3rd party auto warranties - worth it?

[RatLabGuy]

Here's teh deal. I'm finally ready to break down and get myself a new car to replace my DD - I'm tired of HAVING to work on cars all the time, would rather keepo that to when I WANT to (AKA toy w/ the 4Runner).

Right now I'm heavily leaning towards either a Mazda Protege5 or Mazda6.
I really like the looks/style of the protege5... but unf, they haven't been made since '03, so at best I can get one 3+ years old w/ 30k miles, more likely 40k or so, which would be approaching the limit of the factory warranty (in most cases).

The Mazda6 5dr is really cool and I like it alot, but not sure if i'm ready to drop 20k, just for the confidence of having the warranty/new car. it's definitely a nicer/bigger car than the Protege5 too, i mean I understand why it costs so much.

I am not the kind of guy who really cares that his car is really nice/new/shiny. In fact the idea kinda scares me, as I'm not really acustomed to paying attention to keeping one really clean etc, the stuff that keeps the value up. I'd rather let it be washed by God and spend my time drinking beer .
Mostly I just don't want to have to worry about thinings breaking for awhile, and if they do - not gonna have to lose 3 evenings fixing it myself.

So this has me wondering if i'm really better off just saving the $$ and getting a newer used car (AKA have yet to own one made this century) and paying for a 3rd party warranty or something.
Does anybody have experience with these? Good or bad idea? Only other option would be to buy used from the dealer (which means getting ripped on the price) and paying for an extended dealer warranty.

 

[jeepercreature]

Well, i think I am kind of like you. I dont buy cars brand new. I did once in 1999 when the new jettas came out. Heated seats, blue guages, lots of cool features kind of forced my hand. I will not do it again (well sort of). Since that car my wife and I have figured out that if we purchase a car cash we save a lot of money. The 4runner we have what bought for about 4k under cost. We have no payment and have done all scheduled work. We have insurance with low or no deductable and everything is covered. after financing and other fees we saved about 5k total. Same thing with our 2000 TJ, 99 XJ, and soon to be 2007 4door Wranger. We will buy it cash get the warranty and hopefully pay about 2-3k under retail by buying it without financing it. It seams to work for us. I know it looses value and we will not get what you have into it. But I dont play on selling any of the Jeeps and the runner will be kept. I know 4 SUV/Jeeps. Well what that does is keep the miles down on all of them so when it is time to sell we are in a good position.
We use the runner as a DD and put more miles on it than anything. (toyota quility and value).
The TJ is the trail rig slowly built with a couple hundreds bucks a month in parts and upgrade. (slow build)
The XJ was going to be my wifes Trail Rig until she saw a picture of the new 4door wrangler. She just wanted more room than the TJ and the new one will give her that. I will not change it at all. She will get the rubicon and leave it stock. (ok, maybe a small lift and 33s).
Then to fullfil my Offroading needs I am having built/building a portaled buggy. I have just about everything I need in parts just need to get to Texas and start it. It will be a grandfather/father/son project. I will not be in a hurry but between my retired dad, me having the business and only working a few hours a week, and my 3 year old son we should have 90 hours plus a week to work on it.

This works for me but my neighbors hate all the vehicles for a three person family. The XJ may be sold soon but I should be able to get about 2k more than what I paid. (again, because I paid cash and really made the seller give me the sale.)


As far as the vehicle for you. I think you would be good to get the 2003 and not extend the warranty. Find something that does not normally have huge costly reparts needed. Toyotas and newer mazdas should be the same thing, I.E. no costly repairs needed for years. You will spend a couple grand in warranty and if your car does go south will it really cost that much to fix it. Will you even keep it for 10-15 years? How many miles will you be putting on it? and most importantly do you run the hell out of your vehicles without changing fluids etc. If you take car of the motor and power train they are made to last 300k miles. I am sure my 4runner will last that long. still got 200k to go.

 

[rattlecanpaint]

If you're set on getting an aftermarket warranty, Carmax has the best one I've seen. Not sure what it costs, but it covers a lot of stuff. Had a BMW in with one and I actually got tired of working on it. Carmax cover so much stuff it was un-friggin' believable. They replaced wear items and the like at 110k miles!

 

[door3]

Been down that road

OK here's my info for you to consider.
I bought several used cars and bought the service contract that you are asking about.
My Subaru wagon had it from the original owner and I paid $100 to transfer it. That move saved me $2000 for a blown head gasket and the damage I did by running it to the shop... and around town.
I also bought and still have a 99 Expedition (you know Fix Or Repair Daily). I had the starter, trans, and flywheel replaced for $250- (50, 100, 100) deductable. As well as tows and rentals.

I would ask around where you live for who the local shops prefer to deal with. My expo is with Wynn's- a HUGE pita company to deal with!!!! THey fight everything.

Any new to me car purchase will always have a service contract negotiated into the deal. Better safe than sorry.

 

[NCJeepin]

OK this is long, but RatLabGuy please read..............


If you want a car that is a few years old, find one that is factory certified with a warranty... You can usually get one 2-6 years old with usually a better warranty then it came with from the factory. For example, I purchased a ford certified mustang a few years ago, and a 100K engine and drive train warranty, didnt cost but maybe 500 bucks more to have that certified option, and for like another grand you could get it certified with a 100K bumper to bumper warranty that means everything thats not a wear item on the car is covered by a factory warranty.

A year ago my girlfriend bought a Acura TL with 60K on the clock for 13K from the dealer in Wilmington, it was acura certified, which means all the service was up to date, new tires installed, free road side assistance and bumper to bumper factory warranty to 100K miles...

