should I buy an extended warranty on a 2003 Hyundai with 100,000 miles?
How much money does the warranty cost?
Most posters agree that extended warranties are not worth the cost. They normally don’t cover many items, and what they DO cover usually does not break very often in a good car.
In other words, if you think the vehicle needs an extended warranty, don’t buy it.
a five year old car, and a warranty which is going to cost around 1000 bucks.
personally if I was going to buy a car, and spend either an extra grand on repairs, or for a warranty, I would put the extra 1000 into the cash pile and buy a newer, lower mileage car. then save the extra that you would spend on repairs for the hyundai for the recommended maintenance on the newer car.
$1000.00 for 5 years covers power train. This is from Car Max. I don’t know how much their Bumper to Bumper costs.
$1310.00 for 5 years or 200,000 miles from Warranty Direct/Power Sheild. This covers Engine, Transmission, Drive Axle, Road Sida assistance, Rental car coverage. I got this info from carbuyingtips.com
I called the Hyundai dealer here & asked for his opinion & he said to be very careful about buying high mileage extended warranties. He’s seen a lot of people get ripped off.
Personally I don’t think I would be buying a Hyundai with that many miles on unless they have gotten a lot better now. The value should be very low at this point and not worth the extra $1000.
These third party warranty companies are like unregulated insurance companies. Just because you pay your money doesn’t mean that they will be in business a year from now or honor the terms of the warrantee. One very large company out of Ohio I think just went belly up a few months ago. They left thousands of people without coverage after they had paid their money and millions to be paid out in claims with no money in the bank. Dealers were being asked to pony up the money to save the dealer reputations and some are and some aren’t.
Normally, an extended warranty is not worth it on any car. One should also not be deluded into thinking the warranty will cover anything that goes wrong.
There are usually deductibles that apply to EACH separate repair, even if brought in multiple times for the same complaint. Ext. warranties do not pay for maintenance and wear/tear items and many times they may force you to jump through a bunch of hoops to get anything covered.
What you should be concerned with are things like the timing belt/tensioners/water pump being replaced on that particular car. If it has not then it’s a problem waiting to happen and the ext. warranty will not pay for any of that; either with the belt as is or if it breaks.
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 $500 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 advise my customers not to look at these as warranty, but rather mechanical insurance. Don’t expect to recover the money you invest through claims. You’re basically being protected from a major component failure, which you hope to never have. If that gives you peace of mind, then go for it. Otherwise save your money.
I saw a very wealthy entrpreneur interviewed on the TV business channel the other day. He is going to establish an “honest warranty industry”. He told millions of viewers that the industry tday was an unregulated rip-off jungle. He said he wanted to “collapse” the industry to one half its size and offer real value insurance for cars and appliances.
Notice these are the accurate assessments of a multi-milionnaire who wants to reform the industry. He warned all viewers not to waste money on the current versions of extended warranties.
I am proof that extended warranties work. Our Silhouette transmission died at 57,000 miles. The dealer was really apologetic until he realized that we had an extended warranty. We got a rental car for 5 days and a brand new transmission for free. Of course, the extended warranty was directly from GM and it was a promotion to entice people to buy and Olds after they announced the demise of the marque.
Would I buy an extended warranty for another car? Of course not! But it did work for us just this once!
No. The car will break the warranty. You should know that for all the good reports you hear about Hyundais, they aren’t going to last as long as some other cars with good records. Nobody is evaluating cars with that many miles on them. The warranty is worth the same as a Hyundai with 100,000 miles on it. There is good reasoning behind these statements. This is financial advice. Plan for the future without the warranty. It’s worth nothing if you sell the car.
I’m an ASE certified master auto tech and service writer.
NO! DO NOT GET IT! It’s a pain in the ass to use for starters, I don’t have time to tell you all the hassles you would have. Put your money in the bank and earn interest. Or buy a better product. I recommend to stay away from any carmakers from Korea, there all poor quality.