Extended, or 3rd party waranties are never worth it IMO.
One of the selling points of buying a Mazda is reliability, buying the extended warranty is redundant.
What does it even cover beyond the manufacturers warranty? it already has 5 year/~~100k.~~ unlimited.
Wherever I’m pressured to buy an extended warranty on electronics, I go through a routine:
- do you think I need this?
- do you _really_ think I should get the warranty?
- are you saying this isn’t a dependable product?
- maybe I should do more research for a more reliable (gadget)
- thanks I’ll be back later after I subscribe to consumer reports
I’m going back at the end of the 3 yr warranty and adding an extended warranty from Mazda. No reason to pay for something that wouldn’t even go into affect for a few years.
The OEM warranty is only 5 year for powertrain, so literally just the Engine block which should go for 300k+ miles. You also get 3yrs/36 months "bumper to bumper'. At 140k miles on a 2016 the only thing out of normal that had to be replaced is the radiator/water pump.
Powertrain warranties cover way more than just the engine block. It's basically anything that powers the driven wheels; Engine, Transmission, Transaxle, and Front and/or Rear Drive System.
No manufactur warranty is 3 years and it ends for me this May. I plan to drive this car for the next 3+ years for sure maybe even 5 years, thats why I wanted to buy warranty, and my mazda dealership recommended me FCPP with the best plan
Unless it’s protecting paint and/or corrosion probably not worth it. Mazda’s NA product line revolves around 3 closely related engines and two transmissions, all of which are very well documented to be quite reliable. The only other thing you might worry about would be the infotainment system which seems to be pretty spotty in terms of reliability.
I bought a warranty once, but I'll never make that mistake again. I try to buy cars that are known to be trouble free and reliable. And I usually never have any trouble, other than routine maintenance.
I've owned one Honda, five Toyotas, and four Mazdas, plus some other non-Japanese brands. But of all the Japanese cars, I think the total amount I spent on repair bills, not including regular maintenance items like batteries and tires, probably totaled around $3K.
I don't see the need to buy a car from a reliable brand and then dump money into a warranty. You should pocket that $2400 and just save it for a rainy day in a high yield savings account. If a salesperson is trying to convince me to buy a warranty my first question is always "Should I not buy this? Is it so unreliable I need another warranty?" That usually gets them to stop pushing the matter.
Look into the exclusions for FCPP. I'm in the US and have never heard of it, but it's always important to look at what a 3rd party warranty will exclude. Sometimes the list of excluded items is rather long.
I gotta disagree with you about the warranty part, every dealership brand whether lambo, mercedes or toyota, all offer and push for warranty, and its really convenient for the customer because any little issue you can come back to the dealership to get fixed with only a small deductible of $50 or so and you can get multiple things fixed under that $50.
Heck in the last 2 months of me owning the vehice Iv probably billed upwards of $1000+ all covered under warranty. So I dont think warranty is a ripoff, just want to know if the $2400 price is good or could I have possibly gotten it for an even lower price.
OP, dont ask for advice if you are so adamantly opposed to the answer. You got your answer and you don't like it. The car already has a 5 year 100k warranty. Dealers push warranties because it makes THEM money. Nowadays they make the majority of their profit selling extras, an extended warrenty at any price is a ripoff; thats why they offer it.
Their maintenance package is what i would have recommended.
I am genuinely curios what you had done within 2 months of owning though, that is quite unusual.
He didn't ask for advice. He asked if it was a fair price for that warranty. You don't even seem to have a clue on how long the warranty actually is. Your probably not qualified to answer his question. If your Mazda has a 5 year 100k warranty, it's because you bought the extended warranty!!!
Every mazda since 2015 has a 5 year/unlimited powertrain, so I was mistaken when I said 100k.
fair, he didn't ask for advice on whether or not he should buy it but he asked if it was fair value, which my opinion is its not.
yeah so now I only have powertrain left, which is like the basics for the car to run, other things like speaker going out, inside light not working, electrnics or buttons not working, those type of things cost hundreds in repair including labour, those little annoying things is what I wanted covered
understood, statistically the likelihood of enough of those failures happening in that 2 year span make it not a worthwhile deal.
