7 year extended warranty?

Discussion in 'Newbie Forum' started by CarlB, Mar 17, 2020.

  1. CarlB

    CarlB Junior Member

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    Tempted by the 7 year extended warranty for $2230, $100 deductible. Guessing resounding "NOs," heh.

    Anyone have to use one of these? Any problems getting terms honored?

    At what cost would one of these warranties be worth considering?
     
  2. Salamander_King

    Salamander_King Senior Member

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    Well, for most PRIME owners have not had their cars long enough to start using the extended "mechanical breakdown insurance". You know the car is covered with a basic warranty for 3yrs 36K miles. Your 7 years is actually 4 years.

    I bought an extended warranty on my first hybrid Honda Civic way back thinking hybrid electronics may cost a lot if it needs repair. I think I paid close to $2K. I used it only once on a very minor repair that cost $130 total. Yeah, after paying $100 deductible, they paid $30.
     
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  3. bisco

    bisco cookie crumbler

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    go for it! (insurance companies are gonna need the money)
     
  4. bisco

    bisco cookie crumbler

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    you got an 8/100 hybrid warranty?
     
  5. CarlB

    CarlB Junior Member

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    Hah!
    Yes, What wouldn't be covered after 3 years is electronics, sensors, cameras.
    Consumer Reports owners list In-Car Electronics as "Good," "Average" for 2017, 2018.

    Mathematical expectation has to be in their favor - otherwise, they'd be losing money. I should be able to afford most repairs - one of the main reasons not to go with insurance.

    Alright - the extended warranty is just insurance I don't need. Thanks!
     
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  6. bisco

    bisco cookie crumbler

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    idk if cr rating is for reliability or quality. seems like toyota has pretty poor quality in thise area's, but idk how other cars fare.
     
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  7. Elektroingenieur

    Elektroingenieur Senior Member

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    See my previous comments about vehicle service agreements, but you seem to get the basic idea already: whatever the name, it’s fundamentally insurance.

    Toyota’s new-car plans can be purchased until the New Vehicle Limited Warranty expires at the earlier of 3 years or 36,000 miles. If I were to decide to buy one—for example, for a vehicle with a chronic problem that is very likely to need further, costly repairs—I’d wait until just before then, and meanwhile keep my money for other needs.
    That’s a very good question, especially right now.

    The usual problem is that buyers don’t read or understand the fine print about which failures are covered, who can make repairs, what spare parts can be used, when estimates and advance approval are needed, and similar issues, which are all the domain of the contract administrator, the company that records when agreements have been sold, approves or denies claims, runs the call centers, and so on.

    The other company involved—which might or might not be affiliated with the administrator, automaker, or dealer—is the underwriter, which makes the promise to pay valid claims. Right how, for any kind of insurance, I’d want more evidence than usual that this promise will be good, when and if needed.

    If the underwriter is Toyota Financial Services, which has credit support from Toyota Motor Corporation (which in turn, as with General Motors in the U.S., has implied backing from the Japanese government), or a large insurer with excellent credit ratings, such as Berkshire Hathaway, I wouldn’t worry too much. I’d stay away from agreements backed only by an auto dealer or distributor, however—even if they cover repairs made elsewhere, this coverage is good only if the underwriter remains solvent.
     
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  8. litesong

    litesong Active Member

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    Paying for an extended warranty? It still would be 3 years short of the Hyundai/KIA 10 year/100,000 mile warranty..... that comes FREE. One major problem is ya got's to buy one of them there Hyundai/KIA VEE-hik-les.

    Another major problem with them Hyundai warrantees: Ya have to use them within 10 years or 100,000 miles. We got 2 Elantras, for a total of 11 years & 155000+ miles. We've been chomping at the bit, but can't find a reason to USE the warranty..... no good, worthless, no good warranties, anyhow!

    Hey, that's a good thing!!!!
     
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  9. MoffettMotors

    MoffettMotors New Member

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    Be very careful and read the warranty carefully to see what exactly is covered and if there are any limits on total aggregate paid.
     
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