Why Extended Warranties Are Terrible
ฝัง
- เผยแพร่เมื่อ 20 ก.ค. 2019
- Get a FREE customized plan for your money. It only takes 3 minutes! bit.ly/2YTMuQM
Visit the Dave Ramsey store today for resources to help you take control of your money! goo.gl/gEv6Tj
Become a Channel Member today: / @theramseyshow
Did you miss the latest Ramsey Show episode? Don’t worry-we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: th-cam.com/users/TheRamseySh...
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
th-cam.com/users/TheRamseySh...
• The Ramsey Show (Full Episodes): th-cam.com/users/TheRamseySh...
• The Dr. John Delony Show: th-cam.com/users/JohnDelony?...
• The Rachel Cruze Show: th-cam.com/users/RachelCr...
• Anthony ONeal: th-cam.com/users/aonealmi...
• The Ken Coleman Show: th-cam.com/users/TheKenColem...
• The Christy Wright Show: th-cam.com/users/ChristyWrig...
• EntreLeadership: th-cam.com/users/entreleader...
Guy: Im going through a mid life crisis
Dave: Cool
😂😅
At least he bought the i8 used
Ayana Edwards 😂
😂😩😂😂😂😂😂😂😂😂😂
he said cool because the guy said he decided to buy a used supercar, not because the mid life crisis...
@@andreyv1 Tell me you are having a midlife crisis without saying you have a midlife crisis.
Pay yourself the warranty payments instead. If the item breaks, you have the money. If not, it's yours to keep 😀👍
@Brian Waller Savings pays stuff all interest.
Brian Waller I never thought to actually put the $ aside each month. I often have opted for the warranty. Going to try this out. Thanks for the tip.
Chris Invests - Personal Finance Videos
Yup.
Part of my emergency fund.
The thing is I rarely use it and it has been growing for over 30 years.
Emergency funds are always the way to go. I set 200 aside per month to it.
Not when a 2k warranty covers a 8k repair bill
My dad had a 7 series and got an extended warranty don't remember how much he paid but it needed a $6,500 repair. The warranty costed a lot less than that.
If you don't know how much he paid for the warranty, how do you know the warranty costed a lot less than 6,500.
@@geeterdun5966 have you ever heard of a $6500 extended warranty???
So payment would be $120 a month (full coverage) for a 5 year contract and 2.5 years are payment free. Your car breaks down it’s 6500 to fix it but now you have a brand new car the entire time. lol because you have the extended warranty -Dude said $12 repair? Where? If your engine or trans breaks down it will be $3500 to fix. Tell me I’m wrong
If it costs $120 each month for the extended warranty and he's bought it his whole driving life he paid about $36,000 over a 25 year period
One repair is not worth it
The companies know this. They know the numbers
Also, if it's your own bill, you can shop around and get a better price. Insurers may not bother
And speaking of repairs that’s only if it’s a repair this covert you can still spend over thousands of dollars for your car that the warranty does not cover
30 years selling thousands of cars in a small town. Never sold extended warranties and know I missed out on a lot of dealer profit. The good news is that I can walk into the coffee shop and all my old customers are still friends!
I literally had a General MANAGER show his true colors when I said to drop the extended warranty off my sale price 😅 Didn't end well let's say
@@Nperez1986 They hate when they can't manipulate you. Good shit
Yeah I watched this video last week and went into the dealership to cancel mine before 14 days passed. The guy who previously talked to me like a big brother became a complete monster. Worst experience of my life with a human being!!
@@merriem24 did you atleast get your money back?
If I put a deposit down on a vehicle, signed the paperwork, but was promised they would fix the vehicle problems before I put the rest of the money down and drove out of the lot , but they are having a hard time fixing the issue, can I get a refund of the money or purchase another vehicle ?
The biggest problem here is he thinks an i8 is a supercar.
William Hammond lol 100% accurate
It looks like one
Lol
I drove one, retail $150k, so yes, it's a supercar, not a good one, but it's still a supercar.
@@petecheng1 price does not make one a supercar.