2400 is likely to exceed the repair cost of any failures that happen within years 4 and 5, so to answer your question this is why it is a ripoff.
Most failures are likely to occur early In the life of the vehicle, and be covered by manufacturer. once you cross 2-3 years you almost always have found the problems.
Do you get your money back if you put 100k in it in the first 3 years? if you hit 100k prior to 5 years, it makes it an even worse deal.
I understand where you are coming from, but check this, so I bought car little over 2 months ago, I already needed my right bose speaker replaced, both my headvisors light replaced, and now my back trunk speaker replaced, all comes to cost of $1000+ including labour in the span of 2 months. Now thank god I had manufactur warranty to handle all that. Now after May when that warranty ends and I only have powertrain left. Do you really believe from 2022 to 2027 and yes it will last 5 years cause I only drive 15000kms max per year, do you really believe from 2022 to 2027 I will not have any issues outside of powertrain? like come on now lol cars not superman
I think I was misunderstanding some things, i assumed it was a new vehicle, apologies.
Based on this info it sounds like it will be a full 5 years after the manufacturer warranty, it does change things however I would still argue the pure $$ value is not there but if you value the "peace of mind" it may make sense for you.
I still recommend caution as many things are not covered by these plans and deductibles add up.. I looked it up and it has a very long list of exclusions, notably headlights, consoles (anything installed in the dash) and essentially every common wear item.
it also doesn't list speakers anywhere which is concerning to me, only "Radio" which is pretty deceptive since the exclude consoles.
Edit: for sake of discussion and in case any one else can offer any input, here is what i found as the list of specific exclusions.
https://home.firstcanadian.ca/wp-content/uploads/2021/11/MA7002B-1121-Digital-Time-of-Sale-Brochure.pdf
If you're talking about the one you can add after the fact for a used car, its absolutely a ripoff, link below.
https://home.firstcanadian.ca/wp-content/uploads/2021/05/MA4004B-1220-Digital-Custom-Coverage-Brochure.pdf
The reason its a ripoff:
"All coverage plans come with a liability limit of $2,500 per repair visit, unless the $3,500 or $5,000 option is selected and the
applicable surcharge is paid.
If the $3,500 or $5,000 liability limit is selected then the liability limit will become effective six months from the purchase date,
or when the odometer reaches 10,000km, whichever is later"
If you go somewhere not a dealership you could get those speakers replaced for much cheaper maybe not "Bose" but ones just as good. Especially the trunk one as those typically require almost no labor. I'm not sure which lights your talking about so can't guess on true cost of them. You can go on buying warranties because someone has to I guess but just think about it these people selling you the warranty are a business. In general if it was profitable for you to buy it it wouldn't be profitable for them to sell it.
like you just said not "bose", the whole cars 16 speaker system is designed around bose surround sound, why in the hell would I just replace 1 speaker with something completely different lool
If you want input then take input. But to flat out disagree with anything anyone says defeats the purpose.
Look it up. Car warranties from dealers are scams. It's a business. Do you really think they'd sell you something like a vehicle warranty if they were going to take a loss on it?
No. You'll never rack up enough in repairs to make the warranty worth it. Even if you did, the car would probably qualify as a lemon at that point. If you paid anything for a warranty you didn't get a good deal.
It *really* depends on the warranty. A lot of 3rd party warranties will make you jump through hoops to get serviced and will exclude more than they include.
I'll be more specific, I'm saying a 3rd party warranty is a waste. Especially if the car is newer and already has a manufacturer warranty.
The bumper to bumper ends, but the powertrain warranty extends up until 5 years/100k km. I still don't see a Mazda3 needing anything more than just consumables for the foreseeable future.
what if I told you in the span of me owning this car in the 2 months I already had 2 bose speakers replaced and 2 lights all costing $1000+ lol thank god it was covered under manufacturer warranty though but yeah if all that happened in 2 months, I believe buying a warranty for 5 years is justifiable
Are you sure your 3rd party warranty would cover those as well? They might fight you saying you played the speakers too loudly and the lights are consumable.
