Extended warranty on 2018 Outback

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tbradnc
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Extended warranty on 2018 Outback

Post by tbradnc » Fri Dec 08, 2017 7:25 am

Mulling this over and interested in feedback.

I purchased a 2018 Outback 3.6R Limited with EyeSight and cold weather package #1 last week. Out the door price was 38,180. The car comes with the usual 3 year, 36,000 mile warranty. We're not car people so we expect to have this car for 10+ years.

I can buy a Subaru backed, 7 year, 100,000 mile warranty with $100 deductible for $1375 - this warranty basically extends the factory warranty for 4 extra years and 64,000 miles (with a $100 deductible per event).

I've called various dealers and the price for this warranty ranges from the low of $1375 to north of $2000 so $1375 seems to be as low as I'm going to get.

Question: Would you buy the extended warranty?

260chrisb
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Re: Extended warranty on 2018 Outback

Post by 260chrisb » Fri Dec 08, 2017 7:59 am

I'm not sure I understand what "we're not car people" means? Does this mean you don't buy and sell cars often or you simply keep cars for a long time and don't drive much? Extended warrantees make the dealerships money. Put the $1475.00 in the bank (cost plus first deductible) and when you get two months from the expiration of the new car warrantee have the car inspected after researching known issues over the first nearly three years of ownership. Cars like these are pretty good and can easily exceed 100,000 miles with little drama. You of course have to spend more than $1475.00 to break even between 36K and 100K.

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 8:00 am

I'd skip it. Any serious build defect or whatever is likely to show up in that first three years. And, you're not likely to have a major thousands of dollars repair in the first 100K miles. If you did have something like that after the original warranty was up, that's what emergency funds are for, right?

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs?

ResearchMed
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Re: Extended warranty on 2018 Outback

Post by ResearchMed » Fri Dec 08, 2017 8:16 am

chevca wrote:
Fri Dec 08, 2017 8:00 am
I'd skip it. Any serious build defect or whatever is likely to show up in that first three years. And, you're not likely to have a major thousands of dollars repair in the first 100K miles. If you did have something like that after the original warranty was up, that's what emergency funds are for, right?

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs?
I agree that the deductible makes no sense.
Many repairs might be less than that, or not much more.
And I can also envision any large repair getting broken down to each part or some sort of group, so there are multiple deductibles.

The only time we ever got an extended warranty was recent. It was also the only time that we did not get a *new* car. With a new car, nope.

But 2 years ago, we got our first CPO, a low mileage baby Volvo XC60.
Although we've dealt with that dealer for decades, and they sold and serviced the car, we still didn't quite trust why the previous owner sold it so soon. Ostensibly, it was because they wanted one of the arriving, long awaited new model XC90's. Made sense, if they can afford it, but still.... why sell such a young, low mileage car "just" to get a newer, fancier toy?

Even though so far, it seems there isn't anything "wrong" that would have driven (no pun intended) the first owner to sell early, we'd still do this again with any previously owned car. Who knows how it was *really* treated/driven or what maybe drove that first owner nuts such that they sold it so soon. Let the dealer deal with it, at no cost to us.

But we would never have gotten coverage that had a "deductible". Never even heard of that before.

Again, with a new car, it's less likely if you care for the car properly. Not impossible, but much less likely.

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harrington
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Re: Extended warranty on 2018 Outback

Post by harrington » Fri Dec 08, 2017 8:27 am

No No No.....Never buy an extended warranty. Worked in the industry for a bit many years ago and we were always told to push these products. But if you are thinking about it that is a decent price.

vshun
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Re: Extended warranty on 2018 Outback

Post by vshun » Fri Dec 08, 2017 8:30 am

I'd skip extended warranties in general but specifically to Outback, . as an owner of 2011 Outback, it has been so far the most reliable car in my household (also have Toyota Prius and Honda Odyssey for comparison). These extended warranties pad the dealer and companies issuing it so paying out of pocket makes sense unless you own car likely to break.

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Re: Extended warranty on 2018 Outback

Post by livesoft » Fri Dec 08, 2017 8:52 am

I would not buy the warranty. If the salesperson had offered to sell it to me after we had negotiated an out-the-door price, I would have asked them to give it to me for free as for any extended warranty done at that dealer. That way, it would not cost them anything except their reputation. After all, by trying to sell it to me they are saying the car they are selling me will crap out at the end of the regular warranty. And by refusing to give it to me for free, they are really putting their foot in their mouth.
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andypanda
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Re: Extended warranty on 2018 Outback

Post by andypanda » Fri Dec 08, 2017 8:55 am

"low of $1375 to north of $2000 "

I suspect that somewhere out there is a Subaru extended warranty for a lot less. A zero deductible warranty, too. Check some of the Subaru forums for leads.

