Is an extended warranty worth it ?
 

When I bought my 2008 Toyota 4 1/2 years ago I argued with David about buying the extended warranty. He argued that it is money that we would just throw away, especially since we would pay interest on it because it would be financed.

Go back to June of this year. I took the Toyota in for its regular service/maintenance which included a tire rotation. OK, nothing out of the ordinary, except when I picked up the car I had a small vibration at higher speeds. So the next week I take the car back to the dealership and tell them to take the car out on the road and drive it at a higher speed to feel the vibration. After sitting there for 2 hours they come back and tell me that it is probably the tires and that it should go away. I knew better, but they wanted nothing to do with me. So I take my car home and do short drives, no long trips in the Toyota.

Fast Forward to last Wednesday. My van was full of Davids crap and I needed to go to my Niece's house to help her prepare Thanksgiving Dinner. I picked up my mom and we headed out to my niece's. I felt the vibration, and so did my mom, I think it actually was starting to freak her out. Now it was not a car shaking vibration, it was when you got on the gas you felt a small vibration. Steering wheel didn't shake so I knew it was not the tires, it had to be something else. Well as I was heading back to my moms I noticed that the vibration was starting a lower and lower speeds. By the time I got to my moms I could feel the vibrations at 35mph.

After dropping my mom off I decided to just go to a Toyota dealership that was close to her house, not the one I had previously taken the car to. After explaining the problem to the Service rep. he said they would take a look and let me know if it was the tires and that it would cost me $98.00 to have them balance the tires. A little outrageous on the price, but OK, if that is the problem I just wanted it fixed.

So I sat in the waiting room for almost 3 hours. The way this dealership is, you can see into the service area. It was probably 45min before I saw my car in the service area (I didn't have an appointment and they took it for a test drive so I don't think that's too bad). I saw them take all 4 tires off and I saw them checking out all the brakes. When they got to the front end there were a couple of guys at first looking, then there were 3, then 4, then there were 5 guys checking out the front end. As soon as they were there, they were gone. I saw the guy who had originally started on my car, start working on another car. I sat there for another 30 minutes till the service manager came out and told me that it was a bad bearing and that they could not get the part til Friday. YEAH ! I have an answer, and it will be fixed, and it is under warranty. No cost, even better.

I missed the call on Friday morning from the dealership. So before we called them back, David and I had to figure out a time to tell them that we will be there to pick it up. Since I was driving we decided to have David call and talk to Brian the service manager. After being on hold forever, Brian came on the phone and told David that they would need the car a little longer. Brian told David that the problem was a lot bigger than anticipated. As they were taking the part off that needed to be replaced, they found another problem, then as they took another part off, they found another problem. It turns out that I need a new transmission and front axle. HOLY CRAP ! David asked how much this was going to cost. If I didn't have the platinum warranty, it would have been extremely costly, since I had the warranty, everything is covered.

So it will probably be at least a week til I get my car back. Hopefully fixed, but my concern is that it will not drive the same. I guess I need to keep a positive attitude, but to have the transmission & front axle replaced at 36,000 miles ??....I am just glad it is covered.

Most likely your extended warranty is not going to be used for this repair. On 2008 the warranty is 36,000 miles basic coverage and the drive train is 60,000 miles so it is covered under the standard warranty. I'm a Dave Ramsey fan and he say never buy an extended warranty. I have purchased them before and have never used one yet. When the dealership sells you one they make around 50% profit on them and any seal coat or any thing extra they can sell you. They also make money if you finance it for you. So for me they are a total rip off. I now ask them if they don't have any faith in their product.

And here I thought that I did something smart. :(

That's OK. I am just happy that it will be fixed. I just thought that buying the 6yr, 100,000 mile bumper to bumper warranty would be worth the cost.

I got the extended warranty to 100k when I purchased my 2005 Toyota Tundra, 105,000 on it and never used it. When I purchased my wife new car I said no since again it is good til 60,000. I have to admit we have had good luck with most of our cars,

Total waste of $$$...especially if it is NOT provided by the original vehicle Manufacturer.

I get it, maybe it was a waste. I still have time left on it. But for now I am going to let David believe that it was because I talked him into the warranty. Cause I for sure don't want to tell him that he was right. I will never hear the end of it.

I have one on my Acura to cover bumper to bumper until 100k miles (not that I am worried about the powertrain but the other little crap that wears out in the interior is usually what gets me.)

Anyway, when sold to me I was informed that if I never use the warranty it is 100% refundable once the time period expires.

