Used Car Warranties - Your Thoughts?

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bmacd

Lifer
Jan 15, 2001
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I bought a 2009 Chevy Malibu from a Ford dealership. The factory warranty expires in about 7 days. The Ford dealership, where we purchased the vehicle, as well as the local Chevy dealership, have both offered us warranties for the vehicle.

What do we need to consider when comparing the warranties? Is there a better source for used vehicle warranties? Thanks.
 
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alkemyst

No Lifer
Feb 13, 2001
83,769
19
81
Dealership you are usually getting screwed even if its one of the good warranties since they add a mark up on it.

There are good warranties out there, but they are usually not cheap.

I paid $5700 for a warranty on my 25,000 mile M3. I am covered bumper to bumper until 86,000 miles. My navigation died (CD's won't eject), I pay $200 and it's being replaced. I am expecting a catastrophic repair by 86,000 miles that will easily be more than the $5700.

My last major maintenance was $4000.
 

ViviTheMage

Lifer
Dec 12, 2002
36,189
87
91
madgenius.com
I got a 4 year 45k warranty on my 135i ... I haven't had to use it yet (6 months or so) but it did cost 2800$ haha.

got a 3 year 36k on my xterra and it cost 650$, but that is because I knew a guy who worked there and got it dirt cheap.
 
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Zenmervolt

Elite member
Oct 22, 2000
24,512
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If you're financially disciplined, you're usually better off taking what you would have spent on the warranty and putting it into a savings account. Remember that warranty companies have good actuaries working for them; they don't offer a warranty for less money than the average car will cost them in repairs.

Bottom line is that these "extended warranties" are insurance. The companies that offer them aren't charities and they do make a decent profit on offering those warranties. That means you're not likely to ever get more value from the warranty than what you paid for it.

ZV
 

phucheneh

Diamond Member
Jun 30, 2012
7,306
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If you're financially disciplined, you're usually better off taking what you would have spent on the warranty and putting it into a savings account. Remember that warranty companies have good actuaries working for them; they don't offer a warranty for less money than the average car will cost them in repairs.

Bottom line is that these "extended warranties" are insurance. The companies that offer them aren't charities and they do make a decent profit on offering those warranties. That means you're not likely to ever get more value from the warranty than what you paid for it.

ZV

This is extremely true, and I will add that 'aftermarket' warranty companies aren't just covering themselves...they are making HEALTHY profit. Of all the people I've seen come into shops with aftermarket warranties (even those purchased through the dealer), it seems like at least half the repairs they need are not in 'covered' areas (or are declined, anyway).

'Non-essential' electronics...pretty much everything except your engine computer (which has a long factory warranty as an 'emissions device,' iirc) is often not covered. A/C, even if it's a mechanical failure (compressor)...probably not covered.

They basically make all their money by showing you ALL this good stuff that they DO cover...and it's all the things that they know are statistically unlikely to break.

That said, factory extended warranties (bought with the car when new) can be a decent deal. Or at least much more solid 'insurance.'

I paid cost for a factory warranty to 100k, but iirc it's only five years. Hindsight, probably a waste, since anything that doesn't break in the first three years is fairly unlikely in the ensuing two. But I was impressed with how comprehensive it was (I and another mechanic buddy scrutinized their covered parts/exemptions list pretty well), and, well, fuck working on my own car.

edit: although on that last part, I've since changed my attitude. I've seen so many bad techs...hard to let anyone else touch my car. I've done stuff like minor trim fixes myself, because not only do I not trust the competency of others; most dealer techs get MAD when they get stuff like squeak/rattle or trim/weatherstripping complaints. I don't want that dude working on my car. Now, if the shop actually treats them well, and spreads the good/miserable tickets around evenly, it's not so bad...but that doesn't happen anymore. Not that I've seen.
 
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phucheneh

Diamond Member
Jun 30, 2012
7,306
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Who the hell is Clark Howard? He seems to think I should know who he is...that makes me instantly hate him.

(not disagreeing...just being hateful...)
 

Ryan

Lifer
Oct 31, 2000
27,519
2
81
Who the hell is Clark Howard? He seems to think I should know who he is...that makes me instantly hate him.

(not disagreeing...just being hateful...)

He has a radio show - gives out money advice, and runs a free advice phone line to help people with financial issues.
 

phucheneh

Diamond Member
Jun 30, 2012
7,306
5
0
...did Dave Ramsey change his name?

Tell me he's better than that guy, at least...god he's popular around here, and I really do hate him (Ramsey).
 

MagickMan

Diamond Member
Aug 11, 2008
7,460
3
76
If it's from the manufacturer? Yeah. Otherwise, no. I bought the 7yr/100k mile warranty with my M5, I believe it's the gold package, from BMW. I wouldn't trust one from a 3rd party.
 

railer

Golden Member
Apr 15, 2000
1,552
69
91
I would not be buying an extended warranty of any kind on a 2009 Chevy. I think GM had a 5 year/100k powertrain warranty in 2009, so a good chunk of your major components should be covered anyway. Any garage in the US will be able to fix just about any problem on any Chevy, and parts should be relatively common and cheap. Put the money you were going to pay for the warranty off in a savings account for future repairs if needed.
 
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