Best place to buy extended warranty

[ljn21]

What does the 0 mean at the end?

Sorry, $0 deductible

 

[ljn21]

Guessing zero deductible.....

Yes, thx

 

[firsttimetahoe]

I don't have any advice for where to purchase one, but before you purchase anything make sure you clarify if the warranty runs concurrently with the factory one or if it starts when the factory ends. I read about this on another forum and just canceled mine because it started on my purchase date

I always thought these extended warranty starts immediately because they cover you for slightly longer than the manufacturer warranty. I doubt any of these extended warranties would kick in after year 3

 

[wjburken]

I always thought these extended warranty starts immediately because they cover you for slightly longer than the manufacturer warranty. I doubt any of these extended warranties would kick in after year 3

Some do, some don’t.

 

[firsttimetahoe]

Some do, some don’t.

interesting. Although, it's still only your your first 60k miles right? It's not an additional 60K after the original 36k....it's technically just an additional 24k miles of coverage?

I can't see too many owners being covered in year 7, 8 or 9 because they're still under 60k miles.

 

[wjburken]

interesting. Although, it's still only your your first 60k miles right? It's not an additional 60K after the original 36k....it's technically just an additional 24k miles of coverage?

I can't see too many owners being covered in year 7, 8 or 9 because they're still under 60k miles.

Again, it depends on the plan. That’s why it’s so important to shop around, read the coverage and negotiate.

 

[firsttimetahoe]

Again, it depends on the plan. That’s why it’s so important to shop around, read the coverage and negotiate.

I didn't know that! I always assumed it started as soon as you purchase the car because that's how it's always been presented. I would imagine though coverage that kicks in after the manufacturer warranty expires is going to cost you a whole lot more than extended coverage that overlaps with the existing manufacturer but gives you an extra 2-3 years / 25-30k miles.

I am probably screwed because the dealerships by me are all greedy bastards charging $10k+ more over MSRP...i can't imagine them wanting to give me a good deal on an extended warranty for a car I did not purchase at their dealership.

And the dealer I am buying from isn't convenient in terms of proximity, so I really would hate to have my bring my car there every time there is an issue. But I have a feeling they will be the cheapest option.

 

[WalleyeMikeIII]

I was thinking the best response to this question is: Nowhere.

Hang with me...here is the logic.

Even the favorably priced 60/60K/0 deductible example above for $1099.

What you actually bought was a 2 year, 24,000 mile service contract for $1099.
Logic: Factory Warranty covers you for 3 yrs/ 36k miles, remainder on a 6/60k is 24 months, 24k miles.

So, you are placing a $1100 bet today that in the 2 years, 24k miles after your factory warranty you will have a covered repair that would cost you more than $1200 (the future value in 3 years of your $1100 at 3% annual interest)
The story gets worse for you if you plan on the historic annual return of 7%, which would make the future value in 3 years of your $1100 initial deposit be $1356.
If, your repair were to come in month 59, that $1100 would have grown to $1274 at 3% or $1550 at 7%.

Don't forget, you have a factory powertrain warranty to 60 months, 60k miles...internally lubricated parts of engine, transmission, front and rear diff...

So, now, decide if any vehicle you have owned in the past has needed $1300 to $1500 worth of non warranty repairs between 3yrs/36k miles and 6 yrs/60k miles...
I've owned a lot of vehicles, I can't recall any that needed that...

My 2013 suburban LTZ needed a total of $2600 non maintenance repair in 8.5 years/112k miles....I reviewed my service history, $430 of it was before 60k miles (One Magnetic Ride Control Shock, which got a lifetime warranty on it after replacement because I did it at the dealer and with an AC Delco Part)

You can run the numbers even on some more lengthly contracts...I was offered a 10 year/100k mile one for $2200, or a 96 month/120k mile one for $2350. Both of these had a $100/visit deductible...and a fairly long list of exclusions, including "LCD Screens" which pretty much kills the argument for any "hey, you have all these expensive electronics on this vehicle, you need a VSC"

Net, Self Insured is always the least expensive way to insure. That said, if you can't afford a periodic $3-4k bill on the off chance you have an issue...maybe a VSC is for you.

Inflation could be the one thing that maybe would justify it, as if the inflation rate is going to keep up as it is, it may outpace the market returns in the short term...but in the long run, the market usually is the place to invest to combat inflation.

