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Thinking about an extended warranty


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I have searched the forums and read a bunch of posts about buying extended warranties and I am still on the fence about it. My 2004 exsb 4wd only has 31k miles but the 3yr is up this weekend. I have had it in the shop for a broken defroster on the drivers mirror and the blinking 4wd/autotrac switch. I can fix or attempt to do most repairs on my own but all the electronics are over my head also the tranny scares me. (I don't do any towing now if that matters.) And have no reason to have any concerns about it anyway. If I did purchase the gmpp plan it would most likely run out on the time part not the mileage because I don't pile the miles on. I would like to know if people have purchased the plan and wished they did not, or vise-versa.

Thanks in advance

neil.

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Just make sure it's a reputable company that the dealer uses. My fiancee's dad is currently taking his ext. warrenty company to court over their Caddilac because they're claiming a faulty bolt (which wouldn't be covered) caused it to blow a head gasket...except the bolt was fine, it was the factory helicoil (yes they use them right from the factory) that pulled out of the block.

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I for one am totally sold on the extended warranties. I have had one on my last 3 vehicles and they have all paid for themselves. if not in use, then in resale. I have always gotten the bumper-to-bumper no questions asked-just fix it and gimme back my car level. On average I have paid in the 1500-2k range for them. with some of the electronics and special order parts in cars nowadays they are totally invaluable. and I look at it this way, if I am financing the car, the warranty cost adds like $20 a month to my payment. small change for not having to save up money for repairs of any kind.

 

I also find that I maintain some thigns better with the warranty. all of us have had those little "issues" with cars we tend to ignore because it's too much hasle to fix. goofy interior lights. intermittent power locks or slow/intermittent power windows. slow leaks from various seals. ABS lights. etc. with the total warranty - i keep all of that stuff up to date, and never have to worry about it. plus, when I traded my last 2 vehicles in, the dealer had complete records of everythign that had been done there, and I got full "excellent" book value for it, plus a return on what was left of the warranty period.

 

the bottom line is this, however. how much is peice of mind worth. if the vechicle is fairly new, and you have lots of time and energy to take care of all the little minor things that will crop up. and if you are really good at putting away that etra $5 here and there for emergencies, then the warranty probably isnt that big of a deal for you. but if you are in a situation where you cannot afford to ahve the car down for a few days - than you may want to consider it. My buddy swears by his for his daughter at school. 2 years and he's never gotten that dreaded "Daddy - my cars broken and I need it fixed right now..."call

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Over the long haul, extended warrenties can not pay for themselves. If they did, all warrenty companies would be bankrupt. A company can not pay out more money than it takes in minus operating expences and profit.

 

I have bought 8 new cars in my lifetime. Never bought the warrenty. At an average of $1500 per that is $12000. I have had no work done that would be covered by extended warrenty done on any of them.

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Proven, Extended warranties are a waste of money if you play the odds.

 

generally speaking unless you blow up the engine the repair that is needed costs less than the purchase price of the warrany.

 

I know there will be the occasional person who it paid off for. But it is rare. Put that money in the bank and save it for the day a problem may occur and you will be better off.

 

If this was to the owners favor the warranty companies would be bankrupt.

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Proven,  Extended warranties are a waste of money if you play the odds.

 

generally speaking unless you blow up the engine the repair that is needed costs less than the purchase price of the warrany.

 

I know there will be the occasional person who it paid off for.  But it is rare.  Put that money in the bank and save it for the day a problem may occur and you will be better off.

 

If this was to the owners favor the warranty companies would be bankrupt.

 

 

 

 

Agreed! There are thousands of people whose extended warranties aren't worth the paper their printed on because the company backing it has gone bankrupt. I worked for a GMC dealer in AZ for a time and I cannot tell you how many times an after market warranty company would deny a claim for the most ridiculous reasons. I swear these companies have a fully staffed department whose sole purpose is to find the loopholes in every claim that allows them to deny it. If I were to get an extended warranty it would be one through the manufacturer or none at all. Personally I would rather take the $2K and put it in a CD or a money market account for 3 years.

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Just to counter the past couple of posts:

 

Took the truck in at 60,000 to have the tranny flushed.

 

Found:

Blown rack and pinion seals

Slow, slow rear main leak

Pinion seal of diff leaking

Total costs: $2100

 

3 year, 36,000 extended warranty - $1700

 

It was a no brainer to me. I looked over what was covered. The big thinss - everything internally lubricated, and all electrical, plus more. What is not - cosmetic and 'trim' pieces.

 

The way I look at it is I am $300 bucks ahead right now ($100 deductible) + another 36,000 miles worth of problems!

