dealer extended warranty decision? what would you do, in my situtation

[keithhr]

I could really use a bit of wisdom from this forum for a decision I have to make. I just purchased a 2006 M35 with 36,000 miles with a factory warranty that takes me till may of 2010. I was offered a dealer extended warranty right now that will last until january of 2014 which is 3 1/2 years past my factory warranty. miles on my car but don't think of that as the biggest issue. They would sell me the 5 year (3 1/2 year actual) warranty for the sum of $2784. I think it's a pretty good deal, better than some of the other quotes in the other thread, anyone agree?
Modified by keithhr at 6:17 PM 1/3/2009

[keithhr]

I just wanted to add that peace of mind is terribly important to me and if I wait, with costs and labor going up each year, I know it will cost significantly more. BTW, if anyone is interested the dealership that offered me this 5 year warranty is Marin Infiniti which is called Marin Luxury Cars 415 526 2400. I spoke with Ben in the finance department. I know scottsdale infiniti has been mentioned before but I believe this is a better deal than was mentioned earlier. This is a better deal than was mentioned in the example of the guy with a car with 59,000 plus miles on his car leaving warranty.This is where I purchased my car a month ago and they have been very nice, as one would expect. When I purchased my M35, the gauge lenses had something on them and they replaced them all for me the next day, even though they probably could have gotten off not doing it. When I purchased my last car, I bought a 10 year 100,000 k warranty which I used a several times costing more than I paid for it. That's why I'm really pursuing this idea while I can get a good rate. I know that some of the coverage overlaps but I sitll get the 3 year 7 month increase in protection.

[AD1787]

I am making a similar decision and maybe the 03-04 folks can give us an idea of the upkeep after 5-6 years.

I have this crazy suspicion extended warranties are priced out to be in Infiniti's favor. Sort of like Vegas, the house always wins. Sure there's going to be someone who made out great but there's got to be people out there that essentially wasted the extended warranty money because they had no warranty work that ever needed done.

I also like to think its nice to have $2000+ or whatever the warranty cost is in the bank opposed to $2000 tied up with a warranty.

[tytamto]

The house does not always win. I had a $1,450 extended warranty on my 2006 Subaru Legacy GT, and in 85k miles Subaru of America covered $9,600 in repairs to transmission, rear diff, lower control arms, wheel bearings...

Depends on your luck, I guess.

Even though I am mechanically inclined, and have tools out the a$$, my M45 has so much electronic wizardry, that the $2k warranty that IoS offered seems more than fair. And peace of mind is nice to have.

[jeostang]

The house does not always win. I had a $1,450 extended warranty on my 2006 Subaru Legacy GT, and in 85k miles Subaru of America covered $9,600 in repairs to transmission, rear diff, lower control arms, wheel bearings...

Depends on your luck, I guess.

Even though I am mechanically inclined, and have tools out the a$$, my M45 has so much electronic wizardry, that the $2k warranty that IoS offered seems more than fair. And peace of mind is nice to have.

I agree, while I can fix most the mechanical stuff in this car. The technology this car has is another ballgame. I bet the cameras in the car alone cost 2 grand to replace.

[M45Caliber]

OK -- here it goes. First and Foremost -- If it ISN'T the Infiniti ELITE FACTORY warranty, don't go for it. Too many horror stories with the non-factory warranties. The dealers will tell you otherwise, but once you try to use the non-factory warranties, and run into stone walls, the same dealer will tell you "it's not usually like that and "good luck" working it out.

In speaking with the Service Manager @ Infiniti of Superstition Springs (he's been a shop manager or service manager for Infiniti since the early '90's - so he knows the cars) he "highly recommended the extended waranty for this particular model". Keep in mind that our early M's are now 5 to 6 years old, and age as well as mileage can impact longevity.

I decided yesterday to keep my 2003 M45 -- here's why. I went in yesterday to look at a 2006 FX35 (wife thinks w need one AWD vehicle and her EX35 is only RWD). So I humored her. Scottsdale Infinti "appraised" my car: a pristine 2-owner California/Arizona car with 37K original miles, spotless CarFax, Pearl White, Chrome factory 18's, newer Yokohamas, detailed and looking "as new", ALL service records showing 3K service intervals ONLY at Infiniti dealers... where am I going with this? They said my car, because of its spectacular condidtion, is worth about 8 or 9 grand on trade. They could still hear me laughing as I drove away. So . . .