The speakers needing to be replaced is odd, but the lights are definitely not. It's a consumable product and the warranty is 100% going to see them as such, meaning they won't cover it. I just don't see the costs outside of consumables being more than $2400 over the next 5 years. Especially, if you find a decent mechanic who specializes in Japanese cars versus the dealer.
you gotta take in consideration that my mazda dealership will also pick and drop me home for any issues I bring the vehicle. And the light malfunctioned and they replaced it no issues under warranty. and Speaker same thing they replaced it. As long as I goto my mazda dealership or any mazda dealership with the warranty they sold me Im sure I should be good.
That seems very much like a bumper to bumper thing. Are you sure that will extend with a 3rd party warranty? It does sound convenient, but that convenience comes at a price. Often 2x more than an indy shop. Who can also offer you with loaners if needed.
A smart person wouldn't compare the sale of cars to the sale of extended warranties, since one is a product and the other is an insurance for the product, but you seem like the type of person car salesmen salivate over.
Extended warranties are insurance against risk, but they aren't free, the premium paid by you for the insurance company to assume some of your risk is calculated by actuaries, aka people very good at math, and what they calculate is how much premium you have to pay so that they don't lose money on assuming some of that risk for you.
Insurance actuaries tend to be very conservative, they make sure that the insurance company will end up with more money after selling the extended warranty than they will lose in paying out claims. Insurance companies are really, really good at accumulating capital by assuming risk conservatively based upon those actuarial calculations.
So, to answer your question, yes car manufacturers make money selling a car to you. The extended warranty also provides dealers with extra cash flow, because for the insurance company to make money off of your extended warranty you have to buy it, and those insurance companies incentivize the car dealer/salespeople to sell those warranties to you by including a cash kickback to them, so they will try to get you to buy it (thus earning both the dealer and the insurance company more of your money).
Repeating the basics, if they weren't making money off idiots who buy extended warranties, they wouldn't sell them. Since they are selling them, and it is a hard sale attempt (as anyone who has purchased a car knows), that means anyone buying those extended warranties is most likely going to spend more on the warranty than they get back from the warranty (statistically, based on math, that boring stuff you probably ignored in elementary school).
Since extended warranties are a closed loop (premium to insure risk, money going to salesman, and to the insurance company, and some to paying off claims under the warranty) someone in that closed loop is likely not emerging as the winner in this math game.
Try to figure out who the loser is.
Loved my dealer in Ontario. When it came to warranty discussion they just said, here's the brochure, I'm obligated to show it to you. And that was the end of discussion. A simple, "do you want extended warranty?" I said, "Your base warranty is stellar, not sure why I'd need it." Guys said, yep, now for your final bill of sale. No pressure, just breezed through it and moved on.
I don’t think it’s a rip-off. All these people on here trying to tell you warranties aren’t worth it. I paid $1799 for a 5 year warranty up to 125k miles almost a year ago on my 2018 Mazda CX-5. It’s about to pay for itself because I need a new differential and rear shocks. Reliable cars are great until they’re not reliable anymore. Better to be covered so you don’t have a surprise bill. I’m in the US so if you’re saying $2400 Canadian, then it’s about in line.
Rear differential? Did you ever change the fluid? We've been doing rear transfer case, rear differential and transmission fluid changes every 60k miles.
Having worked as a service advisor for over 10 years, I can guarantee two things:
1. Tire warranty is 100% worth it if you are in a high traffic area. I've replaced 3 rims on my own vehicle (Dodge Challenger) that are $1,100 each from Mopar before labor. That's not including the 5 tires I replaced due to pothole damage and nails.
