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extended warranty


Steve_R

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l just bought a 2008 Ford escape with 57000kms last night and l cant make my mind up to buy the extended warranty or not? do you think its worth the extra money?

 

 

Bought a 2003 Subaru Legacy with 67 000Km and financed a 3 year or 60ooo km extended warranty for $2200. Now, at 180 000km my car drives like new and doesn't know what a mechanic is. I 've just waisted $3000.

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Bought a 2003 Subaru Legacy with 67 000Km and financed a 3 year or 60ooo km extended warranty for $2200. Now, at 180 000km my car drives like new and doesn't know what a mechanic is. I 've just waisted $3000.

 

like insurance.never know when ya mite need it.but when ya do,its nice to have.

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I believe the guy that writes the Lemonade books does not suggest you buy extended warranties.

 

I turned the offer down on my old Aerostar. Leased it for 4 years, bought it in the end and they tried to sucker me into an extended warranty. Told them they were nuts, I've driven the thing for this long and I don't know what's wrong with it? No way I was going to throw away 18 hundred bucks! Never once regreted it.

 

Turned it down on the used Five Hudred I bought in October, $1700. Hopefully I will never have to regret it, but then that money can pay for repairs and if all works out the car will be ready for the scrap yard by the time a serious issue arises anyhow...knocking on wood :whistling:

 

Have the car checked out completly by a good mechanic before any dealer warranty runs out and you may be better off by banking the money.

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If this is a manufacturer’s (Ford’s) extended warrantee then you’re likely OK buying it; without having too many issues with claims. The only down fall is; you’re committed to going to the dealer for anything that is covered.

If it is a third party warrantee company be very careful; read and understand all the exceptions in the policy.

I had to deal with some of these third party companies for my customers and like what was said above, there is a loop hole for them to crawl through for many things.

That being said and if you do decide to purchase a policy, make sure things like gaskets, emissions & electronics are covered, right alone with the powertrain coverage.

A lot of times when there’s an engine failure, it’s due to a gasket that had failed first. If the insurance company’s adjuster/appraiser can confirm that the engine damage was due to a gasket; they’ll deny the claim.

Also check into what the insurer’s maintenance schedule is like. As in what they want from you, to prove that the vehicle was being looked after by you.

I had this one person that had missed a basic servicing (oil change) by about a thousand kilometers. They had the servicing done when they realized they were over due and then had a couple of others done after that on the proper intervals. A year or so later the transmission went out of their mini van (Chrysler Surprise Surprise LOL) and the insurance denied the claim due to the one over due servicing.

I tried arguing the fact; what does an engine oil change have to do with the transmission?

They agreed nothing; but the customer broke the contract by not following the maintenance schedule.

So go into this with both eyes wide open and don’t believe everything the sales person tells you; as too what this policy will do for you. They make commission off of that sale as well.

 

Dan.

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Extended warranties are a really good money maker for the provider. Most average 10% of the cost of the vehicle that means if they do not have to replace 1 vehicle in 10 they make money. If you were promised that in a portfolio you would sell your soul to sign up for it. If it was the lottery you would sign up for it but now that you are on the other side of the equation are you still gung ho to be on the losing side?. If you take the $1200.oo and send it into the morgage company at 6% in 2 years it will be worth over 72.oo per year simple interest.

 

 

Art

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Bought a 2003 Subaru Legacy with 67 000Km and financed a 3 year or 60ooo km extended warranty for $2200. Now, at 180 000km my car drives like new and doesn't know what a mechanic is. I 've just waisted $3000.

 

Thats because its a subaru :thumbsup_anim: Pretty reliable set of wheels!!

 

Now, if your talking FORD, get as much warranty as you can :whistling::lol:

 

S.

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I think it's one of those damned if you do, damned if you don't thangs. My cousin bought a one year old Expedition and when it was going off warranty he bought the extended warranty for it. He's more than got his money back in the first year. I bought it one time on a car I'd had since new and it was a waste of money for me. Didn't have a thing go wrong.

 

I was debating about buying out my leased Pilot a couple of years ago and asked a Honda service guy his opinion on the extended warranty. He said I'd probably be wasting my money given the low mileage and great condition of my vehicle. Apparently it really was in great condition as I heard from my dealer that it sold for more than the residual at auction to another dealer. Mine wanted to buy it himself but wouldn't pay that much. I didn't buy it myself because I couldn't make a deal ahead of time and was told I was crazy to pay the residual for it. In hindsight mebbe I shoulda.

 

One interesting thing the Honda guy said was that he'd found the company to be really good at covering certain stuff out of warranty including some very high ticket items, depending I suppose on the apparent treatment the vehicle had had. You Honda owners keep that in mind. No guarantees from me but worth a shot if you have an after warranty problem. Costs nothing to ask.

 

I know other companies have unpublished exceptions on the books. A buddy of mine in Louisville got new front spindle and brake assemblies with a few hundred thousand miles on his big Ford pickup. I think it was a 250 series but not certain. Another of our dive buddies who used to work in Ford's R&D clued him in to it one day when we met up in Ohio. The thing I remember most about that truck was the big ole hogleg he kept under the driver's seat. :w00t:

 

JF

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another thing just crossed my mind.The original warranty is probably still in effect. I believe it was 100,000 km or 5 years on motor and powertrain.look into that, the warranty on used dealer purchased vehicules is transferable. if so, forget about the extended, unless you do alot of driving, you may not even need it.

Edited by mercman
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If you take the $1200.oo and send it into the morgage company at 6% in 2 years it will be worth over 72.oo per year simple interest.

Art

 

This is a GREAT idea but where in the world can you get 6% interest on your money these days.....even though....you should take the $1200 and purchase a CD for two years or a 11 month CD where you can get the money out without any penalty.

 

Bob

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Bob if you check what your House Mortgage percentage is it will be around 6% depending on when you bought the house. Right now mine is at 4.3% which is better than CD or Money market accounts are paying. When your investments are not paying well paying off your highest debt percentage is like having a better return on your investments. If you have credit card debt it is eating up 23% of your income and even when the market was great the return was not that good.

 

 

Art

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Eberybody will have their stories, mine was a 2 year on my Expedition, it was $1800 when I bought it and included rust protection and I used about $6000 worth of repairs and hae had 3 rust spots painted. I was thankful I bought it. Small price to pay to protect your investment, that is the way I looked at it.

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Bob if you check what your House Mortgage percentage is it will be around 6% depending on when you bought the house. Right now mine is at 4.3% which is better than CD or Money market accounts are paying. When your investments are not paying well paying off your highest debt percentage is like having a better return on your investments. If you have credit card debt it is eating up 23% of your income and even when the market was great the return was not that good.

Art

 

OH, OK...I agree 100% in that thinking.....mortgage ? ? ? haven't had one for 28 years but that's great advice on paying off or forward on any loans...even just adding a additional $50 per month on a car loan helps a LOT...wish more young guys would practice this type of finance...also good investments in the stock market as it always pays off more in the LONG run.

 

Bob

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