Anyone buy an extended warranty on the Telluride?

[NDBlackEX]

So unless it is going to fail twice, your better to pay to fix it vs. pay the warranty.

If you need to roll the cost of the warranty into your financing due to cash flow concerns of a large repair, you bought more vehicle than you can afford.

These warranties are such a bad deal - sorry for the rant.

Anything after the cost is covered is money saved on repairs. You can pretty much bank on a minimum of $1500 in repairs on a vehicle within the first 100k. Yeah, you could get lucky or you could end up spending way more. I had a Sierra that had $9k worth of warranty work done by my extended warranty company by 100k. I saved $7k on repairs on that thing. That covers the cost of the three ext warranties I've purchased since and then some.

And not everyone is rolling warranty into their loan, I bought mine after about 3,000 miles. This gave me time to decide if I liked the car enough to keep it long term.

Also, a big reason people buy new cars is the fact that your automobile expenses will be a fixed cost for a period of time. The extended warranty can lengthen that period of time. I had an S-10 which I had to put a new rear end in. Promptly drove it on a trip and the fuel pump went out when I filled it up with gas upon returning. I literally hadn't been home since I picked it up the first time... Now, I only paid $10k for the car so it was well within my means but the $2,300 repair bill (almost 25% of the vehicle purchase price) was not a welcomed surprise. The transfer case went out later in the year. So I got to cover these costs on top of my payments. (It was the first car I bought on my own btw)

So, maybe people like to roll their warranty into their loan for cost control purposes. Maybe you shouldn't be shaming people over their financial decisions. I would say don't buy the warranty if you trade often but if you want to drive your car 10 years, you'll at least know that when your warranty expires, you'll have a car that's in as good a mechanical condition as possible at that point whether you never had a problem or you had $9k worth of problems.

 

[TheNip73]

Anything after the cost is covered is money saved on repairs. You can pretty much bank on a minimum of $1500 in repairs on a vehicle within the first 100k. Yeah, you could get lucky or you could end up spending way more. I had a Sierra that had $9k worth of warranty work done by my extended warranty company by 100k. I saved $7k on repairs on that thing. That covers the cost of the three ext warranties I've purchased since and then some.

And not everyone is rolling warranty into their loan, I bought mine after about 3,000 miles. This gave me time to decide if I liked the car enough to keep it long term.

Also, a big reason people buy new cars is the fact that your automobile expenses will be a fixed cost for a period of time. The extended warranty can lengthen that period of time. I had an S-10 which I had to put a new rear end in. Promptly drove it on a trip and the fuel pump went out when I filled it up with gas upon returning. I literally hadn't been home since I picked it up the first time... Now, I only paid $10k for the car so it was well within my means but the $2,300 repair bill (almost 25% of the vehicle purchase price) was not a welcomed surprise. The transfer case went out later in the year. So I got to cover these costs on top of my payments. (It was the first car I bought on my own btw)

So, maybe people like to roll their warranty into their loan for cost control purposes. Maybe you shouldn't be shaming people over their financial decisions. I would say don't buy the warranty if you trade often but if you want to drive your car 10 years, you'll at least know that when your warranty expires, you'll have a car that's in as good a mechanical condition as possible at that point whether you never had a problem or you had $9k worth of problems.

Fair points.

Additional consideration specific to this vehicle is it had a 10yr/100K powertrain warranty, so there isn't much value in extended warranty for the components critical to actually moving the vehicle.

5/yr bumper to bumper (minus electronics) isn't too bad either.

The weak spot in this vehicle is electronics.

Most warranties have deductible you have to pay when you put the warranty to use. I won't run through the economics, but these are likely a significant portion of repair costs and could be considered an additional part of the warranty cost. Example: $1,000 warranty w/ $500 deductible is $1,500 out of pocket for its first use.

If there was an electronics coverage only warranty - that would def. be something to consider.

 

[topdown]

So unless it is going to fail twice, your better to pay to fix it vs. pay the warranty.

If you need to roll the cost of the warranty into your financing due to cash flow concerns of a large repair, you bought more vehicle than you can afford.

