Hey all , looking at buying 2004 cavalier .....with 3 yr warranty and they want me to buy extd. 5 yr for 25$ mth ....worth it or not>? ......i am from canada by the way .....appreciate anything ...............
Robert
Is it a GMPP extended warranty or a third party warranty?
$3,000 for an extra 2 years of warranty seems steep.
That's what the dealers call:
Making money on the back end. The F&I or Business Manager usually closes the deal with a high pressure pitch, to protect your investment.
Refinish King
Hi, In my opinion It's quite expensive. I have a 2001 Cavalier and I didnèt have any problem with it untill now.... Specially that cavaliers are quite cheep to repare compared to civics and Corollas...
I don't think many people know that 2003 Cavaliers and up have a 5 year/100,000 klms powertrain warranty that is standard now. On those cars, I wouldn't bother with an extended warranty unless you get one that goes a lot further then 5 years/100,000 klms. Other then the drivetrain on those vehicles, there isn't much else that will go wrong that will cost you big bucks. Especially if you get the models with no ABS.
Ian
Do some math and figure if you'll be doing $3,000 worth of repairs during the warranty period. The warranty company is betting that it will be a lot less. I'm thinking that with a bit of maintenance and reasonably sane driving you should be able to get by with about $1,000 worth of repairs.
Besides in 5 years how much would it cost you to trade up to a newer model? In the stock market @ a 15% return rate per year your "warranty" company with your $3,000 up front could have nearly $5,000 if you aren't able to claim anything (trust me there 'll be a pile of provisions limiting any claim). So with a base Cavalier going for $11,000 CDN on the market at the moment and with a 2009 Cavalier potentially having better economy, power & safety for a nominal increase in cost, I'm thinking..........
Just my 2 cents
That might be true in Canada at least, but not in the U.S. At least not that I know of. Taking a look at the warranty documentation for the
2004 Cavalier, it only has a 3 year 36k mile bumper-to-bumper.
Must be a Canadian thing. We just helped a friend buy a 2003 Cavalier off of the used car lot where I work, and they come standard with the extended powertrain warranty. I was surprised, to say the least.
Ian
Unless I missed something, isn't 5 years X $25 = $1,500 and not $3,000? Also, is that Candian or US dollars? If it's US dollars, then based on a .7648 exchange rate as of today, then that's $1,147.20 for two additional years of warranty which seems high, but certainly not as bad as $3,000.
Roger
A/C Compressor....
True...the power steering rack comes to mind also.
Ian
True, but from my experience of what I've seen, civics and corollas are much more reliable than anything gm makes, so you don't pay as much over time for repairs. It's true that on a case by case basis it will cost you more to repair a civic or corolla. But, if your only repairing them once in a while (if at all in my experience!!!), it works out much cheaper.
Plus don't forget the resale value. I can't think of anything that holds resale value as well as civics and corollas do. They definetely hold their value much better than a cavalier would.
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