Volvo CPO Extended Warranty

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RootSki
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Volvo CPO Extended Warranty

Post by RootSki »

I recently bought a 2019 Volvo XC60 T8 PHEV that was a personal lease return after 3 months. I bought it with 2800 miles on it and since it's a CPO, I have a 5 year, unlimited milage warranty.

I love this car already. It's way nicer than my last XC60. It's got way more tech too... like air suspension. I never go for extended warranties on big ticket items. It's against my nature. Except in this case, it would be OEM Volvo extended warranty out to 10 years/unlimited miles for about $3000 with a $100 deductible. It's exclusionary coverage, but does include the hybrid drivetrain components.

I'd have some piece of mind that any repair work would be done by dealership techs and I would not have to interface with the company providing the coverage (Fidelity Insurance). I doubt I'd keep this car 10 years. Most likely trade up again in 7-8 years. At that point, I could cancel the warranty, or transfer it to the next owner, which I'm more inclined to do.

What am I not thinking about here? I have 10 days left to purchase the extended CPO warranty.

Thanks
Root
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Re: Volvo CPO Extended Warranty

Post by RootSki »

Here's a link to the terms and conditions if anyone is interested. It would be platinum coverage.

https://pictures.dealer.com/steingoldvo ... 178aef.pdf
mhalley
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Re: Volvo CPO Extended Warranty

Post by mhalley »

Clark Howard is neutral on extended car warranties with one caveat: they MUST be from the auto manufactuer. So only buy it from Volvo, NOT FROM A 3RD PARTY.
. The typical selling price on an auto repair service plan is up to $3,000. For that money, you supposedly have the peace of mind to use the service plan for repairs when your car breaks down.

But guess what? The contract for that supposedly ‘bumper to bumper’ coverage has so many loopholes that it’s almost impossible to get any repairs covered!

‘The sellers often cite loopholes in the contract (ones you would never be able to discern) to avoid paying up, then void the document, leaving you in the lurch,’ the magazine reports.

If you are worried about extreme out-of-pocket expenses from repair bills for old cars, I recommend you buy the manufacturer’s own extended warranty. Do not buy one from the dealer, though, because those are often third party too. Be sure it is the manufacturer’s own.
I can’t tell if this is from Volvo or not, but I think it might be. Also, the fact that there is time pressure gives me pause. I would look at the consumer reports reliability rating and not buy an extended warranty unless it was terrible.
Last edited by mhalley on Tue Jun 18, 2019 11:15 am, edited 1 time in total.
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Re: Volvo CPO Extended Warranty

Post by RootSki »

mhalley wrote: Tue Jun 18, 2019 11:00 am Clark Howard is neutral on extended car warranties with one caveat: they MUST be from the auto manufactuer. So only buy it from Volvo, NOT FROM A 3RD PARTY.

I can’t tell if this is from Volvo or not, but leaning toward not. Also, the fact that there is time pressure gives me pause. I would look at the consumer reports reliability rating and not buy an extended warranty unless it was terrible.
The extended CPO warranty would be purchased directly from Volvo. I have 30 days to add this from date of purchase, which was about two weeks ago. I don't do consumer reports.
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Re: Volvo CPO Extended Warranty

Post by researcher »

RootSki wrote: Tue Jun 18, 2019 10:24 am I have a 5 year, unlimited milage warranty.

it would be OEM Volvo extended warranty out to 10 years/unlimited miles for about $3000 with a $100 deductible. It's exclusionary coverage.

I'd have some piece of mind that any repair work would be done by dealership techs and I would not have to interface with the company providing the coverage (Fidelity Insurance). I doubt I'd keep this car 10 years. Most likely trade up again in 7-8 years. At that point, I could cancel the warranty, or transfer it to the next owner, which I'm more inclined to do.

What am I not thinking about here? I have 10 days left to purchase the extended CPO warranty.
Absolutely no way should you spend $3000 on this extended warranty.

The vehicle already comes with a 5 year / unlimited mile warranty!
And you'll "most likely" trade up in ~7 years.
So you'd be paying $3000 for just 2 years of coverage.

Besides, did you read the list of exclusions? It's simply not worth betting against your car with those odds...gambling that you might have a big $3000 repair, for a component that the warranty actually covers, during this very narrow time period.