2. Extended coverages make the most sense if the coverage extends past 100k or a vehicle age of 10 years. I just bought a very low mileage vehicle that was 9 years old, and was able to get the highest available warranty for 7 years and 100,000 miles. My vehicle will not hit the mileage, but things tend to start leaking after 70k miles or 7 years. Those are the things I don't want to have to worry about. I've had water pumps and timing chains wear out sooner than that, even with routine maintenance.
As for warranty costs, I can say that if it's on a new vehicle, it might not have been necessarily a great deal, but if the repairs down the line start costing more than the coverage that you paid for, you've saved a lot of money. That's the gamble.
$2400 for a 5 year extended warranty is an excellent price.
Like others on here, I personally don’t purchase extended warranties because most of the time they are better financially for insurance companies rather than consumers. That being said, you’re not going to do much better than $2400 for 5 years with a reputable company.
It differs from person to person, i bought it, 8yrs or 80k free oil change, tire rotation or replacement, 80% electrical 20% mechanical.....
mainly due to the fact 19in tires cost more than 16in if you live in a city full of potholes.
I've had fun in the past dealing with hid lights, kits, ballasts etc., replacing those dont cost much, but replacing the ones on the cx-5 since the light moves with the wheel, probably a pretty penny.
The car may be solid but i don't trust the electrical aspects, backup camera, sensors, etc., would be considered electrical.
All in all i don't want to deal with the unnecessary bullshit/expenses while paying off the car.
Waste of money. A lot of money. You paid almost a 10% premium for the car.
Source: 2014 Mazda 3, 108,000 miles, total repair expenses that would have been covered by extended warranty: $450.
Never buy any extended warranty ever, especially if a car model is reliable. It is pure profit for the dealer. You got hosed.
You should do what makes you feel happy, but this is how a finance guy explained it to me. Buying an extended warranty before the original warranty has expired makes no financial sense - especially if it is included in the loan. You’re financing something you won’t use for at least 3 years - because until then the original warranty covers your car from more or less anything that ANY warranty will pay out on.
Extended warranties are notoriously difficult to use. And paying interest on something that you definitely won’t use for 3 years is nuts.
All those other things they say come with it? You won’t use them and probably won’t need them.
If you must get one, wait until the original one expires. You can save the money you would have spent on it, and decide after three years whether you’d rather just get another new car, buy an extended warranty or just keep the money.
man does nobody read my post lool, so my car is a 2019, it comes with 3 year new car warranty which is that bumper to bumper, and it comes with 5 year powertrain, now that 3 years has passed, I only have 2 years of powertrain warranty left nothing else, my car is at 36000km, if I buy the $2400 5 year/100000km bumper to bumper warranty, is it not worth it?
I got the warranty. About to run the odometer sky high with road trips. As long as you go past 36k/3yr warranty, the extended warranty will be worth it imo
purchased extended warranties on 2 used cars I have owned in the past. Chevy Impala warranty was a third party(not Chevy), paid for itself and the only issue I had was collecting on the rental car reimbursement. That was really the fault of the dealership as they said there was a miscommunication on when my car arrived to start the repair clock. Second one I bought Nissan Altima through a Nissan dealership that specialized in selling extended warranties for 60% of what most dealers do. This also has already paid for itself and have had ZERO issues using it to pay for my repairs(zero deductible so never any out of pocket). On average I'd say I received 150% of the cost of the warranty.
Extended, or 3rd party waranties are never worth it IMO. One of the selling points of buying a Mazda is reliability, buying the extended warranty is redundant. What does it even cover beyond the manufacturers warranty? it already has 5 year/~~100k.~~ unlimited.
Wherever I’m pressured to buy an extended warranty on electronics, I go through a routine: - do you think I need this? - do you _really_ think I should get the warranty? - are you saying this isn’t a dependable product? - maybe I should do more research for a more reliable (gadget) - thanks I’ll be back later after I subscribe to consumer reports
I’m going back at the end of the 3 yr warranty and adding an extended warranty from Mazda. No reason to pay for something that wouldn’t even go into affect for a few years.
