Let me know your thoughts extended warranty

[Richard Foster]

I just got home from the hospital after having a total knee replacement. A lot of pain but over all things are going well.

I recently purchased a 1999 Town Car Sig. with 20,000 miles. In the mail today I get an offer for Extended Vehicle Warranty, bumper to bumper, 48 months for $1935. What are some of your thoughts and advice? Thanks, Dick

[v8_dave]

Thats very low mileage! I thought Ed said that extended warranties must be in place before the original warranty expires, no, the car is 8 years old? If not, how many miles do you put on a year? Would you be doing the repairs if you had no warranty?

[Richard Foster]

Thats very low mileage! I thought Ed said that extended warranties must be in place before the original warranty expires, no, the car is 8 years old? If not, how many miles do you put on a year? Would you be doing the repairs if you had no warranty?


The extended warranty is with a company the only does used cars. I am not sure how many miles we will drive per year and will not be doing much on my own as far as repaires go. I would still like to hear some input from form members. Dick

[Tman70]

The big question is...How much of a deductible per visit?

[Richard Foster]

The big question is...How much of a deductible per visit?

I just checked back with them and worked out a price for $1635.00with $100.00 deductible or I can pay $1775. with no deductible for 48 mo. bumper to bumper.

[DB]

Don't even think about it! Check with Dusty Bottoms (the Volvo Guy) for a second opinion. I can tell you horror stories about people who had "after-market" extended warranties and when there was a problem they wouldn't pay - no matter what the problem was.

If you want to get rid of $1600 send it to DaKat; she'll put it to better use.

[Richard Foster]

Don't even think about it! Check with Dusty Bottoms (the Volvo Guy) for a second opinion. I can tell you horror stories about people who had "after-market" extended warranties and when there was a problem they wouldn't pay - no matter what the problem was.

If you want to get rid of $1600 send it to DaKat; she'll put it to better use.

Thanks for the advise, I just needed some help in making that desision. By the way who is DaKat

[DB]

DaKat be da bomb! She runs this website and, if you compare it with other sites - well, you can't because there isn't any comparison.

[megaforcer]

Extended warranties are dealer scams. 99% of the time they don't pay. Puts a shame on my profession :(

[pro-five-oh]

Town Cars are way too reliable and cost effective to repair to need a warranty. With only 20,000 miles, you're never gonna need that warranty anyway.

Spend your money elsewhere.

[Sysanalyst]

Be careful; these warranty dealers seem to have a habit of going out of business every couple of years and leaving customers with a useless warranty contract. Also, read the fine print; they seem to have an endless list of exclusions...

[Dereck]

By the way who is DaKat?

Hi Richard Foster

Here is a rare photo of her.

http://i2.ebayimg.com/01/i/000/85/00/e758_1.JPG

Regards

Dereck

[DaKat]

lol - not anymore! Sorry, fellas!

[Sysanalyst]

Hi Richard Foster

Here is a rare photo of her.

http://i2.ebayimg.com/01/i/000/85/00/e758_1.JPG

Regards

Dereck


I knew it! DaKat is a hottie!

[Richard Foster]

Hi Richard Foster

Here is a rare photo of her.

http://i2.ebayimg.com/01/i/000/85/00/e758_1.JPG

Regards

Dereck

I will never forget, thanks. Dick

[Richard Foster]

Town Cars are way too reliable and cost effective to repair to need a warranty. With only 20,000 miles, you're never gonna need that warranty anyway.

Spend your money elsewhere.

I like your advise. Thanks - Dick

[w0by]

When I bought my last car they gave me a GMAC warranty. It was great to have since I didn't pay for it. It really did help though because the car had some issues and most everything was covered. I just had to pay a $50 deductible but if there were 10 different things wrong I still only paid $50 for the visit. I had bearings and arms go bad and everything was covered.

[Wm Webb]

I could never understand, if the warranty is such a great deal for the customer, how does the dealer and warranty company make money?

[DB]

I could never understand, if the warranty is such a great deal for the customer, how does the dealer and warranty company make money?

The dealer makes money because the cost of the warranty to them is $1200-$1600 and they sell it for around $2400. The dealership makes a huge profit and the F&I manager gets about 20-25% commission.

There is usually a deductable, so the service department makes money and Ford/GM/etc. don't mind what they are charged for the work because with today's cars only a small percentage ever have warranty work done during the extended period.