Extended car warranties...worth it?

pearsall001
pearsall001 Posts: 5,066
edited November 2010 in The Clubhouse
Here's what just happened. My son's (just turned 17) grandparents just bought a new Ford Fusion (had no idea they were even looking) & they didn't take the trade-in on their 06' Fusion & selling it privately is out of the question, they couldn't be bothered. Instead out of the clear blue we get a phone call & they are giving my son the 06' for a present!!! They won't take any money...a fight for another day. Anyway what are your thoughts on obtaining an aftermarket warranty & are they worth it. And if they're worth it which company would you recommend. I know zip about this stuff. I know there's a lot of car guys here so I'm picking your brains. His grandparents are super!!!! This is one mother-in-law that is one for the books!!!
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  • concealer404
    concealer404 Posts: 7,440
    edited November 2010
    Aftermarket warranties are scams above anything, stay away.
    I don't read the newsssspaperssss because dey aaaallllllllll...... have ugly print.

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  • AudioGenics
    AudioGenics Posts: 2,567
    edited November 2010
    hey. happy thanksgiving.

    bought the extended warranty thru the insurance company.
    but its on a new car and only for 100,000 miles
    haven't used it ever but it is not very expensive.

    I haven't seen any companies that offer a warranty on a used car except buying from
    a dealership and that is only for 3 months usually packaged in the deal. Perhaps there may be longer warranty periods but I bet it will cost alot.

    good luck I would also be interested.
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  • sucks2beme
    sucks2beme Posts: 5,601
    edited November 2010
    They collect enough cash up front to pay for the expected repairs,
    their expenses, and a profit. Find out how much it costs, and put the money in the bank. End of story.
    "The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson
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  • shawn474
    shawn474 Posts: 3,047
    edited November 2010
    i have a 2005 nissan titan that is 100 miles away from the warrnty expiring. It is known to have quite a few mechanical issues and have replaced A LOT under warrnty so far (factory warrnty saved me close to $7,500). I am considering purchasing an extended warranty for it just to be on the safe side.

    However, with the Ford Fusion, it is my understanding that it is a pretty reliable car with a good track record. In your case, I would be pretty hesitant to spend the extra money. I have a friend who is a general sales manager at one of the largest volume toyota dealers in the country and he told me that they make more on financing and extended warranties then actually the sale of the car. His recommendation is always not to get them, especially if they are aftermarket companies.
    Shawn
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  • markmarc
    markmarc Posts: 2,309
    edited November 2010
    Never buy one from the dealer's finance dept. You will pay triple what you can buy one for at your bank/credit union.
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  • potee
    potee Posts: 610
    edited November 2010
    sucks2beme wrote: »
    They collect enough cash up front to pay for the expected repairs,
    their expenses, and a profit. Find out how much it costs, and put the money in the bank. End of story.

    +1 You'll have the money for ever if the car doesn't break.

    When I sold boats if I sold an extended warrenty I got 20% of the cost as commission.
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  • mdaudioguy
    mdaudioguy Posts: 5,165
    edited November 2010
    Why pay anything extra on a free car driven by his grandparents? You may not have to put anything other than regular maintenance on that car for quite a while, depending on the mileage. I'm making the assumption they took very good care of it. What a lucky kid! I hope he enjoys and appreciates it. Tell him to be safe! :smile:
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  • pearsall001
    pearsall001 Posts: 5,066
    edited November 2010
    mdaudioguy wrote: »
    Why pay anything extra on a free car driven by his grandparents? You may not have to put anything other than regular maintenance on that car for quite a while, depending on the mileage. I'm making the assumption they took very good care of it. What a lucky kid! I hope he enjoys and appreciates it. Tell him to be safe! :smile:

    I'm with you on this point but my main concern is that college is right around the corner & an unexpected repair can really hurt with the finances. And yes the car was taken very good care of. It's all a crap shoot...the car could last another 10yrs without a hitch or an expensive repair could rear it's ugly head. I've still got plenty of good info on the subject to mull over.
    "2 Channel & 11.2 HT "Two Channel:Magnepan LRSSchiit Audio Freya S - SS preConsonance Ref 50 - Tube preParasound HALO A21+ 2 channel ampBluesound NODE 2i streameriFi NEO iDSD DAC Oppo BDP-93KEF KC62 sub Home Theater:Full blown 11.2 set up.
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  • zarrdoss
    zarrdoss Posts: 2,562
    edited November 2010
    I got an extended on a used truck and they found any way possible to get out of paying for it, it went to the extent saying that since I could not prove I changed the anti-freeze they would not pay for a bad head gasket. On a 3 year old truck! Stay away! my .02 Cents
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  • messiah
    messiah Posts: 1,790
    edited November 2010
    They wouldn't sell extended warranties if they didn't make money off of them. In most cases the cost of the warranty outweighs the cost of repairs.
    "They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."
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    messiah, November 23rd, 2010
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  • sucks2beme
    sucks2beme Posts: 5,601
    edited November 2010
    Believe me, they crunch the numbers by car brand and stats.
    If it's prone to break, it's factored into the price.
    My son used to do underwriting at one of these places.
    They have a pretty good idea what's going to break and what it's
    going to cost. If the car was properly maintained it will be on
    better side of the breakdown scale. If a model has more than average
    repairs, they charge more than average premiums. And then you have
    to go ask them to do the repairs. If you bank it yourself, you have control.
    If you run under the norm, you keep the money. And since you aren't paying
    the sales/service/profit part of it, you would really have to have a stinker
    of a car to not to come out ahead. At that age, the kid's 10 times more
    likely to crash it than have it suffer any major repair issues.
    "The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson
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  • cokewithvanilla
    cokewithvanilla Posts: 1,777
    edited November 2010
    sucks2beme wrote: »
    At that age, the kid's 10 times more
    likely to crash it than have it suffer any major repair issues.

    +1

    Save the money for body work or full coverage.

    You will likely pay less in repairs in the long run.
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  • Jstas
    Jstas Posts: 14,808
    edited November 2010
    Aftermarket, no. But with an 06 Fusion, I don't think anyone is going to give you a warranty on it anyhow. If you want a warranty, go to Ford's website and find the number for the ESP service line. They will sell you a warranty on the Ford vehicle but you might have to get it inspected by a dealer first.

    But, part of the young car owner/driver experience is handling repairs. A warranty will help with cost but if the kid takes care of it and maintains it, he shouldn't have anything major go wrong with it for a while.
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  • madmax
    madmax Posts: 12,434
    edited November 2010
    I bought a warranty on one car a long time ago. It never covered anything that I had to have fixed. The car was free, take your chances and save the dough. Use it on proper maintainence. :)
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  • Midnite Mick
    Midnite Mick Posts: 1,591
    edited November 2010
    I just bought a new Silverado. Came with the standard 3 bumper to bumper, 5 power train. It would have costed me over 1200 per year for extended warranty. I didn't think it was worth it. I hope I didn't just jinx myself :smile:

    Regards,
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  • mdaudioguy
    mdaudioguy Posts: 5,165
    edited November 2010
    pearsall001 wrote: »
    I'm with you on this point but my main concern is that college is right around the corner & an unexpected repair can really hurt with the finances. And yes the car was taken very good care of. It's all a crap shoot...the car could last another 10yrs without a hitch or an expensive repair could rear it's ugly head. I've still got plenty of good info on the subject to mull over.
    I wouldn't let car repairs cut into college funds, unless the car is absolutely necessary for him to attend. Anyhow, if you bought any other car, the initial outlay would surely be more, and where would that money come from?
    Jstas wrote: »
    But, part of the young car owner/driver experience is handling repairs. A warranty will help with cost but if the kid takes care of it and maintains it, he shouldn't have anything major go wrong with it for a while.
    Agreed.
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  • bigaudiofanatic
    bigaudiofanatic Posts: 4,415
    edited November 2010
    My father bought a FACTORY warranty for his element a year later the computer that controls his ABS and stability control failed it was a 800 dollar part and labor thing. Easily worth his extended warranty. If it is a new car I would if not I would stay away.
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