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Canceling Extended Warranty Coverage


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2 hours ago, 300 Blackout said:

If it were me I would cancel it and get my money back. I assume you purchased the vehicle new and have performed all regular maintenance. If gremlins haven’t reared their head yet, and you’ve taken care of the vehicle, I think an issue large enough to justify the expense is unlikely.

When I purchased my vehicle used with 65k miles, I made an offer and insisted on a bumper to bumper warranty to be included. This is mainly because the history of the vehicle was unknown. 9 months later my AC condenser cracked and the $1068 repair was covered (less my deductable of $200).

If I had purchased the vehicle new, I wouldn’t pay out of pocket for an extended warranty and would simply save that money for any possible future expenses.

If you are handy and don’t mind working on your own vehicle, purchasing a set of the helm service manuals would probably save you a bunch on routine maintenance and repairs that are no longer covered under the factory bumper to bumper warranty.

Yes, I take care of all the maintenance religiously.  I have worked on my own cars since I was 19 i'm now 40 LOL.  I'm not afraid of doing a lot of things.  I guess the only true thing I haven't done is rebuild an engine or transmission.

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2 hours ago, djv1951 said:

I would not own a new truck without a extended warranty. If one of the air condition controllers goes bad and they have to remove the dash to get to it, $2,000.00 repair plus the cost of a rental car if needed. That is just one example. These new vehicles are very expensive to work on.

While this is true, if I have no problems for the next 2 yrs, which I assume I won't because I only drive about 9,000 miles a year if that.  That means I would only be at about 48k miles.  I won't even be close to the 100,000 miles, i'll run out of time before the miles.  Though it's a nice piece of mind, it's 3000 + 100 that I would have paid in for any future work already.  Or cut short and be in only at $1500.  Obviously the best choice is to save that money into future repairs and if there are no repairs and my 5 year, 60 month is up, I can could pocket it or save it for future repairs beyond the 5 yrs.

 

I think the wife is ok with what I'm thinking of doing.

 

Honestly, if I was driving this truck to the ground and racking up 3000 miles a month, I would keep it.  But I'm just not, we have 2 cars and this is my daily driver to work a long 7 miles one way.  The weekend family car is the other car I drive on weekends or on trips.

Edited by phabejhmoob
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Most Of the time, maybe its just me, when I use any kind of warranty I have no luck  Its a big back and forth of "no thats not covered"  and me "yes  it is " But, I figure now on extended warranties  a big no !  because it usually is the cost of 1 major failure anyways, But if all warranties  weren't a big hassle to get them to pay up, I probably would always get one 

 

My 2 daughters I bought a warranty for them on there first new car since I would end up paying anyways LOL!   I guess I will Keep my fingers crossed in the mean time

 

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We are looking at getting one for the 2016 Suburban.  Since it has the magnetic ride, I'm seeing a bunch of failures on them in the rear. If you Google it there is a ton of posts.  Heck, one strut/shock is $550.  Not to include labor cost.  Plus I'm concerned about the AC condenser since there are known issues with it.  We plan on keeping this vehicle for a while. It fits our needs well having to haul a wheel chair around.  Plenty of room.

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I worry more about the electronics. My wife’s car Genesis came with 10-100k mile warranty. For an extra 1500$ we got total coverage. 8 years and 80k miles later the GPS radio combo failed, drivers side heated seat and window switch acted up. We got our money back and then some. I would be more concerned about time than mileage.


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Warranties are designed to make a profit for the insurer.  Chances are good that you will pay more for the policy than you would for repairs.  Does your truck not come with a 5 year powertrain warranty?  I think that $2998 is an outrageous price to pay for  "wrap" insurance that only provides limited coverage for years 4 and 5 of ownership.  However, I'd probably pay $1300 - $1400 for the peace of mind.  You've already lost the "advantage", imo.   Keep the insurance and add this to life's learning experiences! 

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In my experience, extended warranties are always a rip off and are usually commission based so the salesperson has something invested in trying to sell you that warranty. When I purchased my 2010, they said the warranty was $3,000CAD and if I didn't use it I could get $2,500 of that back. However, they said if you use ANY of the $3,000 on a warranty claim, I could get nothing back. Meaning if you say, "Yes warranty my $250 alternator", you just bought a $2,500 alternator Congrats. While they say the warranty covers everything, you can usually fine some stuff in the fine print that is not covered. 

 

I am not a gambler, so I always say no to that deal as you would need a trans or motor to fail to justify the cost. The Symtech paint protection and burn/rip/tear warranty I buy every time though, they repainted my 2010 6 months after my warranty expired. Awesome service from SymTech package. 

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11 hours ago, DEV1ST8R said:

Cancel it. Put the “refund” directly into a savings account for possible emergency repairs.

 

Unfortunately, that isn't how it works.  The prorated difference, is refunded to the lien holder and the refund is deducted from your totaled owed.. unless OP owns the truck outright.

 

I just did the same thing with my 4Runner before trading it in on my Silverado.  Only owned it for 3 months, but had the extended warranty and gap coverage.  Got the warranty cancelled and it dropped my owed amount $2700.  Traded the truck in, and got a check for the gap coverage ($997), since I had already traded the 4runner/the owed amount had been paid off by my trade in value.

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An extended warranty is hit or miss and like playing a game of Russian Roulette.

If you plan on keeping your vehicle for many years it may be worth while to have one.

The power train warranty will protect you for at least 60k miles. These Ecotech DI engines

are known for problems here or there. They seem random but the failures do occur.

For me, an extended warranty was always peace of mind. You are paying for peace of mind.

My 14 Sierra came with a CPO warranty and it added about $850 to the truck price but I have already

used that and then some on problems that came up so was glad that i paid for it.

The CPO warranty saved me.

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2 hours ago, Sierra Dan said:

An extended warranty is hit or miss and like playing a game of Russian Roulette.

Unlike Russian Roulette the consequences are not lethal! ;-)  Extended warranties can provide peace of mind particularly if your claims exceed the premiums!  The chances of this happening are not in your favor but if it does, chances are good that they won't  exceed the premiums by very much.  I think the chances of OP having claims that exceed his residual amount owing are more in his favor.  The chances of him having  claims reaching $1400 are possible but are slim that they'll reach $2998.  To me, his reasons for keeping the warranty at this point are far greater than they were when he initially signed up.

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I bought the extended on my 2014 last year. The truck had 46k on it. The factory drivetrain warranty expires december of this year. Extended covers me til May 2020. I have used it for a trailer switch and replacement of A/C condenser. It cost $1700 to buy it and i don't think it was a bad decision. 

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  • 7 months later...
On 9/6/2018 at 4:08 PM, phabejhmoob said:

Financially I'm solid, no issues with money in the bank or CC if needed.  I just don't want to waste the money on "if".  Even if I saved the remaining, it would be around $1548 after my calculations.

 

60 months, used 31 months so far, 29 months remaining at $49.97/month.  If pro-rated refund, I should be pretty well off.  

 

I honestly do not like the fact I will have to pay $100 deductible each claim, it's not a $0 deductible claim.  I have a few working mechanic friends (not home mechanic) that I use when it comes to complicated stuff that I cannot do and their "donation" rate is way cheaper than any shop.   I'm considering that as well.

If you're financially solid why are you worried about $1300 - $1400? Or the $100 deductable?

Just keep it and forget about it.

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