Subaru CPO - Friends and family extended warranty price

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Bb073084
Posts: 52
Joined: Sun Feb 03, 2019 10:24 am

Subaru CPO - Friends and family extended warranty price

Post by Bb073084 » Fri May 10, 2019 8:05 am

Hi everyone,

I am finalizing a car purchase on a 2019 Subaru Outback Premium with 5000 miles on it. The car was a dealer loaner and they are required to retire them after 5000 miles. It has all of the safety feature add ons so basically a limited but without a sunroof, upgraded speakers, push start, and leather. The car was priced at $26,500. A friend works at the dealer and so I have been offered the 7 year/100,000 extended gold extended bumper to bumper manufacturer warranty for $699 upfront cost ($100 deductible). I was told this is $100 over cost to the dealer.

From what I saw at another dealer before settling on my friends dealership this is a significant savings from typical price and I tempted to buy it.

At this price for the vehicle above would this be a reasonable purchase? Also, is this a good price for such a vehicle?

nexesn
Posts: 136
Joined: Mon Jan 01, 2018 9:15 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by nexesn » Fri May 10, 2019 8:11 am

I'm not a Subaru person, and have no idea of prices- you could probably call a few dealers to get an idea of costs. I'm also not a big fan of paying for warranties. But, I'd probably by the extended warranty for this price. Price seems reasonable; I've known others who have bought the bumper to bumper and they were very lucky they did (one had to get a transmission replaced on a VW. If they didn't have the warranty, it would have cost them $5000 out of pocket).

Good luck with your decision.

dbr
Posts: 31249
Joined: Sun Mar 04, 2007 9:50 am

Re: Subaru CPO - Friends and family extended warranty price

Post by dbr » Fri May 10, 2019 8:18 am

I can't tell you that you would not find a better price on either the car or the warranty, but in my opinion the prices you quote are fine.

It is also my opinion that the approach to warranties is changing. There are so many glitches that can develop at any time in modern design cars and be very expensive to repair that warranties are a necessity. In many cases these are electronic faults that can shut down the car. Note warranties can still be bought later.
Last edited by dbr on Fri May 10, 2019 8:27 am, edited 1 time in total.

livesoft
Posts: 69587
Joined: Thu Mar 01, 2007 8:00 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by livesoft » Fri May 10, 2019 8:25 am

In your shoes, I would be checking and using
https://www.subaruoutback.org/forums/
I guess this is a 2.5i car and you are not getting a deal as brand new 2019 Subaru 2.5i premium without 5,000 miles are selling for that price and lower.
Wiki This signature message sponsored by sscritic: Learn to fish.

MangoMama
Posts: 81
Joined: Fri Nov 04, 2016 1:45 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by MangoMama » Fri May 10, 2019 8:31 am

Bb073084 wrote:
Fri May 10, 2019 8:05 am
Hi everyone,

I am finalizing a car purchase on a 2019 Subaru Outback Premium with 5000 miles on it. The car was a dealer loaner and they are required to retire them after 5000 miles. It has all of the safety feature add ons so basically a limited but without a sunroof, upgraded speakers, push start, and leather. The car was priced at $26,500. A friend works at the dealer and so I have been offered the 7 year/100,000 extended gold extended bumper to bumper manufacturer warranty for $699 upfront cost ($100 deductible). I was told this is $100 over cost to the dealer.

From what I saw at another dealer before settling on my friends dealership this is a significant savings from typical price and I tempted to buy it.

At this price for the vehicle above would this be a reasonable purchase? Also, is this a good price for such a vehicle?
Seems like a decent offer. Suggest you get an email quote from Grand Subaru near O'Hare just to see what they could do. I believe they are a volume dealer that a bunch of the OB forums folks have bought from. That could give you an idea about the price. There is also a long purchase price thread going on subaruoutback dot org, worth a read as well.

