Is a car warranty package worth it?
Is a car warranty package worth it?
This is my first time post and I am very happy to have found this site. My friend and I live in the southwest.
My friend bought a brand new 2016 Subaru Outback from a dealer. The dealer also sold her a warranty package for $1800.
This "Gold Package" includes mostly all replacement parts as they age and tires are included. She lives close to work and only expects to put on 5K miles per year. The inconvenient part is the dealer is about an hour's drive away. My friend shopped at the nearby Subaru dealer, but the sales people were quite rude and decided to take her business elsewhere. Presently, she has about 200 miles on the car and can still cancel the warranty package at the end of the month.
Thanks in advance.
My friend bought a brand new 2016 Subaru Outback from a dealer. The dealer also sold her a warranty package for $1800.
This "Gold Package" includes mostly all replacement parts as they age and tires are included. She lives close to work and only expects to put on 5K miles per year. The inconvenient part is the dealer is about an hour's drive away. My friend shopped at the nearby Subaru dealer, but the sales people were quite rude and decided to take her business elsewhere. Presently, she has about 200 miles on the car and can still cancel the warranty package at the end of the month.
Thanks in advance.
Re: Is a car warranty package worth it?
Cancel it.
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- DrippingSprings
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Re: Is a car warranty package worth it?
Yup. Cancel it.
Re: Is a car warranty package worth it?
Cancel it.
This is a high margin product for a reason.
This is a high margin product for a reason.
Re: Is a car warranty package worth it?
I don't know enough about the product but a rule of thumb that works 100 percent of the time is that extended warranties and insurance products on consumer goods are never in your interest. Only insure things that will send you into the poorhouse if they break.
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- cheese_breath
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Re: Is a car warranty package worth it?
Another vote for cancel it. The only people who have any luck with these things are the people who sell them.
The surest way to know the future is when it becomes the past.
Re: Is a car warranty package worth it?
My husband decided to buy the warranty and we already have to use it. Some clown opened their door into ours and scratched up the paint, which the dealership told us would be covered. I'm going to wait until I see it to believe it. I haven't had time to make an appointment yet. He decided to get it because we have a 55 lb dog that gets frantic in the car, and the Outback isn't large enough for her cage. I can see her eating the seats any day now, which is supposed to be covered. I'm going to find out tomorrow if the window washer fluid receptacle is covered because it leaks and then I don't have it when I need it. You will see me on the news if they tell me once again that this is what Outbacks do, or they can't replicate the problem.
FYI, I got received a letter today about Subaru extending the warranty for the windshields to 5 years and they will reimburse people for the shattered ones, so at least that is something good.
FYI, I got received a letter today about Subaru extending the warranty for the windshields to 5 years and they will reimburse people for the shattered ones, so at least that is something good.
Re: Is a car warranty package worth it?
A long time ago I used to sell extended warranties at an electronics store. I usually made a LOT more commission on the warranty than the product itself. Same goes at car dealers. The profit on those policies is massive. These warranties are not always bad, but they usually are.denovo wrote:I don't know enough about the product but a rule of thumb that works 100 percent of the time is that extended warranties and insurance products on consumer goods are never in your interest. Only insure things that will send you into the poorhouse if they break.
Re: Is a car warranty package worth it?
Yes, ha. I always have a chuckle when someone tries to sell me an extended warranty on an electronics product. I cut them off after about 4 words and tell them to ring me up. I am guessing you worked at Best Buy, or if South Bay means South Bay, California, Fry's Electronics. I know Fry's pushes them hard on their commissions model.southbay wrote:A long time ago I used to sell extended warranties at an electronics store. I usually made a LOT more commission on the warranty than the product itself.denovo wrote:I don't know enough about the product but a rule of thumb that works 100 percent of the time is that extended warranties and insurance products on consumer goods are never in your interest. Only insure things that will send you into the poorhouse if they break.
"Don't trust everything you read on the Internet"- Abraham Lincoln
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Re: Is a car warranty package worth it?
