Extended Warranty?

[Toomanyhobbies]

I paid $3200 for the same warranty recently on my 2022 RST 6.2. I also hate extended warranties but in this day and age we are all driving a computer on wheels, and there are a billion circuits in each chip. When you multiply the number of chips, the chances of something breaking seems to expand exponentially, at least to me. I would like to keep this truck for a while at this point. How long do we really think that digital display is going to last?

 

[Toomanyhobbies]

@DuraYuk Good tip about getting an inspection towards the end of coverage.

@Mean_Green
For me, I chose 96mo/80k cause I'll likely put 5k on this car a year if not less...bought it more as an expensive baby mobile for family trips where packing into the IS250 is too tight. For parts replacement, the language reads as below for gmpp:
D. Our Options
Administrator will pay the repair facility directly, or reimburse Youfor the repair or replacement of any part covered by this Agreement.Replacement parts utilized in covered repairs will be OEM newor remanufactured parts, unless unavailable; in which caseWe may use parts of like kind and quality

Here's another snippet from a different section addressing failure re-occuring: If the sameCovered Part previously repaired under this Agreement failsagain, the deductible will be waived.

Correction, the warranty I purchased has no deductible so it's not quite the same.

 

[jforb]

Now that cars are more like phones, it might be wise to look at them the same way as far as "upgrades"....after a few years go by, it's time to get a new one, no matter what condition the old one is in.

 

[WalleyeMikeIII]

Now that cars are more like phones, it might be wise to look at them the same way as far as "upgrades"....after a few years go by, it's time to get a new one, no matter what condition the old one is in.

Except it is highly unaffordable to do so...unless you hit that big PowerBall tonight...

I priced the identical Denali to what I have today, and the sticker is $9k more than what mine was in Feb 2022. Then because you are forced to now take RSE if you want advanced tech, you gotta add $1.995k for the screens in the rear seats. So thats now $11k on the sticker; you could argue this is an enhanced feature...but you can't ditch it...so its $2k stuffed on you.

Add to that interest rates have almost 3x'ed since then. When I purchased, they gave me 1.9% for 72 months...so I left my cash invested and used theirs...and am laughing all the way to the bank on that right now...

Until pricing gets back in line...not sure an annual "Upgrade" is really workable for most people.

But this is all off topic of Extended Warranty.

I still maintain, if the buyer takes the cost of the extended warranty (service contract), and invests it in a high yield savings account (can easily get one that is risk free for 4.5-5.5%), on the whole, the population will be money ahead vs. buying a service contract....it has to be this way -- or the service contract people would be out of business....

You might get burnt on a single car, but if you take this strategy over your lifetime of buying vehicles, you begin to approach the same population statistics as the general populous...and you will be money ahead over your lifetime...You have to have discipline to do the initial thing...even if you don't have cash on hand and are inclined to finance the service contract too, if instead you put the delta of the car payment monthly in the same high-yield savings...you will be ahead over your lifetime!

My Personal Experience on my 2013, which I purchased in November of 2013, put 116k miles on, and traded in Feb of 2022 was that I had $1950 in non maintenance repairs that would have been covered by a service contract...I did follow the "severe" maintenance schedule, because I tow often...the key repairs were:
1 Magnaride Shock
1 Rear Auto Leveling Compressor
1 Yaw Sensor
1 Broken Front Sway Bar link, had them replace both when doing it, cause the parts are cheap, and required an alignment after regardless.
All repairs were at my Chevy dealer...

YMMV

 

[jforb]

I guess we're all in different situations, and have had different experiences. I've never bought an extended warranty, and on the older trucks (99, 08, 12) never had any issues that would have been covered by an extended warranty. But then I also know how to fix stuff, and my wife and I are very good at saving money, we paid cash for the 22 Tahoe, and got the cheap model without all the bells/whistles. And can afford to sell it and buy something else in a few years if we feel the urge, or the modern technology starts acting up.

 

[GTPace500]

I paid $3200 for the same warranty recently on my 2022 RST 6.2. I also hate extended warranties but in this day and age we are all driving a computer on wheels, and there are a billion circuits in each chip. When you multiply the number of chips, the chances of something breaking seems to expand exponentially, at least to me. I would like to keep this truck for a while at this point. How long do we really think that digital display is going to last?

By the time you need to 'replace' that digital display, it'll be cheap enough to buy the part and do it. Extended warranties - in my experience - have been hassles to deal with.

 

[DuraYuk]

By the time you need to 'replace' that digital display, it'll be cheap enough to buy the part and do it. Extended warranties - in my experience - have been hassles to deal with.

GMPP is easy. A 23 year old analog gauge cluster for a yukon goes for $300. Not really cheap all things considered. Plus GMPP has trip interruption also. It's for peace of mind and won't take much to hit 3000$ worth on these new vehicles.

 

[rmsnickers]

Does anyone have experience in the difference between geico's mechanical breakdown insurance (MBI) vs. extended warranty? I will call geico this week to ask but the descriptions online call out it's the same as the factory warranty...much cheaper tho.

 

[Tahoe14]

I would get a copy of Geico’s and a copy of GMPP and compare.

 

[rmsnickers]

Talked to Geico and they basically said the warranty is "mechanical" so it has to have some type of moving part or affect drivability. For instance, defective stitching on the seats wouldn't be covered nor would the GM logo light reflected on the ground that fogs up...but pretty much anything else is covered. Hard to pin them down but the reviews of the coverage are good.

The other notable difference is a standard $250 deductible...no ability to change this. Also confirmed that coverage isn't negated for any lift/tire mods although those parts aren't covered nor would any damage caused by those parts.

Almost sounds like the best of both worlds...low price which let's you set aside some money on your own like many suggest while also having pretty broad coverage for the big ticket items that can hit you.