The warranty price seems pretty good as well. But do make sure it really is the Subaru Added Security Gold Plus plan. You have until the 3yr/36K warranty runs out to buy the additional coverage. I'm looking at getting the gold 8yr/120k $0-ded for ~$2200'ish. Best prices I've seen for the 7/100k with $0-ded is about $1,550. $700 seems almost too good to be true. Trust but verify :D

Jack FFR1846
Posts: 10805
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: Subaru CPO - Friends and family extended warranty price

Post by Jack FFR1846 » Fri May 10, 2019 8:44 am

From 2 years ago, Mastria quoted this at $1275. These guys tend to beat everyone else in the US. Your price is nearly half that. If you buy the car, absolutely get that warranty. For comparison, a $0 deductible back then was $1495, so if you could get it for $800 or $900, it's worth it.

So just to clarify....what makes any Subaru CPO is the addition of the warranty. So the car should be priced as a non-CPO if you're paying for this separately.
Bogle: Smart Beta is stupid

maroon
Posts: 353
Joined: Tue Sep 08, 2009 11:59 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by maroon » Fri May 10, 2019 8:48 am

I can't comment on the car purchase price, but that sounds like a great warranty price. I'd buy it.

Congratulations on your new Outback! My Forester has 120K miles and is running strong. Out of warranty my Forester's had a broken sunroof track (which Subaru repaired for free) and control arm bushing replacement (~$500).

deltaneutral83
Posts: 1407
Joined: Tue Mar 07, 2017 4:25 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by deltaneutral83 » Fri May 10, 2019 8:49 am

$699 with a $100 deduc for 7 years is a good deal for nearly any vehicle, even if brand new and you don't anticipate any issues for at least 3-4 years or have factory warranty for 3/36k. Worst case scenario your car doesn't need a thing and you're out $699 and sleep easy over 7 years. I paid $2,400 with Audi for 60 months when the car had 1 year of factory warranty left and a 4 year extension of after market warranty (the same thing also with the $100 deduc and had 4 repairs that totaled over $6k and $400 in deduc's and obviously came out well ahead.) Spent $2800 for over $6k in repairs over the last 48 months and sold it the month it went out of warranty.

scophreak
Posts: 78
Joined: Tue Jan 12, 2016 1:17 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by scophreak » Fri May 10, 2019 8:52 am

Purchased the 7yr/100,000 mile $100 deductible warranty for our new Ascent. As a data point (though potentially different cost due to differences in the model of car), the cost for this was $1300 back in Sept 2019. This is about the bare-bones cost for a Gold Plus warranty through a high-volume seller that seems to be the preferred option over at www.ascentforums.com. At $699 I would think this is a steal for the OB if it is indeed the Subaru Gold Plus version.

researcher
Posts: 1185
Joined: Thu Mar 12, 2015 7:05 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by researcher » Fri May 10, 2019 9:37 am

Bb073084 wrote:
Fri May 10, 2019 8:05 am
I have been offered the 7 year/100,000 extended gold extended bumper to bumper manufacturer warranty for $699 upfront cost ($100 deductible). I was told this is $100 over cost to the dealer.
I'm not sure why some people think this is a "steal," a "good deal" or a "great price."

1) Your thread title states that this is a "Subaru CPO" vehicle, which already comes with an extended warranty.
If this is the case, there is no need to waste $700 on a second warranty.

2) The OEM warranty provides 5 yr / 60K miles of powertrain coverage.
So you're paying $700, plus $100 deductibles, for a 2 year window of coverage.

3) There is a long list of items not covered by the warranty.
The contract also includes ways for coverage to be denied (see below).

4) What are the chances you will have a COVERED powertrain issue during that 2 year window, or a COVERED non-powertrain issue during the 4 year window? I've owned a few new vehicles and have never required any covered repairs in the first 10 years of ownership.

5) I would much rather have that $700 in the bank and pay out of pocket in the unlikely event that I have a covered repair during the narrow time period offered by the warranty.