I don't recall what I paid for the one on my '86 Subaru GL 4wd wagon and I didn't get one on my 2001 Forester, so I'll mention my Toyota experiences. When I bought my new 2010 Highlander Limited I bought a 6yr/75k mile Toyota warranty from a dealer in Manhattan Kansas for $525. I'm in Virginia; I got the info off the net and it took one email and a phone call for credit card number. The paperwork came a week later. I understand that Toyota has cracked down on some of these out of state deals, but not all of them.

Last December I bought a new 2016 4Runner Trail Premium with KDSS (a suspension upgrade - $1750). The sticker was $42k. I declined the first offer of a $2000 warranty and told the credit manager what I'd paid for the 2010 warranty. He thought about it and sold me the top of the line Toyota Platinum 6yr/75k for $550. I didn't even try to beat him down. There's a thread on the T4R discussion forum/5th generation section about where to buy extended Toyota warranties out of state and I could have saved a couple of dollars more, but I was in the ballpark, so I wrote the check.

Three days later I took my girlfriend to the dealer bought her a new 2016 Avalon Touring. With the $3k rebate and another $3500 off, it came to less than my 4Runner, so he sold me the same warranty for $525.

I'm not usually the extended warranty type, but $500 isn't too bad and might encourage me to keep the vehicles for 6 years. Fwiw, I use the truck on the beaches of the Outer Banks and tow a 16' aluminum freshwater fishing boat locally.

andypanda
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Re: Extended warranty on 2018 Outback

Post by andypanda » Fri Dec 08, 2017 8:56 am

doubletap

pshonore
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Re: Extended warranty on 2018 Outback

Post by pshonore » Fri Dec 08, 2017 9:01 am

Depends on what the extended warranty covers. They usually come in a couple of flavors - Silver, Gold Platinum, etc. Probably all cover the "powertrain,etc. " but I would read each very carefully to see what is excluded. The electronic parking brake went on our 2013 Outback which cost about $1300 to fix. Strange thing is we never used it. Obviously I'm done with Subarus.

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midareff
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Re: Extended warranty on 2018 Outback

Post by midareff » Fri Dec 08, 2017 9:09 am

harrington wrote:
Fri Dec 08, 2017 8:27 am
No No No.....Never buy an extended warranty. Worked in the industry for a bit many years ago and we were always told to push these products. But if you are thinking about it that is a decent price.
Having spent almost my entire career in the ground transportation business I'd add all they are is an additional profit center for dealers. OTOH, today's cars are chock full of sensors and electronics which can get pretty pricey to get into if something hiccups and $1375 for four additional years is simply too inexpensive to walk away from. Put it on a 2% cash back credit card and forgetaboutit.

Andyrunner
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Re: Extended warranty on 2018 Outback

Post by Andyrunner » Fri Dec 08, 2017 9:25 am

I'd avoid it. Not worth it. When I bought my outback 4 years ago I was offered one, my response was I'm buying a Subaru on the basis that I shouldn't have to buy a warranty. Ended that one quick.

On another note:
$39k for an Outback!!! Damn cars are getting expensive! I paid $23k for mine 4 years ago (not the 3.6R, but the 2.5). Subarus have become very popular. If you go to xc ski country, you won't be able to find your car. Everyone owns an outback.

andypanda
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Re: Extended warranty on 2018 Outback

Post by andypanda » Fri Dec 08, 2017 9:32 am

In January of this year I bought my father's younger brother and his wife a new 2016 Altima SL or SV or something or other - they picked it out to replace their 10-year-old one. I bought the high-end 6yr/75k mile Nissan extended warranty for $400 and something - the Altima wasn't as much as the 4Runner or Avalon.

I remember sitting there writing the check for the car thinking "They're in their mid-80s, do they need an extended warranty?" My father lived to 89.5, so maybe they'll need it. :)

Those were 3 difficult checks to write, but worth it to me. I'm 67 and trying to learn to spend a little bit of what I've saved.

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Watty
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Re: Extended warranty on 2018 Outback

Post by Watty » Fri Dec 08, 2017 10:10 am

tbradnc wrote:
Fri Dec 08, 2017 7:25 am
I can buy a Subaru backed, 7 year, 100,000 mile warranty with $100 deductible for $1375 - this warranty basically extends the factory warranty for 4 extra years and 64,000 miles (with a $100 deductible per event).
It likely already comes with a 5 year 60k powertrain warranty so many of the big repairs will be already be covered.

It is really more like a two year extended warranty for the big ticket powertrain stuff.

