Extended Warranty offer question - only 24hrs to decide

[Darth Bruise]

Hello. First post, but I've been reading for a couple weeks. I will go introduce myself properly in the other sub forum, but I've got a question first - and limited time to make up my mind.

Just bought a new 2015 1.4 manual Sonic LT. When I was closing, the finance guy gave me some extended warranty options (not pushy at all). I turned them down, but he said if I decided before close of business tomorrow, he could still offer me the deal.

The offer: The gold plus extended 60mo/75000mi warranty (extension of the basic warranty pretty much plus a couple small extras) for ~$850. Or the same thing 60/100000 for about $1050. Both are with a $100 deductible. He said he was able to offer such a low price because I was putting a lot of cash down and using outside financing for the rest. He said after tomorrow, he would have no leeway to mark them down, and they would be well over $2000 (forgot the number). He sent me on my way with a bunch of the documentation for my review.

So what do you guys think? I've never given much thought to putting a price on a warranty, other than that it didn't seem worth it for the normal full price. I am a USAA member also, and he said they have decent warranties too (that I wouldn't have to sign up for tomorrow), but just not as good/cheap as his current offer. He seemed very trustworthy for a dealer finance guy. I need to make up my mind by tomorrow afternoon, and it would likely require a couple hour drive back to the same dealership (I have plenty of free time right now for that).

For context, I normally have a fairly busy career, and not much time or interest in doing anything more than basic repairs myself.

 

[The Champ]

With my personal experience with GM products, I would take that $1000 and put it in the bank.

You already have 3 year/36,000 mile bumper to bumper from the factory and 5 year/100,000 mile powertrain with the factory warranty.

My 2006 Pontiac Torrent with 122,000 mile that I purchased new has needed 1 repair that would have been covered by those extended warranties you have been offered. The cost of the repair - $301.00. And if I remember correctly - that repair was in 2013 - which means it would have been beyond 5 years.

 

[Darth Bruise]

Thanks for the input, Champ. Any other opinions?

 

[Brad Bruggeman]

Chances of costly repairs in the first few years I would think would be low.It might be different if you could get a long term warranty and was keeping the car long term.For example Chrysler offers a bumper to bumper warranty for the life of the vehicle with $100 deductible after the factory warranty exp fora little over$2,000.That could pay off if you keep a car 10-15 years.

 

[Darth Bruise]

You already have 3 year/36,000 mile bumper to bumper from the factory and 5 year/100,000 mile powertrain with the factory warranty.

Right, this would basically just extend my basic warranty from lasting around 2.5 years, depending on my mileage, to lasting around 5 years.

My inclination is to pocket the money. I just thought if it was a mediocre deal at ~$2500, maybe it was a great deal at $1050.

 

[gsfisher13]

I bought a used 2013 a month ago and they offered me the same things approx. the answer depends if you are (a) the type that if something is wrong with the car you take it to them and say fix it or (b) you try to solve it yourself and take it to them for big things or (c) not the type of person that can stash that $100/month or $1000 away for the day you may have an auto repair not covered by the 5 year/100k.

me personally I chose to rely on the 5 year/100k, putting money away myself for future repairs. at 35,960 I pulled into the dealer and had them do a thorough check before the 36k bumper to bumper expired.

 

[The Champ]

Chances of costly repairs in the first few years I would think would be low.It might be different if you could get a long term warranty and was keeping the car long term.For example Chrysler offers a bumper to bumper warranty for the life of the vehicle with $100 deductible after the factory warranty exp fora little over$2,000.That could pay off if you keep a car 10-15 years.

My 2006 Torrent mentioned above is 10 years old, and I plan to keep it at least another year or two. Other than normal maintenance and wear items, only the one $301.00 repair.

A warranty doesn't cover fluid changes (transmission, coolant). It doesn't cover brakes, shocks or struts. It doesn't cover spark plugs. It doesn't cover tires.

If you finance that $2000.00 warranty (most people that buy warranties do), it means that warranty actually costs you more than $2000.00.

 

[Natesriv]

this is my first new car, so I'm not sure if GM does this. But do they contact you during a time they think your warranty will end to offer to extend the factory bumper to bumper warranty for another stint for some $$

??

 

[Darth Bruise]

this is my first new car, so I'm not sure if GM does this. But do they contact you during a time they think your warranty will end to offer to extend the factory bumper to bumper warranty for another stint for some $$

??