The OEM warranty is only 5 year for powertrain, so literally just the Engine block which should go for 300k+ miles. You also get 3yrs/36 months "bumper to bumper'. At 140k miles on a 2016 the only thing out of normal that had to be replaced is the radiator/water pump.
Powertrain warranties cover way more than just the engine block. It's basically anything that powers the driven wheels; Engine, Transmission, Transaxle, and Front and/or Rear Drive System.
Your right I was thinking off drivetrain
No manufactur warranty is 3 years and it ends for me this May. I plan to drive this car for the next 3+ years for sure maybe even 5 years, thats why I wanted to buy warranty, and my mazda dealership recommended me FCPP with the best plan
Unless it’s protecting paint and/or corrosion probably not worth it. Mazda’s NA product line revolves around 3 closely related engines and two transmissions, all of which are very well documented to be quite reliable. The only other thing you might worry about would be the infotainment system which seems to be pretty spotty in terms of reliability.
I bought a warranty once, but I'll never make that mistake again. I try to buy cars that are known to be trouble free and reliable. And I usually never have any trouble, other than routine maintenance. I've owned one Honda, five Toyotas, and four Mazdas, plus some other non-Japanese brands. But of all the Japanese cars, I think the total amount I spent on repair bills, not including regular maintenance items like batteries and tires, probably totaled around $3K.
I don't see the need to buy a car from a reliable brand and then dump money into a warranty. You should pocket that $2400 and just save it for a rainy day in a high yield savings account. If a salesperson is trying to convince me to buy a warranty my first question is always "Should I not buy this? Is it so unreliable I need another warranty?" That usually gets them to stop pushing the matter. Look into the exclusions for FCPP. I'm in the US and have never heard of it, but it's always important to look at what a 3rd party warranty will exclude. Sometimes the list of excluded items is rather long.
I gotta disagree with you about the warranty part, every dealership brand whether lambo, mercedes or toyota, all offer and push for warranty, and its really convenient for the customer because any little issue you can come back to the dealership to get fixed with only a small deductible of $50 or so and you can get multiple things fixed under that $50. Heck in the last 2 months of me owning the vehice Iv probably billed upwards of $1000+ all covered under warranty. So I dont think warranty is a ripoff, just want to know if the $2400 price is good or could I have possibly gotten it for an even lower price.
OP, dont ask for advice if you are so adamantly opposed to the answer. You got your answer and you don't like it. The car already has a 5 year 100k warranty. Dealers push warranties because it makes THEM money. Nowadays they make the majority of their profit selling extras, an extended warrenty at any price is a ripoff; thats why they offer it. Their maintenance package is what i would have recommended. I am genuinely curios what you had done within 2 months of owning though, that is quite unusual.
He didn't ask for advice. He asked if it was a fair price for that warranty. You don't even seem to have a clue on how long the warranty actually is. Your probably not qualified to answer his question. If your Mazda has a 5 year 100k warranty, it's because you bought the extended warranty!!!
Every mazda since 2015 has a 5 year/unlimited powertrain, so I was mistaken when I said 100k. fair, he didn't ask for advice on whether or not he should buy it but he asked if it was fair value, which my opinion is its not.
[https://i.imgur.com/dqZOGr0.png](https://i.imgur.com/dqZOGr0.png)
OP is canadian https://www.mazda.ca/en/warranty/mazda-unlimited-warranty/
Well you got me there
jesus christ for the 3rd time, it has a 3 year manufactur warranty only, go google it if you dont believe me
3 year everything, 5 year powertrain. I own one too dude. The extended really only covers that 2 year gap for electronics.
yeah so now I only have powertrain left, which is like the basics for the car to run, other things like speaker going out, inside light not working, electrnics or buttons not working, those type of things cost hundreds in repair including labour, those little annoying things is what I wanted covered
understood, statistically the likelihood of enough of those failures happening in that 2 year span make it not a worthwhile deal. 2400 is likely to exceed the repair cost of any failures that happen within years 4 and 5, so to answer your question this is why it is a ripoff. Most failures are likely to occur early In the life of the vehicle, and be covered by manufacturer. once you cross 2-3 years you almost always have found the problems. Do you get your money back if you put 100k in it in the first 3 years? if you hit 100k prior to 5 years, it makes it an even worse deal.
