FYI....

It's just another way to squeeze more money out of you when you go to purchase that brand new car.

...why doesn’t it make sense to back up your new car investment with an “insurance policy” of sorts? First, you already have a back-up plan. It's called the new car warranty, and it lasts anywhere from 36 months to 10 years. The contract you buy will run concurrently with the new car warranty, which means you will have overlapping coverage. Since you can’t collect twice, it's a total waste of money during that period....


http://www.thecarconnection.com/news/10 ... d+Blogs%29

I wish that I figured that out before I just purchased my new Altima.

Ouch

We bought an extended warranty with our QX4 while we had it, which we used once, but it was used at least so it was out of warranty already. I'd never consider buying an extended warranty with a new car at all though.

Bad Advice.

Nissan offers a 36k warranty... I ran through that in two years

I paid for a 5 year/100k extended Factory warranty not those crappy "insurance warranties" this one is just an extension of the new car warranty.

So I would have been three years without a warranty had I not gotten the extended one ... Not a good idea to be without a warranty while still financed just say'n.

This way as soon as my warranty runs out I will not have a car payment and be in a better position to pay for any possible mechanical issues.. Not that I could not afford them even with the payment but savings are supposed to be just that... SAVINGS.

boston824 wrote:I wish that I figured that out before I just purchased my new Altima.

Most extended warranties are refundable based on a pro-rated timeframe. You should be able to call them up and cancel and get most of or nearly all of the money back. Then in a few years, when your OEM warranty is nearly expired, you can check into buying an extended warranty at that point.

Kenrik wrote:Bad Advice.

I paid for a 5 year/100k extended Factory warranty not those crappy "insurance warranties" this one is just an extension of the new car warranty.

Wrong-o-matic.

The aftermarket warranties are typically underwritten and managed by the same exact company (yes, they're ALL insurance companies) as the so-called "factory" warranty.

The only difference? The price. You double-paid for the first two years, too. No need, you were already under warranty.

You could have called on the day you hit 36K miles and gotten the exact same coverage, for less money. I bought 5 years, 100K miles on my Q45. Paid $1400. Over the next 5 years, I had over $6K in repairs done, at the dealer.

I thought this was common knowledge?

...you'd be surprised.

When I worked at the dealership, the Finance Managers had no shame in stacking warranty after warranty on top of a new buyer. "After all, it's just $13 more a month!"

Yeah. Finance a warranty. That's just f***ing GENIUS.

"Tire warranty". They'd never mention that the tire manufacturer's warranty is in effect, just as if you bought those tires at Sears.

"Roadside Assistance". Yeah. You can get the same coverage for 1/10th the cost through AAA or your cell phone provider.

"Paint / Interior Protection". This one has "STUPID" written all over it.

There's more, but you get the idea.

On a side note, I think Gap coverage isn't a bad idea in certain cases... but even THAt you can get from your insurer for less money. Even where it DOES make sense, it'd make MORE sense to shop around for a car that's not gonna poop half its value the day after you bought it. Buy something 2 years old and save a ton of cashola.

^Troof. I couldn't have said it better myself.

We did purchase Gap coverage on our Jeep, but I didn't bother with a warranty this time. I did my research and could find no good reason to get an extended warranty on it, the parts are cheap and it seems like drivetrain failure is pretty uncommon in them, as long as they're properly cared for.

The biggest mistake with getting a warranty with a used vehicle, is as Greg mentioned: You're FINANCING the warranty. So you're going to be paying for the warranty during the whole term of financing, which most likely will exceed the coverage of the extended warranty on a used vehicle. So in the end, you're likely still going to be paying for a warranty that you will be still paying for after the coverage is up and probably hardly even use, if you shop around for a good vehicle.

Personally, after my experience with warranty coverage, I decided it was a better choice to set back some extra cash every month for car repairs. Then when something needs to be repaired, I have the cash to cover it but I also don't owe the bank more money for a warranty that I haven't used. If nothing goes wrong, then that cash just sits there until it needs to be used. Even my I30, with all of it's repairs that it's needed, has only cost me roughly $1,700 since I bought it 3 1/2 years and 40,000 miles ago. 70% of that being basic maintenance(brakes, tires, CV axles, tie rod ends, ect), which wouldn't have been covered under a warranty anyways.