Yes I believe they do. This guy's claim though is that after the initial purchase, there's no way for them to offer a big discount (in this case ~$850 instead of (~$2500) again.

 

[Brad Bruggeman]

My 2006 Torrent mentioned above is 10 years old, and I plan to keep it at least another year or two. Other than normal maintenance and wear items, only the one $301.00 repair.

A warranty doesn't cover fluid changes (transmission, coolant). It doesn't cover moon roofshocks or struts. It doesn't cover spark plugs. It doesn't cover tires.

If you finance that $2000.00 warranty (most people that buy warranties do), it means that warranty actually costs you more than $2000.00.

Chrysler warranty does cover shocks and struts,moomroof.I read it over close before agreeing to it.At least the one we have on our 14 grand Cherokee does.It is bumper to bumper,only exceptions is tires,fluid changes,and brakes.You are requried to keep all reciepts if you do the fluid changes yourself in which i do.We DIDN'T finance tthe warranty.
The reason we decided to go with the warranty was do to the problems we had with the 2003 GMC envoy that we had at the timeBought it new in 03,had no problems for 9-10 years.But then had a regulator go out on rear power window,air pump go out on automatic leveling rear suspension,moonroof motor went out.All within a year.$2500 worth of repairs.Othrwise we would still have that suv for at least another5-10 years.I have got an 2001 gmc sierra that i bought new so we keep them for a long time unless we start to have alot of problems.Made us think the extended warranty might be worth it if we plan to keep it for a long time,in which we plan to.The jeep warranty terminates when the cost of the repair exceeds the NADA retail value.

 

[The Champ]

Chrysler warranty does cover shocks and struts...

I haven't read this warranty, but work as an outside sales rep for an ACDelco/Motorcraft/Mopar warehouse distributor - so probably deal with automotive type warranty issues more than most...

Does the warranty specifically state that the shocks and struts are covered for "normal wear", or does it talk about them being covered for "manufacturer's defects"?

I'm thinking the latter.

If I am wrong, I apologize in advance.

Once again, my personal experience with GM products has been very good.

I drive 50,000 miles a year in my company car (always a GM product) and I have 154,000 miles on my current car.

I've taken multiple GM new cars that I've purchased personally over 125,000 miles (most is 211,000 on a 1979 Pontiac Grand LeMans) with very minimal issues.

I'm literally thousands of dollars ahead by having never purchased an extended warranty.

 

[Brad Bruggeman]

I haven't read this warranty, but work as an outside sales rep for an ACDelco/Motorcraft/Mopar warehouse distributor - so probably deal with automotive type warranty issues more than most...

Does the warranty specifically state that the shocks and struts are covered for "normal wear", or does it talk about them being covered for "manufacturer's defects"?

I'm thinking the latter.

If I am wrong, I apologize in advance.

Once again, my personal experience with GM products has been very good.

I drive 50,000 miles a year in my company car (always a GM product) and I have 154,000 miles on my current car.

I've taken multiple GM new cars that I've purchased personally over 125,000 miles (most is 211,000 on aThereforetiac Grand LeMans) with very minimal issues.

I'm literally thousands of dollars ahead by having never purchased an extended warranty.

I will have to check on the shocks to be sure but I was surprised to see them included since it is a normal wear item.But the warranty is the best I have ever seen on a new car.I have been a GM man my whole life until I bought the jeep but have not much confidence in a GM warranty any more.I purchased a new GMC Sierra back in 2001 that had a nock in the engine since break in.They refused to fix it.GM said it was piston slap due to the pistons on the 5.3 didn't have skirts on themThey said it wouldn't affect the performance or the longevity of the engine.I said that could be true but it wasn't the point.I didn't spend $33,000 on a new truck to have a rattling motor."a lot of money in 01"I told them I wouldn't buy a new GM vehicle again.Therefore I took my $53000 to buy the jeep instead of a new Yukon.

 

[The Champ]

I will have to check on the shocks to be sure but I was surprised to see them included since it is a normal wear item.But the warranty is the best I have ever seen on a new car.I have been a GM man my whole life until I bought the jeep but have not much confidence in a GM warranty any more.I purchased a new GMC Sierra back in 2001 that had a nock in the engine since break in.They refused to fix it.GM said it was piston slap due to the pistons on the 5.3 didn't have skirts on themThey said it wouldn't affect the performance or the longevity of the engine.I said that could be true but it wasn't the point.I didn't spend $33,000 on a new truck to have a rattling motor."a lot of money in 01"I told them I wouldn't buy a new GM vehicle again.Therefore I took my $53000 to buy the jeep instead of a new Yukon.

