Car Experts: Extended Warranties?

[rubenswm]

We recently picked up a 97 Lexus ES300 as a means of some reasonable and reliable transporation for a 2 mile/day trip..

We're considering an extended warranty on the vehicle. What are some good web sites to research info for this? What are your thoughts on this? What are some good companies? This was a leased vehicle so it may not have had as much TLC as a privately owned one.

Thanks,

Rubens

 

[Evadman]

I always get an extended warranty because I use my vehicles for their intended purpose so I break stuff. Btu I am lazy, so I just got my extended warrantys from the dealers after talking them down on the price by a little under half. (40% off retail or so)

 

[Deeko]

I had a TERRIBLE experience with my extended warrenty. I bought a '94 Grand Am a little over a year ago. So far, my motor mount went, then my flashers, then my coolent transport assembly, then my alternator, then my tilt steering column, and then oh ya know...my motor. The warrenty paid for the alternator, and none of the others. Assholes. Technically they covered the motor, but they will not replace a motor, only repair, and it would have taken about 3 months to repair, plus they only pay X amount, so it would have cost me about the same amount as just replacing the entire thing($2100). Ugh.

 

[Double Trouble]

Extended warranties on cars, much like the ones they always try to get you to purchase at Best Buy and other retail outlets, are usually a very bad deal. The complanies make a ton of money on them. Essentially they've figured out exactly what (on average) should go wrong with your car after the regular warranty, and they usually write so much into the 'small print' exclusions that you don't end up getting much from your extended warranty. At least, that's what consumer reports said a while back. I don't think anything's changed since then, so I'd say stay away from the extended warranty, unless you have reason to believe your car might need more repairs than average (and that those repairs would be covered).

 

[TheAudit]

You will usually end up losing your money if you buy an extended warranty on a new car. By the time you really need it for a big-time repair it will have expired. It might be an okay idea on a used car though, by the time you get the car there might be something just waiting to fall apart on you. My advice is to usually stay away from the extended warranties and just buy a decent make new or low mileage car and maintain it.

 

[vi edit]

The only extended warranty I would buy on a used car would be one from the original manf. that basically extends the original B2B warranty. The third party ones are such a PITA they aren't worth the hassle.

 

[Demon-Xanth]

I think it depends on where it comes from. A manufacturer will provide as good of service as the original, where as a dealer warrentee is hit or miss. I took the extended warrentee on my car because I didn't want to be paying on a car that wasn't under warrentee. (the 3-36 lasted two years, and the payments are going for three)

 

[Budmantom]

Have the car checked out by a good mechanic and go from there.

 

[Doggiedog]

I think a huge third party warranty provider just went bankrupt recently too. They left all their policy holders hanging. Make sure you pick a good one if you get one.

 

[flxnimprtmscl]

Yup, about a month or so ago. Huuuge number of people got shafted there. Case in point. Extended warranties are teh suck. Imo anyway.

 

[TheLidlessEye]

Extended warranties are good on a new AMERICAN car. Far higher chance of something f-ing up bigtime. I got one on my last GM car, and it paid for itself several times over.

Extended warranties are good on foreign USED cars. Just got a 100k (with NO deductable) warranty on the 2002 altima i just got. I have more coverage than the new car warranty. yum.

 

[TheLidlessEye]

 

[rubenswm]

Originally posted by: TheLidlessEye
Extended warranties are good on a new AMERICAN car. Far higher chance of something f-ing up bigtime. I got one on my last GM car, and it paid for itself several times over.

Extended warranties are good on foreign USED cars. Just got a 100k (with NO deductable) warranty on the 2002 altima i just got. I have more coverage than the new car warranty. yum.

which company

 

[Ryan]

ONly buy extended warranties from the vehicles original manufacturer - 3rd party warranty companies SUCK.