The only items NOT covered by Added Security Gold Plus are:
Scheduled maintenance services and parts as well as our other normal maintenance services and parts, including engine tune-up, suspension alignment, wheel balancing, filters, lubricants, engine coolant, fluids, wiper blades, belts, hoses, spark plugs, brake pads, linings and shoes, and manual clutch assembly. Other parts not covered are glass, weatherstrips, lenses, sealed beams, light bulbs, tires, hard and soft trim, moldings, bright metal, upholstery, paint, exhaust system, catalytic converter, brake rotors and drums, shock absorbers, air suspension assembly, battery, rust damage, wind noise, squeaks, rattles and cable or linkage adjustments. Accessories are covered only if factory installed or approved. Added Security exclusions include (but are not limited to): Vehicles used commercially, failures caused by unreasonable use or lack of proper maintenance.

maroon
Posts: 353
Joined: Tue Sep 08, 2009 11:59 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by maroon » Fri May 10, 2019 9:48 am

I believe the gold warranty is bumper-to-bumper, whereas the CPO extended warranty is powertrain only.

User avatar
TexasPE
Posts: 246
Joined: Sat Feb 17, 2018 8:41 pm
Location: Southeast Texas

Re: Subaru CPO - Friends and family extended warranty price

Post by TexasPE » Fri May 10, 2019 9:54 am

IMHO an excellent price! I paid almost twice that after shopping around. The exclusions are primarily expected-wear items. With all the electronics/ sensors in new vehicles, the warranty is worthwhile. As others have said, make sure it is a Subaru Gold warranty, not third-party.
At 20: I cared what everyone thought about me | At 40: I didn't give a damn what anyone thought of me | Now that I'm 60: I realize that no one was really thinking about me at all | Winston Churchill (?)

researcher
Posts: 1185
Joined: Thu Mar 12, 2015 7:05 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by researcher » Fri May 10, 2019 10:23 am

TexasPE wrote:
Fri May 10, 2019 9:54 am
IMHO an excellent price! I paid almost twice that after shopping around. The exclusions are primarily expected-wear items. With all the electronics/ sensors in new vehicles, the warranty is worthwhile. As others have said, make sure it is a Subaru Gold warranty, not third-party.
The "with all the electronics/sensors in new vehicles" trope is the primary sales/scare tactic used by dealerships to hawk these unnecessary warranties.

Originally, the primary pitch was the extended powertrain coverage.
But with engines/transmissions lasting well beyond 100K, they had to find another approach.
So they focused on the automatic door/rear hatch motors found on minivans/SUVs.
Then it became was the HID headlight assemblies.
Now it is all of the "scary, expensive electronics and sensors that will surely fail."

stoptothink
Posts: 6791
Joined: Fri Dec 31, 2010 9:53 am

Re: Subaru CPO - Friends and family extended warranty price

Post by stoptothink » Fri May 10, 2019 10:28 am

researcher wrote:
Fri May 10, 2019 10:23 am
TexasPE wrote:
Fri May 10, 2019 9:54 am
IMHO an excellent price! I paid almost twice that after shopping around. The exclusions are primarily expected-wear items. With all the electronics/ sensors in new vehicles, the warranty is worthwhile. As others have said, make sure it is a Subaru Gold warranty, not third-party.
The "with all the electronics/sensors in new vehicles" trope is the primary sales/scare tactic used by dealerships to hawk these unnecessary warranties.