The extended warranty might make more sense if you drive a lot of miles and you would quickly hit the 60K limit on the powertrain warranty.

tbradnc
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Re: Extended warranty on 2018 Outback

Post by tbradnc » Fri Dec 08, 2017 10:13 am

midareff wrote:
Fri Dec 08, 2017 9:09 am
harrington wrote:
Fri Dec 08, 2017 8:27 am
No No No.....Never buy an extended warranty. Worked in the industry for a bit many years ago and we were always told to push these products. But if you are thinking about it that is a decent price.
Having spent almost my entire career in the ground transportation business I'd add all they are is an additional profit center for dealers. OTOH, today's cars are chock full of sensors and electronics which can get pretty pricey to get into if something hiccups and $1375 for four additional years is simply too inexpensive to walk away from. Put it on a 2% cash back credit card and forgetaboutit.
Yeah, this is the way I'm leaning I think. This car is more of a computer than an automobile and I'd suspect repairing/replacing any of the electronics would cost $1375 or more.

To be clear, this is a Subaru backed warranty that extends the factory warranty - it's not a 3rd party "gotcha" warranty. There is as no-deductible version for another $100 or so.

Another wrinkle is that the warranty is transferrable and in the off chance we sell it as a private party I think it would be a good thing to have - or more likely, if we ultimately give the car to one of our kids it might save them some money in the event of a problem.

Having said all that... I feel like I'm probably wasting $1375 if I do it.

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Watty
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Re: Extended warranty on 2018 Outback

Post by Watty » Fri Dec 08, 2017 10:20 am

One more thought. You can buy the factory warranty at any time before the full warranty expires so you do not need to decide now.

If you don't buy one now you will likely get offers in the mail every few months to buy one and when the car is about three years old you may get them weekly, at least that is what happened to me with other brands.

You also need to figure out what happens if the car is totaled before warranty runs out, I am not sure how that works.

dbr
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Re: Extended warranty on 2018 Outback

Post by dbr » Fri Dec 08, 2017 10:23 am

tbradnc wrote:
Fri Dec 08, 2017 10:13 am
midareff wrote:
Fri Dec 08, 2017 9:09 am
harrington wrote:
Fri Dec 08, 2017 8:27 am
No No No.....Never buy an extended warranty. Worked in the industry for a bit many years ago and we were always told to push these products. But if you are thinking about it that is a decent price.
Having spent almost my entire career in the ground transportation business I'd add all they are is an additional profit center for dealers. OTOH, today's cars are chock full of sensors and electronics which can get pretty pricey to get into if something hiccups and $1375 for four additional years is simply too inexpensive to walk away from. Put it on a 2% cash back credit card and forgetaboutit.
Yeah, this is the way I'm leaning I think. This car is more of a computer than an automobile and I'd suspect repairing/replacing any of the electronics would cost $1375 or more.

To be clear, this is a Subaru backed warranty that extends the factory warranty - it's not a 3rd party "gotcha" warranty. There is as no-deductible version for another $100 or so.

Another wrinkle is that the warranty is transferrable and in the off chance we sell it as a private party I think it would be a good thing to have - or more likely, if we ultimately give the car to one of our kids it might save them some money in the event of a problem.

Having said all that... I feel like I'm probably wasting $1375 if I do it.
I agree the money is probably wasted but it is nothing compared to the cost of repairing stuff that stops working on these cars. A big problem is that some of the stops working features mean your car is now undriveable, as in it won't start, etc.

Frisco Kid
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Re: Extended warranty on 2018 Outback

Post by Frisco Kid » Fri Dec 08, 2017 10:27 am

Former mechanic here....For anyone planning on keeping a car a long time an extended warranty makes sense to me, consider it an additional cost of ownership. I say that because cars are getting more and more complex with added electronics and computers for every system. I did not always think this way. One component going south during your time of ownership would quite likely exceed the cost of the warranty. Cost of warranty in OP's example of $1375 over 84 months is $16.36 monthly. Just my 2 cents.................

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 10:30 am

Or, is 'these cars are just full of computers' the new sales pitch to sell the warranties?

Cars have had computers for quite some time now. How often does the computer break? I don't have any stats and I'm sure they do break. But, I've never had any computer issues with any newer car I've owned. I'm sure there are make and model specific examples too. My feeling is though, modern cars are pretty darn reliable overall.

Chip
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Re: Extended warranty on 2018 Outback

Post by Chip » Fri Dec 08, 2017 10:37 am

tbradnc wrote:
Fri Dec 08, 2017 10:13 am
Yeah, this is the way I'm leaning I think. This car is more of a computer than an automobile and I'd suspect repairing/replacing any of the electronics would cost $1375 or more.
Electronics have been in cars for many years and are pretty darn reliable. Yes, there are more of them now. But typically they fail pretty quickly or last a very long time. So my bet would be that you'll either get them covered under the factory warranty or (most likely) you won't have any problems at all.

If you buy the warranty you are buying insurance. It usually only makes sense to buy insurance if you can't easily afford the possible outcomes. Is that the case here?