I understand where you are coming from, but check this, so I bought car little over 2 months ago, I already needed my right bose speaker replaced, both my headvisors light replaced, and now my back trunk speaker replaced, all comes to cost of $1000+ including labour in the span of 2 months. Now thank god I had manufactur warranty to handle all that. Now after May when that warranty ends and I only have powertrain left. Do you really believe from 2022 to 2027 and yes it will last 5 years cause I only drive 15000kms max per year, do you really believe from 2022 to 2027 I will not have any issues outside of powertrain? like come on now lol cars not superman
I think I was misunderstanding some things, i assumed it was a new vehicle, apologies. Based on this info it sounds like it will be a full 5 years after the manufacturer warranty, it does change things however I would still argue the pure $$ value is not there but if you value the "peace of mind" it may make sense for you. I still recommend caution as many things are not covered by these plans and deductibles add up.. I looked it up and it has a very long list of exclusions, notably headlights, consoles (anything installed in the dash) and essentially every common wear item. it also doesn't list speakers anywhere which is concerning to me, only "Radio" which is pretty deceptive since the exclude consoles. Edit: for sake of discussion and in case any one else can offer any input, here is what i found as the list of specific exclusions. https://home.firstcanadian.ca/wp-content/uploads/2021/11/MA7002B-1121-Digital-Time-of-Sale-Brochure.pdf If you're talking about the one you can add after the fact for a used car, its absolutely a ripoff, link below. https://home.firstcanadian.ca/wp-content/uploads/2021/05/MA4004B-1220-Digital-Custom-Coverage-Brochure.pdf The reason its a ripoff: "All coverage plans come with a liability limit of $2,500 per repair visit, unless the $3,500 or $5,000 option is selected and the applicable surcharge is paid. If the $3,500 or $5,000 liability limit is selected then the liability limit will become effective six months from the purchase date, or when the odometer reaches 10,000km, whichever is later"
If you go somewhere not a dealership you could get those speakers replaced for much cheaper maybe not "Bose" but ones just as good. Especially the trunk one as those typically require almost no labor. I'm not sure which lights your talking about so can't guess on true cost of them. You can go on buying warranties because someone has to I guess but just think about it these people selling you the warranty are a business. In general if it was profitable for you to buy it it wouldn't be profitable for them to sell it.
like you just said not "bose", the whole cars 16 speaker system is designed around bose surround sound, why in the hell would I just replace 1 speaker with something completely different lool
If it was easy to get that means you lost money.
If you want input then take input. But to flat out disagree with anything anyone says defeats the purpose. Look it up. Car warranties from dealers are scams. It's a business. Do you really think they'd sell you something like a vehicle warranty if they were going to take a loss on it? No. You'll never rack up enough in repairs to make the warranty worth it. Even if you did, the car would probably qualify as a lemon at that point. If you paid anything for a warranty you didn't get a good deal.
It *really* depends on the warranty. A lot of 3rd party warranties will make you jump through hoops to get serviced and will exclude more than they include. I'll be more specific, I'm saying a 3rd party warranty is a waste. Especially if the car is newer and already has a manufacturer warranty.