Not sure how I'll make out but the fact that it is there if I need it and if not used, I get it back sold me. I am guessing they bank of people either selling or forgetting before the extended warranty expires.

"Anyway, when sold to me I was informed that if I never use the warranty it is 100% refundable once the time period expires."

I have never had any luck getting a refund for one. They find a way toget out of it. You also need to remember about 50% of what you paid for it went into the dealers pocket.

I am finding out a lot about how these warranties work and I am kinda surprised that grandsport hasn't chimed in on this one. Thanks guys.

It's insurance and like any insurance they're in business to make money. They know the odds of having to pay out any money. There is a chance you could make out by having the extended warranty but face it, they know the odds and they're not in business to pay out.

I once had an extended warranty on a Mazda truck that was so called bumper to bumper and was not worth the paper it was printed on. I had axle seals leaking and called the dealership and they told me to bring it to them that it was covered under the extended warranty .I took a day off from work and they took the rearend apart and showed me the seals that needed to be replaced.They told me it would be $350 to fix it but that my warranty would repay me later after some paper work. I told them to put it back together as they had not bothered to tell me I had to pay out of pocket and then fight for my money back from whoever had the warranty. I then went into the parts dept and bought the $4 axle seals and left ,never bought an extended warranty again .

OK...I get it .... I was suckered into it :(

Really tired of arguing the point,but here goes.Extended warranties are great if you plan on keeping your car for 6 years or more,I personally see the advantages of it every day.As far as the cost, the dealer makes money on it because we can't make money on new cars anymore because of the internet and customers who are ball busters.I really want to know how people make a living if the company they work for does not make a profit. I wOULD ENJOY READING POSTS OF HOW PEOPLE MAKE A LIVING WITHOUT MAKING A PROFIT FROM OTHER PEOPLE.Please,tell me what you guys do for a living.

Not a very good argument for extended warranties. How the dealership makes money is not my concern. I agree they need to make money but I'm not going to buy something I don't believe I need so they can make money.

This isn't about how dealerships make money, it's about extended warranties. You take everything personally Gary. Would you be all up in arms if we were talking about an extended warranty on a refrigerator?

Im for everyone making an honest profit especially people I enjoy doing business with .An extended warranty is just not an area where I have had a good experience .I will shop around for the best price on pretty much anything Im in the market for and sometimes I even pay a higher price because its a local shop that I like doing business with because of great customer service .

I think we have all paid for something that we never have used. And sometimes we regret paying for it. Just think how many people have paid car insurance for years, and never used it.

I never realized how passionate people were about an extended warranty when I started this thread.

Looks like people have had good and bad experiences with them.

I'll tell you how dealerships make money. And I'm for people making a profit but a little at a time...LOL

I just traded in my perfect conditon 2009 Saturn VUE Redline with 49K on it and they offered me 12K for trade in after I told them I needed 15K (which was at the low end per the KBB) for it and I got up and started to walk out, they stopped me and asked me again what I needed and I said 15K and not one penny less....they looked at it again (1/2 hour later) and said 14K. I was done at that point, and then they said ok that they would take the loss to sell me the new Escape at 35K. Within 2 days (It was in perfect condition, they did not even have to wash it) the VUE was on the lot for $18,900 and sold that week....not sure what is sold for but I imanage it was in between 15K and 19K...so a profit was made.

Also, for example we make the Anti Braking Systems for a various vehicles and mfg and our selling price to them is about 80-90 dollars (at very little profit margin) and they are sold to the general public through the dealership at well over $500....I know the dealer does not make all that profit but someone is, and they don't even touch the part.

Oh yeah, I did buy the extended warranty but not a the price they were offering it for, they wanted $1600 and I told them I could get it online from another dealer for $1200 and we setteled on $1300.

Moral of story....do your homework before walking into the dealership and everyone wins.

Hey Ric, speaking of extended warranties, the one on the Camaro is about to expire. Unless of course you get me a check for 1000 bucks in the mail this week. I am also offering a reduced rate on rustfroofing and scotchguard this month. Hurry while supplies last!

Tony, I will do that for sure. It needs a clutch, carb rebuild and i have a oil leak that is getting bad and I'm sure it is a rear main leak. When can I drop it off? Oh yeah...the clock does not work, not sure I mentioned that before.

What no radio issues Ric ?

I fixed that myself as the $1000 deductible is a little high.

Ric, my Servlce Manager says that because the original extended warranty has expired, we can not cover your pre-exsisting conditions. We will however be happy to do any needed repairs at your expense, plus a generous commision added for "arrgevation", as my guy says you can be a pain in the ass to make happy. Call for an appointment!