Now I don't think warranties are a complete waste, but it would just depend on the vehicle that i'm purchasing. If i'm aware that the vehicle i'm purchasing is going to have a lot of issues, then I would probably consider an extended warranty, but I wouldn't purchase it at the dealership either.

The problem is, a lot of people don't "save" properly. They see that extra $13 as their Starbucks fund.

If you forego the extended warranty, and save that $13 a month, you need to set that aside in an interest-bearing account (such as a mutual fund). After five years, you should have a little over $1,000 in that account (almost enough to purchase warranty coverage to 100K miles).

AZhitman wrote:The problem is, a lot of people don't "save" properly. They see that extra $13 as their Starbucks fund.

If you forego the extended warranty, and save that $13 a month, you need to set that aside in an interest-bearing account (such as a mutual fund). After five years, you should have a little over $1,000 in that account (almost enough to purchase warranty coverage to 100K miles).

Very true, I think a lot of people look at it as an extra bill, if it's not already rolled into another bill, it's not easy to forget about that way

I personally set aside $75-100/mo for car repairs, rather than the amount I would be saving on the loan. Just because I feel like that amount wouldn't cover any major failures if needed. I try not to look at it as an extra bill either though, but look at it as an investment. If I don't use it on one vehicle, i'm bound to use it on another at some point.

Excellent advice on the interest bearing account too though, i've never thought of that. I will have to look into that

I think it's a crap shoot. My family has used extended warranties on and off, I think it's really up to you to read what the fine print is and then to make an informed choice.

I never see the point in buying a 'new' car, or a 'warranty'

I got a 60k from dealer on everything but powertrain, and 70k on powertrain. Hell, it could take the average person, doing 15k miles a year, or less, 6-7 years for that warranty to expire.

You will trade the car in around 5 years. And lets just say you bought it with 20k already on it. Still come out on top, and got a car fixed for free the whole time!

Amays U G37S wrote:I never see the point in buying a 'new' car, or a 'warranty'

Methinks you're viewing new vs used car purchases strictly by price. there's more to it. When you buy used, you always roll the dice that the previous owner(s) have maintained/treated the car well. Not all do. With new cars you don't have that concern, plus all wear items like tires/brakes/belts etc are brand new. Buy a usedcar with 30K on the clock, and you'll likely be buying tires soon. I've purchased both new and used vehicles. Most of the new cars I've purchased were either new models or redesigned ones that I decided I wanted to get then rather than sit and wait 2 years to save on depreciation. It also helps to buy new cars that have good depreciation rates.

I have also never purchased an extended warranty, waste of money.

Yes, I am viewing it solely by price, but only because of the large depreciation on all vehicles. Of course, you get what you pay for right? But a car with 20k miles on it, sometimes off lease (if you can find it), or even 30k, would of been 'mostly' cared for, especially if buying within the 2 year limit based on manufacturing date of the vehicle.

Cars to me are a depreciating asset no matter how you look at it. Exotics, and antiques discluded. All cars just rot, and are eventually worth nothing.

Buy two cars, used, with low miles, and exchange both as daily drivers. You save a lot on gas, repairs, and can stretch that small warranty out for a very long time.

And lets face it, the only thing not losing money is the 1943 Ford Pickup you inherited from your wife's dad that he spent 25k on restoring.

Hahaha.

I'll likely never buy a new car ever again. I picked up my 2001 C5 with 45K miles for just under $17K (sticker price: $54K).

Had I wanted to, I could have bought an aftermarket warranty to 100K for under $2K.

Most of our cars are classics, so they're not really warranty eligible, but anything I buy from here on out will likely be in that "sweet spot" of depreciation vs wear, which is typically 3-6 years old.

BTW, modern cars don't seem to have the issues of "original owner maintenance" that earlier cars did, so a 2005+ car (foreign) under 50K miles is usually a pretty safe bet.

AZhitman wrote:BTW, modern cars don't seem to have the issues of "original owner maintenance" that earlier cars did, so a 2005+ car (foreign) under 50K miles is usually a pretty safe bet.

That was 100% my point, and I'm glad we can agree, Greg.

If you buy a used car, save all that money, don't get a warranty, and treat the car right with updated maintenance, etc. You will be fine. Especially if it is a car that is 05' and up.

Plus within those 50k it is still under warranty and most likely serviced at the dealer.

17k for a vette! Can't pass that up!

