Extended Warranties

I just bought a 2001 Chrysler Town & Country minivan. My mechanic’s one concern was some corrosion he saw on the on-board computer (which is right next to the battery). However, in the cleaning process before I picked it up, all the corrosion is gone and you can’t tell where it was. A friend who was a mechanic checked with the the computer and the computer brought up no issues. It runs very well, and both the interior and exterior seem to have had very good care taken of them (a few friends were convinced the vehicle is brand new, although CarFax tells me it’s had three previous owners.) What you your (i.e., people who know a lot more about this than I do) thoughts on purchasing an extended warranty for this vehicle.

Thank you very much in advance,

Richard in Baltimore

How many miles on it?? “Extended Warranties” are little more than pre-paid repair clubs…Read the FINE print. What are the co-pays… What will they pay if (when) the transmission fails?

Don’t do it. Take any money you would have spent on the warranty and bank it for future repairs. Aftermarket warranties are notoriously difficult to get money from; just google it and you’ll find many horror stories.

Auto makers often offer extended warranties which do a better job of covering things, but you have to purchase it prior the the original one running out. Given the fact that you van is an 01 I suppose that isn’t an option.

How much did you pay for the van, what are the miles?

Feeling lucky today ? There’s a nice new Navajo casino right down the road.

‘Extended warranty’ is just another term for an insurance policy.
i.e.; A savings account you pay into on the slim chance that maybe, just maybe they will need to pay out more than you paid in.

Open your own personal repair savings account and YOU keep any money not used. ( or pay out more if it comes to that. But all money pre-saved is a big help. )

It’s your gamble, as these are not required like much insurance is.

Take the money you would have spent on an extended warranty and put it in the bank. Don’t spend it unless the vehicle needs a MAJOR repair. If you need the money, it will be there. If you don’t need it, it will still be there.

If you give your money to the seller of an extended warranty the money will be in his bank. Who’s bank would you rather have the money in?

Extended warranties are profit generators, and rarely do much good for the buyers. I would not buy one for any vehicle, especially one that’s already nine years old.

Well any car can have major expensive repairs.

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some peop;le will get nothing back and some will get a lot more than they pay.  Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price.  They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.  

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?   

Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money. 

Good Luck

I agree with the rest of the gang. Many things that might go wrong can justifiably be called wear and tear on a 9-year old car. What makes you think that you would ever have a covered repair? Read the policy closely to see exactly what is covered and under what circumstances.

Temporary? Maryland? Whazzup? Is the snow too deep for you? :wink:

If I bought extended service contracts on everything I owned, I would only have half as much stuff. Don’t buy the vehicle if you think it will fall apart. I’m glad that the computer has no codes.

A 2001 vehicle should be disposable anyway.

Give the extended warranty a read and post back everything you like and don’t like. If you don’t care to read it the answer is easy,don’t buy it.