Extended car warranties. Good or bad?

[BigTip]

I bought a new car on Saturday. When I was doing the financing, the guy did the hard sell on me to buy an extended warranty. "$3,200 retail, we'll sell it for $2,900." Their final offer ended up at $2,400. It is good for 84 months, 70,000 miles. It kicks in after the factory warranty of 36/30,000 expires. "Bumper to bumper" but there are several listed exclusions.

I had not research this at all. The guy said I could cancel within 30 days if I wanted to. So I went ahead and got it. I got home and started reading all the negative comments about Fidelity Car Warranty company. How things weren't covered, how the company dicked people around, how it was hard to get their money back, etc.

I took the comments with a grain of salt. A lot of the complaints were dealing with how people had not read the contract. And I figured that people that it worked for didn't go on the internet to sing the praises. People usually only take the time and effort to post something when they are pissed off.

The other selling points of the deal is that if I don't use it at all, after the seven years, I can get all my money back but $50. It also will convey if I sell the car.

So, has any one ever bought an extended warranty? But more importantly, has any one ever successfully used one to fix something on a four or five year old car, and felt like they had gotten their money's worth out of the deal?

[Curly Bill]

As a rule I never buy extended waranties. There's a reason sellers push these things so hard - it's one of the biggest money makers they have.

[Frozen Sooner]

Call your insurance company and ask how much mechanical breakdown insurance would cost on your vehicle (if they offer it). If they do, it's likely much less expensive and much more comprehensive than what you bought from the dealer. Never trust someone who says a mechanical breakdown insurance policy is "bumper to bumper": as you've already noted, it isn't. No such animal exists.

Back when I was working for a credit union, we sold them, and the number you said above for an 84/70 plan seems pretty high unless you're driving something fairly expensive to fix, like a Mercedes or Audi. We used a different company than the one you've listed, and we rarely had complaints. In fact, I sold one to my own mother and stepfather, and they ended up using it several times with no problems.

tl; dr: you can do better by shopping around.

Edit: Here's the guys we used. You may be able to get a quote directly from them:

http://www.iwsgroup.com/default.asp

[BigTip]

As a rule I never buy extended waranties. There's a reason sellers push these things so hard - it's one of the biggest money makers they have.

Yes. Obviously the dealership stood to make $800 or so from selling this outside product. The guy admitted that they do make money off of it.

But one of the reasons I buy a new car, as opposed to a used one, is having that worry free "it's covered" aspect to it. I never buy extended warranties either. Not on electronics or appliances or anything. I always tell the salesman trying to sell the extended warranty that I will gamble that I am not buying a piece of crap.

[Frozen Sooner]

As a rule I never buy extended waranties. There's a reason sellers push these things so hard - it's one of the biggest money makers they have.

This. Never buy one from the dealership. In fact, the only thing you should ever buy from the dealership is the car itself. If you really want credit life or disability insurance (which in all but RARE cases you shouldn't), you can get it much less expensively directly from the lender. Same goes for GAP coverage.

[PalmettoSooner]

I bought a new car on Saturday. When I was doing the financing, the guy did the hard sell on me to buy an extended warranty. "$3,200 retail, we'll sell it for $2,900." Their final offer ended up at $2,400. It is good for 84 months, 70,000 miles. It kicks in after the factory warranty of 36/30,000 expires. "Bumper to bumper" but there are several listed exclusions.

I had not research this at all. The guy said I could cancel within 30 days if I wanted to. So I went ahead and got it. I got home and started reading all the negative comments about Fidelity Car Warranty company. How things weren't covered, how the company dicked people around, how it was hard to get their money back, etc.

I took the comments with a grain of salt. A lot of the complaints were dealing with how people had not read the contract. And I figured that people that it worked for didn't go on the internet to sing the praises. People usually only take the time and effort to post something when they are pissed off.

The other selling points of the deal is that if I don't use it at all, after the seven years, I can get all my money back but $50. It also will convey if I sell the car.

