Extended Warranty?

[rushdown]

Originally Posted by execoll

84 months, zero deductable, 100,000 miles = $814
Edit: forgot to add warrenty is a platinium plan and covers the same things the dealer's does.
GAP = $200

Check with your local credit union you wont be able to beat their deals on most cars.

7 year/100,000 mile warranty for only $814 and it's a Toyota Platinum plan?? That is REALLY good deal!

I got some more quotes, a different dealer is quoting me

$50 deductible/ Platinum Plan, 8 year/120,000 miles $2022 for a 2013 FR-S with 7,000 miles on it.

versus a different quote of $1954 for an 8 year/120,000 Platinum warranty for an FR-S with only 250 miles on it.

I think I will wait until I get up to 7,000 miles before purchasing an extended warranty from Toyota.

[execoll]

Difference is mark up. Dealers make a ton of money on warranties. Credit unions typical sell them as a benifit not for the profit.

I'm the Senior VP of Lending for my credit union. We make $50 on the warranty itself but only sell them when we do a loan. Our reasoning is for loan performance issues not profit for the product.

Same with GAP policies that dealers sell at 500 to 800. We sell the exact same product for $250. Again for loan perforamce issues not profit.

Search around there are a ton of 3rd party warranties out there. Do a little research and pick the one that fits your needs as well as your price.

[Zaggeron]

In some sense it really depends on your financial situation. In the long run, if you buy an extended warranty with every car you buy -- let's say you buy a car every 7 years, you will lose money. You will pay out more for the warranties than you'll ever receive in benefits granting, of course, that you just don't have a string of real bad luck.

On the other hand, if you live paycheck to paycheck and a $1000 repair bill is gonna kill you when the car is 6 years old, then you might need some sort of protection. If you can take the repair bill hit, then you are better off not buying one.

[execoll]

Well put Zaggeron. I tend to think of things from a financer's point of view and how to protect the loan from going bad.

He is absolutely correct, your needs and situation will dictate if a warranty is right for you. I've disclosed what I can buy one at (about 1/3 what the dealers seem to be charging) and I am not getting one. I just dont have the need and the risk factor for me is fairly low.

Just a tip to remember, you dont have to buy the warranty when you buy the car, it already has one. Most if not all manufacturers will send out notices when yours is about to run out, assuming normal milage useage, and give you an opportunity to buy one then. It may cost a little more at that time but you will be in a better position to determine if you need it or not assuming you still even have the car then. On average we trade out of cars at 3.5 years in the US, Im the oddball that keeps them till the wheels fall off.

[Pkush]

Gonna bring this post back to life - anyone have experience with the Subaru extended? i feel like kind of got ripped off (i still have time to cancel for a full refund) 2k for service up to 24k miles and warranty to 5 years 60k miles (I'll go through it by 3 years, I drive a lot).
Also, can I get a toyota warranty on my subie? lol

Thanks!

[Annahra]

I have service to 36K mi. through the dealership (plus one windshield chip and one PDR per year to 5 years) for $500. I got the Gold Plus 6yr/80K mi $100 deductible warranty for free through Subaru because of issues with my first BRZ, but that plan is valued just a little over $1000. So I would say yes, you probably overpaid. With the maintenance plan, I calculated how much I would spend on oil changes in that time period then assumed I'd need at least one windshield repair and one PDR.

Here's a dealership that lists the warranty pricing: http://www.premiersubaru.com/subaru-added-security.htm .