You probably will need the warranty on a Jeep product (or Dodge or Chrysler or Fiat):

Much better reliability and dependability from GM products as the current Vehicle Dependability Study shows. These are consumer reports from actual owners of 2012 vehicles they purchased new.

 

[Brad Bruggeman]

You probably will need the warranty on a Jeep product (or Dodge or Chrysler or Fiat):

Much better reliability and dependability from GM products as the current Vehicle Dependability Study shows. These are consumer reports from actual owners of 2012 vehicles they purchased new.

Well maybe it will be useful ,unlike the GM warranty.

 

[DaBlackapino]

I have a CPO 2012 Chevy Sonic LS that I bought Last Year, it Had 28,171 Miles on it. Since It's a CPO Sonic the OG Warranty ran out which was the 36000 Miles/3 years Bumper to Bumper Warranty. So My NEXT Limited warranty to Expire on 11/19/2015 will be the 48000 Mile/4 year. My CURRENT Mileage is 33,893. Since I've owned the Car for only a Year and 4 months I've only put on 5722 Miles That's not Bad, Thee Only Warranties I'll have in effect after this year will be the 2400 Mile 2yr Maintenance Plan which expires on 5/27/2016 & then the 10000 Powertrain Warranty (11/19/2016) & the Corrosion Warranty which expires 11/19/2017.

 

[rodslinger]

For anyone that suggested to skip it... Best advise ever!!!!

Far too many people look at these warranties on a transaction by transaction basis. Forget that and look at these like a cumulative account. An annuity with a value totaling all the money you did NOT spend on extended warranties of any type for anything.

Think of every little crap warranty you get offered on a daily basis. That calculator you just bought at Target? The protection plan for the game you just bought for your XBOX? Skip ALL of it. You'll be ahead probably $1000 per YEAR.

I figure I've saved $24k so far in my life on NOT getting extended warranties on anything. Not on cars, electronics, homes or anything. And in that time they might have helped me three or four times totaling about $1500....

The extended warranties are there for the bookies that offer them because the odds are very much in their favor.

 

[Brad Bruggeman]

For anyone that suggested to skip it... Best advise ever!!!!

Far too many people look at these warranties on a transaction by maintenance? basis. Forget that and look at these like a cumulative account. An annuity with a value totaling all the money you did NOT spend on extended warranties of any type for anything.

Think of every little crap warranty you get offered on a daily basis. That calculator you just bought at Target? The protection plan for the game you just bought for your XBOX? Skip ALL of it. You'll be ahead probably $1000 per YEAR.

I figure I've saved $24k so far in my life on NOT getting extended warranties on anything. Not on cars, electronics, homes or anything. And in that time they might have helped me three or four times totaling about $1500....

The extended warranties are there for the bookies that offer them because the odds are very much in their favor.

So if I keep my vehicle with its touch screen,computers,high tech electronics for 20 years I will not reep back $2,000 worth of repairs outside normal maintenance?I will take that bet.And yes,I will keep it 20 years!My current truck I have had 15 and counting..

 

[rodslinger]

So if I keep my vehicle with its touch screen,computers,high tech electronics for 20 years I will not reep back $2,000 worth of repairs outside normal maintenance?I will take that bet.And yes,I will keep it 20 years!My current truck I have had 15 and counting..

You found a 20 year extended warranty for $2000? I would probably bend the rule for that one.

 

[The Champ]

So if I keep my vehicle with its touch screen,computers,high tech electronics for 20 years I will not reep back $2,000 worth of repairs outside normal maintenance?I will take that bet.And yes,I will keep it 20 years!My current truck I have had 15 and counting..

I've had my GM built Pontiac Torrent for 10 years and have only spent $301 outside of normal maintenance.

That puts me $1699 to the good, not considering the time value of money over a decade.

Of course, the vehicle in question is a Jeep product. That being the case, and if I planned on keeping it for even 10 years, I'd spend the $2,000...

 

[Brad Bruggeman]

You found a 20 year extended warranty for $2000? I would probably bend the rule for that one.

Actually lifetime bumber to bumper as long as you own the car.$100 deductible after the factory 3\36 expires.It terminates only when the cost of repair exceeds the Nada retail value of the car.At that time Chrysler pays you the Nada value and contract is terminated.