You said "I'd have some piece of mind that any repair work would be done by dealership techs." But those same dealership techs will repair your car, regardless of whether or not you buy this warranty.
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Re: Volvo CPO Extended Warranty

Post by mhalley »

The fidelity name gave me pause, but some research shows that it might be the vip warranty.
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Re: Volvo CPO Extended Warranty

Post by RootSki »

researcher wrote: Tue Jun 18, 2019 11:15 am Absolutely no way should you spend $3000 on this extended warranty.

The vehicle already comes with a 5 year / unlimited mile warranty!
And you'll "most likely" trade up in ~7 years.
So you'd be paying $3000 for just 2 years of coverage.

Besides, did you read the list of exclusions? It's simply not worth betting against your car with those odds...gambling that you might have a big $3000 repair, for a component that the warranty actually covers, during this very narrow time period.

You said "I'd have some piece of mind that any repair work would be done by dealership techs." But those same dealership techs will repair your car, regardless of whether or not you buy this warranty.
7... most likely 8 years. I kept my last XC60 8 years so that's a fair bet. Those same dealership techs will repair my car without the warranty at full cost to me in future dollars. I have a great Volvo independent mechanic near me, but he's not a technician. The way Volvo prices its access to their proprietary diagnostic software doesn't make since for many places to buy a subscription.

Included
COOLING: Radiator, mounting brackets and coolant recovery tank; fan clutch, fan blades and motor; fan shroud; heater core; transmission oil cooler; engine oil cooler.
STEERING: Tie rods, idler and pitman arms, center/drag link, coupling and shafts; cooler lines; steering gear housing and internal parts; rack and pinion housing and internal parts; power steering pump and internal parts including reservoir; electric steering motor; power steering pump or electric steering motor mounting brackets; seals and gaskets.
BRAKES: Compensator/proportioning valve; metering valve; calipers; wheel cylinders; backing plate; brake adjusters and brake hardware; brake pedal, pedal lever and pedal pivot; parking brake linkage/ratchet assembly and cable; anti-lock braking system component parts including control processor/module, pump, dump valve, wheel speed sensors, solenoids, accumulator, yaw rate sensor, and pressure differential switch; master cylinder; vacuum or hydraulic brake booster assembly; hydraulic lines, hoses and fittings; brake pedal apply pin; seals and gaskets.

AIR CONDITIONING: Accumulator; receiver drier; automatic temperature control programmer; clutch assembly including coil, disc and pulley; control cables; cutoff switch; serpentine belt tensioner, bearing and pulley; condensor; compressor; evaporator; orifice/expansion valve; seals and gaskets.

FRONT/REAR SUSPENSION: Upper and lower control arms, shafts and bushings; upper and lower ball joints; struts; wheel bearings/hubs; spindle/steering knuckle and spindle support; coil and leaf springs, seats and bushings, leaf spring shackles; track bars, links and bushings; electronic level control components including pump, accumulator, lines, bags; stabilizer bar, links and bushings; kingpin; torsion bar, mounts and bushings; tension rods/radius arm.

ELECTRICAL: Front and rear wiper motor, transmission and linkage; power window motor; window regulators; power seat motor; steering column multi-function switch and individual switches for turn signal, headlamp, dimmer, wiper, washer and cruise control; clock spring/ spiral cable; mirror motor switch; brake light switch; neutral safety switch; glove box light switch; courtesy light switch; cooling fan relay; air control solenoid; air regulator valve; idle air control motor; electronic ignition module; ignition coil; engine distributor including shaft, gear, bushings and modules; electronic throttle control, gas pedal position sensor/assembly; throttle position sensor; vehicle speed sensor; manifold absolute pressure sensor; knock sensor and barometric pressure sensor; alternator; alternator mounting bracket, voltage regulator; starter motor, solenoid and drive.

ADDITIONAL HYBRID/PLUG-IN ELECTRIC/COMPRESSED NATURAL GAS/HYDROGEN COMPONENTS: Electric motor/generator(s) all internal components; inverter/converter/transformer units including all internal components and cover; continuously variable transmission and all internal components; power split device and all internal components; reduction/reducer box and all internal components; motor/ generator belt tensioner; drive motor dampener; voltage inverter reservoir; three-phase high voltage cables; hydraulic or electric regenerative braking system; hybrid/EV/hydrogen battery (nickel-metal hydrate or lithium-ion drive propulsion battery) including the case and mounting hardware, junction block, main battery cable, and frame wire; onboard battery charging system including charge controller, plug in outlets, plug in cable, and trickle charger cable; electric AC compressor and motor; electric steering rack, gear, and motor; electro/hydraulic power steering pump and reservoir; hydrogen fuel cell stack; battery cooling pump; seals and gaskets.