I am heading over to Infiniti of Superstition Springs on Monday to buy the 3 year, 36K mile zero deductable Infiniti Elite warranty. List is $1947. I'm pretty confident I can pick it up for around $1600 to $1700. They appeared to be the hungriest when I made some calls a few months back. Looks like me and the M will be partners for a few more years.

I might call Marin -assuming they are an Infniti dealer, just to get their price too.

[M45Caliber]

just re-read your original post and to clarify - a "dealer extended warranty" is NOT the same as the factory (aka: Infiniti) Extended warranty.

Do your homework. There are 3 Infiniti dealers here in the metro Phx area that are owned by the Van Tyel (sp?) Automotive group - they are a mega-dealer outfit. When we bought my wifes '08 EX35, they offered the "dealer extended waranty" - when I asked about the Infiniti factory warranty, they said they would not even sell that one as it is inferior to theirs.

So, I have a close friend who was the F&I manager at one of their Nissan dealerships a couple years back. I call him. He tells me to stay FAR away fom their "dealer warranty" as it's their own warranty company they have set up, and all his customers that bought it called him to complain about all the red tape and BS they had to go through to get any coverage... then they would tell you that the problem was due to owner abuse, not going to cover, etc.

I've never heard one complaint from anyone on this board about the Elite warranty. So double-check. peace of mind is only viable if there is really something beyond smoke and mirrors to back you up. Good Luck - let us know, OK?

[keithhr]

I was told by the finance manager that the warranty I was quoted was the infiniti Elite exclusionary warranty. I will request he send me a copy of the actual warranty to verify and then as I said earlier peace of mind is everything to me and another 5 years of warranty coverage is just what I believe I need. It seems there are some people here who concur with this premise.

[ggoddard]

Stick with the extended warranty from the dealer. Once the other warranty companies have your money, they won't care if they routinely screw you over (which they will). I just bought an 06M35x with the certified used warranty from the dealer. Other than a few minor items, it's nearly the same as the factory warranty (yes...I read through it). Plus, Infiniti is more likely to stand behind its product (car and warranty) than the stand alone warranty company. Remember, they make money by collecting your premium and then denying your claims. The dealer wants repeat customers and good PR.

Keep looking. You'll find what you are looking for. Just be patient.

[szh]

And, of course, as to whether you should or should not get the warranty: your mileage may vary (YMMV)!

You may find that the cost of the warranty is never used for your car, and, then again, you may find that one serious problem makes it well worth it!

Personally, in modern cars (like our M's) with lots of expensive electronics, I would not buy a car without one. If your NAV system dies, for example, it is a multiple thousand dollar cost ...

Regardless of which, the choice is yours!

Z

[keithhr]

thanks for all your feedback, hindsight is always perfect and purchasing a warranty and peace of mind is not a bad thing. The dealer mentioned that there might be different levels of coverage so I need to see a copy of the actual exclusionary list.

[keithhr]

I was looking over the brochure I was given for Infiniti Elite protection and there were 1642 components listed as being covered under the plan entitled "Infiniti Elite Protection Plan"I thought they would list what was NOT covered instead of what WAS covered. Is this the normal way the plan is defined? I plan on purchasing this plan at Luxury Cars of Marin on Monday or Tuesday, whenever I can get to the dealership

[palincal]

I got some quotes too. This is so far the lowest I got.

Infiniti of Scottsdale with $0 and $100 deduct respectively:36mo/36k = $1063, $99548mo/48k = $1501, $1313 60mo/60k = $2134, $178460mo/70k = $2387, $1966

I am confused abt the way the quotes are given. Why would anyone care abt 36/36 or 48/48 when the factory warranty is up to 48/60.

What does 36/36 quote really mean?

[Andrew224]

Because it's 36k miles / 36 months from the date of purchase of the warranty. It's not the actual mileage or age of your car. So if you buy it the day your factory warranty expires, you'll get an additional 36 / 36 of coverage.

Andrew

[M45Caliber]

If those Quotes from Scottsdale are for the Infiniti Elite Plan, they are SMOKIN' Deals.