Nick

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Just to counter the past couple of posts:

 

Took the truck in at 60,000 to have the tranny flushed.

 

Found:

Blown rack and pinion seals

Slow, slow rear main leak

Pinion seal of diff leaking

Total costs: $2100

 

3 year, 36,000 extended warranty - $1700

 

It was a no brainer to me.  I looked over what was covered.  The big thinss - everything internally lubricated, and all electrical, plus more.  What is not - cosmetic and 'trim' pieces.

 

The way I look at it is I am $300 bucks ahead right now ($100 deductible) + another 36,000 miles worth of problems!

Nick

 

 

 

 

I will counter that with this, If you took $1700 and invested it over 3 years you would have way more than $2100 in your pocket. It is better to have that money work for you then sit in a insurance policy that you may or may not ever need.

 

LA

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Just to counter the past couple of posts:

 

Took the truck in at 60,000 to have the tranny flushed.

 

Found:

Blown rack and pinion seals

Slow, slow rear main leak

Pinion seal of diff leaking

Total costs: $2100

 

3 year, 36,000 extended warranty - $1700

 

It was a no brainer to me.  I looked over what was covered.  The big thinss - everything internally lubricated, and all electrical, plus more.  What is not - cosmetic and 'trim' pieces.

 

The way I look at it is I am $300 bucks ahead right now ($100 deductible) + another 36,000 miles worth of problems!

Nick

 

 

 

 

GM wouldn't offer the extended warranty if they lost money on it.

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I had the GMPP on my '98 Blazer. I got rid of it last summer just after it expired. It did cover cover a bunch of things like HVAC replacement, some problem with the axle...and some other stuff i can't remember **no questions asked, just replaced; Once, I might add by a dealer half way across the country from where I bought it**. I'm not sure if the $1500 paid for itself or not, but I was glad I had it when I had to put it in to shop in the middle of a road trip somewhere in Deleware.

(I've got it on my Silverado too, hopefully won't need it, but i'm covered till 100,000 miles or 2011)

 

-Jay

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Just to counter the past couple of posts:

 

Took the truck in at 60,000 to have the tranny flushed.

 

Found:

Blown rack and pinion seals

Slow, slow rear main leak

Pinion seal of diff leaking

Total costs: $2100

 

3 year, 36,000 extended warranty - $1700

 

It was a no brainer to me.  I looked over what was covered.  The big thinss - everything internally lubricated, and all electrical, plus more.  What is not - cosmetic and 'trim' pieces.

 

The way I look at it is I am $300 bucks ahead right now ($100 deductible) + another 36,000 miles worth of problems!

Nick

 

 

 

 

GM wouldn't offer the extended warranty if they lost money on it.

 

 

 

 

x

There might also be a difference in what it actually costs GM to fix your truck Vs. what the dealer charges you (read: obscene carges for parts and labor)

 

-Jay

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Quote: "GM wouldn't offer the extended warranty if they lost money on it."

 

That is my feeling also, I am leaning to putting the money in the bank in the savings account for any problems that might happen. I did not get one on my wifes Jeep Cherokee and would not have made any claims on it if we had one. I guess it is a crap-shoot.

 

neil.

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There is no 100% correct answer to this. I'll use a couple of examples. My 2500HD doesn't have an extended warranty. It cost me 300 to fix a sensor for the airbag system. If I had the warranty it would have cost $100. It also needs a power steering pump rebuild and idler arm. If I had the warranty, it would have cost me $100. That's about what the parts cost but I still have to do the labor.

 

My 2002 Tahoe has less than 36K on it but is over the 36 months. I need a radio. That's not covered on the basic extended warranty I bought, but the dealer is going to good will it. When the tranny goes, and I know it will, that will be covered. My cost $100.

 

My Vette has more electronics in it than I'd care to think about. Almost any module in it is going to cost $1000. My cost will be $100. I paid about 1500 for a comprehensive extended warranty. I'm betting that I'll use that at least once in 84 months. Unlike my 2500HD, I won''t have to worry about the cost to fix it.

 

I see the warranty more like insurance. When the vehicle goes down hard, I don't want to dip into savings to fix it. I just want it fixed for a known cost. Like the Fram guy says, you can pay me now or pay me later. I'm betting that if I pay you now, I'll pay a lot less later. Almost any major repair will cost more than the warranty. I'm also more likely to get the little things fixed sooner because I know what it's going to cost me.

 

When you use the dealer like I do, it is a cost management issue. I gave up on local garages a long time ago and I don't have the time or desire to fix everything that comes up. For me, the warranty is worth it.

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