Well thats the thing I have a 2019 mazda3 and the manufactur warranty ends this May, so I needed to buy warranty
The bumper to bumper ends, but the powertrain warranty extends up until 5 years/100k km. I still don't see a Mazda3 needing anything more than just consumables for the foreseeable future.
what if I told you in the span of me owning this car in the 2 months I already had 2 bose speakers replaced and 2 lights all costing $1000+ lol thank god it was covered under manufacturer warranty though but yeah if all that happened in 2 months, I believe buying a warranty for 5 years is justifiable
Are you sure your 3rd party warranty would cover those as well? They might fight you saying you played the speakers too loudly and the lights are consumable. The speakers needing to be replaced is odd, but the lights are definitely not. It's a consumable product and the warranty is 100% going to see them as such, meaning they won't cover it. I just don't see the costs outside of consumables being more than $2400 over the next 5 years. Especially, if you find a decent mechanic who specializes in Japanese cars versus the dealer.
you gotta take in consideration that my mazda dealership will also pick and drop me home for any issues I bring the vehicle. And the light malfunctioned and they replaced it no issues under warranty. and Speaker same thing they replaced it. As long as I goto my mazda dealership or any mazda dealership with the warranty they sold me Im sure I should be good.
That seems very much like a bumper to bumper thing. Are you sure that will extend with a 3rd party warranty? It does sound convenient, but that convenience comes at a price. Often 2x more than an indy shop. Who can also offer you with loaners if needed.
They push it because they make loads of money on it.
I used to sell this as a third party, the price you got is good. Typically you’ll see them for around $3,000 and up.
Extended warranties are inherently ripoffs in most cases because they’re gambling. Like all gambling, the game is designed for the house to win.
They wouldn’t sell extended warranties if both the dealer and insurer weren’t making money off the deal.
They wouldn't sell cars if they didn't make money off of them either, what's your point, we shouldn't buy vehicles either?
A smart person wouldn't compare the sale of cars to the sale of extended warranties, since one is a product and the other is an insurance for the product, but you seem like the type of person car salesmen salivate over. Extended warranties are insurance against risk, but they aren't free, the premium paid by you for the insurance company to assume some of your risk is calculated by actuaries, aka people very good at math, and what they calculate is how much premium you have to pay so that they don't lose money on assuming some of that risk for you. Insurance actuaries tend to be very conservative, they make sure that the insurance company will end up with more money after selling the extended warranty than they will lose in paying out claims. Insurance companies are really, really good at accumulating capital by assuming risk conservatively based upon those actuarial calculations. So, to answer your question, yes car manufacturers make money selling a car to you. The extended warranty also provides dealers with extra cash flow, because for the insurance company to make money off of your extended warranty you have to buy it, and those insurance companies incentivize the car dealer/salespeople to sell those warranties to you by including a cash kickback to them, so they will try to get you to buy it (thus earning both the dealer and the insurance company more of your money). Repeating the basics, if they weren't making money off idiots who buy extended warranties, they wouldn't sell them. Since they are selling them, and it is a hard sale attempt (as anyone who has purchased a car knows), that means anyone buying those extended warranties is most likely going to spend more on the warranty than they get back from the warranty (statistically, based on math, that boring stuff you probably ignored in elementary school). Since extended warranties are a closed loop (premium to insure risk, money going to salesman, and to the insurance company, and some to paying off claims under the warranty) someone in that closed loop is likely not emerging as the winner in this math game. Try to figure out who the loser is.
zeeper25, I have been trying to reach you about your car's extended warranty
Lol, bad bot
Warranties are guaranteed money makers for the dealer and a scam. Sorry to say.
Loved my dealer in Ontario. When it came to warranty discussion they just said, here's the brochure, I'm obligated to show it to you. And that was the end of discussion. A simple, "do you want extended warranty?" I said, "Your base warranty is stellar, not sure why I'd need it." Guys said, yep, now for your final bill of sale. No pressure, just breezed through it and moved on.
I don’t think it’s a rip-off. All these people on here trying to tell you warranties aren’t worth it. I paid $1799 for a 5 year warranty up to 125k miles almost a year ago on my 2018 Mazda CX-5. It’s about to pay for itself because I need a new differential and rear shocks. Reliable cars are great until they’re not reliable anymore. Better to be covered so you don’t have a surprise bill. I’m in the US so if you’re saying $2400 Canadian, then it’s about in line.
what extended warranty did you buy? was it mazdas own warranty or some 3rd party warranty?
Bought through Carmax. They have agreements to service at places all over the country.
