Extended warranty on a used vehicle

[BRTreedogs]

Never had a problem when my intake on my F150 took a crap. Or the entire primary and clutch on my HD had to be replaced. No hassles ever. I even extended the one for my bike. Payed for itself. I probably hot ripped off though.


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Some people just have all the luck.

 

[SWOHTR]

Don’t you want them to suffer a little bit? You are being very generous.

He is. He only wants their soles to die, so they can't walk around. It would suck not being able to be mobile.

 

[GotDraw?]

I bought a new Toyota years back and for some silly reason I got an extended warranty.

Unbelievably, the manual transmission had an internal gear crack and that metal spread through the transmission and totally destroyed it.

Toyota replaced the entire transmission and clutch with a brand new components. ZERO headache on my end. That single event was 2-3x the cost of the warranty.

There are certain times where I believe a warranty could be a good investment, particularly where vehicles have known, expensive issues. It is VITAL to understand what is NOT covered, the major exclusion issues I've seen are Diesel Particulate Filters, Catalytic Converters, Turbos, Engine Control Modules/Computers. Make certain that these are covered and clearly stated in writing. Anything not in writing is not covered. Salesmen always show the long list of what IS covered. None of that matters. Only concern yourself with what is NOT covered.

JL

 

[BRTreedogs]

I bought a new Toyota years back and for some silly reason I got an extended warranty.

Unbelievably, the manual transmission had an internal gear crack and that metal spread through the transmission and totally destroyed it.

Toyota replaced the entire transmission and clutch with a brand new components. ZERO headache on my end. That single event was 2-3x the cost of the warranty.

There are certain times where I believe a warranty could be a good investment, particularly where vehicles have known, expensive issues. It is VITAL to understand what is NOT covered, the major exclusion issues I've seen are Diesel Particulate Filters, Catalytic Converters, Turbos, Engine Control Modules/Computers. Make certain that these are covered and clearly stated in writing. Anything not in writing is not covered. Salesmen always show the long list of what IS covered. None of that matters. Only concern yourself with what is NOT covered.

JL

Wouldn't it just be better to not buy a vehicle with known experience issues to begin with?

 

[jimh406]

I agree that it would be better to buy one that doesn't have known common issues. Extended warranties from the vehicle manufacturer are usually ok from what I've heard. The aftermarket ones are usually designed to make the finance department or the dealer money.

 

[mmac]

This is one of the biggest scams out there. Don't walk away, run away from them.....

 

[GotDraw?]

Wouldn't it just be better to not buy a vehicle with known experience issues to begin with?

All things equal, yes.

However, I need to tow a new trailer. I prefer not to have the expense of a new truck since they are so ridiculous these days.

• Therefore, I just bought an immaculate AWD'14 Touareg turbo diesel for a fraction of the cost of a new truck
• I bought the Touareg specifically because it is very offroad capable AND offers a 7700lb towing capacity
• I can take clients out in this SUV and I can use it to hunt.
• The diesel motor can run a long time but they do have certain potential issues, 3 yr warranty covering everything is about $3500. All in far, far below the cost of a truck that can tow 7,700lbs

When I weighed the above, I made the decision.

JL

 

[Unckebob]

I bought a new Toyota years back and for some silly reason I got an extended warranty.

Unbelievably, the manual transmission had an internal gear crack and that metal spread through the transmission and totally destroyed it.

Toyota replaced the entire transmission and clutch with a brand new components. ZERO headache on my end. That single event was 2-3x the cost of the warranty.

There are certain times where I believe a warranty could be a good investment, particularly where vehicles have known, expensive issues. It is VITAL to understand what is NOT covered, the major exclusion issues I've seen are Diesel Particulate Filters, Catalytic Converters, Turbos, Engine Control Modules/Computers. Make certain that these are covered and clearly stated in writing. Anything not in writing is not covered. Salesmen always show the long list of what IS covered. None of that matters. Only concern yourself with what is NOT covered.

JL

I am going to out myself as someone involved in the warranty space.
1) There are some very shady players in the space. Some are outright crooks. (I cannot tell you how many cold calls I have received at my work number)

2) Claims are paid and costs are incurred handling claims. Many times, the underwriters do lose money on contracts and entire books of business.

3) Everyone purchasing a contract needs to know what is and what is not covered. The fine print is important.

4) A large part of what clients end up paying for is someone to deal with repair shops. The $500 claim paid by the administrator might have cost the customer $3,000 on their own.

5) I have an extended warranty on my truck (sold by a competitor - the manufacturer). I bought it from them because (a) they are reputable and (b) they quoted me a fair price. In addition, I can yell at (and even sue) them if they F up.

 

[GotDraw?]

I am going to out myself as someone involved in the warranty space.
1) There are some very shady players in the space. Some are outright crooks. (I cannot tell you how many cold calls I have received at my work number)

2) Claims are paid and costs are incurred handling claims. Many times, the underwriters do lose money on contracts and entire books of business.

3) Everyone purchasing a contract needs to know what is and what is not covered. The fine print is important.

4) A large part of what clients end up paying for is someone to deal with repair shops. The $500 claim paid by the administrator might have cost the customer $3,000 on their own.

5) I have an extended warranty on my truck (sold by a competitor - the manufacturer). I bought it from them because (a) they are reputable and (b) they quoted me a fair price. In addition, I can yell at (and even sue) them if they F up.

100% Agree with every point!
JL

 

[JBrew]

I am going to out myself as someone involved in the warranty space.
1) There are some very shady players in the space. Some are outright crooks. (I cannot tell you how many cold calls I have received at my work number)

2) Claims are paid and costs are incurred handling claims. Many times, the underwriters do lose money on contracts and entire books of business.

3) Everyone purchasing a contract needs to know what is and what is not covered. The fine print is important.

4) A large part of what clients end up paying for is someone to deal with repair shops. The $500 claim paid by the administrator might have cost the customer $3,000 on their own.

5) I have an extended warranty on my truck (sold by a competitor - the manufacturer). I bought it from them because (a) they are reputable and (b) they quoted me a fair price. In addition, I can yell at (and even sue) them if they F up.

Thanks for writing all that, so I didn't have to. lol.

I'll also add... be mindful of what the loan to value is when you buy a vehicle. You don't want it too high right off the bat, before adding warranty and other service contracts. Also keep in mind, a lot/most of the dealers are doubling or tripling what they are selling you the warranty for, vs how much it costs them.