For sure cancel it with only 5k miles per year. Also the price of car warranties is very negotiable. They gave up on me at 50% of the original price they quoted.
Re: Is a car warranty package worth it?
Circuit City in the days where the sales people wore jacket and tie.denovo wrote:Yes, ha. I always have a chuckle when someone tries to sell me an extended warranty on an electronics product. I cut them off after about 4 words and tell them to ring me up. I am guessing you worked at Best Buy, or if South Bay means South Bay, California, Fry's Electronics. I know Fry's pushes them hard on their commissions model.southbay wrote:A long time ago I used to sell extended warranties at an electronics store. I usually made a LOT more commission on the warranty than the product itself.denovo wrote:I don't know enough about the product but a rule of thumb that works 100 percent of the time is that extended warranties and insurance products on consumer goods are never in your interest. Only insure things that will send you into the poorhouse if they break.
True story: I remember selling a $19.99 warranty on $19.99 headphones. My pitch was the warranty could pay for itself multiple times over. You are guaranteed for years of good headphones. Some people just love a warranty.
I was just doing my job.
Re: Is a car warranty package worth it?
It says a lot about how inflated the costs are if at 50 percent discount they could still be profitable.barnaclebob wrote:For sure cancel it with only 5k miles per year. Also the price of car warranties is very negotiable. They gave up on me at 50% of the original price they quoted.
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: Is a car warranty package worth it?
The money is never in selling cars, unless it is high end. It is everything else: accessories, financing, warranties, service, insurance, etc.denovo wrote:It says a lot about how inflated the costs are if at 50 percent discount they could still be profitable.barnaclebob wrote:For sure cancel it with only 5k miles per year. Also the price of car warranties is very negotiable. They gave up on me at 50% of the original price they quoted.
Re: Is a car warranty package worth it?
I just bought a 2016 Forester and bought the Gold warranty also. In the past, I would have agreed with the other posters and stayed far away. However, these new cars are packed with such complicated electronics from the infotainment systems, multiple computers and sensors that just a few repairs during the warranty period would put one ahead of the cost of the warranty. I did negotiate and got a few hundred off the original price.
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Re: Is a car warranty package worth it?
I bought an extended warranty on a used Toyota Avalon a few years despite knowing that Consumer Report, Clark Howard and others strongly advised against doing this. After the fact, I did some research on warranties and was shocked how bad these warranties are. Many things people would consider warranty items are classified as wear and tear items, meaning they are not covered. These warranties are purposely vague and give the dealers a lot of discretion. The clincher for me was calling my BIL, who sold cars for many years. He said they are a bad deal for the consumer and to never buy one. Fortunately, I was able to cancel the warranty that I had bought.
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Re: Is a car warranty package worth it?
Is this the actual Subaru Gold warranty? If so, it's less horrible than aftermarket because at least we can expect that Subaru will indeed be in business for the life of your car. Some heads up, though. You can shop online for that warranty and likely beat that price pretty easily. This is a Subaru supported product. If this is a new Outback, the two things to have it for are the relatively new CVT transmission and the just as new FA engine. The good news....these FAs don't seem to have the head gasket issues of the older 2.5L ones. The power steering pump is electric, so that problem is gone. I'm skeptical about the "no maintenance" CVT and will likely be paying my dealer to change the fluid in our Crosstrek sometime soon. The rest of the car is pretty reliable.
In general, though, I'd always look at the car itself. An Audi.....? Absolutely. They fall apart just after the warranty ends and cost tons of money to do anything because the way they're put together, it takes forever to get at cheap parts to replace. Subarus? Not so much. They're not Honda Civics but they do better than other AWD cars.
In general, though, I'd always look at the car itself. An Audi.....? Absolutely. They fall apart just after the warranty ends and cost tons of money to do anything because the way they're put together, it takes forever to get at cheap parts to replace. Subarus? Not so much. They're not Honda Civics but they do better than other AWD cars.
