Extended Warranty or not?

greywolf2112 · November 30, 2006

As many of you know I bought a 2004 Suburban, 8.1L engine, with 54k miles on it. Was a one-owner that had been leased, and serviced regularly (all oil changes at the dealership).

For about $2200 I can get a 48 month, 48000 mile warranty with a $100 deduct.

However, I am realistically only going to be using this for long trips and towing, which is maybe a total of 5000-6000 miles a year.

Would I be smart to simply take that $2200 and put it in the bank?

gmcjoe · November 30, 2006

The only warranty I would get is a geniune GM warranty. Anything else isn't worth the paper it is written on in most cases.

MustGoFaster · November 30, 2006

extended warranties have their advantages, and their drawbacks. It is proven that if you buy the warranty, the greater proportion of the people that have them will be throwing their money away. (otherwise how would the company stay in busisness) Myself, I have had 2 and they have paid off for me. I think I paid like $1700 for mine for the buick, it covered me to 100k miles, and was a no-deductible version. I had 3 climate control units (turned out to be a design flaw) and a intake gasket leak in the time I had the car, the climate units are $800 a pop installed - so right there it paid for itself. In addition, with the warranty (I had bumper to bumper) I took the car in for EVERYTHING. no matter the slightest - if it even looked at me funy - in it went.

Bottom line - can you save money well? and be prepared for things that break? -then keep the cash. if you're like me and money sitting around just starts a fire in every pocket -maybe the warranty is a good thing.

I guess another thing to consider is how well the vehicle has been so far - if it's been quirky -that might be somehting to think about

last thing - I bought the warranty from the dealer the car came from. never had any problems with claims or service. one of the few things that I can honestly say that every time was perfect, and I never had any comlpaints at all. I have to say that when I sold the car - I had a reciept for everything that had ever been done to it - including oil changes. I got $1000 more than top dollar book for it -and I know the warranty contributed to that.