<p>Happy Friday everyone.</p>
<p>I bought a used 08 Hyundai Sonata, 32000 miles for $10,000. It was not a certified hyundai so I only get the remainder of 5/60,000 miles warranty UNLESS I buy the extended warranty for $1400.</p>
<p>I have always heard these warranties are a waste. What do you think?</p>
<p>thanks</p>
<p>i spent 1500 on the extended warranty on my first car when I was 16 and it didn’t cover ANY of the things that went wrong with my car. I would have been better off putting that 1500 towards the price of a better car.</p>
<p>Happy Friday! That’s exactly the question here…yesterday we bought DD an 05 Santa Fe, obviously more miles, but had it checked out and it’s in great shape. Only a 30-day warranty though and I’m thinking I might spring for extended coverage because she’s in college, can’t handle big expenses, I already have 2 other older vehicles to maintain, and she’s 200 miles away. I asked for recommendations of good warranty companies from my regular mechanic. </p>
<p>I think it’s something to consider if you plan on keeping the car. My sis bought a used Ford Escape and the dealer sold her an extended warranty. In two years she’s had a transmission replaced and various other things…total repair costs would have exceeded $2K! She’s got two years left on the warranty and is already $700 ahead. Mechanic told me they almost never see such problems with the Hyundai vehicles, but that of course depends on how the previous owner treated them.</p>
<p>We’ve had many cars over the years. I’ve never bought an extended warranty. I will never buy an extended warranty. I see them as nothing more than a money maker for the seller.
I’d much rather save the money and take my chances.</p>
<p>The profit margin is somewhere between 5 to 7 times above cost, so there’s plenty of room to negotiate. If it doesn’t cover “bumper to bumper” problems I’d also take a pass on purchasing it-- even at half price. Isn’t the Hyundai manufacturer’s warranty on the drive train 10 years, 100,000 miles or are those warranties long over?</p>
<p>I didn’t BUY an extended warranty policy but I DID insist that the dealer include it in one of my used car deals. I was paying cash for their car and I felt it was the least they could do. I was prepared to walk away from the car “deal” (such that it was). They included it in my cost. I was buying a car from the dealer that had been previously leased by the dealer…and they had done all the service.</p>
<p>We bought an extended warranty for a used car for my daughter. We had it checked first by our mechanic, and had a Carfax on it, but I was not in a good position to be able to pay for major repairs out of pocket, and it was the first used car we ever bought. It paid for itself over the next few years. First it paid for a radiator, then something having to do with on oil pan leak, then the A/C. You just never know. Now I never buy extended warranties at Best Buy, etc. But for that car, I did and I was glad I did.</p>
<p>I think it’s a waste in most circumstances. Obviously the insurance company is betting your cost for this will be more than they’d need to pay out. I’ve also heard of issues people have had collecting on these extended warranties - especially the third party ones.</p>
<p>You still have years and miles left on the factory warranty. Just use that one and then you can decide if you want to extend it later but again, it’s not in your favor to but some people like the assurance. </p>
<p>btw - a family member has a 2005 Hyundai Tucson that’s never had a single thing go wrong with it. Just one anecdote.</p>
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<p>I buy them for my kids’ computers and have been very happy that I did! DS had a battery ($130), a power cord ($80), and TWO hard drives replaced in past 3 years so it was definitely worth the $199 I paid BB. Warranty just expired…and he’s due for a new laptop anyway so any more repairs will just result in a new purchase. DD hasn’t had any trouble with her newer machine yet, but we bought from the school and the warranty included on-site service and loaner machines. IIRC, was cheap enough that it was worth it for the peace of mind.</p>
<p>I know DD’s original Hyundai warranty has expired…don’t know what they started the 100K thing, but her “new” truck has 89K on it anyway. My view is that the dealer gave her a very good deal (for a 4WD anyway) at $8200 and it might be worth putting a bit of money into a mechanic-recommended plan. Again, it might just be for peace of mind but so many of my vehicles seemed to need the $800-$1000 jobs right around 100-120K miles for various sensors, alternator/starter, A/C, window motors, etc. and her budget really is not up to that! I helped her with a big chunk of the purchase with the understanding that she’s responsible for maintenance so I’m going to do some research and see what they cover vs. what the folks on the car forums have experienced.</p>
<p>We bought an extended warranty on a used dodge caravan and the company that ran the warranty went out of business (with our money in their pockets). We couldn’t get anything fixed or anything else under the “warranty”. I would never do that again.</p>
<p>Sounds like you have a pretty good deal.</p>
<p>I never buy extended warranties either - in the long-ago past, I heard that warranty companies would come and go. When they went out of business, you were out of luck. They may be better today - I don’t know. But I did read Warren Buffett’s shareholder piece on how insurance works and it appears to be a great business to be in.</p>
<p>Thanks for the input. I never thought to include added warranty in the negotiations and will keep that thought in mind for next time. The 10,000 price tag was below the KBB and Edmund’s private pay price (10,700) in my area so I felt I got a good price (KBB price for buying from a dealer was 12,400).</p>
<p>Hyundai still offers 10/100,000 on the powertrain and 5/60,000 on the other stuff for new car buyers, the remainder of that original warranty for buyers of used certified cars and only the rest of the 5/60000 for buyers of non certified cars.</p>
<p>I had my mechanic check the car and he said it was good, the car fax showed pretty regular oil changes at first and then a 9,000 mile time with no oil change but no accidents or major repairs. My concern with the warranty is that it will not cover ‘normal wear and tear’. That seems like a loophole that could be used against a car owner.</p>
<p>I bought the car for my child and they will now pay for gas, insurance and repairs so I do want them to not have big bills for awhile but as it is they will have 2/28000 worth of warranty. That’s a lot more than what came with my used Pinto that I paid 2,000 for back in the day.</p>
<p>busyparent, how long does the warranty get extended for? My car had a 5 yr 60 bumper to bumper and 10 yr 100000 power train or something like that and i’m at year 9 with 111k and haven’t had any issues at all (knock on wood).</p>
<p>normal wear and tear normally means like it wont cover new brakes or new tires, stuff like that. Is there a list of specifically excluded items or specifically included parts? </p>
<p>I remember my “extended” warranty had a big laundry list of things - but they had sub things under them that were included and excluded… and every thing that had gone wrong wasn’t covered at all… motor mounts on the engine, broken gas gauge in the dash, not sure what the name of the part is but the one cable that connects your shifter thing on an automatic car to the actual engine itself, or when the car decided decided to keep running even after the car was turned off, etc.</p>
<p>Kinda depends on you view of the car. Either an expense or capitalized/depreciable asset.</p>
<p>I told DS to look at his (was ours) 97 Camry as a depreciable asset that will need maintenance and eventual replacement. He oughta be putting away $2000/yr for replacement beyond the repair and maintenance. He sees the car as an expense. It has 200,000 miles, well maintained, but major and long lasting stuff are wearing out and will need costly replacement.</p>
<p>One option is to sock the $1500 that you would have paid in insurance, into a untouchable auto fund. Continually add to this fund monthly so in a year you would have a pretty sizable repair/replacement nestegg.</p>
<p>the old financial books advised that you shouldn’t sweat the small stuff, but always insure the irreplaceable or difficult to replace stuff.</p>