The Factory Book Price is (I'll stay 36K miles/months, as that's as high as I could buy for my '03 M45)

36mo/36K

$0 ded: $1,912$100 ded. $1,747

Then again -- we are comparing apples/oranges as your car is newer.

I'll call tomorrow and ask Courtney Muterna, mentioned in another post.

[Andrew224]

You can buy the warranty (Infiniti Elite) at any time as long as the origianl warranty hasn't expired (you may be able to buy one afterwards but I'm not sure). I bought mine for my '03 M about 4 days before my factory warranty was up (I was at my time limit... I only had 28k miles on it at the time). I paid approx. $2,400 for an ADDITIONAL 5 years and 60k miles of coverage (w/ $50 deductable per visit). I don't think $2,700 for 3.5 years of additional coverage is a good deal.

Besides, in the mean time, many things could happen... What if your car gets totalled two weeks from now, before you even got one day of extra coverage on your car? Do you think your insurance will reimburse you for what you spent on the warranty? I don't think so. (I may be wrong).

Or what if you trade the car in or sell it... I was in this predicament... The warranty may help you sell your car quicker, but will add almost nothing to the actual amount you are going to get for it. I wound up keeping my car.

My suggestion is to wait until right before the original warranty expires before getting it, that way, you know you will get some benefit from it.

BTW, after a year and a half, I'm pretty much at the break even point for the $ amount of repairs made under warranty as to the price I paid for the warranty. So I'm pretty sure that by Sept 2012, when my warranty is up, I'll have made it out ahead.

Andrew

[palincal]

Yes, the quotes mentions above are from Courtney at Scotsdale. They look good 'cos I still have 2 yrs of factory warranty left. Actually, it is quite expensive considering I will only get 1 yr of coverage for a whopping $1063.

It is a very odd way of setting the warranty limit. It should not depend on when you buy the warranty, instead it should be measured in the additional years/miles after factory warranty expires. I have HondaCare warranty for my Honda and it is much simpler. You can buy the warranty anytime before the original warranty expires. If you buy a 36/36 hondacare warranty, it means 3 yrs/36K miles from the day your original warranty expires. The earlier you buy, the cheaper it is.

Well, I guess I'll wait until my factory warranty is about to expire.

[keithhr]

Andrew, I've since been quoted $2284 for 5yr/60,000 miles(Peninsula Infiniti in Redwood City, Ca.) which would extend my original warranty by 43 months which isn't bad for another 5 years of peace of mind. If I wait till my origina warranty is about to expire, I think I would pay a premium for having more origina miles on the car and then I believe 48 months(if i'm not mistaken) would be the maximum I could get at that time, so I would be getting an additional 5 months of coverage only at maybe a higher rate?

[AD1787]

wow you all just completely changed my thinking on the warranties.

I thought 3yr/36000 miles meant it starts after the original 4yr/48000 expired and not from the time of purchase.

So you are telling me when you purchase a new infiniti they dont even bother selling the extended warranty at that time? Since it would be totally useless and you'd be doubled covered.

This is complety opposite of Toyota where your extended warranty starts at the end of your original factory warranty.

[tytamto]

No, you were right. It is additional duration. So 36 month would start when your original b-2-b ends.

[palincal]

No, you were right. It is additional duration. So 36 month would start when your original b-2-b ends.

Not true. I think Andrew is correct. I got a reply from Infiniti of Santa Monica saying extended warranty starts from the date of warranty purchase. Otherwise $1063 for 36/36 is a killer deal.

I would just wait until the original warranty is about to expire.

[tytamto]

I might be wrong in his case, but the quote I got (IOS) was for additional 84k miles (total of 104k miles) and 72m duration (meaning 36 extra months) for $2,012 ($100 ded). After looking at other options, including no ded, this was the best deal in my case.