ENGINE: All internally lubricated parts contained within the engine, plus the following: intake manifold; exhaust manifolds; balance shaft; water pump; fuel pump, diesel injection pump, diesel oil controlled fuel injectors; thermostat; oil pump; rotor housing, rotors, shims and silent shaft; all internal fasteners, nuts and bolts; turbocharger/supercharger assembly including boost valve, boost pressure control, wastegate, recirculation and blow off valve; oil pan; valve, timing and side covers; thermostat housing; water pump pulley; engine mounts; harmonic balancer; flex plate/flywheel and ring gear; seals and gaskets.

TRANSMISSION/TRANSAXLE/TRANSFER CASE: All internally lubricated parts contained within the transmission, transaxle and transfer case, plus the following: all internal fasteners, nuts and bolts; shift cover and forks; bell housing, components within the bell housing; torque converter; external valve bodies, control units and solenoids; oil pan; detent cable; kickdown link; throttle cable; vacuum modulator; transmission mounts; seals and gaskets.

DRIVE AXLE: All internally lubricated parts contained within the differential/axle housing(s), plus the following: cover; 4x4 locking hubs and electric or vacuum actuator; constant velocity joints and boots; slip joint; front wheel drive axles/half-shafts and wheel bearings; u-joints; couplings; flex disc; prop shafts; center support bearings; seals and gaskets.
Excluded
15. UNDER PLATINUM COVERAGE, ANY OF THE FOLLOWING PARTS: BRAKE LININGS, BRAKE DRUMS AND ROTORS, DISC BRAKE PADS, STANDARD MANUAL TRANSMISSION CLUTCH FRICTION DISC, PRESSURE PLATE, PILOT BEARING, THROW-OUT BEARING AND ARM, AIR BAGS, SOLAR POWERED DEVICES, GLASS, LENSES, SEALED BEAMS, BODY PARTS AND/OR PANELS, WEATHER STRIPPING, TRIM, MOLDINGS, LOCK CYLINDERS, TIRES, WHEELS, ALL BATTERIES EXCEPT HYBRID/EV/HYDROGEN HIGH VOLTAGE BATTERIES AS LISTED UNDER GOLD, LIGHT BULBS, UPHOLSTERY, PAINT, BRIGHT METAL, FREEZE PLUGS, FILTERS, HEATER AND RADIATOR HOSES, EXHAUST SYSTEM, CATALYTIC CONVERTER, SHOCK ABSORBERS, WORK SUCH AS FRONT-END ALIGNMENT OR WHEEL BALANCING (EXCEPT WHEN REQUIRED IN CONJUNCTION WITH A MECHANICAL BREAKDOWN), SAFETY RESTRAINT SYSTEMS, AUDIO/SECURITY OR OTHER SYSTEMS NOT FACTORY INSTALLED, OR VINYL AND CONVERTIBLE TOPS
17. GRADUAL BATTERY CAPACITY LOSS. NICKEL-METAL HYDRATE OR LITHIUM-ION BATTERIES, LIKE ALL BATTERIES, WILL EXPERIENCE GRADUAL CAPACITY LOSS WITH TIME AND USE. LOSS OF BATTERY CAPACITY DUE TO OR RESULTING FROM GRADUAL CAPACITY LOSS IS NOT COVERED UNDER THIS SERVICE CONTRACT;
18. THE CORRECTION OF OIL CONSUMPTION, REPAIR OF WORN RINGS, OR ANY REPAIRS FOR REDUCTION IN ENGINE EFFICIENCY THAT MUST BE PERFORMED ON YOUR VEHICLE WHEN A MECHANICAL BREAKDOWN HAS NOT OCCURED;
19. ANY MAINTENANCE ON YOUR VEHICLE;
So of the exclusion parts listed, all of them are maintenance items in my book except for the catalyst. Parts included is far greater that parts excluded.
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Re: Volvo CPO Extended Warranty

Post by Jack FFR1846 »

"Personal lease return after 3 months?".

AKA: Lemon. Think of it. Where is there a lease available on a new car for 3 months?
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Re: Volvo CPO Extended Warranty

Post by RootSki »

Jack FFR1846 wrote: Tue Jun 18, 2019 11:54 am "Personal lease return after 3 months?".

