Bought a 2016 Nissan Rogue with 20,000 miles. Having second thoughts about purchasing the extended warranty of four years/$2668. My wife might not agree, but being on this board with lots of negative extended warranty comments are making me nervous. Should I get out of it and get the refund or continue it for the piece of mind. I didn’t buy the coverage outright it goes with the loan.
It is your money and your choice. I would not buy it. My 2012 Camry is 7 1/2 years old. No repairs except brakes and the are not covered by a warranty anyway. Previous car was a 2004 PY Cruiser that was totaled at 7 1/2 years. brakes and 1 wheel bearing. The wheel bearing cost me $150 at my mechanic.
Consumer Reports says the average extended warranty on anything, returns 12 cents on a dollar.
If i is a dealer warranty, I do those, just like the cost of an insurance policy. 6 months before lease is up we can do the extra 3 year 30k miles for $1400, on or 2017 Rav4 lease as we will probably purchase it, Non dealer warranty has been shown on this board not to be worth the paper it is printed on.
This isn’t something to lose any sleep over. The warranty is priced so that the warranty company makes a little money on the deal on average. From all the policies they sell, most will have few or no claims. But they still ending up paying out big on some of the policies. There’s no way to know in your particular case which group your future self will be in; it’s a gamble.
These two factors would tend to make a person choose to take the extended warranty
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They don’t do any repair or maintenance work on their own vehicles, either b/c they don’t have time, they don’t have any interest, or they’d just rather do something else to earn/save money than working on cars.
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Even if the owner fixes generally their own cars, they might want the extended warranty if it was a performance vehicle of a make/model/year which isn’t diy’er friendly.
These three factors would tend to make a person refuse an extended warranty
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Gambler personality, has back-up cash on hand & willing to take some risk; i.e. they self-insure themselves, paying a shop for the repairs if their bet doesn’t work out as planned.
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It’s a non-performance econobox sold in high volume, a diy’er friendly vehicle.
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Plenty of time and interest in fixing cars and willing to do many or even most of the diagnostic work & repairs themselves. It’s possible to save quite a bit of loot this way b/c you can avoid paying for labor with after tax dollars; i.e. you don’t have to work to earn $125 in order to pay $75 to a shop after the taxes are withheld from your paycheck. You only have to “work” (albeit crawling under the car covered in grease) enough to “earn” the $75, not the $125.
3 years old Nissan… gonna keep it 4 more years?
I would guess that CVT transmission would have some above-average chances to go belly up on it, from my experience where out of 3 Nissans with CVTs in my family I had 2 to fail, one at 42K miles, one at 92K miles.
Transmission replacement is something like $4.5K at dealer’s place, so consider if you want to gamble or go for a good night sleep.
Still, $2,700 seems to be on a high side for that extension, and as @Barkydog pointed is worthless if not backed by Nissan/dealer
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The warranty is costing you $55.58 a month which is less than $2 a day. Since you took out s loan to buy the car, maybe the added cost of the warranty is worth it. If you had a $2000 repair, would you have to take out a loan to make the repair?
If the extended warranty gives you peace of mind, it’s probably worth it.
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I plan on keeping this car for a long time. I cannot do any work on my vehicles because I have a disability that basically limits me to the use of one hand. Yes this is a Nissan contract. Appreciate all your comments and opinions.
It sounds like a pretty good deal for you, well worth considering, imo.
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It’s not that extended warranties are bad or good, it’s a preference. My thoughts tell me to be free of obligation and counting on others to have an obligation. I also walk around muttering “If I had a service contract on everything I own, I couldn’t afford everything I own.” Winston Churchill is remembered; nobody will remember what I say for long. I keep my sayings on a 5.5 floppy disk.
I forgot to mention one important detail as it was a crazy day at the dealership. We purchased a certified Nissan vehicle. Simply put it covers 600 parts including engine, transmission and drive train for 4 years/100,000. The extended warranty covers 1300 parts and the same time frame for the $2668. My question is am I paying for ‘double coverage’ with all the mechanical stuff and what are the chances of having a non mechanical repair equaling that 2668 in the 4 years. Thanks!
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I don’t know how long ago you made the deal, but many of these are non cancelable. Check the warranty contract quickly.
@Tall_Paul_Iowa. A card laid is a card played. I wouldn’t fret about the decision. Some people spend more at Starbucks for coffee per day than you are spending on the extended warranty. The peace of mind knowing that for the next 100,000 miles you won’t be out money.
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saw a 2015 ZL-1 for sale in the 35k range with a $6k warranty that seller said could be transferred for a fee. but he wanted close to 5k for the warranty. seller said he only had car for 6 months and needs cash. so, he could sell car for 35k with no warranty and his warranty money he paid is gone? dont see how he could get a refund from warranty co.
Some extended warranties allow you to cancel and receive a pro rated refund, if you sell the vehicle or if it were totaled in a collision the warranty would be of no use to you. If there is a loan on the vehicle the refund goes the the lien holder.