AZhitman wrote:

Kenrik wrote:Bad Advice.

I paid for a 5 year/100k extended Factory warranty not those crappy "insurance warranties" this one is just an extension of the new car warranty.

Wrong-o-matic.

The aftermarket warranties are typically underwritten and managed by the same exact company (yes, they're ALL insurance companies) as the so-called "factory" warranty.

The only difference? The price. You double-paid for the first two years, too. No need, you were already under warranty.

You could have called on the day you hit 36K miles and gotten the exact same coverage, for less money. I bought 5 years, 100K miles on my Q45. Paid $1400. Over the next 5 years, I had over $6K in repairs done, at the dealer.

My Extended Factory Warranty on the Versa was $1200. Not going to argue but there is a difference between the "factory warranty" and some aftermarket crap at a minimum it helps me to hold the dealer accountable so I don't get the back and forth "not our problem" that you get with dealers/warranty companies. Overall it translates out to $400 per year for the three years that I'm going to "use it" or about "1.5 days pay per year" Worth it for me. I looked at it as paying for the gap between 36 to 100k rather than 0 to 100k.. that's why it's an "extended" warranty.

No, there's not a difference. But if you believe what the dealer told you, that's fine. I sold Infinitis. I was trained on the differences.

Look at your paperwork. Who is the underwriter (the insurer)? I can almost guarantee they do "aftermarket" warranties.

If it suits your needs, that's good - I'm just disputing the inaccurate info.

p.s. Welcome back dude!!!

I have a weird experience with these extended warranties. This happened with a different car brand than Nissan. I bought the new car and I bought the extended warranty for $1,200. After three months when I realized how stupid I was buying such a warranty I went to the dealer to cancel it.

Instead of cancel the warranty, the new finance manager told me that the former employee charged me too much, and that I can receive a refund check for $500.00.

I agreed with the new price. But, it happened that after having a very negative experience with their service department two years later, I decided not to take my car to that dealer, plus to cancel the extended warranty, so I will have no connections with that dealer anymore.

I had to make an application -they had a model to print and sign in, and after a few days I received a check, with a deduction of paper work and use of the warranty -which was none-. The check came for the amount of $1,150.

My guess is that the former check given to me as a refund, was never reported to the main office, and that the latest refund for to cancel my warranty was based in the amount of $1,200.

Weird, but somehow it compensated my bad experience with their service department when they did perform some service to my new vehicle that wasn't necessary at the moment -flushing the transmission oil-, so, I actually received back the money I paid for the unnecessary service.

Fortunately, the vehicle is responding very well, I have it for 5 years already and no mayor problems with it...but replacing the shock absorbers, besides the regular maintenance like tires, spark plugs, oil, steering wheel fluid, front brakes and their discs, belts, antifreeze, etc.

So, I fell into the trap for the first time ever....... I purchased the extended factory warranty for my 2010 Altima 2.5 Sedan- 7000 miles. (I know it was dumb). But wait, it doesn't stop there; I also purchased the paint sealant protection. Now, in my defense, Nissan paint seems to have gotten pretty bad over the years. Anyways, I dropped the vehicle off at Frederick NIssan this morning and picked it up tonight after work. While looking over the vehicle, I noticed that the paint looked a bit cloudy. I waved over one of the sales persons (who I happen to know) and asked him to look over the vehicle tell me what he noticed. After a good look, he also noticed that it looked cloudy. We walked into the showroom to get another sales person to come out and address my concerns. Keep in mind, my 15 yo daughter is with me and looking at the paint.

Both sales personnel agreed that the over priced wax (my words) was not applied correctly, nor was it buffed into the paint . It will go in AGAIN tomorrow morning to be redone, and will be inspected again tomorrow night when I pick it up.

The part that made my laugh was when the second person came out and asked "What is wrong with the paint?", my daughter replied, Are you kidding, it looks like s***. She went on to mention that she has detailed the vehicle twice since we purchased it in May, and knows every inch of the vehicle and it's paint. I do have to say that she is very into cars and does not mind the multiple steps to detail the vehicle.

The first sales person did vouch that he is aware of the detail put into maintaining the vehicle's black finish, and that it was not done right.

Oh well, I just needed to vent.

The only time, I 'be bought extended factory warranty is on European cars. Electronics always go wonky at the 4 or 5 year mark on European makes. I have had no regrets. Their expensive to diagnose and replace.

