extended warrenties for new cars

Banking and Saving strategies, maximizing interest rates, budgeting, GICs, HISAs.
Post Reply
Turkey1
Contributor
Contributor
Posts: 25
Joined: 13 Jan 2012 01:01
Location: Vancouver

extended warrenties for new cars

Post by Turkey1 »

Have just purchased a new 2017 Toyota Corolla, time to retire the 94 Corolla after 24 years of good service.
I bought the extended warranty for my first car back in 1979 and never used it. (Chevy Camaro)
Did not buy in 1994 for the Corolla, and never needed it for that car either.
I think the Corollas are a very reliable car and the extended warranty is not needed, any car enthusiasts out there that have a different opinion.
I can be swayed!
Chuck
Veteran Contributor
Veteran Contributor
Posts: 2048
Joined: 21 Feb 2005 11:48
Location: Manitoba

Re: extended warrenties for new cars

Post by Chuck »

I wouldn't buy an extended warranty on anything. The whole reason for the existence of such products is to add an additional layer of profit margin for retailers/manufacturers/insurance companies.

The only time an extended warranty is useful is if you, get lucky, and buy a real lemon of a product.
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: extended warrenties for new cars

Post by 2 yen »

Chuck wrote: 21 Jun 2017 01:35 I wouldn't buy an extended warranty on anything. The whole reason for the existence of such products is to add an additional layer of profit margin for retailers/manufacturers/insurance companies.

The only time an extended warranty is useful is if you, get lucky, and buy a real lemon of a product.
Agreed. I think some people, maybe the OP excepted, feel that they will actually keep a car a decade or more. The vast majority don't. With today's vehicle reliability (Consumer's Reports is great at this), extended warranty's are just not needed. My 2 yen.

2 yen
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: extended warrenties for new cars

Post by 2 yen »

2 yen wrote: 21 Jun 2017 06:52
Chuck wrote: 21 Jun 2017 01:35 I wouldn't buy an extended warranty on anything. The whole reason for the existence of such products is to add an additional layer of profit margin for retailers/manufacturers/insurance companies.

The only time an extended warranty is useful is if you, get lucky, and buy a real lemon of a product.
Agreed. I think some people, maybe the OP excepted, feel that they will actually keep a car a decade or more. The vast majority don't. With today's vehicle reliability (Consumer's Reports is great at this), extended warranty's are just not needed. My 2 yen.

And the Corolla is a great car. We bought one based on its safety recommendations alone.

2 yen
SQRT
Veteran Contributor
Veteran Contributor
Posts: 5441
Joined: 01 Nov 2012 11:33
Location: Ontario/Arizona

Re: extended warrenties for new cars

Post by SQRT »

2 yen wrote: 21 Jun 2017 06:52
Chuck wrote: 21 Jun 2017 01:35 I wouldn't buy an extended warranty on anything. The whole reason for the existence of such products is to add an additional layer of profit margin for retailers/manufacturers/insurance companies.

The only time an extended warranty is useful is if you, get lucky, and buy a real lemon of a product.
Agreed. I think some people, maybe the OP excepted, feel that they will actually keep a car a decade or more. The vast majority don't. With today's vehicle reliability (Consumer's Reports is great at this), extended warranty's are just not needed. My 2 yen.

2 yen
Agree. The people selling these warranties know a lot more about the product than you do. I did buy extended warranties on a couple of BMW's a few years ago. Bad deal. Virtually no claims.
brucecohen
Veteran Contributor
Veteran Contributor
Posts: 13310
Joined: 20 Feb 2005 16:47

Re: extended warrenties for new cars

Post by brucecohen »

If you have the room, take the money that would have been paid for the extended warranty and instead put it in your TFSA as a self-insurance fund. Or earmark an appropriate amount already in the TFSA. If you want to be anal, invest this money in a separate holding so its purpose and availability is clearcut.
westcoastfella
Contributor
Contributor
Posts: 565
Joined: 10 Jun 2009 15:47

Re: extended warrenties for new cars

Post by westcoastfella »

when I purchased my last car (2013 Infiniti) I bought an extended warranty on it.

I think a lot of the comments above around better quality and lower ownership times are accurate, and it might be something that is no longer technically required. For me it was about wife's peace of mind more than anything else, so in that regard it was a good purchase. The cost was not bad (about 1800 for 3 more years on a 40K car), and we tend to own our cars for the long haul, 10+ years so we will actually see it through until the end.

I should note that cars are the only thing I have ever bought an extended warranty on.
User avatar
Koogie
Veteran Contributor
Veteran Contributor
Posts: 3972
Joined: 09 Mar 2012 16:44

Re: extended warrenties for new cars

Post by Koogie »

I also "bought" an extended warranty on our Rav4. The dealership and I had gotten down to the end of our negotiation on our new Rav and I didn't feel satisfied and they insisted it was as low as they would go. :roll:

After some thought, I asked if they would do the same price but "throw in" the extended warranty for it. I wasn't interested so much in the actual warranty as in the two years of free oil changes (full synthetic) and roadside assistance that came with it. They agreed. I figure I saved about $300 or more on the oil changes and around $150-ish on cancelling my CAA for two years. So, maybe $500 all in.

I never had reason to call on that warranty but I was in there like Flynn getting my free oil changes on schedule. :lol:
westcoastfella
Contributor
Contributor
Posts: 565
Joined: 10 Jun 2009 15:47

Re: extended warrenties for new cars

Post by westcoastfella »

Koogie wrote: 22 Jun 2017 13:14 I also "bought" an extended warranty on our Rav4. The dealership and I had gotten down to the end of our negotiation on our new Rav and I didn't feel satisfied and they insisted it was as low as they would go. :roll:

After some thought, I asked if they would do the same price but "throw in" the extended warranty for it. I wasn't interested so much in the actual warranty as in the two years of free oil changes (full synthetic) and roadside assistance that came with it. They agreed. I figure I saved about $300 or more on the oil changes and around $150-ish on cancelling my CAA for two years. So, maybe $500 all in.

I never had reason to call on that warranty but I was in there like Flynn getting my free oil changes on schedule. :lol:
Good point, I had forgotten about the free oil changes that came with it, in my case 4, used up over the first 2 years (light mileage so only 2 changes per year).
Post Reply