Gold Plus Extended Security Warranties

[brooksdog]

I need to decide on whether to extend my warranty or not. Opinions on whether Gold plus is much better (worth the $$) than classic? Also, I notice different dealers offer different prices for the same warranty - any recommendations for deals?

[nipper]

Take the money and put it in the bank and forget about it. Thats what the extended warrenty people do.

 

If you decide to go for it go over the plans with a fine tooth comb. Look for things that exclude transfer cases, AC compressors and timing belts.

 

 

Now if this was a 2010 with a CVT I woud have a differnt opinion.

[davebugs]

Excellent deal for whoever is selling it. Not so good for you.

 

There was a time when the salesman made more on the extended warranty than on selling the car. That should give you some idea of the margins. Which should also give you some idea of the money they set aside to fix real problems and how hard it's gonna be to get.

 

I haven't purchased a new car since 2001 when I bought 2. But I doubt things have changed that much.

[gbhrps]

You need to ask yourself, "Will I get my money back if some fool runs a red light, broadsides and totals my car 2 weeks after I purchased the extended warranty?" and "Will they transfer the same paid for warranty onto my next car?"

 

Obviously the answer to both questions is "NO!"

 

You are better off taking the same warranty money and putting it into a bank account specifically for repairs and maintenance down the road. Add $25 or $50 to it each month, and even if something were to happen after your basic new car warranty expires, you'll have saved enough to cover most repairs. And if you don't need to use the cash, when the next car trade time comes along you'll have enough for the extra options/another set of tires/a reward for the guys who suggested that you should pass on the extended warranty! (Be sure to get back to us and we'll give you our pertinent names and addresses.)

[Flowmastered87GL]

I agree, pass on the warranty. The markup is absurd and by buying one you are basically saying I think my car is going to break. If you think your car is going to break you should be buying a better car in my opinion (not saying subarus are bad, its just something fun to say to the salesman)

 

Also remember that if you buy the warranty from the dealer. you are PAYING interest over the life of the car to have it. If you put the money in the bank each month you are EARNING interest. The car is covered fully for the first 3 years so in that time you should be able to save up afew bucks for emergencies. Get a subaru mastercard and save up some subaru bucks too for tune ups or emergency service.

 

One more perspective....

Say you buy a 5 year 60K bumper to bumper warranty. You are REALLY buying a 2 year 24k other than powertrain warranty (basically covering the gap between the end of the factory 3/36 to the powertrains end at 5/60) And often times they try to stick you with a deductable to fix something that may have been only $150 to fix anyway without the warranty. With a $100 deductable.... ya that $2000 up front was NOT worth it!

Edited June 14, 2009 by Flowmastered87GL