AKA: Lemon. Think of it. Where is there a lease available on a new car for 3 months?
Clean CarFax. Long time Volvo owner tried to downsize from an XC90 into an XC60. Dealer made the previous owner a trade back into an XC90 and I thank them for taking the depreciation hit for me. Unicorn cars do exist. I had to drive 300 miles to get this one.

Image
CascadiaSoonish
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Re: Volvo CPO Extended Warranty

Post by CascadiaSoonish »

We own a 2016 XC90. We bought the extended warranty at a steep discount from another Volvo dealer who was willing to sell it for a lot less than our local dealer. It's a great car but it's definitely a first-year product with technical system issues cropping up relatively frequently requiring a visit to the dealer. Time will tell whether the warranty will be worth it, but in this case with these cars I wouldn't dismiss it immediately as not being of value.
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Re: Volvo CPO Extended Warranty

Post by randomguy »

researcher wrote: Tue Jun 18, 2019 11:15 am

Absolutely no way should you spend $3000 on this extended warranty.

The vehicle already comes with a 5 year / unlimited mile warranty!
And you'll "most likely" trade up in ~7 years.
So you'd be paying $3000 for just 2 years of coverage.
No you are paying 3k for 5 years of coverage. The last 3 years of coverage will be used by the 3rd owner and will result in making a private sale of this car (i.e. thousands over trade in) much easier. You could obviously also price out the 7 or 8 year options if you want to.

Depending on your driving pattern this seems like a decent deal. Being able to drive 10 years/150-200k miles for 3k seems like a decent deal if most things are covered. You would have to look at how much is excluded and how much of what you think of repairs is actually expected wear (i.e. brakes, engine mounts, timing belts, spark plugs, .....). This is after all a plug in Volvo. A very complex car from a company not known for reliability. I would expect to lose money buying it BUT avoiding the tail ends where I pay 10k+ in repairs might make it a reasonable purchase. Definitely get a second quote. For most brands there tends to be dealers that sell the warranties cheaper than your local dealer.
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Re: Volvo CPO Extended Warranty

Post by RootSki »

I am going through the discounted dealer but not quoting the exact pricing. The cost increase between 8 years and 10 years is $75.
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Re: Volvo CPO Extended Warranty

Post by researcher »

RootSki wrote: Tue Jun 18, 2019 11:45 am 7... most likely 8 years. I kept my last XC60 8 years so that's a fair bet. Those same dealership techs will repair my car without the warranty at full cost to me in future dollars. I have a great Volvo independent mechanic near me, but he's not a technician.

So of the exclusion parts listed, all of them are maintenance items in my book except for the catalyst. Parts included is far greater that parts excluded.
Regardless, you are going to forfeit $3000 upfront (plus $100 deductibles), for AT MOST 2-3 years of coverage.

And you only listed 1 of the 22 exclusions! They won't cover things caused by...
subfreezing temperatures, lack of coolant, lack of oil viscosity, restricted oil flow, oil consumption, worn engine rings/gaskets, expensive sealed beam headlights, catalytic converter, hoses, and on and on.

Forget the warranty. Put that $3000 into a high yield MM account or invest it.
An expensive gamble that your vehicle will require a significant covered repair during that small 2-3 year window.

Even in the highly unlikely chance that it does happen, the repair bill would need to be OVER $3600 before you would even break even with the warranty. (warranty cost, deductible, lost interest)
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Re: Volvo CPO Extended Warranty

Post by RootSki »

researcher wrote: Tue Jun 18, 2019 1:04 pm
RootSki wrote: Tue Jun 18, 2019 11:45 am 7... most likely 8 years. I kept my last XC60 8 years so that's a fair bet. Those same dealership techs will repair my car without the warranty at full cost to me in future dollars. I have a great Volvo independent mechanic near me, but he's not a technician.

So of the exclusion parts listed, all of them are maintenance items in my book except for the catalyst. Parts included is far greater that parts excluded.
Regardless, you are going to forfeit $3000 upfront (plus $100 deductibles), for AT MOST 2-3 years of coverage.

And you only listed 1 of the 22 exclusions! They won't cover things caused by...
subfreezing temperatures, lack of coolant, lack of oil viscosity, restricted oil flow, oil consumption, worn engine rings/gaskets, expensive sealed beam headlights, catalytic converter, hoses, and on and on.