Maybe you should start another thread asking who has had (or not had) electronics fail on their vehicle. My data points: '98 Toyota Camry, 14 years, 243k miles, 1 failure at 150k; 2013 Honda Accord, 5 years, 77k miles, no failures; '93 Ford Ranger, 20 years, 95k miles, no failures.

dbr
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Re: Extended warranty on 2018 Outback

Post by dbr » Fri Dec 08, 2017 10:46 am

chevca wrote:
Fri Dec 08, 2017 10:30 am
Or, is 'these cars are just full of computers' the new sales pitch to sell the warranties?

Cars have had computers for quite some time now. How often does the computer break? I don't have any stats and I'm sure they do break. But, I've never had any computer issues with any newer car I've owned. I'm sure there are make and model specific examples too. My feeling is though, modern cars are pretty darn reliable overall.
Well, Subaru had to put thousands of dollars under warranty into my car over the first two years until they figured out that a persistent check engine light problem actually originated in a faulty battery (the original battery -- problem started at 256 miles). So it was not a computer problem but the inability of the dealer and Subaru America tech service to understand that the repair was something other than replacing perfectly good computers four times over while letting me drive their loaner cars all over the place. If this had occurred off warranty it would have been really, really bad. It goes back to their diagnostic procedure basically consisting of finding an error code and replacing whatever part seems to generate the code. It also goes back to the fact that this multiplicity of electronics is extraordinarily sensitive to minor electrical upsets. A mere few millivolts below a threshold for a few milliseconds can set off a flag that upsets all kinds of things. On the Subaru the errors I had were obscure things like "ECM fault" or "Intermodule Communications Error" When those happen the CE fault goes on and the car then shuts off all the electronic systems that might somehow malfunction when the system doesn't know what the error is. That includes all traction controls, ABS, Eyesight, etc. Not only that, the system lights basically all the warning light on the dashboard so that you have no idea what is actually wrong. It took awhile for me to realize a tire pressure low light was lit because the tire pressure actually was low. So the next thing that happens is because the actual cause (a few milliseconds of low voltage on a bus) is long gone, the problem just goes away in a few days until it happens again. So much for computers.

If the argement is that the faulty original battery which failed early on is now fixed and there won't be a battery fault again, then good luck to me.

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Re: Extended warranty on 2018 Outback

Post by Jack FFR1846 » Fri Dec 08, 2017 10:56 am

Ok, here's a response from a "Subaru guy".

You can buy any Subaru Factory extended warranty as long as the car is in the bumper to bumper 3/36 warranty (not the 5/60 powertrain).

What I would do. First, Mastria Subaru in Mass is known for being THE lowest price on warranties in the US. Call and ask for the email address for Dave for a warranty. He'll send back a matrix of years/miles/deductibles with prices all spelled out.

KNOW what the warranty covers (easy to google with these). Note that catalytic converters are NOT covered in the 100k mile warranties. They are only covered in the EPA required 8/80 which does NOT require any extended warranty.

It's your call on whether to buy the warranty or not. I would tend to with a CVT transmission but I'd wait to the 3/36 point and buy it then.
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bloom2708
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Re: Extended warranty on 2018 Outback

Post by bloom2708 » Fri Dec 08, 2017 10:56 am

I'm not a huge fan of extended warranties. $1,375 seems pretty reasonable for the peace of mind that driving under a warranty provides some.

If you buy it, you likely won't need it. If you don't, you likely will. That is just how these things work.

We bought one for a similar price on our 2014 Ford Explorer. Only at 60k miles and out of warranty since 36k. I used ours when some rocks got under the belt and took out the tensioner. The belt was not covered (wear item) but the tensioner was covered (~$250).

We have a ways to go to recover our $1,400, but have 40k more miles to go. I personally hope we don't have any major issues. Fingers crossed.

I won't say never or always. We did buy one, so I can't fault someone for at least looking at it.
Last edited by bloom2708 on Fri Dec 08, 2017 10:57 am, edited 1 time in total.
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ResearchMed
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Re: Extended warranty on 2018 Outback

Post by ResearchMed » Fri Dec 08, 2017 10:57 am

tbradnc wrote:
Fri Dec 08, 2017 10:13 am
midareff wrote:
Fri Dec 08, 2017 9:09 am
harrington wrote:
Fri Dec 08, 2017 8:27 am
No No No.....Never buy an extended warranty. Worked in the industry for a bit many years ago and we were always told to push these products. But if you are thinking about it that is a decent price.
Having spent almost my entire career in the ground transportation business I'd add all they are is an additional profit center for dealers. OTOH, today's cars are chock full of sensors and electronics which can get pretty pricey to get into if something hiccups and $1375 for four additional years is simply too inexpensive to walk away from. Put it on a 2% cash back credit card and forgetaboutit.
Yeah, this is the way I'm leaning I think. This car is more of a computer than an automobile and I'd suspect repairing/replacing any of the electronics would cost $1375 or more.