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Re: Is a car warranty package worth it?
Although there are some situations where extended warranties make sense, this isn't one of them. Given that the vehicle owner only drives 5k miles per year, I fail to see what benefit the extended warranty would offer over 7 years and perhaps 35k miles. Even latent defects will be unlikely to manifest themselves at such a low mileage. I'd definitely cancel the extended warranty.
- cheese_breath
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Re: Is a car warranty package worth it?
I made the mistake of buying the Circuit City warranty for a Western Digital external drive once. The drive crapped out before the end of the warranty, but so did CC. They'd already gone belly up.southbay wrote:Circuit City in the days where the sales people wore jacket and tie....denovo wrote:Yes, ha. I always have a chuckle when someone tries to sell me an extended warranty on an electronics product. I cut them off after about 4 words and tell them to ring me up. I am guessing you worked at Best Buy, or if South Bay means South Bay, California, Fry's Electronics. I know Fry's pushes them hard on their commissions model.southbay wrote:A long time ago I used to sell extended warranties at an electronics store. I usually made a LOT more commission on the warranty than the product itself.denovo wrote:I don't know enough about the product but a rule of thumb that works 100 percent of the time is that extended warranties and insurance products on consumer goods are never in your interest. Only insure things that will send you into the poorhouse if they break.
The surest way to know the future is when it becomes the past.
Re: Is a car warranty package worth it?
Cancel
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Re: Is a car warranty package worth it?
Given the attitude that many people here have toward financial salespeople, you might not get a pass on "just doing my job", but it definitely seems understandable to me.southbay wrote: I was just doing my job.
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Re: Is a car warranty package worth it?
If any insurance was "worth it", the odds would be in your favor and the insurance companies, as well as folks like Warren Buffett, would all be broke.
My rule of thumb....only insure against cataclysmic losses.
My rule of thumb....only insure against cataclysmic losses.
- lthenderson
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Re: Is a car warranty package worth it?
I've never sprung for warranty packages for any new cars I've bought and I've never had a claim that would have been covered had I had the insurance. I've had a few things covered under factory recalls and once I had a seatback fall off (while I was driving so far a scary moment I was driving while laying in the backseat staring at the ceiling) but the dealer classified that as a factory defect since the frame welds had been misplaced and fixed the seat for free.
Re: Is a car warranty package worth it?
Well I was a teenager when I worked there, so it was not my profession.tibbitts wrote:Given the attitude that many people here have toward financial salespeople, you might not get a pass on "just doing my job", but it definitely seems understandable to me.southbay wrote: I was just doing my job.
Honestly though, the people that liked warranties seemed to really like the product. I did not feel at all guilty. I never forced it on someone who I could tell really did not want it.
Re: Is a car warranty package worth it?
First off, worth is always highly subjective so it's not just a matter of the item itself but of the individual. She has to determine if she considers the extended warranty to be worth it to her for her own reasons and based on her own experience. However, if she wants the peace of mind of an extended warranty she needs to carefully consider the options and the specific warranty selected.chapter2 wrote:Is a car warranty package worth it?
As stated above, extended warranties are profit centers which is why they're pushed so keep that in mind. Also consider that not all warranties are the same. 3rd party warranties are generally not quite as good as factory warranties but you really have to look at the details and carefully evaluate.
I have purchased and made use of extended warranties from the manufacturer. I have also purchased and wasted money on extended warranties from the manufacturer. I wouldn't apply any general rule and would consider the specifics of a given purchase in future. I didn't buy one for our newest vehicle but would have if it was available given the cost of out of warranty repairs on this vehicle.
It's a gamble. They're "worth it" if you need to make sufficient use of them and "not worth it" if you don't. However, the odds are in favor of the house.
- bertilak
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Re: Is a car warranty package worth it?
