Should i keep my extended warranty or drop it?

[Jfheisenberg]

Thanks for all the input guys. I been thinking about it and since the BRZ is my very first brand new car. I might just keep the extended warranty with wheels/tires protection on my loan. I guess im better off being safe right now than sorry later if i dont have any warranty after the 3 years.

Plus my loan is for 6 years, so i guess i should keep the extended warranty during those years.

thanks!

[AznBRZer]

Originally Posted by 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

$3384 for a 6 year warranty? FUCK NO! Cancel that shit! That's more than msrp for the 7yr/100k Subaru Gold Plus warranty!

Mine was $1300 on the sales sheet and I STILL could've gotten it for cheaper!

[Defuser]

OP, I would definitely cancel at least the wheel and tire coverage. You can pick up a set of new wheels an tires on this site dirt cheap in the classifieds.

I would find out exactly how much they charged you for JUST the extended warranty.

[Muaddib]

Since i work at Toyota. It would foolish for me to get extended warranty lolz.

[PhantomX]

Originally Posted by Muaddib

Since i work at Toyota. It would foolish for me to get extended warranty lolz.

We also get employee pricing, so it evens out...

[xxBrun0xx]

Got my bumper to bumper 100k mile, 5 year, $100 deductible, official Subaru extended warranty for $600. Some days, I regret it because knowing that I've spent the money on this will keep me from modding after powertrain is up. Other days, I like it for the same reason. Just depends on how much money I've got in my bank account at any given time :P

[Philly758]

Originally Posted by Jfheisenberg

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

I cancelled some add on's and they sent the check directly to the bank holding the loan. It was applied directly to principal. The monthly payment stayed the same (although I pay additional principal every month and my account says $0 due at this point, so who knows...).

[Muaddib]

Originally Posted by PhantomX

We also get employee pricing, so it evens out...

Shhhhhh don't give out all our secrets.

[SpectreRT]

The warranty is a gamble. There are many owners that are issue free with the FA20 platform. Some are even turbo/supercharged - with no issues.

Then you have people like me on their 6th fuel pump, replacement seats, replacement center console, replacement tail lights, and a few other dealer repairs.

If you want the cemented thought in your mind of: "If something goes wrong, Subaru has my back..." then keep the warranty. Otherwise, dump it.

[Dadhawk]

Originally Posted by SpectreRT

Then you have people like me on their 6th fuel pump....

This isn't going to be covered by an extended warranty, unless it actually fails. I doubt you would get it replaced beyond 60K miles since the TSB really covers the noise that isn't a "defect".

[Annahra]

Originally Posted by SpectreRT

The warranty is a gamble. There are many owners that are issue free with the FA20 platform. Some are even turbo/supercharged - with no issues.

Then you have people like me on their 6th fuel pump, replacement seats, replacement center console, replacement tail lights, and a few other dealer repairs.

If you want the cemented thought in your mind of: "If something goes wrong, Subaru has my back..." then keep the warranty. Otherwise, dump it.

Perhaps there are many owners that are issue-free, a few with serious issues, and a few that shouldn't expect perfection in a budget sports car.

[totopo]

Its the same decision as with any insurance. for me the biggest factor is can you afford a worst case scenario? If not, then get the insurance. That's the point of the concept of insurance. Of course in the average the insurance companies make money.

[SpectreRT]

Originally Posted by Dadhawk

This isn't going to be covered by an extended warranty, unless it actually fails. I doubt you would get it replaced beyond 60K miles since the TSB really covers the noise that isn't a "defect".

Haha, you dont know me.

Given that I have in writing that they will replace my "squeeky fuel pump" whenever I deem the noise too annoying to bear... I assume I'll get it replaced twice a year. Just because I can.

[V1R4G3]

Originally Posted by Dadhawk

In my experience, if you are having 1 issue per year with a modern car with under 100,000 miles on it, you will want to dump the car, warranty or not. In all the cars I've owned, in the last 25 years (new and used) I have not had more than one major service issue under 100K miles on any car. In fact, I've had a half dozen or so with well over 200K miles on them and none have a major repair every year.

I'm not saying taking the "risk" is for everyone, but I can say that I have NEVER owned a car (since 1975) where the extended warranty would have been a good decision. Maybe I've just been lucky.




Are you willing to share what the actual cost of the Extended Warranty is after you subtract the sales cost (commissions/etc)? Like with any insurance (which is really all an extended warranty is) the cost to the consumer has to exceed the average risk + cost of sales minus any growth of the money over time for the insurer. Therefore, again on average, the product costs the consumer more than it will pay out.

Admittedly, there are people where the piece of mind of having the coverage is worth the money, and I'm OK with that. For me though, I'd rather put the money in the bank and self-insure.

Google JD Power Dependability Study and get your mind blown. http://autos.jdpower.com/ratings/201...ss-Release.htm The only make that didn't average one issue in the fourth year of ownership was Lexus. Some of the lower makes averaged closer to 2.

I would be more than happy to share the actual cost, as far as I am aware. If the dealer principle packs anything else into that cost, that, I am not aware. Just like invoice pricing on vehicles, just because you know the cost, doesn't mean you can buy it for that. These products are reinsured so essentially the dealer pays the claims. At cost, the risk/reward for the dealer aren't work printing the paperwork.


Of course, it depends on the term and mileage, the deductible option, coverage, and of course varies from company to company. But throw something out there, I'll be happy to fill you in.