I got extended warranty for $ 800 when I bought used 2010 Mitsubishi Outlander with 96k miles. Two years later transmission failed got it fixed got covered under warranty can't complain. Got loaner from dealership for two weeks until car got fixed.
that's a cheaper than typical warranty, usually they are at least $1200-1400.
The problem is you bought a Mitsubishi. It was going to brake anyway
@@blackcaptainfalcon3441 I am still driving it to this day. Not it has 156k miles so far so good can't complain.
you bought a car with 100k miles. that's a different story
Certainly depends. When I worked in lending extended warranties usually cost more than $800 and often came with a deductible when you used it, so a lot of the time the cost of your warranty and what you used it for pretty much just evened themselves out. But there are always exceptions to any rule. I used to have one on a Ford focus and never had to use it, so whatever it cost (can't recall it was 6+ years ago) was all profit for them.
Mine has saved me twice. I have a 2015 silverado, the AC went out at 50k miles and 2 lifters collapsed at 60k miles. I would have been way over in expenses out of pocket if I wouldn't have had it. I know it's the exception and not the rule
Same with me. I have a 2010 Camry, rear main seal leak. 1300 dollars. I pay nothing Because of the warranty.
@@JK20239 how much did you pay for the warranty?
@2:30
You bought a junk car.
You bought a Chevy. Probably one of the worse cars you can buy. I have meet more people who's Chevy and Ford breaks down at 100,000 or sooner. Terrible cars. I only buy Honda and Toyota. Look at longevity online and you will not find a single Chevy or Ford.
He lost me when he said “ he bought a super car”..... it’s a i8....
Everything is relative.
Good Information. I also enjoy reading the comments as Dave's listeners throw around logic & common sense that they have heard Dave address in previous episode & books. Very valuable.
Research the car and find out common problems and what they cost and go from there.
Thank you -- that's exactly what I did. Also, if you're interested in a certain brand and model, it's best to know which years are better and which years to avoid.
None of this is a guarantee, but it will help with your decision-making.
A used BMW is pretty much guaranteed to break. If you're concerned about repair costs you shouldn't even buy it to begin with
New ones too. Just they have warranties and excellent concierge service that makes up for inconvenience. You'd be a total fool to drop a lot of money on a used BMW with no warranty at all.
Buy More Warranty
I've bought a 3 year extended warranty for a Bluetooth speaker (Not a car) and it came in handy. I got a new speaker on the same day and a brand new 3 year extended warranty on the new product FREE. It originally cost me $30 the speaker cost me $150.
I mean, its kind of the same with any kind of insurance. On average, you lose money. But when something goes really wrong, you don't lose tons of money.
Sure, mathematically the warranty might not be worth it, but if the average loss is smallish and the potential damage is high, it could still be worth it.
100%
It's a BMW. A faulty sensor can cost $500 to replace. That's just a faulty sensor, not the actual part that went bad that the sensor is monitoring.
Thank you! I was going to say the same thing. Health, car, homeowner's...all insurance is worthless if you never use it.
Think Dave has ever seen Doug DeMuro's Range Rover warranty videos?
I guess he has not. This is an unusual car he should be getting the extended warranty. This is not a toyota camry.
boningo premier EXACTLY!!!
He always goes off "data points" no real thinking for specific situations.
@@nealp885 the warranty company goes off the same thing. A car more prone to need repair comes with a higher warranty cost and generally requires a deductible. If they didn't and every person who bought a high priced warranty used it and got value from it the company would cease to exist. So the guy is certainly welcome to keep the warranty etc. but he was calling to get a "you made the right call" and they disagree on opinion. It is what it is.
Salifou Zabre I agree and this is why it’s important to do your own research and not listen to others all the time
I agree with this! 🙌🏽. I’ve had the sales man a few years ago try hard to get me to not drop my warranty when I bought my used car. I see why now.
There is nothing under the hood of an i8 that can be classified as a true supercar
Dave's right on this one.. and some of the warranty companies you have to fight with them to cover the repair. Warranties and insurance companies make money when they don't pay out. If you feel like you need an extended warranty and you can't live without it maybe you should question the purchase to begin with.