I may be a fool, but I bought an extended warranty with my new car. I did get a discount based on this being the 5th car I bought from that dealer and the 9th of that make I've owned over the years. I got an 8-year/100Kmile Premier Care plan for $2484. Covers lots of stuff. It has a "disappearing deductible" of $100. This means NO deductible if repairs are done by the original dealer.
I plan on keeping the car for a long time and the factory warranty is only one (bumper-to-bumper) and three (power train).
I plan on keeping the car for a long time and the factory warranty is only one (bumper-to-bumper) and three (power train).
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Re: Is a car warranty package worth it?
That's what the salesman told you isnt it... They try to sell them based on people's fear of "fancy complicated electronics" which they don't understand. I mean just look at all those wires and hoses under the hood, any one of them could go bad at any second and do you know how to fix it? It basically takes a masters degree to work on cars these days....FRANK2009 wrote: However, these new cars are packed with such complicated electronics from the infotainment systems, multiple computers and sensors that just a few repairs during the warranty period would put one ahead of the cost of the warranty. I did negotiate and got a few hundred off the original price.
My dad is big into extended car warranties and hes probably recouped less than 10% of the cost so far over about 4 or 5 cars. Most of that was on a job that the dealer would have charged $400 for but it would have been DIY in 5 minutes for $110.
Re: Is a car warranty package worth it?
No, not the salesman, that was from an auto mechanic...
Re: Is a car warranty package worth it?
A friend of mine bought a used Porsche 911 and planned to drive the heck out of it, fast & hard. He bought a warranty from Porsche on the used car figuring he would probably damage it in some way. Sure enough, he destroyed the transmission through his hard shifting and crazy driving, and the warranty covered it.
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Re: Is a car warranty package worth it?
DW bought a tire and fluid change package on her new 2008 Prius.
She is on 2 set of replacement tires at 85k miles. She gets free car washes/wax when she services the car. Dealer no longer offers package to new purchasers, since 2011- too costly. I don't need to get underneath the car to save $15 an oil change.
She is on 2 set of replacement tires at 85k miles. She gets free car washes/wax when she services the car. Dealer no longer offers package to new purchasers, since 2011- too costly. I don't need to get underneath the car to save $15 an oil change.
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Re: Is a car warranty package worth it?
This is the funniest story I've read all day. Ah... the Nuremberg Defense.southbay wrote:True story: I remember selling a $19.99 warranty on $19.99 headphones. My pitch was the warranty could pay for itself multiple times over. You are guaranteed for years of good headphones. Some people just love a warranty.
I was just doing my job.
Re: Is a car warranty package worth it?
Given the low mileage and rare use, this ext warranty is a bad investment. What good is the tire replacement if they will last for years at 5k/yr of driving, and the dealer is an hour+ away?
btw: I always include the Ext Warrenty when I'm negotiating the purchase price down. (The dealer thinks that he can make up some cash on the warranty. I then cancel within the first 30 days for a full refund.)
btw: I always include the Ext Warrenty when I'm negotiating the purchase price down. (The dealer thinks that he can make up some cash on the warranty. I then cancel within the first 30 days for a full refund.)
Last edited by Big Dog on Tue Nov 03, 2015 10:43 am, edited 1 time in total.
Re: Is a car warranty package worth it?
sorry, dupe post
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Re: Is a car warranty package worth it?
The best value for the said product. Buy the warranty on the cheapest product.Guest9876 wrote:This is the funniest story I've read all day. Ah... the Nuremberg Defense.southbay wrote:True story: I remember selling a $19.99 warranty on $19.99 headphones. My pitch was the warranty could pay for itself multiple times over. You are guaranteed for years of good headphones. Some people just love a warranty.
I was just doing my job.
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo
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Re: Is a car warranty package worth it?
Try it from GEICO, they call it MBI. It's cheaper and hopefully Geico will be better i serivce
https://www.geico.com/getaquote/auto/me ... insurance/
https://www.geico.com/getaquote/auto/me ... insurance/
Re: Is a car warranty package worth it?
