Extended Warranty - Deal, or No Deal?

[team_goose]

Any chance you'd summarize what you found inadequate or disconcerting about this policy. At $1500 for essentially 5 years (years 6-10, since years 1-5 are covered by the new car warranty), that comes to only $300 per year. If it covered just one meaningful repair you'd probably break even.

Thats kind of my thought about it as well. Such a new vehicle with no history if the navi goes out you have made it worth wile it seems. I know they are usually money grabs for the dealers sometimes the peace of mind is just nice.

 

[First]

Thats kind of my thought about it as well. Such a new vehicle with no history if the navi goes out you have made it worth wile it seems. I know they are usually money grabs for the dealers sometimes the peace of mind is just nice.

My gut feeling is the dealer is making very little selling this at $1500, and certainly deserves to make some profit in any case. I would not be surprised if the suggested retail price is twice that, or maybe even a little bit more.

 

[BLACKAWD]

I requested a PDF of the actual coverage, since the brochure said to read the small print. It was emailed to me. Those wanting me to to expound on it should request the PDF themselves and determine if it's something they want.

 

[noles1983]

I requested a PDF of the actual coverage, since the brochure said to read the small print. It was emailed to me. Those wanting me to to expound on it should request the PDF themselves and determine if it's something they want.

lol so why bother chiming in at all?

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[ccorry21]

I requested a PDF of the actual coverage, since the brochure said to read the small print. It was emailed to me. Those wanting me to to expound on it should request the PDF themselves and determine if it's something they want.

Got it. The PDF was posted here a variety of times. It’s a great deal, everybody
Moving on...

 

[BLACKAWD]

lol so why bother chiming in at all?

Sorry you're butt hurt and lazy. Why get into a pissing match when those interested can request the info and read the multiple pages themselves?

"Got it. The PDF was posted here a variety of times. It’s a great deal, everybody
Moving on..."

The brochure has been posted, but I'm not aware of the actual contract being posted. Your idea of a great deal is different than mine. Do you have a vested interest in it or are you just trying to make yourself feel good about your bad decision making?

 

[First]

Sorry you're butt hurt and lazy. Why get into a pissing match when those interested can request the info and read the multiple pages themselves?

"Got it. The PDF was posted here a variety of times. It’s a great deal, everybody
Moving on..."

The brochure has been posted, but I'm not aware of the actual contract being posted. Your idea of a great deal is different than mine. Do you have a vested interest in it or are you just trying to make yourself feel good about your bad decision making?

BLACKAWD, Thanks for your input. It's appreciated.

I think the point noles1983 was making is that the purpose of a forum like this is to leverage each other's opinions and first-hand experience. While your decision not to buy the warranty is information all by itself, it's not all that useful to the rest of us who don't know you and have no idea what led you to that decision. That's why we asked for your reasoning. Your suggestion that I and others read the fine print is a good one, but I would hope anyone spending this much money would do that without first seeing it advised on a forum. Of course I may be kidding myself when I say that.

Thanks again.

 

[mgoblue]

I requested a PDF of the actual coverage, since the brochure said to read the small print. It was emailed to me. Those wanting me to to expound on it should request the PDF themselves and determine if it's something they want.

Would you mind sharing your copy here?

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[Nightcrawler1215]

I’m surprised there are so many people on here that actually want the extended warranty. Why do you all think the sales manager spends half an hour trying to sell you stuff like the warranty? Granted, that Muncie price was far better than what I was offered. Still, no sound financial person will ever tell you to take an extended warranty on anything. I think most of us here can agree that a couple hundred a year is probably “chump change” for many of us...but still. Take that and invest it or set it aside for a rainy day and IF something should go wrong that’s not already covered under the manufacturer warranty, then use it. I’ll roll the dice without one. I’d hate for a big problem to arise but if I can’t afford the fix then I probably bought too much car.

 

[BLACKAWD]

Would you mind sharing your copy here?

I wish I could. I deleted it a few weeks ago, and it's no longer in my trash folder.

 

[First]

I’m surprised there are so many people on here that actually want the extended warranty. Why do you all think the sales manager spends half an hour trying to sell you stuff like the warranty? Granted, that Muncie price was far better than what I was offered. Still, no sound financial person will ever tell you to take an extended warranty on anything. I think most of us here can agree that a couple hundred a year is probably “chump change” for many of us...but still. Take that and invest it or set it aside for a rainy day and IF something should go wrong that’s not already covered under the manufacturer warranty, then use it. I’ll roll the dice without one. I’d hate for a big problem to arise but if I can’t afford the fix then I probably bought too much car.

Although I don't typically buy extended warranties for the reasons you gave, I'm not sure I'd go so far as to say no sound financial person would advise against buying one ever. When the expected value of an extended warranty is greater than its cost, it may make sense to purchase it. (At times, dealers may even sell them at a loss to close a deal.) Some will make out while others will lose, but for anyone who buys an extended warranty, it puts a cap on what they will ever pay (over the life of the warranty of course) for covered repairs. There's something to be said for peace of mind. The same holds true for collision insurance. Very few will need it yet we all carry it, and some with unnecessarily low deductibles. Finally, don't discount the tangible and intangible value of a transferable extended warranty on the resale value of a car, and the fact that often they are cheaper when purchased up front.

Anyway, I don't disagree that more often than not extended warranties aren't a good value and should probably be skipped. I just wanted to pipe in with some food for thought.

