Extended Warranty on Used Volvo XC90?

I’m about to purchase a 2006 XC90 with 73k miles on it from a private seller. I had a dealer inspection which found it in good condition needing only minor repairs (wheel alignment, new gas cap). The car has the newer T2.5 engine, not the problematic T6 engine.

The dealer wants to sell us a 3 yr, 36k warranty for $2600. Is that worth it? Are we likely to have more than $2600 of repairs in the next 3 years as we cross the 100k mile mark? Anyone have a crystal ball?


If you anticipate having more than $2600 worth of repairs over the next 36,000 miles you should look elsewhere. If you don’t than why give them your money? Keep it, just in case you’re wrong. If you’re correct and you don’t have more than $2600 woth of repairs, than you’ll still have your money.

These warrantees are a scam.

You could have $2,600 in repairs in a year easy with this Volvo. I wouldn’t buy it and that is based on my own personal experiences with Volvos. If you do buy it, I think you will need far more than $2,600 in repairs in 3 years.

Read the fine print very carefully. There are lots of ways companies weasel out of paying claims. The car will be need expensive repairs, who pays for them is the question?

I’d pass on any used Volvo.

MSN Autos (Identifix) claims that there are no major problems with the 2006 XC90. I would not buy the warranty. Half of it is commission. It is possible that you might have an expensive problem, like a transmission replacement, but it is unlikely.

Put the $2600 in the bank.

you’re buying from a private party, took it to a dealership for inspection and now the dealership wants you to buy an extended warranty?
I’d pass

Is it a Volvo factory warranty?

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 people 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

Extended warranties are almost never a good idea. Put the money in the bank instead.

Doesn’t matter…still NOT a good idea…waste of money.

Either would be a waste of money, but at least the purchaser has a reasonable chance of actually getting a claim paid with a factory warranty. With a ‘third-party’ warranty, many are worse than useless, because they refuse to cover things or go out of business, so the buyer ends up wasting all the money spent, plus the aggravation of dealing with a sleazy company.

Thanks for all the replies! We opted to take our chances and not buy the warranty. For the record, the dealer who wanted to sell us the warranty was not the same dealer that did the inspection.

We’re picking up the car from the seller later this week. Excited!!!

Think about it. If you’re likely to have more than $2,600 in repairs, why would the warranty price be $2,600? That would mean the dealer would be losing money.