Need advise on extended warranties.

[persistentprogrammer]

My rig just hit 54,000 miles and it's developing problems. Which extended warranty company have you had a good experience with?

[Redhawk1]

It seems when I get the Automakers extended warranty, I never have problems with my trucks. It is when I do not get one that I have problems. I always go with the Automakers warranty. I once dealt with a used cars dealer warranty company and it was a nightmare trying to get them to pay for repairs. Never again.

[KN]

Extended warrantees are good for them and bad for you. You will almost always pay more for an extended warrantee than you will ever see payed out in repairs. Set the money you would have spent on the warrantee in the bank and pay the repairs yourself. Ask around and see how many people you know that ever got their money back out of an extended warrantee.  KN

[NYH1]

I think extended warranty's are worth getting. My parents usually gets them and its worked out well for them.
In 1987 they bought a "new" Ford Crown Vic wagon. They never got the extended warranty, and had to have an oil pan put on it that was $600 the warranty would have cost $600, so it was a wash.
In '88 they bought a "used" '86 Ford Tempo and got the extended warranty for around $600 and never had to use it.
In '96 they bought a "used" '94 Ford F150 4x4. They bought the extended warranty for $1000 or so. They had to have the front hubs replaced twice for $600 each time. A oil pan put on it for $900. The adapter plate the gos between the transfer case and the transmission replaced that was $350. All they had to pay was the $50 deductable thats it.
Now they have a '98 Ford Windstar. The extended warranty was $1000. They had to have a new transmission put in it, that was $1800. They also had to have some suspension work done to.
My wife and I lease both the vehicles we have right now, but I think I'm gonna buy the truck I drive. Its a 2002 Dodge Dakota Club Cab SLT 4x4. It has the 4.7L V8 engine, came with the tow package and is fully loaded. I really like it. I have to buy the extended warranty by 12/24/2004 if I want it so I still have time to think about it. The truck has a factory 7 yr. 100,000 mile power train warranty.
I think if you get the extended warranty each time you get a vehicle, in the long run you'll make out.
Just my opinion! :grin:

[rockbilly]

KN hit the nail on the head.  Good advice.

I have worked as General Manager of two different Auto dealerships.  I received a commission on all sales, finance, insurance and extended warrantys.  We also got a "kick back" on all warrants that were never used.  Not bragging, but I made some very good paychecks off the finance and insurance programs.

Best advice, price the warranty.  Never let a dealership include it in the financing (save the interest) Take the money that you would have paid for the warranty and put it in a savings account and leave it alone.  In most cases, you will find that with the interest you receive, you have generated a good little nest egg for you next purchase

Simply stated, the extended warranty is nothing more than an insurance policy.  You are betting the car will break down, they are betting it won't.

[KN]

Especially when you consider that they only cover engine and drive train anyway. Most of the stuff that goes south before 100K is all the other stuff like window motors, instrument items, blowers, brakes, etc.   KN

[NYH1]

Especially when you consider that they only cover engine and drive train anyway.KN

Thats not true. It depends on which one you get. Some of them are just like the factory warranty. The one's my parents got, covered everything. The last few had a $50 deductable, but thats not bad.

[BIGBOREFAN]

Our dealership sells a major extended warr. called API. It is a excellent warr. I covers a lot of stuff. You can get it with no deductiable or 50.00 or 100.00 Only draw back you have to buy right before your factory warr. goes out.

BBF