I’d find a CPO car usually charge $800+ to get an extended manufacturer warranty. Goes through more requirements than a regular used car. Usually with low deductibles as well.
This is how all insurance works
Exactly!!
The i8 is NOT a supercar. Supercars don’t have skinny tires.
It’s a status symbol. Just like the douchy i3.
They almost got me on an extended warranty when I bought my car. Then I thought they have to be making tons of money on these or they wouldn't push them so hard, this can't be a good deal. Glad I was right, super happy I passed!
I’m sure he doesn’t believe in medical, life, and dental insurance as well because those businesses make money. I know I’ve used my warranties on my vehicles. Sometimes peace of mind and convenience is everything.
Problem also is there are soooo many stipulations on whether or not the warranty will even be honored...trust me, got bit BAD on a Nissan that was supposed to cover everything with a $50 deductable...stupid suspension components started breaking down and the dealership always had a reason NOT to honor the "warranty". NEVER AGAIN ON EXTENDED WARRANTIES OR NISSANS
When it comes to warranties, it is the uncertainty that we don't know if we benefit from the cost or not. For example our Chevrolet Cruze car would have benefited from a warranty when it broke down on us several times but my dad only got some oil change coverage that we could not benefit from much of it before it expired. The repair costs were over $2000 but the warranty was $1200. $800 the we would have kept if we did go for the warranty when buying the car itself.
I bought a car that was about 6 months out of warranty. In the 2 years I have owned it, I have faced three very expensive repairs before 80,000 miles that would have more than paid for an extended warranty. Fortunately I was able to fix them myself (I had to tear down the top half of the engine for one of them and it took me two days to repair and reassemble). All it cost me was the parts but most people don’t have the tools, ability, or knowledge. Modern cars are junk.
The one thing I dont agree on, I bought a $1500 extended warranty on my mustang with a $0 deductible. I'm so far $4000 in repairs all covered and still have 2 years left on it, I've saved that much because of a little bit more in the beginning. I'm grateful for this!
Youre grateful for buying a horrible car? Its amazing to me how much money people waste on stupid cars.
Caller: I’m going through a midlife crisis...
Dave: What is your total annual income?
B M W: B R E A K M Y W A L L E T
Their cars? Yes. no the adventure motorcycles are great. Fast Eddie with Motojitsu can account for how reliably and well performing his F800Gs is.
Haha that's Great I havent heard that BMW acronym before.
@@Blue_Collar_Hunter I thought Big Mexican Woman was the standard abbreviation xD
@@motoryzen Yeah that one gets thrown around. I've also heard people say Big Mexican Wenie.
Always have the POWERTRAIN car warranty!! I got a brand new engine. Car only had 72k thousand miles on it. I thought they said insurance was your defense?! So are car warranties. The dealerships are already crooks and overpriced. Defend yourself !
I paid 2200 for mine...warranty covered the 2500 timing chain job...Dealer destroyed the engine so the extended warranty covered the now $4k job, so it worked out very well for me
The problem with purchasing warranties and insurance are that they are all open arms when you are paying the premium, but when it comes to a claim they are quick to say, "denied!" This happened to me recently with a large insurance company, which I paid premiums to for 4 years with no claims. I recently had a leak from the condo bathtub above me, and insurance denied the claim. It was disgusting!
Buy a Toyota, ensure the recommend maintenance is done, and you should get 300,000+ miles out of it. Bank the monthly Car Shield premiums for your next vehicle.
I have always paid less for repairs than the cost of the warranty.
jeez, how many times can this guy say "supercar" in a 4 minute call?
He is a bragging 50 year old. Obnoxious.
The only time I’ve seen an extended warranty work out, was with the friends pick up truck. They had to have the camshaft and lifters replaced. Subsequently while the vehicle was in the shop, the transmission decided it was going to go south. Warranty ended up replacing the transmission with a new one, on top of repairing the engine, so the warranty company lost money on the policy in that situation. It’s very rare, but happens.
Dave stated it very well this time.
