Extended Warranty - worth it?

[Steveg137]

Hi all

My 3 year 36k warranty will expire in a year.

Any views on taking out an extended warranty?

I already had to replace sun visor and steering bracket that came lose (scary tech said main nut was finger tight).

thoughts on the value/ peace mind equation?

thanks

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[Gvsukids]

Hi all

My 3 year 36k warranty will expire in a year.

Any views on taking out an extended warranty?

I already had to replace sun visor and steering bracket that came lose (scary tech said main nut was finger tight).

thoughts on the value/ peace mind equation?

thanks

Did you look at the other threads concerning this issue?
I have an extended warranty and I've already driven past my factory warranty in 19 months.

 

[Hootbro]

Going to boil down to how risk averse you are and what you are willing to accept out of pocket without one?

Simple fact that a extended service contract is being offered at a certain price is telling you that the company offering the coverage has researched their end to actually be making money in the aggregate pool of policy holders.

There is no magic 8 ball on what the future holds but most money managers will tell you if able, bank the upfront cost of a policy in a rainy day savings. Of course for most people, that is not realistic and ability to spread that cost out and rolled into payments is more convenient. I am sure you will get plenty of anecdotal replies either way on the subject.

Also, keep in mind that most policies will have a certain per visit deductible amount. That will negate a lot of the piddly stuff to be cheaper out of pocket that making a policy claim.

Attached is some pretty dry reading if you want to know the methodology of how they come of up with the actuarial in determining what price to offer a policy at.

 

[ShadowsPapa]

Dozens of posts mention extended warranty, some even talking about cost and "is it worth it".

 

[Steveg137]

Thanks guys will check the threads - was in a rush when posting.

 

[kad's_Glad]

Hi all

My 3 year 36k warranty will expire in a year.

Any views on taking out an extended warranty?

I already had to replace sun visor and steering bracket that came lose (scary tech said main nut was finger tight).

thoughts on the value/ peace mind equation?

thanks

We've been doing the extended warranty thing since 1998. I'm also not a big weekend mechanic kind of guy either. We tend to keep our cars for 5 years (+/-). Four of the six we've had have more than paid for themselves. Heck, my wife's Mini extended warranty paid for itself nearly four-fold because of its really poor 1st gen. engine design. The convenience of a covered rental car when in for repair has been a huge plus for us too. Sure it's likely a small car and there has been the occasional hiccup in the rental process, but still better than walking while your car sits (and sits) at the shop. For vehicles as expensive as these and labor rates at shops as high as they are - I think it's money well spent.

YMMV - of course.

 

[MikeyK]

Going to boil down to how risk averse you are and what you are willing to accept out of pocket without one?

Simple fact that a extended service contract is being offered at a certain price is telling you that the company offering the coverage has researched their end to actually be making money in the aggregate pool of policy holders.

There is no magic 8 ball …

Attached is some pretty dry reading if you want to know the methodology of how they come of up with the actuarial in determining what price to offer a policy at.

As I sit in my statistics class, we just talked about my new JT and the dealer trying to get me to add their extended warranty. Love that actuarial stuff!!! ?

 

[GrubbyBaja]

Going to boil down to how risk averse you are and what you are willing to accept out of pocket without one? ...

I'm with Hootbro on this one. I keep my own rainy day fund available plus I can perform basic mechanic work on my vehicles. That, coupled with the fact that I know these companies have performed the actuarial data which leads to their profits, leads me to use their same data to gamble that I can come out money ahead by not purchasing the extended warranty. I always keep a vehicle to 150k miles and have never experience a situation where I would have used an extended warranty. That could all change tomorrow...it's a calculated gamble. Additionally, my Gladiator is a 3rd vehicle, that doesn't get a lot of miles/year. My 2000 Nissan Frontier w/214k miles is my daily driver.

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