[streeterd]

We purchased an extended warranty (new car) for $1,750 ; the original dealer price was $2,900. Covers 7 years and 100k with $100 deductible per visit. The Finance Manager was consumed with selling us an extended warranty (that's where they make their personal upside) and I played him like a yo-yo. If we keep the car for seven years, I'm convinced the warranty will pay for itself. But, keep in mind that there is also a standard warranty covering the powertrain for 6 yrs or 70k miles, whichever comes first (check your Warranty Information Booklet). This covers engine, transmission and transaxle, drivetrain and restraint system (airbags and related electronics). It is not likely that these Japanese cars will develop any powertrain problems so an extended warranty wont get you much there, if historical reliability is any indicator. However, all the electronics are apt to fizzle over time making the extended warranty investment justified, in my opinion.

Bargain hard as there are good margins for the dealer.

[keithhr]

I spoke with several dealers and got a number of estimates which led me to believe that extended warranties that are purchased sooner for less time coverage are cheaper in the long run. I was quoted $2250 for a 5yr/60,000 warranty with my car with 36,000 miles. My extended warranty would add 43 months to my factory warranty.(I have 17 months left on my factory warranty) I also believe (if memory serves)that if I waited till my factory warranty were to expire I could get a 48 month extended warranty for around $3100. So in this example an additonal 5 month coverage would cost around $900 extra. This is a synopsis of sorts of several conversations I've had. There is also the possibility that prices could go up or down based upon repair records. There are advantages and not for waiting till the factory warranty ends( more time cost more) Not waiting means less coverage for a bit less. I'm inclined now to buy the best quoted deal on an infiniti elite policy that I can find in the next few days. With the price of ultimate repairs for expensive electronics etc high, caution is the order of the day.

[Andrew224]

Andrew, I've since been quoted $2284 for 5yr/60,000 miles(Peninsula Infiniti in Redwood City, Ca.) which would extend my original warranty by 43 months which isn't bad for another 5 years of peace of mind. If I wait till my origina warranty is about to expire, I think I would pay a premium for having more origina miles on the car and then I believe 48 months(if i'm not mistaken) would be the maximum I could get at that time, so I would be getting an additional 5 months of coverage only at maybe a higher rate?

Looking at my warranty contract, the steps are about every 10k miles. So you really need to determine how much you drive each year and look at what the real cost of the warranty will be for what you get. Looking a couple of posts down, it looks like you did that.

Yes, I was a bit surprised too when I purchased it. I assumed that the extended warranty would not go into effect until the original factory one expired. As luck would have it, I only had a matter of days left on it when I bought it.

Andrew

[SupraMike]

Hi Guys,

I'm live in Canada, so I'm not sure it is the same in the states, however I just purchsed my 2006 M45 private sale. I then went to my local Infiniti dealership and purchsed the Infiniti Extended warranty which takes the original factory warranty 4yrs/100,000 km out to 6yrs/160,000 km for $2500. This is the only warranty they offered in Canada and is identical to the original 4yrs/100000 km warranty (bumper to bumper), it is considered an extension of the factory original. The warranty period starts from the original date the car was put in service (put on the road/sold) and extends 6 years out. As an example, my car was put in service on Nov 19/05 the original warranty ended Nov 19/09, it now ends Nov 19/11. My understanding is that this is the only way the warranty period works with a genuine Infiniti warranty, no overlapping.... and my warranty will be honored at any Infiniti dealership anywhere in North America.

As to you question on why I purchased it, with all the gadgets the M has it's a definite piece of mind. I look at it in 2 ways.... if something goes wrong then it pays for itself... on the other hand I also hope that its just piece of mind that I purchased and I don't recover the money spent on the warranty because I've just purchased a solid reliable car.

cheersMike

[keithhr]

this has been a good thread for some people to get their bearings and share experiences and info. Any on-line community that has members that share common interests, things like luxury cars, etc automatically have a bit of kinship which is nice. Information sharing allows us all to have a better idea how our decision making stacks up with other people which is cool. I am going to make a couple more random calls to see if I can build a bit (better price) on what I have been offered and if I find something that will be beneficial to others here I will post again. This topic is often brought up, and the last time I had this decision to make was 10 years ago. Talking with dealers and comparing info has given me a better understanding how they leverage time and mileage. My earlier post on selecting a warranty which is kind of in the middle of the time frame of well before the factory warranty ends but not to soon to take advantage of the 60 month extended option seems to give the best option. Basically, a new car extended warranty is offered at 7 year 100,000 miles but is only a 3 year extended warranty (4 year factory). If someone buys a warranty when they have used 31 months of factory warranty and extends their warranty to another 60 months(like I've been offered), they are in effect getting 91 months of warranty as opposed to 84 months. I can get a bit better price because I am buying while still under warranty with minimum miles but before there are substantially more miles. Does this make sense to anyone but me? ha, ha

