idea of putting the cost of the warranty in savings is great, because 9 times out of 10, you'll finish ahead. The problem is, almost nobody actually does that. The money never gets put in, gets spent elsewhere, etc...
I had one from CarMax that got intake manifold gaskets replaced five times. Then, just before the warranty went out, I took it in and got $3k worth of repairs done for $75. Granted, that Windstar was a "problem child".
Mrs. Zap drives an Explorer with a warranty. It's been in several times, including when the friggin' front axle fell out as she was driving down the highway (note: front wheel drive vehicles stop really fast when the front axle falls out....who knew?). It is kinda nice to call AAA, have them drag the thing to the dealer, walk in, toss them the keys and say "fix it, please", along with "Where's my rental?" and not worry about the cost.
The idea of putting the cost of the warranty in savings is great, because 9 times out of 10, you'll finish ahead. The problem is, almost nobody actually does that. The money never gets put in, gets spent elsewhere, etc...
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