What do you guys think about extended warranties? The dealership is telling me I should purchase an extended warranty above the 36 month one that comes with the car. The salesman says that if I plan on keeping the Monte Carlo for anywhere near the time I kept the Caprice, I should definitely do the extended warranty. He said, if at month 37, the air conditioning goes, the extended warranty would cover it and that type of repair usually costs a lot of money and I wouldn’t have to pay anything at that time. My dad said I shouldn’t do the extended warranty but I kinda think that it makes sense but then again I am used to the Caprice breaking down every three months. I have a feeling new cars don’t break down that often. Any advice you guys have would be much appreciated. THANKS!
(One of the things that is making me wonder is that the guy who had me sign all the paperwork said that if I come back on Tuesday, he would give me a 150.00 discount on the extended warranty… that seems a little flim-flammy to me)
I am generally distrustful of these things. In the first place, there’s a deductible; what’s more, the list of Covered Things is not as long as you’d like it to be. And it is indeed true that cars are more reliable than they used to be.
If you’re worried about this sort of thing, take the $1500 you’d spend on the warranty, stash it in the bank, and earmark it for Car Repairs.
I second that opinion. Extended warranties = pure profit for the dealership. The salesman who’s calling you will most likely be getting 20% of the purchase amount of the extended warranty as commission.
Put the $1500 into your Roth IRA, instead, and deal with repairs as they occur.
I gotta be the opposite, it didn’t cost me much more for an extra 3 year warranty and the few problems I had were covered, that includes a repaired transmission. My warranty also provided me with roadside assistance, but I know that you have AAA so that’s not a problem. However, you’re also paying for a peace of mind and that goes a long way.
For what it’s worth, I opted not to get the extended warranty on my first new car that I purchased about a year and a half ago.
I would recommend that you keep up with the oil changes and maintain a detailed record of them all (most new cars come with some sort of log/booklet that lets you record each time you get the oil changed, along with a space for the dealer/mechanic to stamp, sign or validate each appt.). This is important for when the time comes to sell or trade in the car. You’ll have proof that you took care of the car according to the manufacturer recommendations.
What a slick lookin’ ride. Congratulations!
N.
I have no idea about buying cars, but Steve has purchased several and says he wouldn’t pay for that because it’s rarely worth it. It’s just a way for the dealership and the salesman to make more money.