After-market Platinum/Gold Warranty Coverage for +90K Outback VDC 2003 3.0L H6

[mountainwalker]

We've had Gold Plus Subaru coverage that came with our Subaru Outback 2003 VDC 3.0L H6, which was good to tomorrow or 100K miles. Our car has about 92K miles on it, has been maintained very well and is in excellent condition. We don't want to get hit up with big repair bills, so the idea of similar after-market repair coverage, which covers the power train and is very reputable, is very attractive.

 

Is quality after-market coverage worth it in your opinion?

 

Can you suggest any good, reputable after-market warranty companies and policies? The dealer said they could only provide extensions on cars they sell, but that if we buy after-market, we should get the highest inclusive policy (usually called Platinum or Gold) and check that the insurer had a very good reputation.

[GeneralDisorder]

Warranty coverage is never worth the cost - if you absolutely cannot repair something yourself and cannot afford the occasional repair bill then you should almost certainly trade it in on a new car. Warranty's are one of two things - an incentive to sell someone a new product, or a racket right up there with selling swamp land.

 

Find out what the average warranty company want's to charge you, and instead put that amount into a separate bank account where it can earn interest. If you have a break-down then use it. Otherwise use it as a down on the next car you buy when you trade the Outback in. That way you aren't just flushing your money down the toilet to some half-baked insurance company.

 

That said, your mileage is still quite low. If I were you I would drop the idea of buying an extra warranty on it, drive it till you are near the next major maintenance interval, and then trade it in.

 

GD

[lostinthe202]

+1

 

Just like leases, rental car insurance, the list is endless. The more they want you to buy it, the more money it makes them.

[98sub2500leg]

I agree it's a racket, it must be almost all profit because everyone is selling it out there. If you keep up on your service, it's unlikely that you would have a major service within 100k miles that paid for the service. Another better option is to take the funds you are paying the insurer and apply it to a personal auto maintenance account Over time you will more than likely be ahead. If you use it, no big deal, if you don't you now have a small personal stash for a rainy day.

[Rooster2]

Like others have commented, I would take the money you would be spending on an extended warranty and put it into a separate saving account for a rainy day when you need car repairs.

 

There are so many scam extended warranty programs. Just take your money, then not pay for auto repairs. I have heard that US Fidelis is a bad scam, and under investigation by several attorney generals in several states. I guess Rusty and Steve Wallace needed their cup sponsor money real bad to buddy up with those crooks.

[mountainwalker]

Thank you, you just put my wife and I at ease. We were leaning toward not taking any coverage as the car is in great shape, has been maintained very well regularly and we'll continue to maintain it well.

 

As former E Coast city dwellers and now suburbanites in Silicon Valley, this is the first time we've kept our own car in many years, and this is our first Subaru and we've been very happy with it - great combo of utility, foul weather handling, ease of maintenance, great mountain car, etc. The Gold Plus policy we had came with the car from the previous owner, so we enjoyed the benefits without paying for it. But I must caution anyone thinking of buying that policy from Subaru that even the Subaru dealers work that policy like a scam, and you have to fight hard to make sure the dealers don't weasel out of their obligations, and they have lots of tricky open-ended holes they can use.

[mountainwalker]

Warranty coverage is never worth the cost - if you absolutely cannot repair something yourself and cannot afford the occasional repair bill then you should almost certainly trade it in on a new car.

 

That said, your mileage is still quite low. If I were you I would drop the idea of buying an extra warranty on it, drive it till you are near the next major maintenance interval, and then trade it in.

 

Bootstrapping software startups we have to watch our budget. But the worst part is the time - I just don't have the time to do it well with the work I'm doing, and if I did, I'd rather be backpacking, skiing, biking or hiking. To save time, I find myself outsourcing some things I used to do on my own.

 

Would the next major maintenance interval be 120K miles (I think it's every 30K)?

 

For trade-ins, can you only trade in at Subaru, and can you trade in for a used Subaru instead of a new one?

 

How much value do you get on a trade in?

 

I hate the idea of buying a brand new car knowing how much value it loses right away - I much prefer to buy 1-2 year old cars.

Edited August 7, 2009 by mountainwalker