That really stinks.cheese_breath wrote: I made the mistake of buying the Circuit City warranty for a Western Digital external drive once. The drive crapped out before the end of the warranty, but so did CC. They'd already gone belly up.
And the post just got weird.Guest9876 wrote:This is the funniest story I've read all day. Ah... the Nuremberg Defense.southbay wrote:True story: I remember selling a $19.99 warranty on $19.99 headphones. My pitch was the warranty could pay for itself multiple times over. You are guaranteed for years of good headphones. Some people just love a warranty.
I was just doing my job.
Another vote for cancel it.
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.
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Re: Is a car warranty package worth it?
I'm not normally a warranty advocate, but the FB series Subaru engines have documented cases of engine failure and oil consumption issues requiring a rebuild. Most issues that I'm aware of involved the Forester and Impreza, but I doubt the Outback is exempt. If she plans to keep the car outside of the factory powertrain warranty, I'd heavily consider keeping it. This is assuming the warranty in question is the Subaru-backed "added security", and it offers coverage outside of the factory powertrain coverage (they are available in different mileage increments).
If you want the Subaru Added Security, you can purchase one as long as the car is still under the factory 3/36K basic warranty. Additionally, you don't have to buy it from any specific dealership; shop around for the best rate. You might also consider the less expensive Classic plan that still covers mechanical issues but isn't as comprehensive as the Gold Plus plan.
http://www.subaru.com/owners/resource-c ... index.html
I'd avoid a third-party extended warranty.
If you want the Subaru Added Security, you can purchase one as long as the car is still under the factory 3/36K basic warranty. Additionally, you don't have to buy it from any specific dealership; shop around for the best rate. You might also consider the less expensive Classic plan that still covers mechanical issues but isn't as comprehensive as the Gold Plus plan.
http://www.subaru.com/owners/resource-c ... index.html
I'd avoid a third-party extended warranty.
Re: Is a car warranty package worth it?
Take that $1,800 and put it into a high yield savings account to be used when you car needs repairs or you decide to buy another car.
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Re: Is a car warranty package worth it?
We bought a Hyundai Sonata Hybrid in August, and were able to negotiate the 10 year bumper-to-bumper warranty down from $1800 initially to $900.
The fact we plan to keep the car for a while, coupled with the fact that as a hybrid, the thing is basically a high-tech electrical gizmo, we were happy to spend the money for the piece of mind. Otherwise, it only had a stock 36mo/36k warranty on the non drivetrain stuff. Piece of mind is a big happiness factor for us.
The key takeaway is that it's a negotiable purchase, with high margins.
The fact we plan to keep the car for a while, coupled with the fact that as a hybrid, the thing is basically a high-tech electrical gizmo, we were happy to spend the money for the piece of mind. Otherwise, it only had a stock 36mo/36k warranty on the non drivetrain stuff. Piece of mind is a big happiness factor for us.
The key takeaway is that it's a negotiable purchase, with high margins.
Re: Is a car warranty package worth it?
And extended warranty is never worth it, unless you can find some evidence that the party pricing the deal has made a grave error. I would submit that those times are few and far between. The entities selling these warranties will always err on the side of caution, and they sell them for the sole purpose of making a profit. If they profit, you lose on average.
Now that's not to say that ensuring yourself against catastrophic loss is not "worth it." In that case, you are paying a fee to avoid an unacceptable loss or bankruptcy, for example. With respect to a warranty on a consumer purchase, however, that argument is difficult to make. If you can't afford to repair the car at a fraction of its cost, you probably can't afford to buy the car.
JT
Now that's not to say that ensuring yourself against catastrophic loss is not "worth it." In that case, you are paying a fee to avoid an unacceptable loss or bankruptcy, for example. With respect to a warranty on a consumer purchase, however, that argument is difficult to make. If you can't afford to repair the car at a fraction of its cost, you probably can't afford to buy the car.
JT
- unclescrooge
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Re: Is a car warranty package worth it?