Forget the warranty. Put that $3000 into a high yield MM account or invest it.
An expensive gamble that your vehicle will require a significant covered repair during that small 2-3 year window.

Even in the highly unlikely chance that it does happen, the repair bill would need to be OVER $3600 before you would even break even with the warranty. (warranty cost, deductible, lost interest)
$3600 is not an expensive gamble. I'm always 100% invested.
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Re: Volvo CPO Extended Warranty

Post by sk2101 »

Jack FFR1846 wrote: Tue Jun 18, 2019 11:54 am "Personal lease return after 3 months?".

AKA: Lemon. Think of it. Where is there a lease available on a new car for 3 months?
I agree it's odd, but not a lemon. The buyback process takes a long time, it would have been way more than 3 months, you have to give the dealer time to fix it. It may have been buyer remorse or death/relocation.

On another note, I would never BUY a car with air suspension. I would rather lease it and turn it back in 3 years. -- OP, get the extended warranty, you will need it!
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Re: Volvo CPO Extended Warranty

Post by RootSki »

sk2101 wrote: Tue Jun 18, 2019 1:20 pm
Jack FFR1846 wrote: Tue Jun 18, 2019 11:54 am "Personal lease return after 3 months?".

AKA: Lemon. Think of it. Where is there a lease available on a new car for 3 months?
On another note, I would never BUY a car with air suspension. I would rather lease it and turn it back in 3 years. -- OP, get the extended warranty, you will need it!
Lol, yeah but it rides sooooo nice with air suspension. :sharebeer
researcher
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Re: Volvo CPO Extended Warranty

Post by researcher »

randomguy wrote: Tue Jun 18, 2019 12:46 pm No you are paying 3k for 5 years of coverage. The last 3 years of coverage will be used by the 3rd owner and will result in making a private sale of this car much easier.

Being able to drive 10 years/150-200k miles for 3k seems like a decent deal if most things are covered. Y

Depending on your driving pattern this seems like a decent deal....
I would expect to lose money buying it...
This is wrong.
The $3K extended warranty does NOT provide 10 years/150-200k miles of coverage.
If you factor in the existing warranty (5yrs/unlimited) and ownership period (7-8 years) the OP will only get 2-3 years worth of coverage for his money.

And it would be foolish to justify this cost based on the hypothetical benefit for some future 3rd owner, which won't even exist if the car is traded-in.
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Re: Volvo CPO Extended Warranty

Post by researcher »

RootSki wrote: Tue Jun 18, 2019 1:19 pm $3600 is not an expensive gamble. I'm always 100% invested.
You're not "always 100% invested" if you give that $3000 to the warranty company instead of investing it.
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Re: Volvo CPO Extended Warranty

Post by RootSki »

researcher wrote: Tue Jun 18, 2019 1:34 pm
randomguy wrote: Tue Jun 18, 2019 12:46 pm No you are paying 3k for 5 years of coverage. The last 3 years of coverage will be used by the 3rd owner and will result in making a private sale of this car much easier.

Being able to drive 10 years/150-200k miles for 3k seems like a decent deal if most things are covered. Y

Depending on your driving pattern this seems like a decent deal....
I would expect to lose money buying it...
This is wrong.
The $3K extended warranty does NOT provide 10 years/150-200k miles of coverage.
If you factor in the existing warranty (5yrs/unlimited) and ownership period (7-8 years) the OP will only get 2-3 years worth of coverage for his money.

And it would be foolish to justify this cost based on the hypothetical benefit for some future 3rd owner, which won't even exist if the car is traded-in.
I would not trade it in with 2+ years left on the warranty. I would privately sell it and probably get at least $3000 more than I would if I traded it in.
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Re: Volvo CPO Extended Warranty

Post by researcher »

RootSki wrote: Tue Jun 18, 2019 2:31 pm I would privately sell it and probably get at least $3000 more than I would if I traded it in.
But the same is true with or without the extended warranty.
You will virtually always get substantially more selling private party vs. trade-in, regardless of whether or not you purchased an extended warranty.

