Warranties (1 Viewer)

[jeffreyprince]

Okay, for my n00b question of the week:

I know that generally after-market/used car warranties are for suckers, but I've gotten some mixed advice. I'm looking to buy an 80 from a private seller (i.e., NOT a used car dealership).

Anyone have any experience with extended warranties. I have found a few that seem like good deals - I've had some bad experiences with bad transmissions, engines, etc. in the past and feel like a warranty could add some peace of mind.

Any advice? Direct experiences good or bad?

 

[elmariachi]

nyone have any experience with extended warranties. I have found a few that seem like good deals - I've had some bad experiences with bad transmissions, engines, etc. in the past and feel like a warranty could add some peace of mind.

I have a considerable amount of experience with this. The primary concern is who is backing or underwriting the warranty. If its backed by Toyota or a major insurer like AIG, AON or GE, then you'll likely not have issues with getting claims paid if they are legitimate. Independent warranty backers look for every way to deny a claim and use loopholes to assert that you didn't do your part. ALL of these extended warranties will say you cannot modify your vehicle for offroad use, so if you intend to install a lift or bigger tires, they'll use that against you. Also, if you do you rown maintenance, keep a log and keep your receipts because some warranty companies like asserting that proper maintenance has not been performed.

The other issue is service. If you buy a warranty from someone and then take it somewhere else to have it fixed, they may make you pay them and then file your own claim. That's okay on a $200 repair, but on a $2000 it could be painful. My advice is only buy one from a reputable dealer who will honor it if you need a repair, and be sure its backed by an A.M. Best A-rated insurer. For this reason, manufacturer-backed plans are the safest.

 

[fuelgeddes]

When I first got my LX450 @ 65,000 miles I got an extendend warrenty from warrentybynet on the internet. I used them for a couple of items and it did end up paying for it self at the dealership. The dealership has a higher hourly rate so you end up paying more for a lot of things. But as the cost of repair goes up , and you start getting towards the end of the warrenty period and they get really picky about what they will fix. Most will not cover a truck with more than 100,000 miles. I tryed to get them to pay for new shocks and springs, and I think I could of got that from them. I didnt however because I didnt want to mess with them and it did become a hassle. They would pay over the phone so it did work really well for the times I used them. Other than that I would save the money, find a good local shop you can trust and work through any problems that creap up. and

 

[JimmyK]

We have 2 extended warranties one on a 2002 Mercedes S500 and a 2002 Lexus SC430.

The lexus has not had a single problem so far go figure, but the benz we have had $8,000 worth of repairs and the warranty only cost us 3k. They covered 3 chocks that needed to be repalced costing 3400 USD alone.

warrantydirect is supposedly one of the best, and the mercedes dealership offered their own extended warranty but told me on 2 occasions that warranty direct actually covers more then their extended warranty and is easier to get in touch with.

(seems that a big problem with dealers is they are on hold forever dealing with these warranty companies)

 

[tech_dog]

The people who set the prices on extended warranties study the stats on breakdown and repair costs, and then ad a very healthy margin. Extended warranties are typically a high profit sale.

If you're willing to pay a premium to eliminate the risk, then maybe it's a reasonable choice. My opinion is that you should insure yourself from catastrophe, not inconvenience. I'll accept the risk of a repair in order to increase the chances of having more money at the end of the day.

 

[elmariachi]

I'll accept the risk of a repair in order to increase the chances of having more money at the end of the day.

Me too. But I guess it also depends on whether or not you like to do your own work and how much traveling you do. A warranty might make sense for someone who does not or cannot wrench. And if you live in Texas and your headgasket blows in Oregon, you will have a $1000 transportation bill if you want to get home to your Snap-Ons. Things to consider.

 

[firetruck41]

I'd be surprised if you can get an extended warranty on a 9-10 year old vehicle, especially if it has over 100k miles on it.

 

[tpattyII]

i had an 80 with an extended warranty. it more than paid for itself. the down side was that i was not able to choose my shop. they ended up doing a good job though...it just took a lot longer than it should.