I got it on the last Acura TSX (which was certified pre-owned) to cover the electronics in a car.
I had an air bag indicator malfunction in a prior car and it cost $1,000 to replace the entire circuit board.
I had an air bag indicator malfunction in a prior car and it cost $1,000 to replace the entire circuit board.
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Re: Is a car warranty package worth it?
Just a quick reminder - if your friend cancels and the car is financed that the refund goes to the lienholder. Your friend should make sure that the refund properly gets applied to the loan as principal only.
+1 for canceling; +1 for not financing.
+1 for canceling; +1 for not financing.
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Re: Is a car warranty package worth it?
It isn't, until you need it
Back in the mid 80's, my wife purchased a used (2+ year old) car and she bought a warranty for the car (purchased at a dealership).
Within a few months, she required (the car, not her ) an engine tear-down, in which they replaced with a short block, which was outside the original new car warranty period at the time. That time, it was worth it.
We both purchased 2015 vehicles this year (she - Subaru Legacy, me - GMC Acadia). She purchased the extended warranty from Subaru; I did not get an extended warranty for mine. She replaced her 13-year old Olds Aurora - which had a lot of electronic/sensor problems after the decade mark and very expensive to fix and she feared a new car (with more sensors) had a possibility of additional failures.
OTOH, since I put less than 3K/year on my primary car (based upon the last 8.5 years of retirement), I could not see paying extra for a car that will probably have less than 35K miles on it in 10 years. Heck, I have an '02 Mustang (14 model years old) that only has 20K on the odometer (purchased new, and no - I didn't get an extended warranty on it, nor would I have ever needed it).
IMHO, what you are buying is peace of mind; no different than when you purchase insurance (any kind). Assuming you can afford the coverage, fine. You may never use the extended warranty (e.g. insurance), but it all depends on the emotional value it provides if you're the type of person that fears unknown financial loss.
- Ron
Back in the mid 80's, my wife purchased a used (2+ year old) car and she bought a warranty for the car (purchased at a dealership).
Within a few months, she required (the car, not her ) an engine tear-down, in which they replaced with a short block, which was outside the original new car warranty period at the time. That time, it was worth it.
We both purchased 2015 vehicles this year (she - Subaru Legacy, me - GMC Acadia). She purchased the extended warranty from Subaru; I did not get an extended warranty for mine. She replaced her 13-year old Olds Aurora - which had a lot of electronic/sensor problems after the decade mark and very expensive to fix and she feared a new car (with more sensors) had a possibility of additional failures.
OTOH, since I put less than 3K/year on my primary car (based upon the last 8.5 years of retirement), I could not see paying extra for a car that will probably have less than 35K miles on it in 10 years. Heck, I have an '02 Mustang (14 model years old) that only has 20K on the odometer (purchased new, and no - I didn't get an extended warranty on it, nor would I have ever needed it).
IMHO, what you are buying is peace of mind; no different than when you purchase insurance (any kind). Assuming you can afford the coverage, fine. You may never use the extended warranty (e.g. insurance), but it all depends on the emotional value it provides if you're the type of person that fears unknown financial loss.
- Ron
- saltycaper
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Re: Is a car warranty package worth it?
$1,800 sounds pretty high for the Subaru manufacturer's extended warranty. I'd cancel it and re-evaluate later. I believe you can purchase the extended warranty at any time during the standard warranty period. If you do decide to get it, get quotes from various dealers--you don't have to purchase it from the dealer that sold you the car nor from the dealer that services your car.
I'm generally against warranties, but the Subaru warranty is relatively reasonable. The problem with newer cars is that a lot of parts aren't serviceable--the have to be replaced. It's easy for something minor to fail and cost >$1,000 to replace. Powertrain components are obviously expensive. I think the CVT transmissions are serviceable only to a very limited extent. A new one could cost $6,000-$8,000. That said, with only 5K yearly in mileage, hard to imagine it's worth it in this particular case.
