Is an extended warranty worth it ?

[flash]

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 .

[Ms Grumpy]

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

[grandsport]

Originally Posted by Ms Grumpy

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.

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.

[Hank70SS]

Originally Posted by grandsport

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?

[flash]

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 .

[Ms Grumpy]

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.

[shadowgray396]

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

[RBeckman]

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.

[FlintTony]

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!

[RBeckman]

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.