Extended Warranty - worth it?

[MaverickDragon]

I guess it comes down to how risk-averse you are.....
So if the IPDM kicks the bucket, it could total the vehicle. But eh, I don't let that keep me up at night.
On the flipside, my Lexus GX470 has 350,000 miles and is all original except for regular maintenance items.

I'm not so much risk averse as I prefer cost effective risk mitigation to relying on chance.
A warranty is an insurance policy.

For a very affordable cost (2% of vehicle cost) I can keep the truck operational without the need to plan for unexpected repairs, long after the factory warranty has expired by time or mileage.
As time goes on, the opportunity for problems tends to increase.

I won't be disappointed if I never need to use the warranty because if I sell the truck sometime in the next following decade it will have an intact transferable factory warranty that could possibly be worth more in resale value than what the warranty originally cost.

That's my rationale. I hope your decision works for you.

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[notfast]

Maintenance I do myself, but the days of shade-tree wrenching on the high-tech 2025s seem the be limited. I do enjoy the upkeep/repair/replacement work on my 91 Miata. Whenever I work on a car I tell my 11 yr old grandson, "if your knuckles ain't busted; you're not trying hard enough" - and of course always follow up with "The job isn't done until the tools are put away".

I'm making him a proper gearhead.

The B6Z (or was it BZ6?) is still computer-controlled and arguably can be harder to diagnose, being OBD-I. It has EFI and electronic ignition with a camshaft sensor rather than using a mechanical distributor.

Believe me, I held off getting a fancy OBD-II tablet for as long as possible. The two jobs that finally made me get one was because I needed to replace the clock spring in a Toyota Prius and replace the rear brake pads on a Toyota RAV4 with an EPB.

The clock spring also includes the steering angle sensor, which needs calibration. It can be done with jumping pins in the OBD-II port, but it's pretty frustrating if you miss a step and have to start over. With the tablet, it walks you through each step on screen.

Same for the EPB. Gotta put the vehicle in maintenance mode and calibrate the EPB, otherwise the EPB won't work afterward and give all sorts of errors.

Doing those two jobs myself and not having to outsource to a dealer or shop with a tablet more than paid for the tablet.

On a much more affordable note, I picked up this GearWrench OBD-II when it went on sale for $100. Unlike using a generic OBD-II bluetooth adapter and Torque Pro, the GearWrench app can do 95% of what the tablet can (including SAS and EPB calibration), fits in a pocket, and is like 1/10th the price.
https://www.amazon.com/dp/B0DBJGKGB7

It's pretty handy for troubleshooting. Like, I had an issue where one of my power windows wouldn't roll down. Didn't know if it was the switch, the wiring, the motor, the BCM, all of the above, or something else. Being able to command the BCM to roll down that window ruled out out the switch, some of the wiring, and BCM. Turned out to be a fault at the connector between the power window motor and the body harness.

I can keep the truck operational without the need to plan for unexpected repairs, long after the factory warranty has expired by time or mileage.

I don't necessarily plan for unexpected repairs; more like keep a budget item for maintenance, repairs, and eventual replacement. I mean, everything has a serviceable life. I'd rather replace things on a schedule than wait for my house's roof to leak or my water heater or A/C to not work before replacing them.

 

[MaverickDragon]

I don't necessarily plan for unexpected repairs; more like keep a budget item for maintenance, repairs, and eventual replacement. I mean, everything has a serviceable life. I'd rather replace things on a schedule than wait for my house's roof to leak or my water heater or A/C to not work before replacing them.

You can't plan for the unexpected by definition. What, when and where just happens.

You can save money for the unexpected, but that doesn't mean it will be adequate.
The "I hope nothing major goes wrong" approach, is good up until it isn't.
That could work out for you or not.

A maintenance budget will be blown if you need to replace a touch screen for a couple of grand.
There is no maintenance nor a schedule for that and many other vehicle components that are fine up until they aren't. Most people don't replace working components because they might fail, but if they do, out of warranty cost can be significant.