So, has any one ever bought an extended warranty? But more importantly, has any one ever successfully used one to fix something on a four or five year old car, and felt like they had gotten their money's worth out of the deal?

I bought a used Ford Explorer Sports Trac a few years ago. It had real low mileage (it was a couple thousand past the factory warranty) but it was a certified pre-own. At the time, they offered a extended warranty to 75,000 miles. A year later, the fuel pump sensor messed up and I took it back to the dealer and they told me it was not covered. That was the only time I ever bought a extended warranty, but over the years I have hesitated at buying extended warranties. I've always been told its a waste of money and just like Curly said...its a way for them to make more money. If you do decide to keep it, Just make sure you read all the fine details about it.

[olevetonahill]

Not all dealers will accept those EWs,

You Play the Lotto every week also dont you?

Bad Idea

[BigTip]

Not all dealers will accept those EWs,

You Play the Lotto every week also dont you?

Bad Idea

I DO play lotto! How did you know? That is just so spooky.

But seriously, buying insurance is a gamble. You don't want to use it, like your house burning down, but it gives you piece of mind having it.

And just because they make money off of it does not make it a bad thing. I feel like I got them down as much as possible, so they didn't make as much as they could have. None of the internet comments had anyone mentioning their price as any lower. Some had the same, many had higher.

[Curly Bill]

I once had a furniture sells-lady try to sell me an extended warranty on a new bookcase I bought! Seriously, what's gonna happen to a bookcase?

[olevetonahill]

I DO play lotto! How did you know? That is just so spooky.

But seriously, buying insurance is a gamble. You don't want to use it, like your house burning down, but it gives you piece of mind having it.

And just because they make money off of it does not make it a bad thing. I feel like I got them down as much as possible, so they didn't make as much as they could have. None of the internet comments had anyone mentioning their price as any lower. Some had the same, many had higher.

You asked I answered. EWs are a BAD idea. If yer that worried about the thing breakin then just ****in trade it in every 3 years or less.

[Curly Bill]

You asked I answered. EWs are a BAD idea. If yer that worried about the thing breakin then just ****in trade it in every 3 years or less.

This is generally what I've done, though I have kept my Nissan Frontier for 5 years and now with 87,000 miles on it. I'm pushing the envelope! ;)

...but if things do start going bad on it (knock on wood) I'll be car shopping!

[olevetonahill]

This is generally what I've done, though I have kept my Nissan Frontier for 5 years and now with 87,000 miles on it. I'm pushing the envelope! ;)

...but if things do start going bad on it (knock on wood) I'll be car shopping!

I just had to park my 93 Chevy truck with almost 300K on it. Ima try this fall to rebuild the engine and Trans and get another 300K out of her

[BigTip]

You asked I answered. EWs are a BAD idea. If yer that worried about the thing breakin then just ****in trade it in every 3 years or less.

I keep my cars for 7+ years though. I have had more than $2,200 in work done on my out of warranty car I have been driving. If I knew things that broke were going to be covered, I would not be worried about this, as I would be sure that it would pay for itself. But reading the negative comments online has me scared that the "thing" that I am going to need repaired will be excluded for some reason.

That's why I am seeking stories about any positive experiences.

[olevetonahill]

Cant give ya anything Positive Bro.

I do know that All dealers arnt Required to accept every extended warranty out there.
You not only have to worry about whats covered and whats not, But if it will be accepted by whoever ya have do the repair

[jkjsooner]

This. Never buy one from the dealership. In fact, the only thing you should ever buy from the dealership is the car itself. If you really want credit life or disability insurance (which in all but RARE cases you shouldn't), you can get it much less expensively directly from the lender. Same goes for GAP coverage.

Speaking of GAP coverage. I bought a car three years ago on a 3 year zero interest loan. The dealership tried to sell me GAP coverage.

Seriously, GAP coverage for a 3 year loan? I suppose I could have wrecked the car in the first couple of months but that's about the only way that would have paid off.

[Frozen Sooner]

Yeah, that's just stupid.