As an aside, knowing the high margin on warranties is good for negotiating purposes, but it has little relevance to whether you should buy one or not. I doubt the people making such comments assess the profit margin on other goods and services they purchase. I'm sure they would be shocked if they knew the cost to produce all items and provide all services that they buy, but that they would continue to buy them anyway.
I'm generally against warranties, but the Subaru warranty is relatively reasonable. The problem with newer cars is that a lot of parts aren't serviceable--the have to be replaced. It's easy for something minor to fail and cost >$1,000 to replace. Powertrain components are obviously expensive. I think the CVT transmissions are serviceable only to a very limited extent. A new one could cost $6,000-$8,000. That said, with only 5K yearly in mileage, hard to imagine it's worth it in this particular case.
As an aside, knowing the high margin on warranties is good for negotiating purposes, but it has little relevance to whether you should buy one or not. I doubt the people making such comments assess the profit margin on other goods and services they purchase. I'm sure they would be shocked if they knew the cost to produce all items and provide all services that they buy, but that they would continue to buy them anyway.
Quod vitae sectabor iter?
Re: Is a car warranty package worth it?
BanditKing wrote:We bought a Hyundai Sonata Hybrid in August, and were able to negotiate the 10 year bumper-to-bumper warranty down from $1800 initially to $900.
The fact we plan to keep the car for a while, coupled with the fact that as a hybrid, the thing is basically a high-tech electrical gizmo, we were happy to spend the money for the piece of mind. Otherwise, it only had a stock 36mo/36k warranty on the non drivetrain stuff. Piece of mind is a big happiness factor for us.
The key takeaway is that it's a negotiable purchase, with high margins.
I hate to be the bad news bear, but that doesn't seem to be the case.
https://www.hyundaiusa.com/assurance/am ... yundai.com_
The car already has lifetime coverage for the hybrid battery and 10 year, 100,000 mile for the powertrain. The non-drivetrain warranty is for 5 yrs/60k mile.
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Re: Is a car warranty package worth it?
I agree. An experience with an used A6 proved the warranty well worth it's cost.Jack FFR1846 wrote:In general, though, I'd always look at the car itself. An Audi.....? Absolutely. They fall apart just after the warranty ends and cost tons of money to do anything because the way they're put together, it takes forever to get at cheap parts to replace.
Re: Is a car warranty package worth it?
The standard Subaru powertrain warranty is good for 5 years/60k miles. I believe the Gold warranty only extends a coupe more years. Hopefully, if there were to be a widespread problem beyond that Subaru might extend the warranty, or cover it under goodwill. To pay so much to extend a warranty because of some potential design/quality problem seems to fly in the face of common sense. A better solution is to take a pass on the purchase.dream_chaser wrote:I'm not normally a warranty advocate, but the FB series Subaru engines have documented cases of engine failure and oil consumption issues requiring a rebuild. Most issues that I'm aware of involved the Forester and Impreza, but I doubt the Outback is exempt. If she plans to keep the car outside of the factory powertrain warranty, I'd heavily consider keeping it.
Re: Is a car warranty package worth it?
My thought is this ... even if you use $2,000 in repairs ... Subaru and the dealer probably STILL profit off you. That is to say what cost you $2,000 for repairs probably costs them a fraction of that.
Should you cancel? Probably.
Is the case to cancel a slam dunk? Hard to say. If you prefer getting work done on you car by the dealer ... (as opposed to a cheaper trusted mechanic. or DIY) it maybe an OK/good deal ... the $1800 price may be a tad high, but it protects against rare multi thousand dollar events. It is insurance after all.
Should you cancel? Probably.
Is the case to cancel a slam dunk? Hard to say. If you prefer getting work done on you car by the dealer ... (as opposed to a cheaper trusted mechanic. or DIY) it maybe an OK/good deal ... the $1800 price may be a tad high, but it protects against rare multi thousand dollar events. It is insurance after all.
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