To be clear, this is a Subaru backed warranty that extends the factory warranty - it's not a 3rd party "gotcha" warranty. There is as no-deductible version for another $100 or so.

Another wrinkle is that the warranty is transferrable and in the off chance we sell it as a private party I think it would be a good thing to have - or more likely, if we ultimately give the car to one of our kids it might save them some money in the event of a problem.

Having said all that... I feel like I'm probably wasting $1375 if I do it.
You've just added some information.

*IF* you are going to get this, then by all means pay the $100 extra for "no deductible".
You'd get that "back" with the very first covered repair (assuming that repair is more than $100).

And it's not all that unlikely that you'd have a few "little" repairs as car gets older.

Just make sure it covers all the repairs as you think it would, that there aren't any meaningful exclusions.

RM
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Admiral
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Re: Extended warranty on 2018 Outback

Post by Admiral » Fri Dec 08, 2017 11:12 am

tbradnc wrote:
Fri Dec 08, 2017 7:25 am
Mulling this over and interested in feedback.

I purchased a 2018 Outback 3.6R Limited with EyeSight and cold weather package #1 last week. Out the door price was 38,180. The car comes with the usual 3 year, 36,000 mile warranty. We're not car people so we expect to have this car for 10+ years.

I can buy a Subaru backed, 7 year, 100,000 mile warranty with $100 deductible for $1375 - this warranty basically extends the factory warranty for 4 extra years and 64,000 miles (with a $100 deductible per event).

I've called various dealers and the price for this warranty ranges from the low of $1375 to north of $2000 so $1375 seems to be as low as I'm going to get.

Question: Would you buy the extended warranty?
One thing you have not posted: how many miles per year will you drive it? Cars and their pieces wear out primarily on miles, not time. So, if this is a commuter vehicle that will get 15-20k miles per year, that might make me lean toward a warranty that will cover the car for longer. If you won't drive it all that much, then the money may be wasted. Other things like weather (will it be driven in winter conditions, baking hot desert summers) might also affect my choice.

This basically sounds like a CPO warranty, these often have deductibles. I would not get a policy with a deductible. I would also make sure ALL electronics (save perhaps interior light bulbs but including headlights, which can be very costly) are covered.

randomguy
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Re: Extended warranty on 2018 Outback

Post by randomguy » Fri Dec 08, 2017 11:30 am

chevca wrote:
Fri Dec 08, 2017 8:00 am

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs?

Does it really matter. And yes I would buy insurance for car repairs. It is really all about It all depends on the price. For 100 bucks everyone would pay for an extra 4 years of coverage. At 10k, nobody would. 1375 it gets interesting. Odds are you will not need it. That is countered by the chance of getting hit with some 3k repair (i.e. how much would it cost to replace the eyesight sensors and computers? What if your CVT fails) or a bunch of small ones (i.e. your power window motor fails). Odds are you are losing money (same with any insurance product) but you are eliminating the really bad cases.

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Re: Extended warranty on 2018 Outback

Post by forgeblast » Fri Dec 08, 2017 11:44 am

When I bought my truck I added the extended warranty. I knew that this truck is going to be one I hold on to until I can almost retire 10+ years. Also the huge amount of electronics can add up. A family I know has their suv in the shop every other month because they are chasing an electrical issue.
It was a piece of mind thing for me. I think it worked out to 2.00 per month over the length of the loan.

dbr
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Re: Extended warranty on 2018 Outback

Post by dbr » Fri Dec 08, 2017 11:49 am

I think the concern over computer/electrical issues is valid perhaps not so much that problems are more frequent but that the failures can be debilitating, hard to repair, and expensive to repair. We have a 2003 model car that has the check engine light on almost all the time and we persistently track down and fix things, but the car runs. Our more recent model car becomes partially or completely disabled over what are actually minor flaws.

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 12:09 pm

Admiral wrote:
Fri Dec 08, 2017 11:12 am
One thing you have not posted: how many miles per year will you drive it? Cars and their pieces wear out primarily on miles, not time. So, if this is a commuter vehicle that will get 15-20k miles per year, that might make me lean toward a warranty that will cover the car for longer. If you won't drive it all that much, then the money may be wasted. Other things like weather (will it be driven in winter conditions, baking hot desert summers) might also affect my choice.
True, the mileage driven should be factored in. But, I think you have it backwards from there. If one puts on 20k miles a year, the extended warranty is used up very quickly. Why bother if you put 100k on in 5 years? If one is going to keep the car forever and doesn't drive much, I'd say the extended warranty would be more worth the money as you'd get the full life of the warranty either way.

