Re: Extended Warrenty is it worth it , have you gotten your moneys worth out of it ?



Not always.
The insurers only have a stacked deck on an OVERALL view. You can still "win" if you happen to choose a vehicle that turns out to have an exceptionally bad service record.
For example I'm sure that the majority of people with extended service contracts on 1989-1996 Chrysler minivans with the infamous Ultradrive A604/41TE transmission in it did in fact benefit since very few of those vehicles passed 100K miles without a trans rebuild. Of course, if you looked at Chrysler minivans - all models - as a whole over that time period, the insurers would still have come out ahead - but far less profitably than over model lines.
Naturally, if you do in fact choose a model that turns out to have an exceptionally bad service record, you lose in some fashion because it's going to be in the shop more than your driving it.
If you are one of these new car buyer that simply must have the latest car models with the newest and least-proven engine and transmission designs in them - like for example the first generation Priuses - why then you probably are making a good financial bet with an extended service contract.
Very stupid auto purchase in all other respects, but at least you will probably get your money's worth out of the service contract.
Ted
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On Mon, 8 Aug 2005, Ted Mittelstaedt wrote:

Yes, but how do you get to find out the poor service record before the insurers? The answer is, that you cannot.
Clearly, there will be cases that, largely through luck, you buy an insurance policy and come out ahead. Mostly, though, you won't. If you take a long-term view over several cars, self-insurance is the way to go.
If you can't afford to have a transmission rebuilt on one of these vehicles after 3-4 years, then you probably can't really afford the vehicle in the first place.
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You don't -but the point was that for a new model car line that has never been on the market before, the insurers don't have any better idea of how long it is going to last than you do.
Ted
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I'm probably in the extreme minority, but I believe in extended warrantees. I had one on a Ford Escort which began to idle very rough after a local trip. Took it to the garage and after a week, with the engine spread over two bays, the Ford area rep found it was from a camshaft which wasn't hardened properly! Except for a $50 deductible, it covered all the repair and car rental; some $5000+ worth.
Today I went and purchased a max care extended warrantee on my wife's Sebring Convert. Went with 7 years/50k miles. Covers everything except for consumables with a $100 deductible. (Car wasn't eligible for the 7/70 as it was a former rental.) Bitch all you want guys, but it's just piece of mind knowing that wherever I go, Chrysler will cover everything from towing to room rental and meals to car rentals and full repair and all I pay is the first $100. (I hope I never have to use it.)
One thing when talking warrantees is that (like everything) the price is negotiable. What I did was to search the web to determine what I could get this particular warrantee for from another Chrysler dealer (which turned out well under what the local dealer was quoting.) Printed off the page, took it into him and he met the price.
I look at this the same way I look at any insurance, life health or whatever.
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trans was setting a "slip" code.. new trans. Wiper board. A/C leaking, new compressor.
So I got my $700 and then some. $250 deductable.
I'm now on my 3rd alternator. Those and the water pump at 50k I just repaired since they were under the deductable.
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Many people feel the same as you about insuring themselves and their possessions. One must be sure that the insurance he chooses will actually pay when there is a problem. Apparently there are ample cases where the insurers avoid payment using fine print and clever interpretations of their liability.
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I suppose that's especially true of the off-brand auto policies.
Personally I have always stuck with policies offered by the local dealer (where I get the car serviced.) In only once case (and I forget exactly what it was) did the policy not pay (and it was specifically cited in the policy - had to due with brakes if I remember.)
I've read the horror stories about how Chrysler refused to honor warranties (extended or current) on engines that sludged. If I remember, Chrysler fell back on their refusal because the engine was sludged. Perhaps they had a right to take this stand as over 95% (probably much more than this - I don't know the exact figures) of this engines did NOT sludge. So who do we believe, a consumer who swears that he religiously changed the oil ever 3000 and it sludged up anyway or Chrysler who takes the stand that oil changed every 3000 miles will not sludge? (Of course Chrysler did make certain modifications in 2003 to lesson this problem, but I have believe that an engine will not burn the oil if you keep the shaving at bay.) And I also read that some people who had the same problem DID get a new engine from Chrysler; so I would have to lean towards what type of relationship each had with his local dealer.
Perhaps it's something like 'if you support your local dealer and when it hits the fan, he'll support you'?
I, as the purchaser, am the one responsible for reading the fine print of the contract. As I stated, I just purchased a policy last Monday, and the business manager was quick to point out all the fine print. He was truly concerned that I understand what wasn't covered and why.
So I'm confident that the car is reasonably covered up to it's 7th birthday and that I can could on my local dealer to be there when need be. (I hope that I'm not wrong.)

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*********It should be that way, but many many dealerships have dropped this principle from their mission statement.

*****This is a good lesson for life. Always read the fine print, ask questions, be SURE you know what you have agreed to, and what the other party will stand by.
Many dealerships sell 'off brand' policies...They are very profitable to the dealership. Some may be good, but others are clearly not worth a darn. I again refer to www.ripoffreports.com , and you can search directly for this sort of warranty abuse.
Best regards
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