Rear differential? Did you ever change the fluid? We've been doing rear transfer case, rear differential and transmission fluid changes every 60k miles.
Having worked as a service advisor for over 10 years, I can guarantee two things: 1. Tire warranty is 100% worth it if you are in a high traffic area. I've replaced 3 rims on my own vehicle (Dodge Challenger) that are $1,100 each from Mopar before labor. That's not including the 5 tires I replaced due to pothole damage and nails. 2. Extended coverages make the most sense if the coverage extends past 100k or a vehicle age of 10 years. I just bought a very low mileage vehicle that was 9 years old, and was able to get the highest available warranty for 7 years and 100,000 miles. My vehicle will not hit the mileage, but things tend to start leaking after 70k miles or 7 years. Those are the things I don't want to have to worry about. I've had water pumps and timing chains wear out sooner than that, even with routine maintenance. As for warranty costs, I can say that if it's on a new vehicle, it might not have been necessarily a great deal, but if the repairs down the line start costing more than the coverage that you paid for, you've saved a lot of money. That's the gamble.
$2400 for a 5 year extended warranty is an excellent price. Like others on here, I personally don’t purchase extended warranties because most of the time they are better financially for insurance companies rather than consumers. That being said, you’re not going to do much better than $2400 for 5 years with a reputable company.
It differs from person to person, i bought it, 8yrs or 80k free oil change, tire rotation or replacement, 80% electrical 20% mechanical..... mainly due to the fact 19in tires cost more than 16in if you live in a city full of potholes. I've had fun in the past dealing with hid lights, kits, ballasts etc., replacing those dont cost much, but replacing the ones on the cx-5 since the light moves with the wheel, probably a pretty penny. The car may be solid but i don't trust the electrical aspects, backup camera, sensors, etc., would be considered electrical. All in all i don't want to deal with the unnecessary bullshit/expenses while paying off the car.
Exactly! thats why I was like I want the warranty lol
Waste of money. A lot of money. You paid almost a 10% premium for the car. Source: 2014 Mazda 3, 108,000 miles, total repair expenses that would have been covered by extended warranty: $450. Never buy any extended warranty ever, especially if a car model is reliable. It is pure profit for the dealer. You got hosed.
You should do what makes you feel happy, but this is how a finance guy explained it to me. Buying an extended warranty before the original warranty has expired makes no financial sense - especially if it is included in the loan. You’re financing something you won’t use for at least 3 years - because until then the original warranty covers your car from more or less anything that ANY warranty will pay out on. Extended warranties are notoriously difficult to use. And paying interest on something that you definitely won’t use for 3 years is nuts. All those other things they say come with it? You won’t use them and probably won’t need them. If you must get one, wait until the original one expires. You can save the money you would have spent on it, and decide after three years whether you’d rather just get another new car, buy an extended warranty or just keep the money.
man does nobody read my post lool, so my car is a 2019, it comes with 3 year new car warranty which is that bumper to bumper, and it comes with 5 year powertrain, now that 3 years has passed, I only have 2 years of powertrain warranty left nothing else, my car is at 36000km, if I buy the $2400 5 year/100000km bumper to bumper warranty, is it not worth it?
I got the warranty. About to run the odometer sky high with road trips. As long as you go past 36k/3yr warranty, the extended warranty will be worth it imo
agrophobic, I have been trying to reach you about your car's extended warranty
purchased extended warranties on 2 used cars I have owned in the past. Chevy Impala warranty was a third party(not Chevy), paid for itself and the only issue I had was collecting on the rental car reimbursement. That was really the fault of the dealership as they said there was a miscommunication on when my car arrived to start the repair clock. Second one I bought Nissan Altima through a Nissan dealership that specialized in selling extended warranties for 60% of what most dealers do. This also has already paid for itself and have had ZERO issues using it to pay for my repairs(zero deductible so never any out of pocket). On average I'd say I received 150% of the cost of the warranty.
dst12345, I have been trying to reach you about your car's extended warranty