I’m getting ready to lay out some bucks for an extended warranty but am thinking about keeping after it expires. I believe this unit is pretty bulletproof, although a recently discovered bad left front wheel bearing at 33k miles is a little worriesome. I only drive 4-5k miles a year so my warranty will run out on time not mileage. Think this car will go the distance?
Realize it nearly always requires all upkeep per owners manual(by time not mileage) with records to be performed otherwise they may deny coverage.
Statistically and financially you will be far ahead by simply putting the cost of warranty in a savings account instead of warranty company’s coffers. The price mainly covers piece of mind and that you will have to put your own price on.
How many miles are on the vehicle? Extended warranties aren’t necessarily all they’re cracked up to be, you may be further ahead sticking that money in the bank and covering the repairs yourself. There are several reasons for this: 1) Extended warranties are carefully worded “insurance policies” that won’t cover as many items as you may think. 2) You also have co-pays with repairs and have to go to the particular dealer (who may cost more than a good independent mechanic). 3) How long will the warranty company be around? Some extended warranty companies have gone out of business and have left the customers holding the bag. 4) When an extended warranty is sold the salesman keeps a huge profit (I’ve heard 50%). For the warranty company to make a profit they may be hard to deal with even on the items that obviously should be covered.
You will probably do much better than break even if you skip the extended warranty and set the money aside for a rainy day.
Since you drive so little, an extended warranty is really a waste of money. As andrew says, take the money and put it into your “maintenance account”, but first fix up everything the car needs to ensure the next 5 years or so are happy ones.
Today’'s cars last a long time and go many miles (with proper maintenance) before any expensive repairs or replacemnts are needed.
Happy motoring!
Ditto to the “maintenance account” idea. Then if you do have a problem, even beyond what would have been the extended warranty, you’ll have the money to fix it. Even if the problem happens 10 years from now on a whole different vehicle. If not, you can take a nice vacation.
There is absolutely no reason to give them the money. You’d be betting them that your car will die to the tune of a large chunk of valuable cash.
I have 33k miles on the vehicle and am most concerned with any problems with the supercharger. I religously change the oil and filter at 3k miles. After reading some posts on Dexcool, I’m starting to wonder about it. I’m looking at getting the GMPP Major Guard warranty, not a cheap alternative.
Thanks guys,
Except for wheel bearings… Tomorrow is a reflection of yesterday. Some things are definitely working for you. You haven’t said that you press the accelerator and sometimes get nothing but idle. So your engine controls and computer are doing a good job. If it’s not a GM warranty that commits GM to pay for work, I wouldn’t bother with it. If the car takes a bad turn, you end up selling it with three years of warranty remaining. Warranties don’t pay or the company goes out of business. If you total the car, you get nothing from the warranty. Overall, you’re better off saving the warranty money for maintenance and repairs. A car is a risk and an aftermarket warranty is also a risk. Two risks don’t reduce the risk, they multiply it.
First extended warranties almost always cost more than they cover.
Why are you considering the warranty and what about this bearing. Did they repair/replace it already or are you thinking they will not replace it if it goes out after the warranty? Remember if you are reported a problem before the warranty is out, that problem is covered until they fix it, even it it runs over the warranty time before they get it fixed right. You do need to keep records and keep after them if it is not right.
Consider this. Those insurance companies have actuaries who’s job it is to figure out how much those policies are going to cost them so they can be sure to price the policy (or limit exposure) to assure a profit. About 50% of the profit goes off the top to the salesperson and the dealer who sell the policy If a car is going to cost more than other, they are going to make sure they charge more. When I got out of collage that was on of the jobs I was offered.
I would not buy an extended warranty. As long as you treat the car well, it should be a low-repair car. The car should go well over 100,000 miles if you follow Pontiac’s maintenance schedule. The engine and transmission are shared with the Buick Regal GS and both used them for several years before 2005.
I just saw that you have a supercharger on the car. This causes fear in the more cautious people. You own it now so you can’t sell it unless you’re crazy. I would wait and see. After you fix the first trouble, it might be time for a trade.