Extended Warranty - Pushing For Discounts?

[rhinoman]

With my 2010 CC LTZ due to arrive in around 2 weeks, I'm starting to think about extended warranty options. Given we're a low mileage family (for the most part), time is going to be my enemy as opposed to Kms (although with the trailer towing ability, this may change).

 

Anyone have experience or insight into whether you can negotiate discounts for the extended warranty ? Is there a sweet spot (time, mileage) that will offer them more profit to squeeze some more ?

 

Also - should I notice any effective different in maintenance/prioritization/treatment if issues arise, and having the extended warranty?

 

Thoughts?

Rhino.

[csheatz]

My dealer worked with us when we got our car in 2005. At the time we wanted a 100,000 mile extended warranty, which was 5 years or 100k. We told them that the car would be getting about 30k a year on it so the 5 years is pointless if we are limited by miles. They set us up with a 4 year 100K warranty for a lesser price. I think the price went from $1200 to $900 but I am not real sure on the price.

 

When we bought our truck we decided to not pay for a extended warranty, reason being that we never had a issue where we needed the extended warranty on the car and the truck had the 3/36k and the 100k powertrain, and the miles going on the truck are very low. When we buy another car we will however get the extended warrenty due to the miles we put on the cars. We have not had a issue with the truck to make us regret not getting the warranty past the 3/36,000, and the 100,000 powertrain.

[rhinoman]

Decent powertrain coverage, that's for sure. I think the deductable is $250/300 for work under the GMPP. If I have a <insert engine/head issue here) problem in year 4 at 90,000 miles, it should be completely under warranty, correct ? The benefits of the plan aren't as convincing when you look at what is covered in staggered fashion against the 'all covered for x time'.

[wages999]

I bought an '09 HHR using the cash for clunkers and they offered me an extended 5 year 100,000 bumper to bumper warranty for something like $1,800. The lady looked shocked when I said no. To me $1,800 was a lot to pay when the drivetrain is already covered to 5yrs/100,000miles.

 

I have had very different amounts qouted for the extended warranties. I had an '03 S-10 that I got a 5yr/100,000 mile bumper to bumper warranty for $1,200. When I bought my '04 Silverado, the same plan price was quoted for somewhere around $2,600. I bought the plan for the S-10 but not the Silverado. I traded the S-10 in and got money back from the warranty. On my Silverado haven't spent anywhere near $2,600 in repairs in 5 years.

 

All three vehicles were from different dealers, and each dealer seems to have a different approach to selling it. The dealer where I bought my S-10 said they were giving me the GM employee price on the warranty. The tried to negotiate at the dealerships where I bought my Silverado and HHR, but they wouldn't budge on their prices.

[ryan_hermanutz]

This is just my opinion but don't get the extended warranty on a new car, you already have a warranty, just wait until it’s about to run out before you get one. I’m pretty sure they start as soon as you buy them, so you would pay for double coverage without the coverage.

[KCXLT]

When we picked up our 2010 Equinox a few months ago I was offered the extended warranty. He had a chart were you could pick the extra years and how much mileage you would. I think I had initially said we put 15k Km on per year so he gave us the price for 80,000km/5years. I then started thinking we might be abit over that on the mileage so he priced out the 100,000km/5yrs, which was more of course. I hesitated and then said no, then he offered the 100,000 for the same price as the 80,000 so I took that. I think it was in the $1200 range. You could also lower the cost if you wanted a deductible. This was for a GM warranty. You can also buy it just before the factory warranty runs out. It also doesn't matter what dealership you buy it at. My friend just got a used Fusion and he saved alot by calling different Ford dealers looking for the best price. I think he got it for $100 over the dealers cost.

[Jfriday]

I bought my truck in September of 2007 from a fabulous dealership (which GM has now shut down). When I denied the extended warranty the finance officer came back with a lower price, I think it was something like $850 down from $1300. He told me that when buying a car EVERYTHING was negotiable extended warranties, GAP insurance, service plans, etc. He said to never pay the first price a dealer mentions on anything, they were a great bunch of honest guys.... too bad they are out of business now....

[omegafiler]

Agreed. At a dealer, everything is negotiable. $1,800 is too much. I'm sure they'll go lower. But equally important as the price is what it covers, doesn't cover, who provides it, how much is the deductible, and how it actually works if you have a claim or even need a rental. It does no good to get a dirt cheap warranty if it doesn't cover anything useful. So make sure they take the time to walk you through the contract.

[cromulius]

When I bought my diesel the rep wanted to sell me a 150k bumper to bumper for someting like $2500 so I just kept saying no since the cummins is already warrantied for 100k. After sayng no to five different offers I finally said yes to the warranty with a $500 deductable for $1500 I think it was, maybe less. I figured I could drop $1500 on a good fun weekend so why not. Normally anything little that breaks on the crappy dodge body after 36k would be on my dime. Haggle everything even your dinner if you feel like you are not getting a good deal. You would be surprised at the things I have haggled for.

[High Plains Drifter]

I would highly recommend NOT buying an extended warranty if you're buying new. Not at the time of purchase.

 

It is not needed at this time. You have a 3yr/36K yr bumper to bumper and 5 yr/100K powertrain warranty.

 

If you want an extended warranty, wait until the existing warranty is about up which will be close to three years or 36,000 miles. You can buy one then. Many companies offer them and can be negotiated.

