Extended Warranty

[texman33]

When I purchased my Versa in January I declined the dealer's offer of a 7-year "bumper to bumper" extended warranty program. About an hour ago I received an unsolicited call from some insurance company claiming to be representing Nissan asking me if I wanted to sign up for a 7-year extended warranty program. They explained their "bumper to bumper" warranty as picking up warranty coverage after Nissan's 3-year warranty expires. The cost was $3,190 to be paid as $395 down immediately and then monthly payments of $232 for 12 months. The salesman went on to explain this as excellent repair coverage for only $455/year. Now the way I see it, this really boils down to a 4-year extended warranty since I'm already covered by Nissan for the first 3 years of the 7-years extended warranty. That would make the actual cost for the extension period $797/year for the four extra years coverage. Since I declined the 7-year program when I purchased the car, I didn't get a quote from the dealership I purchased the car from. Is this $3,190 coverage cost in line with what the dealers sell this coverage for? It seems pretty "pricey" to me, being retired on a small fixed income. Any thoughts, pro or con, on an extended warranty would be appreciated. Thanks.

[themanfromvlad]

Here's some better information: Extended warraties are a scam. They are one of the biggest money makers for auto companies for a reason. There are so many exceptions, and whatever is actually covered won't make up for the cost of the warranty.

A better idea? Start your own "Extended Warranty" plan. Everytime you're offered one, whether at a car dealership or at an electronics store, take that same amount of money and put it into a low-risk investment (4% guaranteed return savings account, for example). You'll end up have more than enough money to pay for any future repairs, and it will still be your money.

[IDParrothead]

When I bought my Versa, I went ahead with the Extended Warranty. Off the top of my head, I can't remeber the years, but it is for 100,000 miles. It was less than $1000. The main reason I did it was that it was only $20 more a month to my car payment. So yes, the offer being made to you sounds outrageous.

[proxim2020]

Not all extended warranties are scams. Extended warranties can be very helpful for very buggy cars. Suckers normally buy into extended warranties without reading all of the terms. People buy these cheap breakdown warranties. If it breaks, they fix it right? These warranties only covers a failure that's not due to wear and tear. Your transmission went? Well you do have 120k on it. We're calling this wear and tear and won't cover it. If you've read the terms, all of them, you would've saw it coming. Extended warranties are somewhat insurance policies. You may or may not get a chance to use them. And if you want to use it, you may not be able to use it how you would like to. As with insurance companies, there's some out there to get you and some out there to provide you with a valid service. I'm mechanically inclined so I don't plan to have extended warranty coverage on my car after the factory warranty is up, but I do keep coverage on things like my cell phone and alarm installs. On the other hand, someone like Clisped or JemDawg wouldn't be caught dead with an extended warranty on a radio or alarm install.

I'd suggest waiting until your factory warranty is up, then make this determination. If you've had no warranty claims or problems with your car, then it would be safe to forgo the extended warranty. If your car has been plagued with small problem, bugs, warranty claims, or have no mechanical sense an extended warranty might be a wise idea.

[schultzp]

I just purchased my new Versa this Monday and signed an application for an extended warranty with the price $822 (for an 84 month/70,000 mile "standard plan" with a $50 deductable for each occurrence) added to the price of the car for which I paid cash. I am now having second thoughts and would like to cancel this extended warranty application and get as much of my $822 back as I can.

Does anyone know what the dealer's response will be when I make this request or what the policy is for early cancellations?

Thanks.

[Ever Victorious]

Even if the dealer won't give you your money back, you can contact the extended warranty company and they will. In fact, you can have it cancelled any time you want directly through the company, although if you've put significant time or mileage on your vehicle, they will prorate your refund.

[schultzp]

Thanks so much for your reply!

I gathered my courage and called the dealer this morning. I was told I had up to 60 days to cancel and get a refund. I may be charged a $35 cancellation fee, however. I am going in tonight to sign the cancellation request.

That was a close one!

[AZhitman]

HOLD IT!

Read this before you sign anything!!!!

zerothread/137453

[ThirstyRoss]

I'd suggest waiting until your factory warranty is up, then make this determination. If you've had no warranty claims or problems with your car, then it would be safe to forgo the extended warranty. If your car has been plagued with small problem, bugs, warranty claims, or have no mechanical sense an extended warranty might be a wise idea.

In my opinion, extended warranties are a rip-off.

Also, if you wait until you factory warranty expires, and you've had a lot of problems with the car, maybe you should just get rid of it and get a new one, instead of padding the pockets of some third party warranty company.

[DejaWiz]

Do not use this website. It is created and endorsed by a warranty company so you believe what they want you to believe.

No, it isn't. It was created by ConsumerNet, Inc that was bought in 1999 by 24/7 Media. They are a marketing company (hence the links throughout their site), not a warranty company. The information in the site is good advice, imo...such as the part where they say something to the tune of "warranty companies and dealerships will tell you anything to get you to buy, sometimes telling you it's required in order to get loan approval or a lower APR. Most lenders do not require this at all."

Now why would a warranty company running a consumer help site tell you flat out it's not required when they are in the business to make money at all costs and have links to numerous warranty companies? The logic doesn't add up....

[Alphahawk]

That is way out of line. As to the other posts in this article about extended warranties being rip offs...maybe yes maybe no. If the warranty comes from a reputable company and at a good price...OK. Now the next part...will you ever need it? Who knows. I just bought a new washer/dryer combo and turned the warranty down. Just a few years ago most of them came with 3 years and the appliance companies wanted to make more money so they now only offer the year hoping you will buy the extended warranty. Surveys have shown it is not worth the money on appliances...TVs....and other small stuff....and even some cars. But I do know this Versa I have with a CVT that has not been around for 20 years to see how well they hold up could be very costly to repair when and if it breaks.....plus many other things that could go wrong. I had a Ford Sport Trac that had over 260,000 miles on it and was 8 years old when I sold it and not a major thing ever went wrong....I was lucky plus I turned down an extended warranty on it at the time and before the original warranty expired and even 8 years ago they wanted 1400 dollars for one. I only paid 650 for my extended warranty on my Versa...I think a good deal.

[gtrdreamer]

No, it isn't. It was created by ConsumerNet, Inc that was bought in 1999 by 24/7 Media. They are a marketing company (hence the links throughout their site), not a warranty company. The information in the site is good advice, imo...such as the part where they say something to the tune of "warranty companies and dealerships will tell you anything to get you to buy, sometimes telling you it's required in order to get loan approval or a lower APR. Most lenders do not require this at all."

Now why would a warranty company running a consumer help site tell you flat out it's not required when they are in the business to make money at all costs and have links to numerous warranty companies? The logic doesn't add up....

Ok i've been researching in order to purchase a warranty and the carbuyingtips site points to warrantydirect ALL OVER IT. It seems as if they are teamed up and they are sending people to warranty direct only.

The warrantiesgonewild.com site has good info, ad links to warranty companies, but doesnt list specific ones to go with, just info on what to look for...

Some good things i've picked up:

If you can't see the contract right away, stay away.

Powertrain protection is usually not worth the money.

Bumper to bumper in the aftermarket doesnt exist so be weary...

alot of good info there...