Extended warranty -

[Brian Elfert]

You have to remember that extended service contracts are like casinos. The house always wins. You may get $5,000 in repairs covered for your particular vehicle, but there were maybe another twenty customers who had zero dollars in repairs which covered your $5,000 in repairs (and then some).

I know someone who gets to buy stuff for his personal use from his employer at basically cost. He bought an extended service contract that normally retails for $20 for $3. That indicates that service contracts have a huge profit margin which is why some dealers will sell them to you at 50% off because they are likely still making money at 50% off.

[Jim Becker]

That's true, Brian, which is why it's important to be careful "what" one buys. Whenever this subject comes up, I'm pretty anal about saying "manufacturer backed". I'd never buy a third party contract on an automobile, personally. For me, it's "insurance" and if the "premium" is acceptable to me to reduce the risk, I'll buy it. I also do not accept "the price" from a dealer and always have multiple quotes in-hand from other dealers who are known to sell at just above cost. I ask for a match. If the local dealer will do that, they get the business. If not, I buy the contract from the dealer that provided the best price. Doing the homework for ESCs is just as important as doing the homework necessary to get the best price on the vehicle.

[Dave Lehnert]

I purchased an extended warranty on a new 2013 Chevy Equinox. 10 Year 100,000. Still drive it today. Best car I have ever owned.

I only needed to use the warranty twice. First time it was a covered part but denied warranty because the part was dirty. Thats why the part needs to be replaced, but what ever . It was the VT valve or something like that ??? Second time it was for an axle seal. Also was covered under warranty. The kick in the pants was the seal and labor was covered. but they did not cover the fluid change or the labor to do that. Top that with the $200 deductible and the warranty did not cover much.

After all said and done I basically lost $2,000. I could have done a lot of repairs out of pocket for $2000. Also each time my repair was delayed a day because my shop I used had to wait for approval ( Or denial in my case)

[Bill George]

So make sure its a GM warranty Not a third party one and there Will be no delay for an Ok. BTW was this not all this just covered in another Thread?

[Ronald Blue]

I respectfully disagree. Any brand can have issues, but when you look at the Consumer Reports surveys, the three "American" brands stand out with the most problems. Whenever I mention Consumer Reports, people get prickly and insist on parroting the UAW propaganda that Consumer Reports is biased against American cars. So I'll state that their reliability ratings are based on surveys of tens of thousands of people who actually own the vehicles. And yes, I used to participate in their survey every year. For people who still think they're biased, oh well. I can't tell people what to believe.

I haven't picked up a Consumer Report in years. If I believed them my last two pickups would have been certain to leave me stranded someplace along side the road. I've had my current Silverado for 9 years next month. It's ready to roll over 100,000 and all it's ever had done was tires a couple times and rear brakes just this year. It's the highest trim level with about every option they offered in 2014. There have been a couple recalls to update software. My 2023 Toyota Highlander Platinum just purchased new in August already has a recall because the front bumper assembly plastic can detach. This is my second Toyota and I'm not complaining because it is a good vehicle. When it comes to climate control my Silverado is hands down better. If I change the temperature a couple degrees in it I can feel the difference immediately. The Highlander and Avalon before that not so much. Point being they all have their issues and recalls. We did get the extended warranty on the Highlander but hopefully we will never use it. YMMV

[Dave Anderson NH]

Just bought a new Outback for the wife 3 weeks ago. I've avoided extend service plans (warranties) for years but with all of the expensive electronics on today's car it made sense to buy in. The 11.6" display alone is over $3000 for the part let alone labor. They did pitch a brand X service plan but I said no. Bought the Subaru backed one for 10 years or 100K miles. Yes the house always wins. I don't mind that for the chance to avoid outrageous repair bills and as Jim said it is only a small amount spread over the years of ownership and it is transferable to a new owner.

As for Subaru as a brand, Sue had a problem with the paint bubbling on a black Legacy sedan within days of buying a Subaru sedan 4 cars ago. The dealer went through all of the channels including bringing in the DuPont paint folks. This took about 2 months while she racked up 6000 miles on the car which was a previous model year leftover bought at a good price. We got a call from the dealer one night telling us to bring the car in and they would exchange it no charge for the identical version of the new year's model. She is now on her 3rd Outback and 7th Subaru. Their response for the problem was outstanding.

[Steve Jenkins]

We had both our vehicles totaled at the same time earlier this year. Due to all the electronics we bought the manufacturers extended warranty on both the new ones

[Rick Potter]

Just wanted to remind that most factory extended warranties can be bought anytime during the life of the original factory warrantee. You do not have to get them at time of purchase.

[Ken Fitzgerald]

Any extended warrantee or insurance program is a crap shoot. In 1986, my employer of 10 years was sold to GE. GE flew all service engineers in the NW to Seatle, where they wined, dined and pitched their employment and made us sign paperwork. One of the decisions I had to make was for an $8/per month long term disability insurance. I decided to buy it. I'd bet that less than 1% of all people who buy it end up qualifying and getting to use it. Then in July of 2010, I awoke deaf. I had paid $8/ month approaching for 24 years. Let's round up to $100/ year x 24. Total inflated expenditure $2400. It's a crap shoot! I got it back in the first month after the company's short term disability insurance ran out. You have to weigh the pluses and minuses and determine what is right for you! There is no right or wrong. What is right for you? How much risk are you willing to incur? Can you survive the expenditures if you choose wrong?