Thoughts on extended warranties

[shock]

My 19 Tahoe (and 19 Silverado) are nearing the end of their b2b warranties.

What do forum members think of extended warranty vs not getting one, or about one company/plan vs others?

If it matters, I’m a very low mileage driver (esp w covid). I’d prob be looking for longer term and lower mileage. Planning on keeping both vehicles about 8-12 more years.

 

[OR VietVet]

Lots of threads about this question and in each of them I have always said and always will say NO!. You should have savings set back for auto repairs and maintenance. The extended warranties are always odds favorites for the warranty company. Sure, every now and then the vehicle owner does use the warranty and it pays for itself but the whole idea for these companies is to keep money and the odds are in their favor every time. Your call though. I ran auto repair shops and worked as a tech for a total of 35+ years. I dealt with these companies and hate them.

 

[Bill 1960]

They’re not warranties, they are service contracts. And those words matter because a whole different set of laws apply.

It’s a gamble between you and the service provider on how many covered failures will occur. They have ALL the data on failures at their disposal to price accordingly and to include their profits.

I’m not a gambler myself. Especially when the other party has seen all the cards.

 

[Tonyv__]

Lots of threads about this question and in each of them I have always said and always will say NO!. You should have savings set back for auto repairs and maintenance. The extended warranties are always odds favorites for the warranty company. Sure, every now and then the vehicle owner does use the warranty and it pays for itself but the whole idea for these companies is to keep money and the odds are in their favor every time. Your call though. I ran auto repair shops and worked as a tech for a total of 35+ years. I dealt with these companies and hate them.

I’m anti warranty as well lol. Wife’s Mercedes sold us a tire and wheel warranty. I went with it because it was a “fair” price and I know OEM wheels are expensive...... we called to see if she could get the wheels powder coated. Nope. Warranty void on wheels and tires unless Mercedes does the work... so Mercedes has a powder coater/ wheel refinish company they use but it’s an outside company. Mercedes won’t give us documentation that it was done at their dealership... called and canceled the warranty after I got off the phone with Mercedes.


And like others said. Warranty companies will find out every and any reason to not fix your car.... you run regular or mid grade in your 6.2 that recommends premium. They probably won’t fix anything engine related just off Of what they find in your tank ( this is just a hypothetical)

 

[OR VietVet]

That is another thing the warranty/service contract company does. Always look for a way to not pay. Deviating from stock is a way they do that.

 

[Mighty Hd]

I have ALWAYS come out wayyyyy ahead on extended warranties, with the exception of my 13 Tahoe.

I broke even on the Tahoe warranty. I paid $1835 for a 60/75 through GMEPP purchased at James Black Cadillac. Purchased at 2yrs @ 21k before the next pricing bracket at 24k. My time ran out before the mileage. The rack & pinion, EVAP system, CV axles and a few other things were warrantied out.

My 2002 explorer that we had - the warranty paid out $14,500 before they cancelled it on me. 5 transmissions and an ungodly amount of repairs. I kept it a year after the warranty was out and got rid of it. The first extended warranty was through Ford, then I purchased a second one through Vehicle One. Both were excellent and paid every. single. time.
BUt..that explorer was a pile of hammered dog sh*t too...

I purchased one for my wife's 19 RST through Black Cadillac not too long ago - The prices have obviously increased but It's already covered the rear axle, axle seals, and a few other MISC items. I have a bad feeling the 19 is going to use the hell out of the warranty.

So yes, buy it.

 

[Mighty Hd]

I’m anti warranty as well lol. Wife’s Mercedes sold us a tire and wheel warranty. I went with it because it was a “fair” price and I know OEM wheels are expensive...... we called to see if she could get the wheels powder coated. Nope. Warranty void on wheels and tires unless Mercedes does the work... so Mercedes has a powder coater/ wheel refinish company they use but it’s an outside company. Mercedes won’t give us documentation that it was done at their dealership... called and canceled the warranty after I got off the phone with Mercedes.


And like others said. Warranty companies will find out every and any reason to not fix your car.... you run regular or mid grade in your 6.2 that recommends premium. They probably won’t fix anything engine related just off Of what they find in your tank ( this is just a hypothetical)

I got the tire & wheel warranty on my wife's 19rst. Within the first 3 months it paid for itself - Replaced two tires @ $3xx/each and one wheel.

 

[Tonyv__]

I got the tire & wheel warranty on my wife's 19rst. Within the first 3 months it paid for itself - Replaced two tires @ $3xx/each and one wheel.

To be fair. Apparently the warranty I got pays out pretty well but it just sucks I couldn’t get them professionally powder coated.

and 5 transmissions?! I woulda dumped that explorer after the 2nd

 

[Philpug]

Depends.

IMHO, the only one I would consider is a manufacturer backed ESC, they have a (minimal) vested interest in keeping you happy. An outside ESC has their shareholders interest and the objective of NOT paying a claim.

If a warranty is say $2,000, you are betting that you will have more than $2,000 in work needed, they are betting that it will not. Now, you can keep that money aside and hope you don't need it and self insure yourself.

 

[Mighty Hd]

To be fair. Apparently the warranty I got pays out pretty well but it just sucks I couldn’t get them professionally powder coated.

and 5 transmissions?! I woulda dumped that explorer after the 2nd

5 transmissions and was ready for a 6th when we traded it in. We bought the vehicle from my wife's parents with 69k and traded at 130k. Older folks who babied the vehicle so it certainly wasn't abused.

The first transmission the warranty company paid for was a reman, I paid the difference to "upgrade" to a Motorcraft OEM transmission. We were lucky to get 8-12k out of the transmissions before the 2-3 3-4 and 4-3 shifts were slipping. No towing, no erratic driving. Just in town stuff, errands and going to work.

The dealer basically told us the transmissions were aluminum with steel internals that pretty much self-destructed.

I would have kept it, however wrenching on it EVERY weekend was getting old. The last 3 months that we had it far exceeded the cost of a car payment with no end in sight.