I have a 2007 GMC Yukon, 38,000 miles. What
are your thoughts on extended warranty ?
Waste of money. Put your money in the bank instead.
I myself don’t like being told to “go look it up on the internet” so please don’t get offended when I suggest you use the Forums search feature.
I myself will not buy a extended warranty. The main reason is I think I will come out better taking the gamble.
As a mechanic at a GM Dealer I fiqure 35% of my work was paid for by extended warranty. The labor time was no worse than factory warranty (sometimes better diagnostic times) and we could upsell extended warranty. For you that don’t know what upselling extended warranty is I will explain. If your car comes in for lets say a AC complaint I can look your car over from bumper to bumper looking for things that are just not right. Since I know or can easily find out what your warranty will cover I can seek permission for these repairs of questionable need.
Mechanics will abuse their upsale ability. Since it will be the insurance company paying many items are said to need repair but really are OK. This happens everyday at every Dealership.
A problem could come if the customer is charged a deductible for every repair insted of every visit, I make sure of this situstion before I submit my report.
As a mechanic I like it when people buy extended warrantys, it keeps them comming back.
The folks that underwrite them make money and still have enough left over to pay the seller a handsome fee, too. That means you are unlikely to get more out than you put in. Some people will get their money’s worth, but not many.
Consider extended an warranty if you absolutely plan on a break down just past the warranty period. Plowing for example, raises heck with many components and it’s a worthwhile piece of mind and can save lots of money during your “money making time”. Otherwise, if you’re using a truck for less than was intended, you’re just paying the executive’s salary who came up with the idea.
Self-insure. Put the money you would have spent in a seperate bank account specifically designated to cover any repiars you make after your manufacturer’s warranty expires. Then you’ll have the “insurance” if you need it and stll have the cash if you don’t! Why give it to them? They’ll never give it back if it’s unnecessary.
I buy insurance for things I can’t handle on my own (life, house, health, car accident/liability). Anything smaller (car repair, tire road hazard, electronics repair, etc.) you’re wasting money.