[SupraMike]

Hi Guys, again from my previous post, I live in Canada so perhaps its different in the US, however this is the info I've gathered when deciding on the extended warranty. Before I purchased my warranty I shopped around at all local Infiniti dealers and the price was exactly the same, I got speaking to one of the service managers selling the warranty and he advised that the price is set by Infiniti as it is a factory extended warranty. He advised that the dealership itself only makes a couple hundred on selling the warranty the rest goes to Infiniti Canada (in my case) so the best he could do was take $50 off to make it more attractive than the other dealers. If I wanted something cheaper then he could offer one of the other third party extended warranties, however he said nothing could touch the genuine Infiniti warranty. He said the only reason he would ever sell a third party warranty is if someone was outside of the factory warranty period and wanted a warranty program.From reading some of the posts and the variation in pricing I'd be a little cautious in making sure you are getting the factory Infiniti warranty, perhaps it's the same as the "Infiniti Elite" warranty mentioned above, but just be sure you are getting what you are paying for. If they show you a booklet of what's covered then I'd be skeptical because when I asked for information on what was covered under the warranty, the service manager said there was no warranty package, I just needed to refer to the original Infiniti warranty information that came when the car was purchased new.

Hope this helps, good luck in your decision.Mike

[Andrew224]

Who ever thought that in order to figure out the benefits of an extended warranty as compaired to what it costs would require you to have an MBA from Harvard?

My guess is that's why a lot of dealerships try to push people to buy them on the spot without going home and really running the numbers or discussing it with other people. They are more complicated than you initially think.

Andrew

[M45Caliber]

I just had a good conversation with Courtney @ Scotsdale Infiniti (480-941-0055).

The Infiniti Elite warranty is actually more comprehensive than the factory bumper-to-bumper warranty which is why many people add it to a new car purchase -- she explained it thus:

Her '05 G35, which she leases, had a CD stuck in the changer. When Infiniti removed it and tried to fix it, they found that the CD had warped slightly, so it was NOT a defect in the head unit. No coverage. THe Elite warranty would have covered it. It cost her $1,700 out of pocket to replace the unit and that was with her 10% employee discount.

The extended or Elite warranty available on any given used car is based on age and miles. For my 2003 M45, the most I could get was 36 mo & 36,000 miles, from todays date/mileage. This will take me out to where the car will be 8 years old and/or 75,000 miles (I have almost 39K on it now). The price of the warranty just went UP 2 weeks ago (Infiniti USA pricing) an average of about 15% across the board.

On USED vehicles, the price goes up in 10,000 mile increments. In my case, if my car had 40,001 miles, my cost for the 36 month warranty would have gone up OVER $700. So keep that in mind when buying a warranty - do t before the odo rolls to the next 10K increment.

My 36 mo./ 36K mile Infiniti Elite warranty ('03 M45 with 38.6K miles) now LISTS for $2,262 (new price effective mid/late-December). Courtney sold it to me for $1,412, which amounts to a 38% discount. That makes it a very compelling deal.

As for what's NOT covered: it's on the very bottom of page 3 of the Elite Warranty brochure. In a nut shell -- the only things NOT covered are your service items (oil, filter, wiper blades, brakes, clutch disc, squeaks, rattles, plugs, wires, etc.)and loss of a key fob or the owners manual.

ALL major components are covered -- there is a comprehensive list on pages 4+ but that's just to add fluff to a marketing brochure that's trying to sell you a multi-thousand dollar ad-on.

I would recommend you call Courtney if you are pricing a warranty - she can sell warranties to anyone in the USA and her pricing seems to be as low as you can go - you'll need your VIN, year/make/model and current Odometer reading. Keep in mind they'll run the VIN so be sure your mileage is actual or darn close to it.

good luck -- I'd like to hear what others are paying for their ELITE waranty, keeping in mind that it's apples and oranges unless we are comparing te same make/model/year and miles are in the same decile.