These warranties are such a bad deal - sorry for the rant.

 

[topdown]

Bought the WG SX Prestige Friday and declined the warranty. Don’t plan to have the car longer than any of the original warranties. I’ll be looking for a 2023 or waiting for a hybrid.

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[JAM]

You are better off declining every extended warranty you are ever tempted to buy, put that same amount into SPY or just a high yield savings account and self insure. You will be way ahead in the long run.

The way I see it, in order for the warranty to be worth it you would have to anticipate a 50% chance of costs being 2X the price of the premium (If you break even you still lost out to time decay and opportunity cost).

 

[bmc000]

You are better off declining every extended warranty you are ever tempted to buy, put that same amount into SPY or just a high yield savings account and self insure. You will be way ahead in the long run.

The way I see it, in order for the warranty to be worth it you would have to anticipate a 50% chance of costs being 2X the price of the premium (If you break even you still lost out to time decay and opportunity cost).

This is the way.

 

[3Rivers]

You are better off declining every extended warranty you are ever tempted to buy, put that same amount into SPY or just a high yield savings account and self insure. You will be way ahead in the long run.

A good rule of thumb is to purchase insurance -- and an automobile service contract is just a form of insurance -- only to cover expenses/losses that would be catastrophic for you financially: loss of life, loss of home, loss of good health. Auto accident insurance is generally required by law, so you don't really have a choice there, but the total loss of a $30k-$60k asset could be virtually catastrophic for many people anyway, not to mention potential liability for injuries to others. Something like insurance for your vacuum cleaner ("Would you like to add our Gold Service Plan for only $149?") doesn't qualify. Automobile mechanical breakdown insurance probably doesn't qualify either, for most people. The trouble is that, much like playing the lottery, there will always be anecdotal accounts of "good deals" that are used to justify the enterprise for all buyers, not just the lucky ones. Yes, there will always be cases in which someone bought an extended car warranty for $2k and used it to cover $5k in repair costs. That doesn't mean the purchase is a value proposition for everyone; if it were, the service contract companies would go out of business. The point is that if an unlikely potential loss is not catastrophic, then you can probably afford to play the odds and not insure against it.

 

[JAM]

I had a hard sell in an extended warranty when I bought my Mazda. Literally an hour of them trying to get me to sign. “You have home insurance” “umm yeah well I can’t really swing a $500k rebuild on a whim, but I can afford $2k if my AC blows up. Bottom line is you went from $2k to $1.5 in offering me insurance, and people much smarter than me still think they will make money off of this. This tells me the expected cost of repairs is still much less than this, that gives me enough comfort to say ‘no’”

That stopped the conversation

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[Sparkle Girl 47]

Cars are so Expensive now, a lot of people are buying more car than they can afford out of necessity. Cars are a necessity for most working people. The average car cost more than rent, which is really sad.

 

[White SX]

All depends on the relationship with the dealer/service shop and the warranty company I think. I have Warranty Solutions on my Infiniti as well as on my Porsche (what the dealer offered). It has horrible reviews online, however on my Infiniti it has paid for itself probably 5 times over already (I'm in $17k in repairs on the Infiniti over the past 1.5 years now). Still have 3k miles and 7 months left of the warranty. Last year they tried to buy me out, I declined for obvious reasons

I purchased an extended warranty Sept 2019 when new. The underlying company is also "Warranty Solutions" My left self-leveling shock is leaking. I'm estimating a $1,400 + cost to repair. That's what I paid for the warranty. Waiting on coverage after dealer contacts W Solutions. We T Ride owners really have a 60,000-mile basic warranty from Kia. Shame on me for figuring this out now. My understanding after today, the extended warranty kicks in after 60k. I'll check further. I don't feel as if I was taken advantage of, just that Kia's 100k warranty advertised is smoke and mirrors. I forgot to mention I have 62,000 miles and with a busy schedule, I missed getting the vehicle in before the door closed on 60k. I'm realizing this ain't a Honda. I've had 4 pilots and all I ever had was regular maintenance and the timing belt........ Is there anything else Kia has failed to disclose? I do like the car but with a 9k dealer markup over MSRP I'll drive this till the tires fall off.

