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Discussion Starter · #1 ·
So I bought my car last week and got talked into a 10 year / 100,000 mile extended warranty for $1900. Is it worth it or is my basic 3 year/ 36,000 mile warranty enough. I have 30 days to cancel for a full refund. This is my first brand new car so I didn't want to screw it up and cheap out on $1900 if it would save my ass in the long run
 

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Couple of factors to consider in answering your question:

1) Is any insurance worth it? Yes, it your have something bad happen to you (medical insurance), your house, your car, life, earthquake, flood, renters insurance, etc.

But however, if you were lucky and lived your whole life without a house insurance claim, the thousands, or for many the "more than $10,000" most spend on house insurance during your lifetime, well we have just wasted the $10,000+. But all that house insurance money could have replaced your house if you had a total house fire.

2) Which then leads to the second question more directly to your thread, which is if you have a major auto claim, say your transmission blows up at either just beyond our warranty's mileage or time limits, can you afford the roughly $4,000 to pay for a new one out of pocket, or will your extended warranty "already have paid for that new transmission" yet still be available for other claims during your first ten years?

So the question of whether an extended warranty is worth is comes down to predicting (most of us are lousy at that), what are the chances of incurring a car claim that would cost us over the cost of our extended warranty compared to what we could sort-of-comfortably afford if something on our car went wrong at the wrong time.

As a personal example, I do not have extended warranty on my WRX, nor will I have one on my upcoming wife's daily driver (Mazda 3 GT), but I do have an extended warranty on my 2015 Z06 -- because replacing its replacing its motor alone is $30,000 a cost that would reek havoc in our life.

BTW, two other things I think are important for all to consider:

1) For many brands, though I do not know about Subaru, you can bid out the purchase of extended warranties between dealers in most states (I saved $800 when I bought the identical GM coverage for my Z06 by bidding it out to four dealerships compared to my "home dealership"); and,

2) Third party warranty (insurance bought other than from a dealership) are most of the time, a major rip off because when it comes down to filing a claim, somewhere in their many page document, they most of the time seem to find a reason why your particular warranty claim is not covered.

Hope some of this is helpful to you and/or other forum members.
 

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Discussion Starter · #3 ·
Couple of factors to consider in answering your question:

1) Is any insurance worth it? Yes, it your have something bad happen to you (medical insurance), your house, your car, life, earthquake, flood, renters insurance, etc.

But however, if you were lucky and lived your whole life without a house insurance claim, the thousands, or for many the "more than $10,000" most spend on house insurance during your lifetime, well we have just wasted the $10,000+. But all that house insurance money could have replaced your house if you had a total house fire.

2) Which then leads to the second question more directly to your thread, which is if you have a major auto claim, say your transmission blows up at either just beyond our warranty's mileage or time limits, can you afford the roughly $4,000 to pay for a new one out of pocket, or will your extended warranty "already have paid for that new transmission" yet still be available for other claims during your first ten years?

So the question of whether an extended warranty is worth is comes down to predicting (most of us are lousy at that), what are the chances of incurring a car claim that would cost us over the cost of our extended warranty compared to what we could sort-of-comfortably afford if something on our car went wrong at the wrong time.

As a personal example, I do not have extended warranty on my WRX, nor will I have one on my upcoming wife's daily driver (Mazda 3 GT), but I do have an extended warranty on my 2015 Z06 -- because replacing its replacing its motor alone is $30,000 a cost that would reek havoc in our life.

BTW, two other things I think are important for all to consider:

1) For many brands, though I do not know about Subaru, you can bid out the purchase of extended warranties between dealers in most states (I saved $800 when I bought the identical GM coverage for my Z06 by bidding it out to four dealerships compared to my "home dealership"); and,

2) Third party warranty (insurance bought other than from a dealership) are most of the time, a major rip off because when it comes down to filing a claim, somewhere in their many page document, they most of the time seem to find a reason why your particular warranty claim is not covered.