Cars don't necessarily wear out on miles. If someone commutes 100 miles round trip to work all the time and puts mostly freeway miles on their car, the parts and pieces may last forever. If someone drives in the city all the time, lots of cold start, chugging up hills, or whatever, their parts and pieces may wear out long before the other driver with way less miles put on the car.

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 12:15 pm

randomguy wrote:
Fri Dec 08, 2017 11:30 am
chevca wrote:
Fri Dec 08, 2017 8:00 am

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs?

Does it really matter. And yes I would buy insurance for car repairs. It is really all about It all depends on the price. For 100 bucks everyone would pay for an extra 4 years of coverage. At 10k, nobody would. 1375 it gets interesting. Odds are you will not need it. That is countered by the chance of getting hit with some 3k repair (i.e. how much would it cost to replace the eyesight sensors and computers? What if your CVT fails) or a bunch of small ones (i.e. your power window motor fails). Odds are you are losing money (same with any insurance product) but you are eliminating the really bad cases.
Yes, it matters. It's not really a warranty if you have to pay a deductible, right?

I see from some of the posts made, the decision to buy a warranty could depend on what one is willing to try and fix themselves or what they might be willing to leave be and drive it.

If odds are you won't need it, why buy it? I mean the places selling the extended warranties love it so many go against the odds, but.....

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Re: Extended warranty on 2018 Outback

Post by wrongfunds » Fri Dec 08, 2017 12:31 pm

If an item needs an extended warranty, I buy the alternate which does not need an extended warranty. If I think Subaru breaks lot more often than Toyota, I will NOT buy Subaru at all. If I wanted the Subaru, I will just add the cost of the extended warranty to my purchase up front.

For example, if in the future I got smitten by Alfa Romeo or Land Rover or Aston Martin, I will consider the factory extended warranty cost as the entry price.

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bottlecap
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Re: Extended warranty on 2018 Outback

Post by bottlecap » Fri Dec 08, 2017 1:23 pm

tbradnc wrote:
Fri Dec 08, 2017 10:13 am
midareff wrote:
Fri Dec 08, 2017 9:09 am
harrington wrote:
Fri Dec 08, 2017 8:27 am
No No No.....Never buy an extended warranty. Worked in the industry for a bit many years ago and we were always told to push these products. But if you are thinking about it that is a decent price.
Having spent almost my entire career in the ground transportation business I'd add all they are is an additional profit center for dealers. OTOH, today's cars are chock full of sensors and electronics which can get pretty pricey to get into if something hiccups and $1375 for four additional years is simply too inexpensive to walk away from. Put it on a 2% cash back credit card and forgetaboutit.
Yeah, this is the way I'm leaning I think. This car is more of a computer than an automobile and I'd suspect repairing/replacing any of the electronics would cost $1375 or more.
If all the electronics in cars - which has been the case for about 30 years - actually made warranties a winning prospect for the customer and a losing prospect for the seller, don’t you think sellers would have priced the increased risk in by now?

This is a pure peace of mind thing, as in, if you would rather pay more now to insure against a small risk of a big repair, do it.

But you are losing money on average, so the answer is that it’s a bad financial deal.

Once that warranty is up is when you are most likely to need that $1,400.

JT

randomguy
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Re: Extended warranty on 2018 Outback

Post by randomguy » Fri Dec 08, 2017 2:10 pm

chevca wrote:
Fri Dec 08, 2017 12:15 pm
randomguy wrote:
Fri Dec 08, 2017 11:30 am
chevca wrote:
Fri Dec 08, 2017 8:00 am

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs?

Does it really matter. And yes I would buy insurance for car repairs. It is really all about It all depends on the price. For 100 bucks everyone would pay for an extra 4 years of coverage. At 10k, nobody would. 1375 it gets interesting. Odds are you will not need it. That is countered by the chance of getting hit with some 3k repair (i.e. how much would it cost to replace the eyesight sensors and computers? What if your CVT fails) or a bunch of small ones (i.e. your power window motor fails). Odds are you are losing money (same with any insurance product) but you are eliminating the really bad cases.
Yes, it matters. It's not really a warranty if you have to pay a deductible, right?

I see from some of the posts made, the decision to buy a warranty could depend on what one is willing to try and fix themselves or what they might be willing to leave be and drive it.


If they called it an insurance product instead of a warranty (I am not enough of legal expert to know if you can have a warranty with a deductible), would it change anything about the choice?
chevca wrote:
Fri Dec 08, 2017 12:15 pm
If odds are you won't need it, why buy it? I mean the places selling the extended warranties love it so many go against the odds, but.....
Why buy life insurance? If odds are you won't need it, why buy it? I mean the places selling the life insurance love it so many go against the odds, but...... :) Buying products like this is a losing game in general. You do it for risk reduction or in the few cases you know more than the sellers (i.e. you know you live in a construction zone with tons of nails and your odds of getting one in a tire are 10x the average).