I get what Dave is saying. If your buying a 60k+ used BMW you should have easily the money to cover any breakdowns. Unless the warranty was cheap like $1000 for 2 or 3 years which I doubt skip the extended warranty. Warranty companies not in business to lose money.
At the same time, if you're buying a 60k+ used BMW you probably really don't care about how much an extended warranty costs either. I remember when I used to wonder how much the insurance would be on a Ferarri anytime we'd see one on the road and my dad basically said, if you can afford a Ferrari you really don't care about how much you pay for the insurance.
@@TeKnoVKNG23 True but why spend more just because you can.
I disagree w this one. As a gm tech , I've seen many customers who had cars that needed pricey repairs and they had no money to repair them. Then they had forgotten about the best ext warr they had purchased and.brought it to their attention they have one. Repairs on few cars were covered at 100%. Yeah it's a gamble but when you need it, it pays off.
I call bs
Wonder how many times something has broken after the warranty expired? Warranties occasionally pay off but how many people actually save more money than what they pay? If a company can't guarantee their product, it is probably not worth it.
I self-insure all of my vehicles. Years ago, I bought an extended warranty. I needed one repair, which would have cost what the warranty cost. Never again.
All these broke dudes quibbling over what makes a "supercar" is funny and sad at the same time.
So far 2 years since I have bought my used M4 without a warranty.., and have had no mechanical problems.... I think the warranty they offered me was only good for 4 years, so I'm pretty sure that warranty would have been a waste of money
Save the monthly payments into a jam jar instead of a breakdown....the longer you have the car, the more likely it is to break, the more the repairs are likely to cost but the more money is in the jam jar...
My wife paid $1700 for her Rogue warranty, you can't get the transmission serviced one time for that.
My idea of a warranty is learning how to DIY on small jobs, and the thousands ive saved go towards a pool of money that will pay for the big repairs if they are ever needed.
"Yea it sucks"!..I am cancelling " I took my car to dealership. "they did a scan and washed my car" and had a balance of $120"
It really depends on what kind of extended warranty you're buying as well as the dealer. I will say that aftermarket extended warranties are a complete ripoff. Good luck getting them to pay on any claim. Now extended warranties through the vehicle manufacturers are much better. But like I said, it depends on the dealer. Some can be very untrustworthy and have warranty inspectors on site that look for any reason not to approve a claim. Back in 2000, i bought a 97 F150 and purchased a 4 year 48k miles Ford ESP plan (extended service protection) for $2500. For the 6 years i had the truck i ended up getting an engine replaced ($5k) trans rebuild ($2k) alternator and fuel filler neck replacement ($1.1k). So as you can see, I came out well ahead. Just over a year ago, I bought a plan for my wife's 2015 Kia K900, it was a Kia ESP. They sold a 4 year 48k to me for only $1836!!! They gave me such a great deal cuz I've bought my 2010 Forte from them in July of 09 and always brought it in for service there. So far on the K900, we had the drivers seat replaced ($5k!) and truck relay and mechanism replaced ($2k). So we are well ahead and was worth it. Do your research and make sure the dealer is trustworthy and stay away from aftermarket warranties!
Its kinda of like insurance. It makes sense in some situations
Read the fine print: "Any item located between the front bumper and the rear bumper is not covered by this warranty".
The i8 will require several thousand for minor repairs. Anything major and you're looking at five digit numbers. This isn't a toyota corolla we're talking about. If there's an available extended warranty and as long as not a scam (read the fine print), I'd go for it without blinking twice.
Why i8? Why not M4, Audi R8, ZR1, Viper somthing..
Andrew TheDrew Yeah, the i8 is probably the worst car you can get for that price Imo
Most expensive looking
@@JOMFSE R8 I think looks more exotic.
@@markg999 not at all. i8 looks like it came out of tron and resembles ferraris. R8 design is over 10 years old and resembles Nissan Zs
@@JOMFSE Ill give you the Tron look but Ferrari not seeing it. The new Corvette now that looks like a Ferrari and new is around 60s..wait 3-4 years could maybe get one for 40's. I am so doing that ha
Idk. I had a 2005 acura rsx. The warranty was only 6yrs. Or 60k miles. I got the extended warranty. Which is 10 yrs 100k miles. At 95k miles. Less than 7 yrs. My motor went bad and my tranny went bad. Cost me $15k at the dealer. I paid nothing. Everything was cover by the warranty.