 

The F&I guy will try to convince you that you need an extended warranty. They will drop their price. Don't fall for it. You DON'T NEED ONE NOW. Buy it later if you wish. Chances are, it'll be cheaper, too.

 

What happens if you decide to sell or trade the vehicle before 3 years or 36,000 miles? You can get the prorated refund on the extended warranty but anything you paid so far is wasted because you never used it.

 

They will say "It's only $xx.xx per month for peace of mind." Don't fall for it. You don't need it now. Buy it later.

 

Use the free warranty that you'll get when you buy it. Wait 3 years and then consider an extended warranty if you want it.

 

They don't sell these warranties because they care so much. They sell them because they make money on the back end of the deal. Nothing wrong with that but they have to over charge to make money. So the warranty will cost more. Save your money for later. Don't buy an extended warranty on a new car. It's NOT necessary. It will cost far less than what the dealer wants to sell you one for now.

 

You get a free full warranty for three years, 5 years on the powertrain components. Save your money.

[sonjaab]

For the best prices on GMPP check out:

http://www.gmoutlet.com

[texasblueline]

If you are going with a GMPP warranty (the standard GM extended warranty) keep a few important things in mind. Once you determine your vehicle's price class, the plans are broken down into pricing tiers:

1) Less than 12 mos and 12K mi

2) Over 12 mos, and less than 24k mi

3) 24-36k mi (but still within the orig 36 mo warranty)

 

The big thing to remember is that the time and mileage terms for the GMPP plans start when you purchase them, not at the original purchase date for the vehicle and not at the date/mileage when your factory warranty expires. In other words, if you buy a 72mo/72k mi plan when you buy the new vehicle in Jan 2010 it will expire in Jan 2016 or at 72k mi (whichever comes first). But, if you wait and until you're almost out of that first pricing tier (say you've gone 11k mi and its now Nov 2010) and buy the plan then it will last until Nov 2016 or 83k mi. So, even though you're spending the same amount for the same tier 1 plan (unless there's a price increase that goes into effect during those 11 mo), you're getting much more coverage by waiting until you're almost out of that first tier. So, with the GMPP plan you almost never should buy it when you first get the vehicle, wait til that you're towards the end of that first pricing tier.

 

Other thing to keep in mind is that as you move from tier 1 to tier 3 you get less mileage/time for your money. For example, for my '10 Sierra 4wd and the fact that I drive about 12k mi a year, if I wait til I'm 11 mos and 11k mi into the truck and still fall in tier 1 I can get a 72 mos/72K mi plan for $1500 from gmoutlet, and I'll be covered for a total of 83mo/83k mi (11+72). If I wait until the original warranty is almost up at 35 mo and 35k mi in, I can get a 48mo/48k mi plan while I'm in tier 3 for $1865, which again gives me total coverage through 83mo/83k mi (35+48), and that's IF there haven't been any GMPP increases during the 2 extra years I waited. So, end coverage is the same, but buying it at the end of tier 1 instead of the end of tier 3 would save me at least $365. Perfect illustration of getting less overall coverage for your money as you move down the tiers.

 

Lastly, gmoutlet.com is one of the better priced choices out there for the GMPP. Check their prices (or one of the few other GM dealers who sell the GMPP online) before you negotiate with your local dealer (which, again, you probably should not do until you're getting towards the end of tier 1). And a big key also is that gmoutlet doesn't charge sales tax when selling a plan to you if you're not in their state, so that's another big savings to consider when trying to negotiate with your dealer.

 

So, play with your mileage and the numbers and prices, but almost always you'll come out ahead if you wait to buy towards the end of tier 1......not when you first buy the vehicle and not towards the end of tier 3 just before you go out of the original warranty.

 

All that being said, I'm not completely convinced an extended warranty is worth the money, so you make that decision for yourself on whether the peace of mind is worth the chance of spending more on it than you may spend on repairs. But, I just wanted to make sure if you do get one that you understand the best way to get the most value on the GMPP....that's my excuse for this long post.

[Tsmith]

My dealer told me the other day to purchase before 12,000 miles rolls over to keep price from increasing. The GM Major Guard 7/84000 (I average 10,000 a year) with 100 deductible would run $1750. The 7/84,000 miles is added on to your existing mileage, under 12,000 at the time of purchase. Not from when you bought the vehicle.

[cerbomark]

Put the $1000 or so in the bank and IF you need something down the road that s not covered you ll be way ahead.

[texx]

With my 2010 CC LTZ due to arrive in around 2 weeks, I'm starting to think about extended warranty options. Given we're a low mileage family (for the most part), time is going to be my enemy as opposed to Kms (although with the trailer towing ability, this may change).

 

Anyone have experience or insight into whether you can negotiate discounts for the extended warranty ? Is there a sweet spot (time, mileage) that will offer them more profit to squeeze some more ?

 

Also - should I notice any effective different in maintenance/prioritization/treatment if issues arise, and having the extended warranty?

 

Thoughts?

Rhino.

 

 

A year ago I shopped the internet for Factory GM Extened Warr. I found several and the best price I found was $1800 for a 6yr/100k with a $100 dedut. The dealer I bought the truck from wanted $2200 and even after the sales mangr talked to him the best price he said he was authorized to go to was $2000. I said match $1800 or I walk. I didn't walk and I drove out with the truck getting $200 more for my trade in.