All extended warranties that I have seen are of dubious value. They are usually 3rd party insurance contracts with significant limits on what they will pay. As with all insurance, you have to weigh the amount of risk that is being underwritten and the probability of it occurring against the certainty that you will be out the cost of the premium. You can be sure that the insurance carrier has already done the math on that. The premium they charge you will cover their underwriting expense (their actual pay-outs) plus overhead, profit, and sales commissions. The markups are usually pretty hefty. It's like gambling at a casino: in the long run, the house always wins.
I have been looking at getting an extended warranty. I was quoted $1510 for an extended warranty that would go to 180,000km (110,000 miles) or 7 years.
My car will be a 'company car' in that I will use the vehicle for business and my business will pay all of the operating and repair expenses. However, in Canada, you still have to pay taxes on the 'personal use' portion of the vehicle. At the end of the term of the lease (about 3 years and/or 100,000km / 60,000 miles). I will have the option to turn the vehicle back to the leasing company or I can purchase it and pocket the difference between the 'residual value' and the actual selling price (only, of course, if the selling price is greater than the residual value). Because my lease usually has a fairly low residual value, this is usually an option that makes sense.
So the question I have is, how much more would somebody pay for a 3 yr old Mazda6 with 100,000km (60,00miles) if it had the extended warranty?
I figured out the purchase price for my vehicle which turned out to be just around invoice.. $23,000. I was putting down $5,000 so the actual finanaced amount was $18,000 +/- $200. The monthly payments were just around $335-$340. Now, mind you, car dealers do not talk a purchase price, they talk monthly payments. I was sitting down when the dealer wrote down the numbers for extended warranties. Their recommended warranty which brought the warranty coverage to include 6 years/ 72000 miles, VIN etching, etc.. put my monthly payments at $450!!!! $100 extra per month... Sooo... That means in total (60 month loan) makes this warranty $6,000!! I immediately told him no... But wait it gets better... The deductible... was still $100. I couldn;t believe my eyes and ears. The only 3 plans he showed were also an exorbinant amount.
Soo needlesstosay I will go through warrantygold.com which gives a 7 year / 100,000 mile coverage plan.. $0 deductible, roadside assist, loaner car, etc... for only $1200. A much more real world price.
warrantygold huh? can you please expand on them? Have you had them before? Did they treat you right? I checked them out, and their New Diamond plan was definitely cheaper then others i've checked out...Are they reputable? Thanx!
My dad had Warrantygold for all of his vehicles. He got the Diamond plans because they seemed to cover a lot more than the platinum(?) ones. BUt they are significantly cheaper than a lot of the other companies and they give you a $0 deductible! You can take your car to any dealership and have the work performed. It covers everything that the manufacturer's warranty would cover plus wear and tear. It's definetly worth the shot to try them out. If theres any questions, you can call them and talk to one of the reps.. They are very nice and can explain the coverage to you in detail.
I have warranty gold on my moms car. It is NOT accepted at any dealer. In fact, the Oldsmobile dealer will not accept it. It's up to the dealer whether to accept or not. Basically, warranty gold works like any other warranty in that the mechanic checks out the car and then tells the warranty company what is wrong. Then, they approve the repair or not. But, that's the same as any other warranty even manufacturers warranty.
In the case that the dealer does not take the aftermarket warranty, then call around. Warranty Gold does operate by credit card. They can pay for repairs with their corporate CC.
I did find another Olds dealer that is willing to work with warranty gold as long as they use a credit card which they do. So, ask your dealer if they take that warranty. But, don't ask the sales guy ask the service manager. It could be used as a bargaining chip for sure. Most extended warranties are a big money maker for the dealer ship, but if they want to earn your business they can come down on price. I've heard of up to 50% markup on actual selling price on extended warranties. The selling price is negotiable.
Another option is to see if there are discount Mazda parts dealers on the web. Some of these places sell extended manufacturers warranties at substantial discounts because they can make a much smaller profit where as the dealer wants maximum profit. This way you get the Mazda warranty which is honored anywhere Mazda is, BUT make sure you are buying a REAL Mazda warranty. Some dealers even try to sell you an extended warranty from a 3rd party. Sure, it may be cheaper but check the small print. Many times you' ll find that the dealer has not sold you a manufacturers warranty but a cheaper less broad one that may not work at any other dealership except that one. Thus, if you're on a long trip somewhere and you have a break down, you extended warranty may not cover you at other dealerships. Just something to watch for.
Warranty Gold is nationwide as are the manufacturer versions.
When I bought my Mits Eclipse GT in 2000 I bought the extended warranty that was for 6 years and 100,000 miles for $970. It was pretty comprehensive. I cancelled it because I decided not to keep the car more than 3 years. The OEM warranty on the Mits is 3/36 bumper to bumber with
5/60 on the power train, so it wasn't worth it to me. My car currently has 42k on it and it's 31 months old. I'm selling it to get the 6.
These warranties can be helpful and economical if you get a good price and the mileage covered is high enough like 100k. Also, make sure it's comprehensive meaning it covers things like power window motors, alternators, AC compressors, electrical switches. Those items can be costly.
One AC compressor with labor can cost upwards of $500-$600. If you can get an extended warranty for under $1000 that will cover 100,000 miles of use, that's pretty good insurance considering how expensive and complex cars are getting.
At $1000 you are paying $16.67 per month for that coverage for 60 months.
In reality it's more than that because the manufactures warranty does cover the first 3-4 years.
Normally, it's the second 50k that can get costly as parts begin to wear.
It's like any other insurance really. You pay IN CASE you have a problem. We pay auto insurance premiums and hopefully never have to make a claim, but we're really happy to have it if we do have a claim. And, we don't our money back if we don't have a claim within the covered premium.
You have to decide if it's worth it for you and what risk you're willing to take on bad parts.
I do a lot of my own work but still look into extended warranties if the price is right.
I checked with the dealer yesterday (the info is also on the Mazda website...in Canada, anyway). Madza offers a variety of combinations of extended warranties. It costs $1500 Cdn for a comprehensive warranty that covers just about everything (not brakes, clutch linings, wipers, exhaust, regular adjustment or other 'wearable items') that goes to 72 months or 160,000km. It costs $1330 Cdn for one that covers major components for the same time/mileage. The dealer told me that they would expect to get about $1000 extra for a used vehicle with 100,000km that had that sort of extended warranty (72 months/100,000km).
Therefore, the real cost (for me, anyway) is $1500 plus interest for 3 years (about $300) minus $1000 (when I sell the car in 3 years). In round figures, it will cost about $800 to cover the 'gap' between when the 80,000 regular warranty ends and the time I sell the vehicle at 100,000km.