Originally, the primary pitch was the extended powertrain coverage.
But with engines/transmissions lasting well beyond 100K, they had to find another approach.
So they focused on the automatic door/rear hatch motors found on minivans/SUVs.
Then it became was the HID headlight assemblies.
Now it is all of the "scary, expensive electronics and sensors that will surely fail."
FWIW, recent Subaru's have an almost comically bad record with their electronics. https://www.torquenews.com/1084/subaru- ... k-problems . My brother has a 2018 outback, it has spent almost as much time at the dealer as it has in his garage. It runs great though.

researcher
Posts: 1185
Joined: Thu Mar 12, 2015 7:05 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by researcher » Fri May 10, 2019 10:30 am

maroon wrote:
Fri May 10, 2019 9:48 am
I believe the gold warranty is bumper-to-bumper, whereas the CPO extended warranty is powertrain only.
So the OP would pay $700 (plus $100 deductibles) for coverage of NON-POWERTRAIN issues in years 4-7, that doesn't include...

engine tune-up, suspension alignment, wheel balancing, filters, lubricants, engine coolant, fluids, wiper blades, belts, hoses, spark plugs, brake pads, linings and shoes, and manual clutch assembly, glass, weatherstrips, lenses, sealed beams, light bulbs, tires, hard and soft trim, moldings, bright metal, upholstery, paint, exhaust system, catalytic converter, brake rotors and drums, shock absorbers, air suspension assembly, battery, rust damage, wind noise, squeaks, rattles and cable or linkage adjustments.

I'm baffled as to why people think this is a good deal.

researcher
Posts: 1185
Joined: Thu Mar 12, 2015 7:05 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by researcher » Fri May 10, 2019 10:35 am

stoptothink wrote:
Fri May 10, 2019 10:28 am
FWIW, recent Subaru's have an almost comically bad record with their electronics. https://www.torquenews.com/1084/subaru- ... k-problems . My brother has a 2018 outback, it has spent almost as much time at the dealer as it has in his garage. It runs great though.
The two takeaways here are...
- Your brother's issues are covered under the OEM factory warranty that is provided free of charge
- Consumers should avoid purchasing Subarus

oldfatguy
Posts: 447
Joined: Tue Feb 27, 2018 1:38 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by oldfatguy » Fri May 10, 2019 10:38 am

researcher wrote:
Fri May 10, 2019 10:30 am
maroon wrote:
Fri May 10, 2019 9:48 am
I believe the gold warranty is bumper-to-bumper, whereas the CPO extended warranty is powertrain only.
So the OP would pay $700 (plus $100 deductibles) for coverage of NON-POWERTRAIN issues in years 4-7, that doesn't include...

engine tune-up, suspension alignment, wheel balancing, filters, lubricants, engine coolant, fluids, wiper blades, belts, hoses, spark plugs, brake pads, linings and shoes, and manual clutch assembly, glass, weatherstrips, lenses, sealed beams, light bulbs, tires, hard and soft trim, moldings, bright metal, upholstery, paint, exhaust system, catalytic converter, brake rotors and drums, shock absorbers, air suspension assembly, battery, rust damage, wind noise, squeaks, rattles and cable or linkage adjustments.

I'm baffled as to why people think this is a good deal.
It's a "good deal" relative to the retail cost of the warranty - the lowest price available is generally about $1200. Whether or not it would end up being a good deal for any particular person will depend on how much covered stuff needs to be repaired or replaced during the warranty period.

As with all warranties, the company is obviously making money on them or else they wouldn't sell them. Some customers will end up getting a great benefit from a warranty, but most will not.

orlandoman
Posts: 493
Joined: Tue Oct 19, 2010 7:27 am

Re: Subaru CPO - Friends and family extended warranty price

Post by orlandoman » Fri May 10, 2019 10:56 am

I'm a Subaru Ambassador ... that's an excellent price for a Subaru Gold Plus warranty, I suggest buying it.
"Don't Believe Everything You Think"

stoptothink
Posts: 6791
Joined: Fri Dec 31, 2010 9:53 am

Re: Subaru CPO - Friends and family extended warranty price

Post by stoptothink » Fri May 10, 2019 11:17 am

researcher wrote:
Fri May 10, 2019 10:35 am
stoptothink wrote:
Fri May 10, 2019 10:28 am
FWIW, recent Subaru's have an almost comically bad record with their electronics. https://www.torquenews.com/1084/subaru- ... k-problems . My brother has a 2018 outback, it has spent almost as much time at the dealer as it has in his garage. It runs great though.
The two takeaways here are...
- Your brother's issues are covered under the OEM factory warranty that is provided free of charge
- Consumers should avoid purchasing Subarus
Something with that extensive of electronic unreliability, I'd be concerned about that even after the factory warranty has expired; so it may be relevant to current buyers. I have never ever remotely considered buying an extended warranty on a car and yes, his experience probably turned me off from considering a Subaru in the future.

