I recently bought a 2008 Volvo S-60, in really good condition, with Certified Pre-Owned status. This dealer certification (basically an extended warranty) is good to 100,000 miles or the end of this summer–although the car has 98,8500 on it now so I think I’ll get to 100,000 sooner. Should I pay $2799 for an extension of CPO on this vehicle to 125,000 or Sept 2015? This coverage is for anything covered by warranty, but not for scheduled maintenance work. What experience do others have with this Volvo model at mileages above 100,000? This car seems to drive great now, but I am coming off an experience with a high-mileage SAAB that became a serious money sink, and am nervous about giant repair bills. Thanks for your thoughts!
Put that same money in a repair fund savings.
Then when the time passes and you don’t use it ?..you don’t LOSE it.
I would put the $2800 in the bank and if you need it for repairs, it’s there. If your good luck continues for another 25K miles (not that far) you get to keep your money instead of the Dealer enjoying it…
Your question boils down to: “Is it worth spending $2800 on an extended warranty for a 5 yr old Volvo with 100K miles?”
While that is a lot of money to spend on an extended warranty, the real question is “What will they cover?”
Extended warranties are carefully written with lots of small print enabling the warranty company to not pay for many of the common expensive repairs.
Are you able to get a copy of the extended warranty contract before you hand over the $2800?
[Update: BTW - I’m not implying the warranty is worth purchasing it all. I don’t believe in them. It’s just rare that someone is able to see the fine print before handing the money over - which itself is a red flag. ]
Agree with @kengreen and the others… Money in your bank is always better than money in someone else’s bank.
Thanks for all the quick feedback, guys! I have had a long conversation with Volvo dealer rep about this, but looking at the contract will be next step. Am told it covers all the big stuff, as well as labor & tax, 24-hr roadside, no deductible, trip interruption expenses & rental car 5-day $50 per diem. However, online discussions & estimates give this car good reliability & maybe putting the money in my bank is really best solution. Thanks again!
I agree on not getting it, BUT if you decide to get the warranty, shop around, esp online. I know on other makes, some have been able to get these at half the price the local dealer offered them.
It seems odd that Volvo would offer CPO status to such a high mileage car. @Velmadiva, are you the 3rd owner? Is this Volvo CPO or dealer CPO? There is a difference.
That amount seems very high for only 25,000 extra miles. If it would extend it for 4 years/100,000 miles, then I would say it’s probably a good idea.