Was it the regular RSX or the type S? Those motors are usually bulletproof
From Leo: To fix a headlight on that BMW is expensive.
isn't it expensive to fix on any vehicle ?
He paid $100k+ for that i8 and he's asking about a $5k extended warranty? Dude - perspective man. Get some.
Does Dave recommend against Health Insurance? Because unless you reach your deductible you see virtually no benefit and are losing thousands of dollars every year. Much less risk with an extended warranty for your car that you drive every day that will ultimately break down at some point.
I came out ahead on every warranty I ever purchased. In one case wayyy ahead.
As a person that has purchased an extended warranty and had to use it, and the repair was way more than what I paid for the warranty. I'd recommend it. Will the people that tell you not to buy this help you repair if the time comes. Of course these companies are in the business of making a profit. That's how businesses work. But getting a warranty on a vehicle that can go up to 120K plus miles sounds like a good idea to me.
Yeah, my warranty is only an additional 40 bucks a month and goes up to 125k miles
I8? No cash to fix it... Buy the warrant... Corolla, don't.
Corolla? My Toyota service center wants more than $900 to fix an air conditioning compressor... I would take it to a generic repair shop instead.
I can afford a 2000 dollar warranty, but a 10k dollar engine would hurt.
Pay 2k now vs paying 10k later.
I didn’t get one on my son’s car and right after the warranty expired his transmission went out and it cost me 5700. Cars do break.
Car companies purposely sell you these warranties to make money. Even though the majority of the time they know you won’t use it.
Save yourself the money and buy another car if it does break down or simply invest that money elsewhere.
I don’t know about the “majority of time”. Many vehicles need major repairs under 100k miles that cost anywhere from 500-10k. Depends on the problems you have I guess
If you’re out buying a dishwasher, get the extended 5 year warranty. From plastic cheap latches to computer boards, I’ve learned my lesson. Instead of buying expensive, but the middle of the road model and extended warranty.
Appliances are poorly made these days.
A used BMW is going to be expensive to maintain.
I disagree with dave on this one bmw's are money pits. Better to get a ppi.
It's all the more reason why NOT to buy the extended warranties. But regardless, this common sense goes with ANY vehicle.
Yeah but all vehicles are money pits. Actually, come to think of it, even buying a home is a money pit. There’s always something that needs to be fixed.
@@mikenelson8377 Not all cars created the same...BMW are bigger money pits than say a Toyota.
He got it used so it's already gone through a lot of depreciation, a 120,000 dollar car that's depreciated 60,000 isn't gonna depreciate that much in the third hand
Will definitely disagree with that statement in my case, that is. I own a 2003 bmw and previously owned an Elantra. Guess which car was the most costliest to repair and constantly had something to replace/repair every time I turn my head? There are certainly exceptions to every rule, I suppose.
I get what Dave is saying but you buy it for piece of mind. I have a used car that the head gasket and radiator went within a year and would of costed us thousands without having the warranty
That's about a $1000 repair
@@HermannTheGreat exactly, they make even more money the place you go to for the repair, that's why right to repair is so important. Most repairs actually don't cost much, but if u can only take it to the place thats trying to sell you an extended warranty they are gonna make repairing it out of warranty ridiculously expensive.
Ummm yeah I don't know. I've had an extended warranty on a used Benz and a Tahoe and both times the warranties covered the repairs which were thousands of dollars.
Well the cost to repair to the warrenty company is less than what we would get it repaired for. Especially when they own their own garages. So you aren’t totally correct.
Having an extended warranty is like having health insurance. You can go for 10 years without being sick but you will be glad you have the insurance for that one unfortunate day when you have to get health care. If money is not an issue I think its wise to get the warranty, unless your car is brand new or fairly new.