We have different approaches. I prefer a known affordable policy to insulate myself from unplanned significant expenses, and I can do that affordably for the cost of just one not unforeseeable repair. I didn't pay full dealer asking price thanks to folks on site recommending Granger, which is very different from an average dealer quote for the same plan.

You are saving a bit up front at the risk of the chance for spending an unknown amount at some point when you may be in a different position that may not be convenient.

If you are good with that, good for you. You may come out ahead, or you may not.

To me, there seems to be much less of a potential downside, and perhaps even an upside so I'm good too.

Good luck to both of us.

 

[notfast]

You can save money for the unexpected, but that doesn't mean it will be adequate.
The "I hope nothing major goes wrong" approach, is good up until it isn't.
That could work out for you or not.

A maintenance budget will be blown if you need to replace a touch screen for a couple of grand.

That's the thing, I'm not hoping nothing major goes wrong. In fact, quite the contrary.

My maintenance budget covers, well, wear items with known replacement schedules. Tires, oil changes, car washes, etc etc.

Replacing a touch screen, a fuel pump, a transmission, an RDU, etc would be more like a capital repair, which I save for in what I call a "vehicle capital fund" which I explained earlier in this thread. After I pay off the car, I auto-transfer the payment amount into a separate account (the vehicle capital fund), which continues indefinitely. That money is then used for capital repairs or toward the purchase of my next vehicle.

You are saving a bit up front at the risk of the chance for spending an unknown amount at some point when you may be in a different position that may not be convenient.

Or to put it another way, with the right vehicle, some experience, and a bit of luck, I'll be able to "pay" for most of my next car with money that I saved by not having to repair my current car.

And if the transmission falls out the next time I back out of the driveway, well, that's accounted for with my vehicle capital fund.

To me, there seems to be much less of a potential downside, and perhaps even an upside so I'm good too.

Yeah as I mentioned, I have a foot in both camps. To me, it comes down to cost and convenience. If it's cheap enough and the coverage long enough and not redundant, I'll get it not as a means to save money but as an extra repair option to have.

 

[MaverickDragon]

That's the thing, I'm not hoping nothing major goes wrong. In fact, quite the contrary.

There are multiple negatives in that statement..
Contrary to "not hoping nothing major goes wrong" is hoping something major goes wrong".

I understand what you are doing, but regardless of what fund you use, money you spend on a major repair not covered by warranty is money spent. Saving $1000 on an extended warranty and putting it into a savings account is unlikely to cover a $2000 repair.

The risk is spending the extension premium without getting benefit from it, but that risk is a known quantity you can assess prior to the transaction, where an unknown potential future problem cannot be quantified. The cost of repair X today may be significantly higher when needed at some future time.

Yeah as I mentioned, I have a foot in both camps. To me, it comes down to cost and convenience. If it's cheap enough and the coverage long enough and not redundant, I'll get it not as a means to save money but as an extra repair option to have.

I agree - it's both cost and convenience. Modest cost and a convenience added is 24 x 7 road service, 10 day car rental and some other nice features I would ordinarily have to pay for.
That is there for the life of the warranty extension.
The ability to transfer it could also be worth more than the cost of the warranty paid in a private party sale, by making the used vehicle a CPO. There is a big price difference between the two.

I don't need to dip into a repair fund for a major repair, and in fact, I don't need the fund at all.
Regardless of where the money is sitting, if you need to spend it on on unplanned major repair, it's gone. Instead of using on your next vehicle, you spend it on the one you have.

In any case, to me it seems like a great deal for a number of good reasons.
For those that see it as a needless expense, that could be true, but myself, I prefer to have it and not need it than to need it and not have it...

 

[sajohnson]

Extended warranty is essentially an insurance policy. The insurance company always comes out ahead otherwise they wouldn't sell it.
Now if you don't have emergency cash to cover a repair then it makes sense. Credit card rates are crazy.

Well said.

All insurance is 'betting against the house.' There are a few 'winners' and many 'losers.' The winners talk, the losers do not.

The make/model/trim/options don't matter. The underwriter has all of the average cost of repair data. The only way to possibly make out ahead is if the owner's use is frequently extreme, but within mfr guidelines. Like lots of towing in the mountains at/near the GCWR.

