are extended warranties worth the money? i have a 2003 chevy suburban with 60K miles and i am being offered an extended warranty for up to 6 additional yrs or 140,000 miles. haven’t called about price, what would be reasonable?
Be Careful !
What would be reasonable depends on what you get for coverage.
Sometimes (usually ?) with these warranties, it is as important to find out what they don’t cover as it is to read specifically what they do cover. They will sometimes list covering very expensive parts (that almost never go bad) and won’t list (or cover) inexpensive parts (like gaskets) that are much more likely to go bad and can be very costly to replace (labor-wise). They look good at first glance, but are designed to avoid paying most common and costly problems. If it’s not listed in the warranty, specifically, chances are they won’t pay.
If you are not a mechanic or are not very knowledgeable when it comes to car maintenance/repair, have a trusted mechanic look over the specifics of the warranty before you buy. Ask if it specifically covers some of the more common ailments of an 03 Suburban.
If you were called on the phone or contacted through mail fraud with a picture of your vehicle on the letter; beware! If the letter says, regional manager or some other vague title like national warranty director, expect trouble. They won’t pay when you have a claim. Nobody would seriously offer a warranty for 140,000 miles at this point. Collect the letters; you should have ten more in about a year. Nowhere does the letter claim to be from Chevrolet.
I would never buy one, except from the car manufacturer, because it is an industry full of ripoffs, scams, and unfulfilled promises. Even from the manufacturer, you are paying for very expensive insurance.
Do you plan on owning the vehicle for 6 more years?
put the cost of the warranty into a high yield savings account or a CD. At the end of 6 years, take the money out, and, if you’re considering buying a new vehicle at that time, put that money towards the down payment.
As the Service Director of both a Ford Lincoln Mercury dealer and A Subaru Dealer - I agree that you should only buy extended service contracts from the manufacturer.
save your money.the extended warranty is just another way for them to make some extra cash.
Find out what the cost is for bumper-to-bumper coverage for however long you plan to keep your truck. Put the money into the bank and use it to pay for any required repairs during the next 5 years or so. At the end of that time, take whatever is left and have a nice vacation. It should be several thousand dollars.