And no I tend not to buy any of these products as I would rather self insure against <5k losses. YMMV

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Re: Extended warranty on 2018 Outback

Post by randomguy » Fri Dec 08, 2017 2:25 pm

wrongfunds wrote:
Fri Dec 08, 2017 12:31 pm
If an item needs an extended warranty, I buy the alternate which does not need an extended warranty. If I think Subaru breaks lot more often than Toyota, I will NOT buy Subaru at all. If I wanted the Subaru, I will just add the cost of the extended warranty to my purchase up front.

For example, if in the future I got smitten by Alfa Romeo or Land Rover or Aston Martin, I will consider the factory extended warranty cost as the entry price.
Nobody needs an extended warranty. Even your land rover or aston martin (not sure about Alfa Romeo:)) is likely to make it through 7 years without incident. It is just do you want to risk being the one with the 10k bill 25% of the time or would you rather pay 3k all of the time? You end up having to guess based on odds you know nothing about (i.e. stories about your brothers sister's uncles land rover that was in the shop every week doesn't tell you anything about the other 9k on the road) Now some times the products get mispriced (car is either a lot more or less reliable than what they expected) and you win or lose.

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Re: Extended warranty on 2018 Outback

Post by wrongfunds » Fri Dec 08, 2017 3:01 pm

Nobody needs an extended warranty
Google "Doug Demuro Bumper to Bumper Carmax" to have lots and lots of entertainment

randomguy
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Re: Extended warranty on 2018 Outback

Post by randomguy » Fri Dec 08, 2017 3:53 pm

wrongfunds wrote:
Fri Dec 08, 2017 3:01 pm
Nobody needs an extended warranty
Google "Doug Demuro Bumper to Bumper Carmax" to have lots and lots of entertainment
His Aston Martin story was also funny.:). It should be noted that the warranty was just mispriced. He tried the same thing a couple of years latter and the cost of the warranty was something like 3x what he paid for his. Just took carmax a little while to get enough data to offer a fair price.

In this case there is a huge difference in risk between years 3-7 and years 7-13. I have had few problems with any cars in the first 80k miles. After that a few of them have been interesting. Most of my friends cars (lets leave the ferrari out:)) match that experience. But I doubt we have a big enough sample size to be representative.

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 4:45 pm

randomguy wrote:
Fri Dec 08, 2017 2:10 pm
chevca wrote:
Fri Dec 08, 2017 12:15 pm
randomguy wrote:
Fri Dec 08, 2017 11:30 am
chevca wrote:
Fri Dec 08, 2017 8:00 am

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs?

Does it really matter. And yes I would buy insurance for car repairs. It is really all about It all depends on the price. For 100 bucks everyone would pay for an extra 4 years of coverage. At 10k, nobody would. 1375 it gets interesting. Odds are you will not need it. That is countered by the chance of getting hit with some 3k repair (i.e. how much would it cost to replace the eyesight sensors and computers? What if your CVT fails) or a bunch of small ones (i.e. your power window motor fails). Odds are you are losing money (same with any insurance product) but you are eliminating the really bad cases.
Yes, it matters. It's not really a warranty if you have to pay a deductible, right?

I see from some of the posts made, the decision to buy a warranty could depend on what one is willing to try and fix themselves or what they might be willing to leave be and drive it.


If they called it an insurance product instead of a warranty (I am not enough of legal expert to know if you can have a warranty with a deductible), would it change anything about the choice?
chevca wrote:
Fri Dec 08, 2017 12:15 pm
If odds are you won't need it, why buy it? I mean the places selling the extended warranties love it so many go against the odds, but.....
Why buy life insurance? If odds are you won't need it, why buy it? I mean the places selling the life insurance love it so many go against the odds, but...... :) Buying products like this is a losing game in general. You do it for risk reduction or in the few cases you know more than the sellers (i.e. you know you live in a construction zone with tons of nails and your odds of getting one in a tire are 10x the average).

And no I tend not to buy any of these products as I would rather self insure against <5k losses. YMMV
So, you do buy insurance for car repairs, or you tend not to buy any of these products? You have said both now. You're just in this one to argue then?

If DW or I were to die, it would be difficult for the other to go on living the same lifestyle we have now. So, we insure against that because it would be very difficult to afford the no insurance outcome.

If one of the cars broke down, we would fix it out of the EF and go on with life.

Insure against what you can't afford, right? Seems you do the same. And, you know that I'm sure.... just couldn't resist arguing for arguments sake, huh?