Hope some of this is helpful to you and/or other forum members.

Thank you for the detailed response.. it was helpful. I know it's asking to predict the future basically but I'm leaning more towards keeping it. I have a pretty low car payment and plan on keeping the car for at least 10 years. I have driven stick in the past but never owned/had one for a daily driver so maybe it's best just in case I screw the transmission or engine.. I doubt I will but you never know. Thanks again for the response. Club WRX has been amazing and the people have been great!!
 

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I have had extended warranties on only 2 cars, both Subarus. (Wish I had had them on my BMWs...)

When I got my 2017, the dealer gave me an extremely good offer on the 100K coverage that ended up only costing $3-400. Of course, when all is said and done, after playing around with numbers, they find a way to make their profit.

One of the reasons I bought a new car was for the reliability of having something brand new covered under warranty, so I was pleased to be able to get the EW for what seemed to me to be a bargain.
 

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It's never a good idea to finance a a service contract, unless you:

1) Are certain you will keep the car for the life of the contract.
2) Have a 0% interest rate loan.

If you wait until just before your factory warranty expires, and then shop for a service contract, you'll get more bang for your buck. Don't let dealerships tell you that you'll pay 500% more at that time. B.S. That service contract isn't helping you at all until the factory warranty expires, anyway. And, then you can negotiate a good deal on a service contract with a reputable company.

And, if any peeps reading this are concerned, you should be able to request a full refund of what the dealership "conned" you out of for that after-factory-warranty service contract. Just be sure you apply this money to the principal of your loan.

And, my final $0.02...If you do keep it, make sure you find out definitively what parts are "exempt" from coverage or have a "deductible" before they will honor the contract.

Best of luck to all!
 

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Discussion Starter · #7 ·
It's never a good idea to finance a a service contract, unless you:

1) Are certain you will keep the car for the life of the contract.
2) Have a 0% interest rate loan.

If you wait until just before your factory warranty expires, and then shop for a service contract, you'll get more bang for your buck. Don't let dealerships tell you that you'll pay 500% more at that time. B.S. That service contract isn't helping you at all until the factory warranty expires, anyway. And, then you can negotiate a good deal on a service contract with a reputable company.

And, if any peeps reading this are concerned, you should be able to request a full refund of what the dealership "conned" you out of for that after-factory-warranty service contract. Just be sure you apply this money to the principal of your loan.

And, my final $0.02...If you do keep it, make sure you find out definitively what parts are "exempt" from coverage or have a "deductible" before they will honor the contract.

Best of luck to all!
Good advice! My dad was telling me the same thing about getting an extended warranty through 3rd party right before my factory warranty ends. I'll have to give it some thought and double check the parts that are covered and how much deductibles are. Thanks for the help man!
 

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And, my final $0.02...If you do keep it, make sure you find out definitively what parts are "exempt" from coverage or have a "deductible" before they will honor the contract.
+1, read the small print. There are likely to be some limits as to what is covered, and also to how much you can make on each claim. Also look into the servicing requirements and make sure that you are likely to keep that up for 10 years. Then make an informed decision on whether it's worth it to you. If the warranty is transferable it could be useful when selling your car later.
 

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Considering these sort of cars (WRX, GTI, FOCUS..) are not all that reliable if your going to keep the car for even 2 years after its paid off I would get the extended. You will likely end up with some peace of mind and more then likely need to use it a few times.

I did not get an extended because I plan to trading it a few months to half a year after its paid off. I'm going to risk the 20 or 30k miles beyond the 60k power train.
 

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Nope. If it were worth it to you it wouldn't be to them, which means they couldn't offer it.

Over my 14 years of ownership I have only replaced the radiator and normal wear items. There is no reason one of these cars should have a failure before 100,000 of anything major.

Well, there was a bunch of other stuff but none of it was broken or worn out :cool:
 
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