Dadivine === if you go 10yrs with a warranty emagine how much money you spending
I just got a gm extended warranty on my brand new Malibu since gm regular warranties suck. Only 3 yrs 36k miles bumper to bumper, for $2500 I have power train and bumper to bumper extended for 8 yrs or 100k miles. Still debating if I shld cancel it.
3 cylinder SUPERCAR 😂😂😂
Well I made a mistake of listening to people and NOT buy an extended warranty on my Audi R8 V10 for $3,500, well... ac compressor went out $4,000, ecu went out $5,000 (shipped from Germany), ac compressor went out again after 4 years another $4,000, not to mention hundred of dollars for other minor checkups, so roll the dice people. I get it Extended warranty is not about saving money, it's for a peace of mind, the best advice would be, if you can afford it, do it.
Hoovies would disagree, his $5k warranty a year repaired $150k of repairs in 3 years.
Bs
It looks like a supercar but with a 3cylinder and a battery that only lasts 20 miles.
I get what you are saying, but after buying one with my truck, I had a repair that cost me nothing because I purchased an extended warranty. The repair at a dealer cost more than what it cost me for the extended warranty. Yes, just like every insurance company, they, on average, make money from writing policies/warranties. Same with home owners insurance (do you have a home owners insurance Policy? It is no different. Why is it so bad that they are making money based on averages? You are making money off of people, why can't insurance companies (which is all a warrant company is, an insurance company)? Now, if all they did was deny claims, then yeah, don't do it, but if it is offered through the dealership you will be covered better.
Car warranty companies make money across the entire portfolio of vehicles and products. Some do lose money. In some cases warranties are worth it. I know I work in Actuarial for one and I would buy one in certain cases.
So it's definitely a supercar... A super expensive car 😂🤣😂😅
Got the car ✅
Now need the Affliction shirts
Saying that the premiums coming in are more than the payouts for the company is not a valid reason not to buy a warranty. That is the case for all insurance and warranties. What the consumer needs to decide is whether the ratio of cost to likely payout makes it worth it. Can you afford to self insure or is the car at an age where you would just get rid of it if something major happened. Also is the warranty notorious for denials? I know for me i am too worried about paying for a warranty and having them deny the claim, that i choose to just self insure.
What is platinum warranty before I purchase for my Porsche macan I am buying my car after the lease end. This month please help me
Dave, you are so right everybody out there it is a rip off
I don't agree with this specific topic. I have a bMW 640i coupe twin turbo, and I purchased the warranty for 4000$ 60k miles/4 years. The warranty was bumper to bumper. Deductible was 200$ if warranty needed to be used, so far they have done 13,000$ worth of repairs. Carchex, i recommend them to anyone.
By this logic isn't health insurance a scam then? Isn't peace of mind worth something? It's very unlikely anybody in my family will get cancer and need 100,000+ in treatment but knowing we can pay our part of the bill means something. Or any other insurance for that matter?
What about a set of turbo chargers? If they go out that’s $4,500 on advantage. Tell us how someone self insured themselves when they go before the nest egg is reached.
Dave didn't even mention the fact that it would make it more complicated to fix you can only go to dealer...
Every car with raised doors is a super car…😂😂
This dude really wanted Dave to compliment his BMW i8 lol.
I strongly disagree with Dave on this. I always get the extended warranty. Thing is that if it does break you really need to hold their feet to the fire to fix it.
Depends on the extended warranty provider. Many videos online about different experiences. Doug Demuro has shown how convenient it is to get Carmax extended warranties honored, as an example.
If you can afford the car, you can afford to self insure it in the event it breaks down. Keep the money you would pay on premiums for an extended warranty and use that money when your car breaks down. You won’t have to fight these companies to fix it themselves when filing a claim.
In my humble opinion, if you have a decent emergency fund and can afford to cover the largest possible repair, usually a new engine… DO NOT get a warranty. If you are at a time in your life where you need to continue to pay off debt and or save for a big purchase, a warranty might be worth it. I would only recommend extended factory warranties since they are MUCH cheaper than the 3rd party companies. I just compared a factory warranty extension to a 3rd party and saw a difference of nearly $2k!!!!
