Hey Guys,
I just purchased my first car (CPO 2014 Mazda 6 GT) with 41,000 miles. I extensively researched the whole process (negotiation, financing, 4 square, etc) however I was not prepared to deal with extended warranties. I purchased an extended warrenty after being bullied by the financial guy to do so, and despite negotiating the price from 2,400 down to 1,500, I have a feeling I made a slight mistake. I guess because it’s already CPO and also many people have been telling me that I probably shouldn’t of. So my question is, should I cancel my extended warranty and get my money back?? (I purchased the vehicle 2 weeks ago). I’m new to this so any information would be great!
(I also attached pics of the CPO warranty and the CNA extended warranty)
IMHO…extended warranties are a rip-off. They are nothing more then a very very expensive insurance policy. Something like 5% ever make their money back on them. Most loose every dime they put into them. The reason dealerships push them is because they usually make 50% commission.
The only reason to ever buy an extended warranty is when there’s some dealer add-on that you want which costs the same or more than the warranty, and you can get them to throw it in for free if you buy the warranty.
Believe it or not, this has actually worked for me 3 times so far.
At the full price, bad deal. At the negotiated price you paid, perhaps an OK deal. That’s 4.5 more years and 60K miles. What you didn’t say was the warranty provided by the dealer as part of the CPO sale?
In the end, this is your call. But I’m impressed with your negotiation skill!
I’m sorry, I just can’t wade through all that. Are you saying you have a 100K powertrain warranty anyway similar to GM? If so, then what is covered by the additional warranty? It should be a manufacturer’s warranty-Mazda or is it Ford yet? At least CNA is a good insurance company. There is no yes or no answer. Its like buying flight insurance. If the plane crashes you win. If it doesn’t crash, you still win but lost some money. If you do have repairs that the insurance covers you will win. If you don’t have covered events, you will still win because you didn’t have a problem. The only difference is you lost a little money. How important is the money for you? Its flight insurance. Can you afford a crash or not? You likely will not get your money back through repairs, but if the plane crashes, you win-or lose depending on how you look at it.
You made a BIG mistake! But you’re smart enough to realize it and can still apparently correct it. We all make mistakes. Big ones. The smart among us realize it, admit it, and look for a way to correct it. You’ve done well.
Now go back and punch that finance manager in the nose! (no, no, no, I’m only kidding!!)
@Bing I know it’s very confusing. The CPO warranty was included in the price - which included a 7 year / 100,000 mile powertrain warranty, as well as a 12month / 12,000 mile limited warranty (brakes, steering, suspension, electrical, air-conditioning).
I purchased a separate extended warranty (84 month/ 100,000 mile) through CNA (not the dealer) which covers everything listed in the last 2 pics. CNA also provides roadside assistance as well as lodging and rental car. It’s this warranty that I wasn’t prepared for, which cost an extra $1,500. So the real question is whether or not I should cancel this extended warranty and get my $1,500 back.
@“the same mountainbike” haha, he certainly wasn’t a kind person - very demeaning… didn’t want to explain anything. Chastised me when I initially said I didn’t want any extended warranty. So you think the CPO warranty that was included is good enough?
@UncleTurbo thanks for the props! And the CPO warranty was included in the price of the vehicle. It was just the extended warranty through CNA which cost $1,500 extra. Given the CNA warranty wasn’t automatically included, you think I should get rid of it?
All that CPO means that it is certified to be a used car . You can spend 1500.00 on vehicle repair easily. Read the extended warranty contract carefully to see what it covers and what the deductible is for each repair. If you keep it and don’t use it you can kick yourself and if you cancel it and then wish you had it later you can kick yourself. All that really matters is your own peace of mind.
Items 1 through 4 in the extended warranty are already covered in the 7 year/100,000 mile CPO drivetrain warranty. It is unusual that the extended warranty is needed. You should get your money back. Consider the $1500 as your own insurance policy for work that might, or might not, be needed. If it makes you feel better, put it in a savings account in case you need it.
I really can’t wade through all the items covered in the CPO warranty, the extended warranty, and compare and contrast them. If you plan to keep this car for 5 years then take some time and really look at what each warranty covers and make a decision. If you figure to keep the car just 2-3 years then the extended warranty is most likely not going to come into play and you won’t get your moneys worth out of it.
Extended warrantees work like so:
During the first years of your ownership, your manufacturer’s warranty covers anything that might fail prematurely as a result of design and/or manufacturing defects of any kind. The probability that design and manufacturing defects if there are any will happen in the first years, the “infant mortality” years, is high. If something is wrong, it’ll fail early.
In the years beyond that manufacturer’s warranty, the probability of failure due to design of manufacture is extremely low.
When the car begins to reach old age, failures become more commonplace.
This is known as a “bathtub curve”, because, well, it’s shaped like a bathtub. Extended warranty’s cover that period at the bottom of the tub where failures due to design or manufacture are extremely unlikely. And they make sure they build in exclusions for normal wear items and for items that could be caused by neglected maintenance.
Now, you have basically bet the warranty company that you will experience a catastrophic failure in excess of $1500 during that period that would be covered by the warranty when such a failure is the very least likely to occur. The warranty company is betting you won’t. The odds are greatly in their favor.
Here’s an idea: get the money back, put it in a separate bank account and call it “my warranty account”. Then, if you DO experience a failure, it’ll be “covered”. And if not, you still have the money!! Why give it to somebody else in case something breaks in he years ahead and then have to try to get it back from them if it does?
I still think the finance manager deserves a punch in the nose, although I’m not advocating doing so. Instead he’ll probably get a bonus.
@“the same mountainbike” that is one awesome answer and it makes total sense now! You’re right, what’s the point of having to go to a 3rd party to get your own money if something breaks! Thank you!