[oudanny]

Here's a positive experience. I bought Ford extended coverage on my new Explorer a few years ago. At 30,000 miles the a/c went out on the way to Disney World. I stopped at a dealer along the way and they replaced it for the $50 deductible. A few years later at 95,000 miles the a/c went out again. Replaced it again for $50 and replaced the rear differential that had started leaking. I traded it in 2 months later. I don't buy extended warranties for most products but this seemed more like insurance. You win some and lose some.

[OULenexaman]

I was a pimp in the box for about 8 years. Technically it is NOT an extended manufactures warranty. It is a service agreement. Pure and simple. And it is underwritten by an insurance company. Some are good and some are bad.

[BigTip]

I was a pimp in the box for about 8 years. Technically it is NOT an extended manufactures warranty. It is a service agreement. Pure and simple. And it is underwritten by an insurance company. Some are good and some are bad.

Yes, and the guy even said that. And "agreement" can be whatever the contract says. That is why there is a list of exclusions that are not being "agreed" on to be fixed.

"Some are good and some are bad". I asked the guy what if Fidelity goes out of business. "There's more chance of Ford going out of business than Fidelity."

Really? Whatever.

[OULenexaman]

And I've seen them fold......you wouldn't believe some of the **** I've seen with those. The only service aggreement I would buy would be one that is backed by a manufacturer. Last I checked Fidelity doesn't manufacture jack ****.

[olevetonahill]

If its such a "GOOD DEAL" why did he have to resort to a hard sell?

[Curly Bill]

If its such a "GOOD DEAL" why did he have to resort to a hard sell?

They're a good deal for the sellers. That's why they push so damn hard to sell em! And why I'm convinced they're not a good deal for the buyers.

...of course I'm preaching to the choir here.

[OULenexaman]

and I made thousands off selling them.....my favorite was what I called the "Fluff, Buff and F@#k Package. Guess which one that was.

[ouleaf]

In general I'd say they are a scam. If its a used car, depending on the vehicle history, then maybe I'd consider it. I would not buy one for a new car.

[pphilfran]

I am not big on extended warranties...

It might not be too bad a deal if it is the factory extended warranty...any dealership of that make will honor...and it will take the worry out of having to fork out a couple of grand at one time....

I would run away from one of the second party warranties....

[8timechamps]

I don't keep my cars long enough to worry about the warranty expiring, but I agree with just about everyone here...it's a major money maker for the dealership, and may or may not cover something you need to fix.

If it were me, I'd call and tell them to take it off. If you end up keeping the car after the factory warranty expires, you can always buy a service agreement down the line.

Seems like everywhere you go, you get asked about purchasing an EW. Must be good money in it.

[tulsaoilerfan]

Total rip off IMO

[BigTip]

I called the finance guy at the dealership yesterday and told them my good buddies on soonerfans.com told me to say you can take that extended service agreement and put it where the sun don't shine. Or something to that effect. He said no problem. I went in today and resigned some papers to drop it. Easy peasy.

Thanks for the input.

[kbsooner21]

Extended warranties are a waste of money imo

[8timechamps]

I called the finance guy at the dealership yesterday and told them my good buddies on soonerfans.com told me to say you can take that extended service agreement and put it where the sun don't shine. Or something to that effect. He said no problem. I went in today and resigned some papers to drop it. Easy peasy.

Thanks for the input.

Perfect! Good jorb.

[Curly Bill]

We've finally accomplished something useful here?

Man...I feel good. :)

[pphilfran]

I called the finance guy at the dealership yesterday and told them my good buddies on soonerfans.com told me to say you can take that extended service agreement and put it where the sun don't shine. Or something to that effect. He said no problem. I went in today and resigned some papers to drop it. Easy peasy.

Thanks for the input.

On second thought...in this particular case I would keep the extended warranty... :)

[olevetonahill]

We've finally accomplished something useful here?

Man...I feel good. :)

Agreed
Now he can afford to Sponsor a Tail Gate

[BigTip]

On second thought...in this particular case I would keep the extended warranty... :)

Damn it!





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