I skip extended warranties on Japanese and domestic cars.

I don't think Nissan offers a warranty of any kind for 89 180s and 84 skylines. The option is denied to me. Ah, that magical elixir known as "dealer-applied paint protection." I shall never know ye.

I know everyone believes warranties are bad. And just like used car salesmen there are some that are horrible and rotten to the core. I work for a dealership, I see the s*** ones every day and sometimes watch as patrons who bought them reduced to tears because they cannot afford them. However i have a extended warranty from nissan. When i purchased my car 2 years ago i told them i would only buy it if they kept the same price and certify pre owned inspect the car with a full 8 yr 100k mile warranty. Most nissan dealerships can do this with a nissan extended warranty. I have had the work done not only at my dealership but also while i was on the road to visit my family in texas i stopped for a check engine light to have my Neutral position switch replaced for free due to my warranty covering it. They also offered me a rental car because the extended nissan warranty covers rentals. My two cents and opinion and anyone can disagree. If your going to buy a preowned nissan get a cpo certificate and have the dealer throw in the warranty for free. Since most dealers get some sort of reimbursement when they sell these.

(please dont use this post to throw anyone under the bus or prove a point. It has just been my experience as a nissan versa owner and working with a dealership for the last 18 months or so.)

A lot of used cars are now required by the lender to include warranty coverage. The reason is that someone who owes $6k but ends up with a $2k repair is just going to repo the car instead of finishing out their note. I encourage customers to purchase warranty coverage even when they don't have to because I understand consumer habits [bad habits] and the unpredictability of used cars.

My favorite vehicles (Cadillacs) are ineligible for coverage by some carriers. Subarus are getting costly to cover too thanks to 16 years of dreadful cooling system issues (no, boxer head gasket issues still haven't been fully resolved by Subaru's engineers no matter what those buttholes claim).

The aftermarket warranty on my Chrysler Crossfire eventually paid for itself when the AMG supercharger blew up (thanks a lot, Daimler). The warranty company didn't cover the damaged engine cover that the broken supercharger clutch blew a hole in because it wasn't mechanical or covered by the policy, but otherwise the car was back on the road with a small deductible.

Strangely enough, I never had to use the aftermarket warranty on the Range Rover.

I encourage anyone buying anything used and interesting in some way (European cars, performance cars, some luxury cars) to get coverage. If you're buying new, don't bother. If you're buying something with a good reputation like a Miata, Corolla, Civic, or Camry, don't bother.

^ Great advice from Rob and Jesda.

My extended warranty on our '95 Q45t saved me $6500. Money well-spent.

What about a 2017 Rogue. Do you think it's worth it to buy an extended warranty

themadscientist wrote:I don't think Nissan offers a warranty of any kind for 89 180s and 84 skylines. The option is denied to me. Ah, that magical elixir known as "dealer-applied paint protection." I shall never know ye.

Don't forget that sweet seat belt warranty.

Felix D wrote:What about a 2017 Rogue. Do you think it's worth it to buy an extended warranty

I think you need to ask yourself a few questions before deciding. Our situations may differ greatly from yours. For example, how long do you plan to keep your Rogue? If it's 3 years, then no, the standard policy is fine. . Another question is how many miles are you planning to put on it? If it's enough to put you out of the standard warranty quickly, well, you might consider it. Next, the reliability reputation of the car. The rogue has improved in the reliability dept over the last few years, so there might not be as much a necessity to buy it as if it were an older Rogue that had CVT longevity problems, or a Fiat/Chrysler/Jeep, which have below average reliability. Next, how complex a car is it? If it's a technological terror like a GT-R or Mercedes, you'd probably want it. The Rogue is not as complex as some of the others, but it ain't an old air cooled Beetle either. Another is whether you do your own wrenching. Guys that buy old cars that do their own wrenching are more likely to suggest to not to get it. As you can see there are many variables at play here so there is no right/wrong answer. Yes, it's more expensive if you do it from the start due to duplication of coverage. It all boils down to your level of comfort in the cars durability, and money you're willing to spend to have that extended peace of mind. Regardless,you should also make sure you read the fine print on exactly what the extended policy covers and does not covers.

On a side note, if your warranty does not include towing, you might consider AAA. I've never purchased a car extended warranty, but I've always had AAA. It has come in handy several times over the years.

Enjoy