Warranties for Preowned vehicles


#1

I have just purchased a 2000 maxima and am wondering if it is worth purchasing a warranty plan for the vehicle. Basically, are they worth it in your opinion(s). Two packages available - 2yrs/24k miles = $1131, or, 1yr/12k miles = $1091.


#2

Worthless. They are written so they won’t pay for anything. Put the money in the bank and you will come out far, far, far ahead.


#3

Thanks for confirming.


#4

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


#5

Gotcha. I don;t like to gamble at all so I will be passing on this ‘deal’. Thanks for the info I really appreciate it.