Should i keep my extended warranty or drop it?

[Jfheisenberg]

I got my BRZ this past friday. My original monthly rate was 433 per month for 72 months at 2.9%APR. When i was singing contracts, the financial manager ask me if i wanted to get a extended warranty. The warranty covered for 6 years, also cover rims and tires. The price he gave me was 477 per month for 72 month and being the BRZ my first new car i bought, i took it.

Now looking over at the contract, i'll be paying 47$ extras per month for 72 months, thats $3384!.. Im not sure if i did the right move with the warranty, subarus are pretty reliable.

Im trying to determine if the warranty is worth keeping or not...

If not, can i still remove the warranty from my contract and go back to my initial $430 payment? would the dealer let me??

Thanks

[pushrod]

The cost of the car with the base warranty is such that they will make a profit despite some claims by some owners, because they have left a margin.

The cost of the car plus the cost of the extended warranty is such that they will make a profit despite some claims by some owners, because they have left a margin.

In other words, you are statistically likely to be ahead by cancelling it than by keeping it. That said, you might be an unlucky one that needs something right after the base warranty is up.

Consider it buying peace of mind as opposed to buying something you need. If you need peace of mind, you need the extended warranty.

[hmong337]

I'm not extending mine. I have confidence that this car will hold up. The extended warranty was about $2500 for me.

[calidus]

I canceled mine two days after being talked in to it. The tire warranty is pretty pointless, because you have your standard warranty on the stock tires and when you buy your next set they will come with there own. If a rim gets murdered by a pot hole you can easily find a replacement or just get a new set of after market rims. I really don't think that I will be spending an extra 3k on the car. Its full of Subaru and Toyota parts, and it a 25-30k car. It is also something you can add on later, I get 2 letters a month offering me an extended warranty.

[Jfheisenberg]

Originally Posted by calidus

I canceled mine two days after being talked in to it. The tire warranty is pretty pointless, because you have your standard warranty on the stock tires and when you buy your next set they will come with there own. If a rim gets murdered by a pot hole you can easily find a replacement or just get a new set of after market rims. I really don't think that I will be spending an extra 3k on the car. Its full of Subaru and Toyota parts, and it a 25-30k car. It is also something you can add on later, I get 2 letters a month offering me an extended warranty.

Did the dealer removed the extra 3k from the loan so your monthly payment went lower? or did your monthly payment stay the same and you got reimburse for the 3k extra? I bought the brz/warrantly about 6 days ago, so want to make sure i have enough time to remove/modify the loan

[zc06_kisstherain]

Originally Posted by Jfheisenberg

Did the dealer removed the extra 3k from the loan so your monthly payment went lower? or did your monthly payment stay the same and you got reimburse for the 3k extra? I bought the brz/warrantly about 6 days ago, so want to make sure i have enough time to remove/modify the loan

usually they take it off from your loan

[Jfheisenberg]

Originally Posted by zc06_kisstherain

usually they take it off from your loan

right.. but did your monthly payment go down or did you get reimburse?

[stugray]

With all of the horror stories of spun rod bearings and failed transmissions, either one of those would set you back more than the $2500.
If ANY of the ECUs were to go out (out of warranty) it would cost almost that much to replace it.
If JUST the ABS were to fail youd be in it for more than the warranty $$.

AND with all of the electronics on this car, if ANYTHING goes wrong with the computers you are pretty much stuck with letting the dealer figure it out.

I have the 7 year 100,000 drivetrain warranty and I intend to keep it for the duration.

[N1rve]

Originally Posted by stugray

With all of the horror stories of spun rod bearings and failed transmissions, either one of those would set you back more than the $2500.
If ANY of the ECUs were to go out (out of warranty) it would cost almost that much to replace it.
If JUST the ABS were to fail youd be in it for more than the warranty $$.

AND with all of the electronics on this car, if ANYTHING goes wrong with the computers you are pretty much stuck with letting the dealer figure it out.

I have the 7 year 100,000 drivetrain warranty and I intend to keep it for the duration.

The drive train doesn't cover ABS, or any of the ECUs to my recollection unless you get the extended bumper to bumper warranty. You may want to double check.

[stugray]

Originally Posted by N1rve

The drive train doesn't cover ABS, or any of the ECUs to my recollection unless you get the extended bumper to bumper warranty. You may want to double check.

I have the bumper to bumper.

[Jfheisenberg]

Originally Posted by stugray

I have the bumper to bumper.

i dont think i have that kind of warranty, i have to double check.. anyways if that is not the case should i remove the warranty? Im not sure what to do actually :S

[zc06_kisstherain]

Originally Posted by Jfheisenberg

right.. but did your monthly payment go down or did you get reimburse?

I am not sure but below 2 are probably happen.


1. your total loan amount - refund amount = left over amount / remaining month.

lowers your monthly payment.

2. you keep paying same monthly payment but pay off period will be shorter.

[calidus]

Originally Posted by zc06_kisstherain

I am not sure but below 2 are probably happen.


1. your total loan amount - refund amount = left over amount / remaining month.

lowers your monthly payment.

2. you keep paying same monthly payment but pay off period will be shorter.

or enjoy not having a car payment for a few months in the middle.

[m3bassman]

Originally Posted by Jfheisenberg

Now looking over at the contract, i'll be paying 47$ extras per month for 72 months, thats $3384!.. Im not sure if i did the right move with the warranty, subarus are pretty reliable.

did you not think to ask what the cost of the warranty was BEFORE they calculated it into the loan??

i just bought mine on friday and grabbed the 7y/100k warranty. the factory warrant doesnt cover enough for a 6 year loan. i wanted my car covered through my 6 year loan. it was only a small amount more to get it to a seven year so why not.