BruDude
Posts: 3098
Joined: Thu Dec 30, 2010 12:28 am
Location: Las Vegas

Re: Subaru CPO - Friends and family extended warranty price

Post by BruDude » Fri May 10, 2019 11:38 am

It's worth buying for resale value alone, that's ridiculously cheap for a 7-year 100k warranty. I was just quoted $9500 by the dealer for a 5-year 50k mile bumper to bumper warranty on a 2015 Porsche Cayenne Turbo that only has 12k miles on it. Of course that is a ridiculous amount when Fidelity Platinum is 1/3 of the price, but even so, $700 seems stupidly cheap if it's bumper to bumper. You would easily recoup that if/when selling the car later even if you never used it.

researcher
Posts: 1185
Joined: Thu Mar 12, 2015 7:05 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by researcher » Fri May 10, 2019 12:40 pm

BruDude wrote:
Fri May 10, 2019 11:38 am
It's worth buying for resale value alone, that's ridiculously cheap for a 7-year 100k warranty.
$700 seems stupidly cheap if it's bumper to bumper. You would easily recoup that if/when selling the car later even if you never used it.
But the vehicle already has TWO overlapping warranties as it is...
the OEM factory warranty + the CPO extended warranty.

Given that it comes with a 7 year powertrain CPO warranty, will he really be able to recoup this extra warranty?
In order to recoup, he would have to sell this brand new car within the first 5-6 years.
Seems like an odd reason to blow $700, especially if you don't even plan on owning the car for the warranty term.

Topic Author
Bb073084
Posts: 52
Joined: Sun Feb 03, 2019 10:24 am

Re: Subaru CPO - Friends and family extended warranty price

Post by Bb073084 » Fri May 10, 2019 2:41 pm

So given the suggestions I was able to buy a new 2019 outback for the same price. So got a Premium 2.5i mfg configuration 13 with popular package 2 for $26.5k.

Now they say the extended warranty cost would be $2400 for friends and family and normally $3,700 for everyone else. This would be the platinum Subaru factory warranty extension.

For that price I plan to pass.

Thoughts?

researcher
Posts: 1185
Joined: Thu Mar 12, 2015 7:05 pm

Re: Subaru CPO - Friends and family extended warranty price

Post by researcher » Fri May 10, 2019 2:51 pm

Bb073084 wrote:
Fri May 10, 2019 2:41 pm
Now they say the extended warranty cost would be $2400. This would be the platinum Subaru factory warranty extension.
You would be crazy to blow $2400 on the extended warranty.

Also, could you provide a link to this "platinum Subaru factory warranty extension"?

Topic Author
Bb073084
Posts: 52
Joined: Sun Feb 03, 2019 10:24 am

Re: Subaru CPO - Friends and family extended warranty price

Post by Bb073084 » Fri May 10, 2019 3:03 pm

I unfortunately have not seen the paperwork yet as the new car is in transit so I am waiting to finalize paperwork tell it arrives.

I have a feeling they are trying to make up lost profit on the car on the warranty. So I plan to pass as $800 bucks was my limit.

BruDude
Posts: 3098
Joined: Thu Dec 30, 2010 12:28 am
Location: Las Vegas

Re: Subaru CPO - Friends and family extended warranty price

Post by BruDude » Fri May 10, 2019 4:28 pm

Speaking of extended warranties, the engine on my BMW M3 just blew a couple hours ago. No warranty. There goes $15k. Warranties are cool.

Post Reply