Thread: Extended Warranty @#$%s

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For the most part extended warranties are without merit, especially when buying one for something new. Occasionally they might pay off but that is rare. Of course, if it gives you peace of mind than maybe they are a good thing, assuming of course that the broken part is covered. You got to read the fine print!!

I have gotten extended warranties in the past, and when they went unused I stopped getting them. But a few years ago, I purchased a rather expensive used car with about 59,000 miles on it. The original warranty was about to expire, so I purchased a 2 year 40,000 mile extended warranty. So far that extended warranty has cost me $895 for the warranty and $150 in co- payments on repairs. Doesn't sound good until you see the other side. In those 40,000 miles the dealer has put out over $7000 in warranty repairs for a new transmission, new alternator, new front and rear differentials, head gaskets, and several other things. I now have practically a new car.

Bob, it's nice to hear a success story about extended warranties. My experience has not been so fulfilling.

Several years ago, I had an oil pump fail on a Honda on which I had purchased an extended warranty from Honda at the time of purchase of the new car. The failure occurred on the freeway, so by the time I got the car pulled over, a rod knock had developed and the motor was toast. Honda had sold the warranty to a third party who refused to honor it. Rather than get involved in a lawsuit which would have become an expensive and protracted affair, I purchased a low mileage motor from a boneyard, installed it and went on my way.

The sour taste of this affair was still in the fore of my mind when it came time to purchase another new vehicle, a Nissan Quest. In the finance office, I went round and round with the officer and refused to buy the extended warranty. The General Manager was called in to try to close me. I told him that if he could put in writing that the warranty would remain a Nissan warranty and not be sold to a third party, that I would buy it. Of course, he could not. That warranty is a negotiable instrument that can be sold at the will and whim of the manufacturer. I left the dealership with my new Quest, sans the extended warranty to take my chances down the road. That turned out to be one of the best vehicles I have ever owned. I sold it several years later with 195,000 miles on the clock, original engine and transmission intact. Engine oil changed every 3000, transmission fluid changed every 20,000 (by me).

Tech, glad to hear you have had good luck with the Nissan. I had an extended warranty with a 1980 Honda, but luckily never had to use it. Sold the car at 165,000 miles, with the only problem being the heater which wasn't covered anyway.

The car that I had a good experience with is my Subaru Outback Limited. I still have it and drive it every day. Now has 135000 miles and plan on keeping it until the it falls apart around me, or at least 4 more years, whichever comes first. It gets all of it's routine service, by me, and is driven about 100 miles daily.

Last time I bought an extended warranty it was for a CRT rear projection TV (58 inch). I was concerned about the possibility of a lamp failure ($400 each plus labor). That unit is now 5 years old, never a moment of downtime, and a wasted extended warranty ($200). Next time no extended anything. They just don't pay.