You asked "What am I not thinking about here?" and several things have been pointed out, though you seem to already have your mind made up.
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Re: Volvo CPO Extended Warranty

Post by onourway »

RootSki wrote: Tue Jun 18, 2019 2:31 pm I would not trade it in with 2+ years left on the warranty. I would privately sell it and probably get at least $3000 more than I would if I traded it in.
You think a buyer is going to pay a $3000 premium for 2 years of warranty coverage on a private sale? Yet you, the current owner, with presumably more to spend, are hemming and hawing over spending $3000 for an additional 5 years of coverage. :confused
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Re: Volvo CPO Extended Warranty

Post by RootSki »

Thanks all, I went ahead and purchased it today. Total was less than $2800. Volvo's are expensive to repair.
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Re: Volvo CPO Extended Warranty

Post by NotGoing »

@RootSki,

Looking back, do you think you make the right call? I just bought a 2021 CPO XC60 (about 31K miles) and was offered the 10-year extension (which I know is somewhat of a misnomer) from the NJ dealership for $3,864. I was Googling for insights and came upon this thread.

Buying an extended warranty goes against every rule of personal finance I've ever read. But in this case--with visions of my car sitting in the shop with strange maladies and tech failures--I'm seriously considering it. Thanks.
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Re: Volvo CPO Extended Warranty

Post by NotGoing »

Update: The dealership offered to drop the price of the extended warranty by $300. So I said I'd do it. But they emailed a contract to me that says it's for 5 years or 100K miles (as opposed to the 5 years and unlimited mileage that we discussed). When I asked about this discrepancy, they said that unlimited mileage would cost $1K more. So it's roughly $4,500 for three years of coverage (plus $100 deductible and exclusions). And it's an aftermarket warranty from a third-party provider, not Volvo. All things considered, hard pass.
Last edited by NotGoing on Tue Mar 26, 2024 12:34 pm, edited 1 time in total.
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Re: Volvo CPO Extended Warranty

Post by investingdad »

NotGoing wrote: Sun Mar 24, 2024 11:57 am @RootSki,

Looking back, do you think you make the right call? I just bought a 2021 CPO XC60 (about 31K miles) and was offered the 10-year extension (which I know is somewhat of a misnomer) from the NJ dealership for $3,864. I was Googling for insights and came upon this thread.

Buying an extended warranty goes against every rule of personal finance I've ever read. But in this case--with visions of my car sitting in the shop with strange maladies and tech failures--I'm seriously considering it. Thanks.
I see this is an older thread but we recently went through a similar discussion. My wife bought a CPO Mercedes SUV and opted to get the additional two years of factory warranty on top of the CPO warranty. Because Benz repairs can be expensive we opted to take it for $2500.

We’ll see what happens.
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Re: Volvo CPO Extended Warranty

Post by MH2 »

investingdad wrote: Tue Mar 26, 2024 11:20 am
NotGoing wrote: Sun Mar 24, 2024 11:57 am @RootSki,

Looking back, do you think you make the right call? I just bought a 2021 CPO XC60 (about 31K miles) and was offered the 10-year extension (which I know is somewhat of a misnomer) from the NJ dealership for $3,864. I was Googling for insights and came upon this thread.

Buying an extended warranty goes against every rule of personal finance I've ever read. But in this case--with visions of my car sitting in the shop with strange maladies and tech failures--I'm seriously considering it. Thanks.
I see this is an older thread but we recently went through a similar discussion. My wife bought a CPO Mercedes SUV and opted to get the additional two years of factory warranty on top of the CPO warranty. Because Benz repairs can be expensive we opted to take it for $2500.

We’ll see what happens.
European OEM warranties are generally a good deal by design.
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Re: Volvo CPO Extended Warranty

Post by InvisibleAerobar »

NotGoing wrote: Tue Mar 26, 2024 11:04 am Update: The dealership offered to drop the price of the extended warranty by $300. So I said I'd do it. But they emailed a contract to me that says it's for 5 years or 100K miles (as opposed to the 5 years and unlimited mileage that we discussed). When I asked about this discrepancy, they said that unlimited mileage would cost $1K more. So it's roughly $4,500 for three years of coverage (plus $100 deductible and exclusions). And it's an aftermarket warranty from a third-party provider, not Volvo. All things considered, hard pass.
This bit of info seems a tad confusing. CPO covers 5 years from initial in service date and has unlimited mileage. Your vehicle is MY 2021, so presumably in service in late 2020 or early 2021. So the CPO warranty should last until late 2025 to early 2026. The extended CPO underwritten by Fidelity tacks on to the end of standard CPO. Both additional duration term and mileage can be customized (former in increments of single years with the minimum being 2 years, latter in increments of 10k of miles, up to unlimited after either the 110k or 120k mark).