 

[JSolo]

Re extended warranties, where does it say in the contract they cover the nav/audio systems?

In the pdf provided, I see this under exclusions



How is this to be interpreted? Is ABS/stability control part of safety restraint, or are they referring to seat belts?

More interesting reading..

Fidelity Warranty Services, Inc. | BBB Complaints | Better Business Bureau

View complaints of Fidelity Warranty Services, Inc. filed with BBB. BBB helps resolve disputes with the services or products a business provides.

www.bbb.org

 

[Kao]

You are better off declining every extended warranty you are ever tempted to buy, put that same amount into SPY or just a high yield savings account and self insure. You will be way ahead in the long run.

The way I see it, in order for the warranty to be worth it you would have to anticipate a 50% chance of costs being 2X the price of the premium (If you break even you still lost out to time decay and opportunity cost).

Show me the "high yield savings account" and I will sink $20k into it. Sorry, they just don't exist.

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[TheNip73]

@Kao

Series I bonds are the new high yield savings. 10k for husband + 10k for wife will get your 20k into something high interest (at least in the near-term).

 

[BBKeisha]

Gaston has the best prices.

Sitting here right now and he is refusing to lower the price on the extending warranty. I feel discriminated against because I’m a female. He’s seriously sounding full of it talking to me.

 

[JSolo]

Pass on it. Can always buy later.

 

[Sparkland]

Re extended warranties, where does it say in the contract they cover the nav/audio systems?

In the pdf provided, I see this under exclusions

View attachment 27297

How is this to be interpreted? Is ABS/stability control part of safety restraint, or are they referring to seat belts?

More interesting reading..

Fidelity Warranty Services, Inc. | BBB Complaints | Better Business Bureau

View complaints of Fidelity Warranty Services, Inc. filed with BBB. BBB helps resolve disputes with the services or products a business provides.

www.bbb.org

You bring up a valid point. Craig at Muncie needs to make a definitive statement as to whether the infotainment system is covered by the Fidelity warranty or not.

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[K1900]

Dealership not cancelling warranty:

Let myself get talked into a extended factory warranty from Longmont Kia and decided to cancel it a few weeks later. Spoke to the dealership and submitted a form to cancel the warranty in April. The dealership still hasn’t refunded the warranty cost towards the loan. I have spoken to the dealership a few times in since June and never get an answer. Is my only next step going to be some form of legal action?

 

[Sparkland]

Dealership not cancelling warranty:

Let myself get talked into a extended factory warranty from Longmont Kia and decided to cancel it a few weeks later. Spoke to the dealership and submitted a form to cancel the warranty in April. The dealership still hasn’t refunded the warranty cost towards the loan. I have spoken to the dealership a few times in since June and never get an answer. Is my only next step going to be some form of legal action?

Once you buy, all you get from many Kia dealerships is crickets. They wanted to sell me multiple extended warranties (vehicle, tire, glass, etc) with all the bells and whistles for $10K. I am not kidding, and I told them no.

 

[K1900]

Once you buy, all you get from many Kia dealerships is crickets. They wanted to sell me multiple extended warranties (vehicle, tire, glass, etc) with all the bells and whistles for $10K. I am not kidding, and I told them no.

The warranty I purchased wasn’t a terrible deal, as far as warranties are concerned, but my wife probably won’t even have 60k miles on the vehicle 10 years from now. Going to try and reach the general manager by phone next. If that doesn’t get it resolved within the week I am going to have to figure out next course of a action.

 

[Sparkland]

The warranty I purchased wasn’t a terrible deal, as far as warranties are concerned, but my wife probably won’t even have 60k miles on the vehicle 10 years from now. Going to try and reach the general manager by phone next. If that doesn’t get it resolved within the week I am going to have to figure out next course of a action.

My wife will probably have about the same amount of miles as your wife in ten years.