A flat tire?! That's the best example you could come up with to make your argument for the extended warranty? You know that's not even covered by any automobile warranty or insurance, right? :oops: Or, did you switch to tire warranties now? :wink:

randomguy
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Re: Extended warranty on 2018 Outback

Post by randomguy » Fri Dec 08, 2017 5:05 pm

chevca wrote:
Fri Dec 08, 2017 4:45 pm
So, you do buy insurance for car repairs, or you tend not to buy any of these products? You have said both now. You're just in this one to argue then?

If DW or I were to die, it would be difficult for the other to go on living the same lifestyle we have now. So, we insure against that because it would be very difficult to afford the no insurance outcome.

If one of the cars broke down, we would fix it out of the EF and go on with life.

Insure against what you can't afford, right? Seems you do the same. And, you know that I'm sure.... just couldn't resist arguing for arguments sake, huh?

A flat tire?! That's the best example you could come up with to make your argument for the extended warranty? You know that's not even covered by any automobile warranty or insurance, right? :oops: Or, did you switch to tire warranties now? :wink:
I was clear. I self insure against losses that I can afford. For me that is 5k car repairs. For you you might prefer the certainty of spending 1300 bucks. As I said YMMV. The point is simply there are very few insurance products with a postive expected value. You buy insurance knowing you are going to lose money on average.

And obviously we are talking tire warranties in my example. I am sorry it confused you when we generalize the problem. It is just a simple example where you know more than the insurance company. I assume you are able to generalize. There are other examples where you have more knowledge (i.e. you can do a DNA test to figure out some chances for cancer) but there aren't many. If there were insurance companies would go broke.

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 5:11 pm

Throughout the whole thread here, I have said I wouldn't buy the extended warranty.

There was no need to generalize. You could have just stayed on the topic brought up rather than move the goal posts all over the place to make your argument. That can be confusing when one doesn't stick to the topic.

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 5:14 pm

randomguy wrote:
Fri Dec 08, 2017 2:10 pm
Does it really matter. And yes I would buy insurance for car repairs.

And no I tend not to buy any of these products as I would rather self insure against <5k losses. YMMV
And, you really feel you were clear, random? Because you said both of these things in this one. Maybe you confused yourself?

randomguy
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Re: Extended warranty on 2018 Outback

Post by randomguy » Fri Dec 08, 2017 5:55 pm

chevca wrote:
Fri Dec 08, 2017 5:14 pm
randomguy wrote:
Fri Dec 08, 2017 2:10 pm
Does it really matter. And yes I would buy insurance for car repairs.

And no I tend not to buy any of these products as I would rather self insure against <5k losses. YMMV
And, you really feel you were clear, random? Because you said both of these things in this one. Maybe you confused yourself?
Sorry I assumed that you could read more than one sentence at a time. Read the next 2 after that one and tell me if you are still remotely confused.

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 5:59 pm

Technically, how many sentences can anyone read at a time... one at a time, right? :wink:

Yeah, none of the following sentences say anything more about what you would do. You just go off generalizing again.

wrongfunds
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Re: Extended warranty on 2018 Outback

Post by wrongfunds » Fri Dec 08, 2017 6:07 pm

You two seem to making every effort to shut down this topic. Is that your collective goal?

chevca
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Re: Extended warranty on 2018 Outback

Post by chevca » Fri Dec 08, 2017 6:09 pm

Nah. Sorry, back to regularly scheduled programming.

RudyS
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Re: Extended warranty on 2018 Outback

Post by RudyS » Sat Dec 09, 2017 11:26 am

For those debating whether it can be called a warranty if there is a deductible - Subaru offered me an extended SERVICE PLAN. Not a "warranty". They make a point that the particular one being offered is what they call "exclusionary." Everything is covered except specified wear parts. So no debate on what's covered. YMMV.

orlandoman
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Re: Extended warranty on 2018 Outback

Post by orlandoman » Sat Dec 09, 2017 12:21 pm

Whether a warranty makes sense is a personal decision.

Only buy a Subaru Added Security Warranty, if you decide to buy a warranty, not a 3rd party one.

Subaru's warranty is unique. Review the information here, https://www.subaru.com/owners/added-security.html and look at the Agreement Comparisons chart.

Buy now or later ... some benefits like trip interruption take effect immediately, review the details. Also, consider whether you think the price of labor & parts will cost more three years from now, which probably will effect warranty costs.
Subaru Ambassador in Central Florida

wrongfunds
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Re: Extended warranty on 2018 Outback

Post by wrongfunds » Sat Dec 09, 2017 3:44 pm

"exclusionary."
If you want peace of mind, this is what you purchase from the manufacturer. Anything else, you are throwing away your money,

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Re: Extended warranty on 2018 Outback

Post by amarone » Sat Dec 09, 2017 5:15 pm

It's only one data point, but we had a 2012 Outback that required zero work between 36,000 and 100,000 miles that would have been covered by an extended warranty. We now have a 2016 Outback that has required zero work from 36,000 to its current mileage of nearly 60,000.

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