12% is based on average (including those who never used it); what if including only the ones that ended using the warranty?
The thing is... listen close.... you will get a lower interest rate on a new car with the extended warranty. Why not put that warranty to work instead of putting that interest money in the lenders pocket?..
“Third party” extended warranty’s I would stay away from... my extended manufacturer warranty ($900 for 3yrs) has covered over 5k in repairs 🤷🏽♀️
where you got that warranty?
I bought a 2014 Jeep Grand Cherokee. I also purchased the lifetime warranty threw Mopar for approx $2,400 (bought it out right no payments). I know Jeep isnt the most reliable suv so I thought the lifetime warranty was a sound investment, also because I plan to keep it forever. So far Jeep/Mopar has had to put just over $7,000 into it for repairs (which without the warranty would of came out of my pocket for a 5 year old car) I have only had to pay $300. deductible is $100 per incident (3 incidents so far so $300) plus the $2,400 for the initial warranty. So far this warranty has saved me $4,300 in 5 years how is this a bad investment? I also plan to keep the car for as long as I possibly can so I will continue to be saving money on vehicle repairs that are all done exclusively @ the dealer. This warranty is a huge win, I don’t see a loss
Julie Sotelo Say you invested 2400 for 5 years in a mutual fund that averages 10% return. The math is 2400 x 1.1 x 1.1 x 1.1 x 1.1 x 1.1 = 3865. Now add the 300 you spent in deductibles. 4165. Now did you buy the extended warranty with cash or with the loan you used to buy the car? Add the interest, at a 6% rate interest would have cost you at least 120 on the 2400 that went towards the warranty. 4165 + 120 = 4285. Congratulations you saved $15, and you are the exception.
I bought a 3 year old Honda Odyssey a few years ago. The dealership wanted $3,000 for a 3 year warranty. It seemed expensive considering it is a Honda and the car was only 3 years old. If the Honda was 8 years old, $3,000 may very well have been worth it as the car would be older and more likely break down.
@howzit3000 They sell warranties on 5-8 year old cars all the time. It really depends upon the original MSRP of the vehicle and the cost of repairs. Typical warranties are $1400-1800 for up to 110k miles or 3 years from purchase. Warranties aren't cheap.
@@HermannTheGreat I was surprised when a co worker bought a 2 year old Dodge Caravan at about the same time that I bought the Honda Odyssey. And their 3 year warranty (of which they bought it) cost a little less than mine at about $2,000 (I didn't buy my warranty and it has been 3 years now and no mechanical issues). I thought the Honda warranty should have been less considering they are much more reliable (if it was less I might have bought it). But maybe Hondas are much more expensive to fix than Dodges. Who knows. There's a bunch of variables. I was just surprised the Dodge warranty was cheaper.
Be bought a 2015 i8 that’s for sure
It's also a way to force you into repairs by the dealership
I would buy a extended warranty on a BMW and Mercedes. I would get rid of it as soon as the extended warranty is out. The I8 is a finicky car and not everyone can worry on them so dealership only.
I got suckered into buying one if there’s too.
What I don't understand though, is with this logic of "insure it myself", why not use the same logic to just get liability insurance on a car and "insure" the rest of it myself?
I think the only people not getting it have the extra money or are buying a nice newer car that isn't going to break down soon, but when u buy a 8 year old car with almost 100k, u never know what might happen, i rather covered
I bought a 2012 Ford focus for 14k and bought a warranty for 2k the engine failed and the warranty replaced the engine and the turbo
That was a 8k repair so dave dosent always know best
And focus of those years all have these defective dual-clutch Transmissions that Ford it's probably about to get sued for,
Does this logic not apply to all forms of insurance?
I have an 8k car that needs an engine for 7k and recently had a new starter and wish I had paid the 2k for the warranty. What do you do then? Fix it and pay 15k for a 8k car? Sell it for less than half maybe 4k and be out the other 4k and pay tax title and license plus another car purchase? Idk the warranty sounds good to me.
True. 👍