Extended warranties are a good insurance policy.

I love it. And what it the phone # for service ? 1-800-UPYOURS ?

Thank you Gary.

One just need to use common sense no matter what you buy.

Us car dealers don't like common sense.

I'm sorry for your Service Manager, but the Sales guy (After providing me with beer) promised me the world when I purchased the Camaro for over the original 1972 sticker price. After reading the fine print in the contract the term 5/100,000 in your contract really means 5 days /100,000 yards. Shame on me for not reading the fine print.

When I bring the Camaro in for service I will need the station wagon for a loaner and the Nomad will work fine for my needs. I do expect that the Nomad will have a full tank of gas and your gas credit card for my travels while the Camaro is being serviced.

When can I get the car in? You can keep it over the winter and I'll just drive the Nomad. It's a win win for both of us.

Ric, I love your terms of service. :)

I need to do some tradin with him if service includes me getting to drive a Gomad .

OK Ric. Come and get the Nomad. Only thing is, then you will be addicted to it. Tell Les what a great Christmas present it will be and I'm sure you will own it. You will have to build another garage to store it though. If it gets up to the 50's this weekend, I'll get it warmed up for you. Nice and warm!

From my understanding its standard practice these days to stick bearings in enclosed cases on new stuff, and if the casings get damaged (say, a mechanic using a slide hammer to get your wheels off for a brake job) you're pretty much S.O.L. and will need new wheel bearings. I've owned an assortment of cars over the years as drivers, and until I started buying new cars, I never had wheel bearing problems -so it would seem to be a very common trend these days. Control arms are another big one that I have noticed alot of newer stuff having a ton of problems with way before they should.

Replacing a transmission around 36000 miles is just re-godamndiculous tho if you ask me. Bearings too, especially with how pricey they are if you don't have a warranty. I personally never do the extended b2b 60k plus 5-6 year warranty myself, but then again I currently own a driver that should be more than good after that point with most things. I do hava a 5 year 100k powertrain warranty on the car tho so if my tranny takes a nose dive, Chevy is picking up that bill lol

Got my call that the car is done. I didn't have time today to go and get it, cause I am going to take it for a LONG test drive to make sure that things are right.

I'm sure it will be great for you.

I will be keeping my fingers crossed.

So I picked up my Toyota today. When we walked in to the cashier desk, I told her my name so that she could get the paperwork. She grabbed it and turned around and said your total is $3708 and change. I didn't know what to say. I was told that this was warranty work and I was pissed. So they page our service guy, and of course, he was at lunch. Things are not getting any better cause grumpy is there with me and he is getting vocal.

I asked to see the paperwork, yep there it was a total of $3708. Now I had a recall problem taken care of too, and that said "warranty" and there was no charge. So we tell them we need to talk to someone cause we are not paying a penny for this. About that time, the service department manager comes in and says that there was a mistake and he just noticed it, they had my car for over a week and they have called me 4 times and no one noticed ? Anyway. Got everything straightened out, and it was all warranty work, and no charge.

Before I left the service area I asked the service manager if the car was taken for a test drive to make sure there is no more vibration, and he said yes his mechanic took it for a test drive. (Later I noticed that there we only 2 miles put on my car which included a test drive when I dropped it off and after the repair) I also asked if they had any other problems like mine, all the service guys said that this is the first one that they had seen. They also said that there was no grease in the trans axle when they pulled it. So I have driven over 35,000 miles like this ?

So now it is time to drive away, lets hope there is no vibration. I got onto the expressway and got it up to 80mph, no vibration. Also, it is a lot quieter when driving. So I am very, very, very happy.

Never buy a German car without a warranty is my advice. I took my 2006 Audi a8 in for an oil change last week and when I got it back I was told that I needed all new tire pressure sensors which is $2500 and front end work but I forget the specifics for $1500. My 6 year 100k miles warranty just ran out so now I'm in a pickle and don't want to have to pay for the repairs since I've been looking for a new car anyways. I'm gonna see if I can get away with a private sale as is and get $20k. The oil change was $200 alone, expensive!!

Tony, she said NO and that you are bad influnce on me when it comes to cars. As they say, when wife is happy we are all happy.

We are looking at selling this spring and building a new house and I already have the garage(s) planned out. In the process of looking for acreage first.

So was the work done under the original warranty or under your extended warranty? I don't think any trans axle would last 35k with no oil in it, Some where along the way a seal had to start to leak which let the oil leak out.