Some people get extended warranties for peace of mind. Nothing wrong with that as long as they realize that for the vast majority of owners they are a bad deal financially.

 

[Tim's23Mav]

Just get it. You'll be glad you did if something happens.

I have a 2023 hybrid with 6300 miles my warranty runs out 10/26. I'm retired so I don't put many miles on it. Extended warranty?? Any recommendations would help. Not mechanically inclined. Thanks Tim

 

[CaliMav68]

I think sajohnson summed it up the best, logically speaking.

Personally I have never done an extended warranty ever on anything. I'm miles ahead in the money department.

I bought an early Hyundai in the 80's. It was a disaster in the drivetrain department. Hyundai reimbursed me all my repair costs due to "metallurgical insufficiency." Lucked out on that one. Then 2 repairs on my daughter's Fiesta totaling $1900.
Insurance would have cost more.

Just anecdotal, but food for thought.

 

[Suzukiridr14]

Yup, one of my vehicles is 54 years old, I have owned it 35 years, its never needed an extended warranty.

That's because it doesn't have any electronics in it. All the new vehicles have systems you can't fix. They have to be replaced, and cost hundreds, if not thousands of dollars. P.S. my 1956 Thunderbird doesn't need an ESP either. I got a ESP from Granger, because when my Mav is say, 7 years old and has a problem, I won't have to decide about fixing it, or spending lots of money on a vehicle needs replacement, Ford will get me a few more years use for $100 visit.

 

[Suzukiridr14]

I think sajohnson summed it up the best, logically speaking.

Personally I have never done an extended warranty ever on anything. I'm miles ahead in the money department.

I bought an early Hyundai in the 80's. It was a disaster in the drivetrain department. Hyundai reimbursed me all my repair costs due to "metallurgical insufficiency." Lucked out on that one. Then 2 repairs on my daughter's Fiesta totaling $1900.
Insurance would have cost more.

Just anecdotal, but food for thought.

I also had a 1986 Hyundai Excel, piece of junk, later I had a 2000 Hyundai Elantra wagon, much better car, my last Hyundai was a 2015 Sonata Limited, that I sold to Carvana when I ordered my 2022 hybrid Lariat Maverick!

 

[Tim d]

That's because it doesn't have any electronics in it. All the new vehicles have systems you can't fix. They have to be replaced, and cost hundreds, if not thousands of dollars. P.S. my 1956 Thunderbird doesn't need an ESP either. I got a ESP from Granger, because when my Mav is say, 7 years old and has a problem, I won't have to decide about fixing it, or spending lots of money on a vehicle needs replacement, Ford will get me a few more years use for $100 visit.

Good point.however if you talk to any financial professional they will all say extended warranties are a waste of money.if it makes you feel better though go for it.

 

[CaliMav68]

I also had a 1986 Hyundai Excel, piece of junk, later I had a 2000 Hyundai Elantra wagon, much better car, my last Hyundai was a 2015 Sonata Limited, that I sold to Carvana when I ordered my 2022 hybrid Lariat Maverick!

I had a white 99 Elantra wagon with the manual! I bought it in 2000 for 9k with 11 thousand miles. No costs except for maintenance. One clutch replacement. Loved that thing. 208k miles then sold it to a coworker for 1500. That pre-GDI 2 liter was way more reliable than the Theta 2 that plagued most Hyundais recently.

Needless to say no extended warranty.

 

[sajohnson]

These extended warranty threads have many posts mentioning the complex nature of modern cars, essentially, 'more to break.'

That's absolutely correct, but the underwriters are aware of that and charge accordingly. They calculate the average cost of repairs for a given model and then multiply that amount by (?) to determine the cost.

 

[CaliMav68]

If something's glitchy it overwhelmingly is discovered fairly quickly.

 

[babytruk]

I had a 1989 BMW with a “computer” screen. One day I couldn’t see the screen. At $3900 (without labor and in 1995) I found myself driving a BMW with no screen. Electronics are much cheaper now but also much more plentiful, and car reliability has risen to a level where extended warrantees have become affordable.

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