Are you sure what you were offered isn't additional 5 years on top and 100k miles total, which ever comes first?

As for whether ~$3,900 would be worth it, difficult to say. Back when any dealer could offer the extended CPO, the lowest price for a 10-yr unlimited mileage policy on a 2-yr old XC60 was ~$3,100 (can't recall if this was all in or before a $200 discount).

My vehicle (V60) has a higher premium as compared to XC60 for some reason, but even then, 10-yr 100k mile policy (in effect extending duration of warranty by 5 years) with $100 deductible was $2,300 all in; the corresponding premium for the XC60 was lower (I think by $500?). Even with increase in premium in the two years since, $3,900 is a lot to pay.

If I were buying today, I'd rather buy from a private party who purchased the CPO extended warranty, as this warranty as long as the sale is private party.
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Re: Volvo CPO Extended Warranty

Post by UALflyer »

investingdad wrote: Tue Mar 26, 2024 11:20 am
NotGoing wrote: Sun Mar 24, 2024 11:57 am @RootSki,

Looking back, do you think you make the right call? I just bought a 2021 CPO XC60 (about 31K miles) and was offered the 10-year extension (which I know is somewhat of a misnomer) from the NJ dealership for $3,864. I was Googling for insights and came upon this thread.

Buying an extended warranty goes against every rule of personal finance I've ever read. But in this case--with visions of my car sitting in the shop with strange maladies and tech failures--I'm seriously considering it. Thanks.
I see this is an older thread but we recently went through a similar discussion. My wife bought a CPO Mercedes SUV and opted to get the additional two years of factory warranty on top of the CPO warranty. Because Benz repairs can be expensive we opted to take it for $2500.

We’ll see what happens.
As you may or may not be aware, if you have a Mercedes CPO and wish to purchase an extended warranty from them, the extended CPO warranty is a named components warranty.

Mercedes' ELW (Extended Limited Warranty) is an exclusionary warranty and is more comprehensive than its named components warranty. Mercedes' ELW, however, is not available for CPO's.
michaelingp
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Re: Volvo CPO Extended Warranty

Post by michaelingp »

mhalley wrote: Tue Jun 18, 2019 11:16 am The fidelity name gave me pause, but some research shows that it might be the vip warranty.
I bought an extended warranty from "Fidelity Warranty" (slightly different name than in OP, but may be the same). I bought it because we had a very persuasive sales guy, but I regretted it almost immediately due to the conventional wisdom that third-party extended warranty companies put all their effort into denying claims. When I had expensive engine repair required, I read the contract, and sure enough it did appear to be written to allow the company to avoid claims. There were just so many hoops to jump through. But my wife called and Fidelity said, "Don't worry about it, the dealer will take care of all that." And they did. The service manager said, "Fidelity is one of the better ones." I think it did add significantly (a couple of weeks) to the time to make the repair, since Fidelity required an "inspector" to confirm the repair. The total bill for a cylinder head replacement was over $3,000, although the service manager said that's what Fidelity paid, they would have charged me more (who knows?).
NYCaviator
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Re: Volvo CPO Extended Warranty

Post by NYCaviator »

michaelingp wrote: Wed Mar 27, 2024 9:26 am
mhalley wrote: Tue Jun 18, 2019 11:16 am The fidelity name gave me pause, but some research shows that it might be the vip warranty.
I bought an extended warranty from "Fidelity Warranty" (slightly different name than in OP, but may be the same). I bought it because we had a very persuasive sales guy, but I regretted it almost immediately due to the conventional wisdom that third-party extended warranty companies put all their effort into denying claims. When I had expensive engine repair required, I read the contract, and sure enough it did appear to be written to allow the company to avoid claims. There were just so many hoops to jump through. But my wife called and Fidelity said, "Don't worry about it, the dealer will take care of all that." And they did. The service manager said, "Fidelity is one of the better ones." I think it did add significantly (a couple of weeks) to the time to make the repair, since Fidelity required an "inspector" to confirm the repair. The total bill for a cylinder head replacement was over $3,000, although the service manager said that's what Fidelity paid, they would have charged me more (who knows?).
Ultimately did you have a good experience?