A few months ago my mother purchased a 2004 Caddy SRX (the suv station wagon looking thing).. It was Caddy Certified with 35K on the clock, and she has a free bumper to bumper warranty until 2012 or 100K miles...

It seems your set on Mazdas, but check out the cars that have the factory certifications, usually you get a kick ass factory warranty for not much more, if any additional money, and if you are any good with dealers, you can usually get them to cut the additional cost of the warranty out of the deal....

Also the aftermarket warranty usually requires you to go to a certain shop, or sometimes the typical repair shop wont work with aftermarket warranty companys, and some aftermarket warrantys will make you put the money up front and then pay you back, or make your vehicle sit in limbo for weeks at the repair shop, and usually has disclaimers out the ass excluding the most popular failed items.. they are usually worthless unless you have an injector or power steering pump failure, and then was that 1500 dollar warranty worth having your 200 dollar power steering pump replaced for free after your car sat in the shop for a week and a half?????

Trust me it happens!

 

[Ron]

To specifically answer the 3rd party warranty question.

My wife used to work for a third party used vehicle warranty agency Huntersville.

[Lots of folks have never heard of these, this is a program where an independent company sells a warranty to anyone on any vehicle. So this same company warrants Ford,Chevy,Cadilac,Mercedes...whatever]

Now the pitch is the warranty price is based on the average typical repair bill for the make model and year of vehicle..BS...BS BS

Ok was I unclear there

Here is 1 little piece of info that should answer all your questions. 85% of there operating budget was spent on advertising. 10% on facilities and maintenance and 5% on vehicle repairs.

In ENGLISH 95% of all cars lose money on these programs.

Solution?

What we have done since learning this bit of knowledge. We got a quote when buying the Tahoe for the wife of ~$74/month for full unlimited warranty coverage for as long as we owned the vehicle. We began depositing $74/month into our money market account. (No will power needed, just changed the savings transfer amount at the bank it is automatic, I had paper statements stopped on that account so the money is out of sight, except when I wanna go online and audit the account)

Now 2 years later, have had zero problems and have 2k in the bank...

2k will repair almost any single problem.

When we swap vehicles (very soon) we will continue this, the plan is to eventually get to where we could buy a new vehicle with the repair money...although I doubt I will ever buy a new vehicle again.

 

[Caver Dave]

My brothers "old" '97 Z71 smoked the tranny going to pickup my first peepster. He took it back to the dealer (IIRC, Terry Labonte in GSO) and they told him the tranny was smoked ($2500 to replace), so he contacted the contract vendor... who told him "Tough $#!t". Then he contacted his financier (UPS credit union?) that contacted the warranty folk on his behalf and to remind them of the terms of said warranty agreement (100K "no questions asked")... the dealership called 7-8 days later to say they had rec'd payment from the warranty writer and he could p/u his truck w/ *NEW* (not rebuilt) tranny by weeks end. He ended up trading it for a 2500HD a few months later.

A great solution to him (added pennies/month to his payment and covered *everything* short of wear items), got his truck fixed for free, and was later refunded a portion of the service contract price when he traded it. However, it took several weeks to get the "details" worked out...

 

[jeepercreature]

To specifically answer the 3rd party warranty question.
My wife used to work for a third party used vehicle warranty agency Huntersville.
[Lots of folks have never heard of these, this is a program where an independent company sells a warranty to anyone on any vehicle. So this same company warrants Ford,Chevy,Cadilac,Mercedes...whatever]
Now the pitch is the warranty price is based on the average typical repair bill for the make model and year of vehicle..BS...BS BS
Ok was I unclear there
Here is 1 little piece of info that should answer all your questions. 85% of there operating budget was spent on advertising. 10% on facilities and maintenance and 5% on vehicle repairs.
In ENGLISH 95% of all cars lose money on these programs.
Solution?
What we have done since learning this bit of knowledge. We got a quote when buying the Tahoe for the wife of ~$74/month for full unlimited warranty coverage for as long as we owned the vehicle. We began depositing $74/month into our money market account. (No will power needed, just changed the savings transfer amount at the bank it is automatic, I had paper statements stopped on that account so the money is out of sight, except when I wanna go online and audit the account)
Now 2 years later, have had zero problems and have 2k in the bank...
2k will repair almost any single problem.
When we swap vehicles (very soon) we will continue this, the plan is to eventually get to where we could buy a new vehicle with the repair money...although I doubt I will ever buy a new vehicle again.

Very similar to the way my wife and I think about a lot of things. Save the money or just dont spend it and you will have it. That is one reason I think insurance should be an option as long as you have the funds to cover any damage you may do. oh well,it will never happen

 

[NCJeepin]

Something else about the aftermarket warranties... Some do have a deductible.........

 

[Ron]

That is one reason I think insurance should be an option as long as you have the funds to cover any damage you may do. oh well,it will never happen

THE GREAT STATE OF SC, SIR

Yes, while not widely known SC allows you to claim as self insured motorist without financial scrutiny.

However, I do not because of another silly law. If you choose this option in the event of a wreck there is no limit to the amount you can be sued for, whereas an insuranc hodler who is under insured gets covered by a separate state underinsurd motorist law...

 

[Chris_M]

Gotta agree with CARMAX having a good warranty. Just have service records to prove you held up your end and maintained it.

Also, I feel a warranty is "just words on paper" For me, money in the bank is better, especially if you are a mechanic. Something like mentioned with ~$75 per month should cover any repairs by the time a "good" car takes a shit on you.

However, a warranty saved my ass with all three trans replacements in my 2000 Ram. Simple solution, don't buy a Dodge w/auto trans!!