 

[firsttimetahoe]

I was thinking the best response to this question is: Nowhere.

Hang with me...here is the logic.

Even the favorably priced 60/60K/0 deductible example above for $1099.

What you actually bought was a 2 year, 24,000 mile service contract for $1099.
Logic: Factory Warranty covers you for 3 yrs/ 36k miles, remainder on a 6/60k is 24 months, 24k miles.

So, you are placing a $1100 bet today that in the 2 years, 24k miles after your factory warranty you will have a covered repair that would cost you more than $1200 (the future value in 3 years of your $1100 at 3% annual interest)
The story gets worse for you if you plan on the historic annual return of 7%, which would make the future value in 3 years of your $1100 initial deposit be $1356.
If, your repair were to come in month 59, that $1100 would have grown to $1274 at 3% or $1550 at 7%.

Don't forget, you have a factory powertrain warranty to 60 months, 60k miles...internally lubricated parts of engine, transmission, front and rear diff...

So, now, decide if any vehicle you have owned in the past has needed $1300 to $1500 worth of non warranty repairs between 3yrs/36k miles and 6 yrs/60k miles...
I've owned a lot of vehicles, I can't recall any that needed that...

My 2013 suburban LTZ needed a total of $2600 non maintenance repair in 8.5 years/112k miles....I reviewed my service history, $430 of it was before 60k miles (One Magnetic Ride Control Shock, which got a lifetime warranty on it after replacement because I did it at the dealer and with an AC Delco Part)

You can run the numbers even on some more lengthly contracts...I was offered a 10 year/100k mile one for $2200, or a 96 month/120k mile one for $2350. Both of these had a $100/visit deductible...and a fairly long list of exclusions, including "LCD Screens" which pretty much kills the argument for any "hey, you have all these expensive electronics on this vehicle, you need a VSC"

Net, Self Insured is always the least expensive way to insure. That said, if you can't afford a periodic $3-4k bill on the off chance you have an issue...maybe a VSC is for you.

Inflation could be the one thing that maybe would justify it, as if the inflation rate is going to keep up as it is, it may outpace the market returns in the short term...but in the long run, the market usually is the place to invest to combat inflation.

I agree with you…if the extended warranty kicks in on day 1 and overlaps with the existing manufacturer warranty …..you’re essentially betting on your car having issues in year 4,5 or 6 or the next 24k Miles (which ever comes first)

That to me doesn’t make a whole ton of sense to pay for that coverage. If my car is running into issues that badly right after the extended warranty I’m flipping it to someone else lol

However others have pointed out that this coverage may be offered where it kicks in after 3 year/36k miles, so theoretically you can be covered for 9 whole years or 96k miles (whichever comes first). If that is the case, I think a few thousand dollars is completely worth spending, unless the coverage doesn’t extend to certain things (like you mentioned electronics or the screen).

However, I can’t imagine coverage that kicks in after the manufacturer coverage expires can be that cheap up front. I can’t imagine a dealer service dept offering extensive coverage for essentially 100k miles for only a thousand dollars. Seems like they’d go out of business

 

[WalleyeMikeIII]

I agree with you…if the extended warranty kicks in on day 1 and overlaps with the existing manufacturer warranty …..you’re essentially betting on your car having issues in year 4,5 or 6 or the next 24k Miles (which ever comes first)

That to me doesn’t make a whole ton of sense to pay for that coverage. If my car is running into issues that badly right after the extended warranty I’m flipping it to someone else lol

However others have pointed out that this coverage may be offered where it kicks in after 3 year/36k miles, so theoretically you can be covered for 9 whole years or 96k miles (whichever comes first). If that is the case, I think a few thousand dollars is completely worth spending, unless the coverage doesn’t extend to certain things (like you mentioned electronics or the screen).

However, I can’t imagine coverage that kicks in after the manufacturer coverage expires can be that cheap up front. I can’t imagine a dealer service dept offering extensive coverage for essentially 100k miles for only a thousand dollars. Seems like they’d go out of business

Key to all of it is knowing what you are buying...anyone ever want to see what one of these contracts looks like...Your Auto Advocate web site has a pretty good sample contract...As does GMC.com. Here is a pointer to the one YAA sells.

https://joinyaa.com/wp-content/uploads/2021/12/sample-contract-sentinel.32cacfa8-1.pdf