 

[Nightcrawler1215]

Although I don't typically buy extended warranties for the reasons you gave, I'm not sure I'd go so far as to say no sound financial person would advise against buying one ever. When the expected value of an extended warranty is greater than its cost, it may make sense to purchase it. (At times, dealers may even sell them at a loss to close a deal.) Some will make out while others will lose, but for anyone who buys an extended warranty, it puts a cap on what they will ever pay (over the life of the warranty of course) for covered repairs. There's something to be said for peace of mind. The same holds true for collision insurance. Very few will need it yet we all carry it, and some with unnecessarily low deductibles. Finally, don't discount the tangible and intangible value of a transferable extended warranty on the resale value of a car, and the fact that often they are cheaper when purchased up front.

Anyway, I don't disagree that more often than not extended warranties aren't a good value and should probably be skipped. I just wanted to pipe in with some food for thought.

Fair enough points. I don’t mean to knock anyone that’s getting it for peace of mind. Although every extended warranty under the sun preys upon that. I’d challenge the point about any dealer selling it at a loss...no way. I just don’t want to spend money, waiting for something to happen. I’d rather use that money, however much or little it may be, and put it to work.

Everyone has their own beliefs and a lot can be said for peace of mind. Kinda like the $40/month I piss away for professional alarm monitoring...wife usually wins those battles, haha.

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[bcjenkins]

Extended warranties have paid dividends for me on appliances, computers, and cell phones. If this was a 20K car with a 1.5K warranty, I probably would buy it. However, at 50K+ you have my money. I was hoping that someone smarter than me would have picked apart the Ts and Cs and boiled it down.

 

[zamboni]

Here is the fine print for Muncie's Extended Warranty.
Pay special attention to item 15 in the exclusions on page 4. Since electronic components have been mentioned a few times in this thread, note that "Audio/Security or other systems not factory installed are not covered"

Happy reading,
Z.

 

[First]

Fair enough points. I don’t mean to knock anyone that’s getting it for peace of mind. Although every extended warranty under the sun preys upon that. I’d challenge the point about any dealer selling it at a loss...no way. I just don’t want to spend money, waiting for something to happen. I’d rather use that money, however much or little it may be, and put it to work.

Everyone has their own beliefs and a lot can be said for peace of mind. Kinda like the $40/month I piss away for professional alarm monitoring...wife usually wins those battles, haha.

We agree. As for selling the warranty at a loss, that’s a real world example. Dealers make money in more ways than profiting on individual deals much less every line item on a sales order. Manufacturer rebates based on sales volume, and returns for warranty and other repair work are two examples. In any event, loss leaders are not uncommon.

 

[First]

Here is the fine print for Muncie's Extended Warranty.
Pay special attention to item 15 in the exclusions on page 4. Since electronic components have been mentioned a few times in this thread, note that "Audio/Security or other systems not factory installed are not covered"

Happy reading,
Z.

Thanks!!!

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[tom1016]

Picking up my Telluride tomorrow... was offered a 10 year 120,000 miles from my dealer for $2053, full bumper-to-bumper and powertrain. Same as new car coverage, for a longer period of time.
Called Muncie and was offered the 10 year 100,000k for 1478 .

Not sure what I'm going to do if anything.

 

[Kao]

Here is the fine print for Muncie's Extended Warranty.
Pay special attention to item 15 in the exclusions on page 4. Since electronic components have been mentioned a few times in this thread, note that "Audio/Security or other systems not factory installed are not covered"

Happy reading,
Z.

But the factory installed audio/security IS covered, according to that warranty. So unless you have an "outside installation" of audio or security, sounds like it's covered to me.

 

[First]

Extended warranties have paid dividends for me on appliances, computers, and cell phones. If this was a 20K car with a 1.5K warranty, I probably would buy it. However, at 50K+ you have my money. I was hoping that someone smarter than me would have picked apart the Ts and Cs and boiled it down.

I read the fine print. Note they state this is not a warranty but rather a service contract. The distinction may be a bit subtle. After that, the things that stood out for me were:

1) Only repairs that are necessary as the result of a mechanical breakdown (as defined in the contract) are covered.
2) Normal wear and tear items, eg, bulbs, batteries, brake shoes, ... are not covered (no surprise there.) Rubber parts like hoses and weather stripping that decay over time - but don't actually "wear" through use - are likewise not covered. Exhaust system parts also are not covered.
3) You must maintain the vehicle in accordance with the manufacturer's owner's manual, and be able to prove it with receipts.
4) Except in an emergency, you must first get approval before bringing the car in for repair anywhere other than the selling dealer.
5) You must retain all parts replaced in the event FWS wants to inspect them prior to settling a claim.
6) The warranty includes alternate transportation and hotel benefits if your car breaks down and you are stranded or left without transportation for a short time.

(FWS=Fidelity Warranty Services)

I don't have any personal experience with FWS to pass along. Perhaps someone else on the forum has an FWS service contract on an out of warranty car and can add to the discussion?

 

[vinylhaircut]

Hmmm. I wish it were just "breakdown" and not specifically "mechanical breakdown". Perhaps I'm overly sensitive to that modifier because of a past experience. My homeowners insurance had something called Appliance Breakdown Coverage which supposedly covered all of our appliances in the event of a failure or breakdown. It read a lot like the fine print shared here. When we had a kitchen stove go out, the cause turned out to be a failure in the electronic control board. The coverage was originally denied because it was deemed electronic, not mechanical. The onus was also on us to prove faulty workmanship, which was challenging to prove. Because the electronics powered up, they claimed there was no breakdown, even though they didn't operate appropriately. I eventually won in small claims court, but what a pain. I'd love to hear from folks who have had this sort of auto warranty before, on Kia or other types of cars. Have people had good experiences with actual claims?