We are coming up on the deadline to purchase a Volvo extended warranty on one of ours. Cost is around $2700 and its the VIP platinum plan (administered by Fidelity but its the Volvo warranty). It's an exclusionary warranty and covers almost everything but wear and tear items.

I plan to keep the car another 4-5 years (so we'd get 3-4 years of additional warranty) and get an EV once range/cold weather reliability gets better.

I've loved my Volvos over the years, but they've had their fair share of problems and are expensive to fix out of warranty. I've worked with a great independent shop for the older ones, but the new ones are so computerized, there's a lot they can't do so you end up at the dealer. I guess it's a gamble, but one big repair could easily pay for that warranty. Our local dealer/service department is excellent, so I have no problem going there, especially for a warranty repair.
michaelingp
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Re: Volvo CPO Extended Warranty

Post by michaelingp »

NYCaviator wrote: Tue Apr 02, 2024 8:26 am
michaelingp wrote: Wed Mar 27, 2024 9:26 am
mhalley wrote: Tue Jun 18, 2019 11:16 am The fidelity name gave me pause, but some research shows that it might be the vip warranty.
I bought an extended warranty from "Fidelity Warranty" (slightly different name than in OP, but may be the same). I bought it because we had a very persuasive sales guy, but I regretted it almost immediately due to the conventional wisdom that third-party extended warranty companies put all their effort into denying claims. When I had expensive engine repair required, I read the contract, and sure enough it did appear to be written to allow the company to avoid claims. There were just so many hoops to jump through. But my wife called and Fidelity said, "Don't worry about it, the dealer will take care of all that." And they did. The service manager said, "Fidelity is one of the better ones." I think it did add significantly (a couple of weeks) to the time to make the repair, since Fidelity required an "inspector" to confirm the repair. The total bill for a cylinder head replacement was over $3,000, although the service manager said that's what Fidelity paid, they would have charged me more (who knows?).
Ultimately did you have a good experience?

We are coming up on the deadline to purchase a Volvo extended warranty on one of ours. Cost is around $2700 and its the VIP platinum plan (administered by Fidelity but its the Volvo warranty). It's an exclusionary warranty and covers almost everything but wear and tear items.

I plan to keep the car another 4-5 years (so we'd get 3-4 years of additional warranty) and get an EV once range/cold weather reliability gets better.

I've loved my Volvos over the years, but they've had their fair share of problems and are expensive to fix out of warranty. I've worked with a great independent shop for the older ones, but the new ones are so computerized, there's a lot they can't do so you end up at the dealer. I guess it's a gamble, but one big repair could easily pay for that warranty. Our local dealer/service department is excellent, so I have no problem going there, especially for a warranty repair.
I would say, yes, it was a good experience, at least for that one repair, but nothing like a real Chrysler warranty like I had with a prior minivan where they just check the VIN number and repair everything that needs repairing. I'm not sure I understand "administered by Fidelity but its the Volvo warranty". As long as it has the manufacturer's word behind it, I would consider it the same as, say, my Subaru extended warranty that seems to be totally Subaru.

I may be an outlier here, but I actually think extended warranties can be a good deal for BHs. The conventional wisdom is that since warranties make money for the issuers, that money must come from customers, so it's better financially (on average) to self-insure for any type of misfortune that is not catastrophic and that you can absorb without going bankrupt (for BH's that's probably all car repairs). The reason I say "good deal for BHs" is that I think a lot of people sell their cars before the end of the warranty period, don't keep good records, forget about the warranty, or are not aggressive in getting benefits. Those people can provide a lot of profit for the insurers, allowing the rest of us (the BHs) to benefit from the extended warranty. Also, I'm assuming BHs would negotiate for the lowest price possible on the extended warranty.
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physics911
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Re: Volvo CPO Extended Warranty

Post by physics911 »

I know I am not adding value to the question you asked, but I will never buy another Volvo, regardless of warranty.
In 2022 we got my wife a '21 S60 with about 18k miles on it and it has been in the shop about 5 times that I can think of off the top of my head, for serious and dangerous issues. And then to add insult to injury, I had to do an unexpected brake job on it this weekend and could not find a set of pads anywhere except at the dealer and had to pay $240 for a set of plain ole front brake pads - that is highway robbery for a consumable part. I know one car should not reflect on the entire manufacturer, but no more Volvo's for this couple.

Sorry for venting in your thread.
55% Total US, 20% Total ex US, 25% Total US Bond: 52/52 DINK
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