Extended warranty advice.

[GaryJMitchel]

I'm getting a new car on Tuesday (well a 63 plate but new to me) from a reputable company, I've been offered the extended warranty at £499 for an extra two years covering mechanical and electrical faults. The manufacturer warranty ends in September this year.

 

I've had a mechanic from a reputable garage tell me to get it.

I've had a manager from another reputable dealership say not to get it.

 

Kind of stuck, any advice?

[Eater Sundae]

Very much a personal view. From my point of view, I tend to buy insurance (for that is all it is) for things that I cannot really afford to buy myself. So I take out cover on big items (house, 3rd party liabilities, expensive car value etc), but I don't bother getting extended cover for household goods.

 

From what you say, there is just 1 months warranty remaining. So, without taking out the extra £499 cover, you have basically no warranty (other than basic sale of goods).

 

You don't say the value of the car. How would you feel about paying £500 more for a similar car that still has 2 years warranty left?

 

If, a few months down the road you were to be hit with a mechanical failure that needed a £1000 to £2000 repair, then how would you cope? Pay it anyway and put it down to bad luck? Not be able to repair it and have to scrap it? The extra warranty providers are able to accept this risk, because in most cases there isn't a claim. Also, some of that £499 goes towards administration costs and profits. Only a part goes toards the actual repair costs. If you could accept the risk, say, that 1 in 10 cars needs expensive repair - then if there is no failure, you have made a saving, but if there is a failure (say a one in ten chance), then you will be out of pocket. Alternatively, you pay the £499 up front and you have certainty of no risk of extra costs.

 

If you feel a need for peace of mind, then at least you know you have some if you go for the warranty. Alternatively, why not consider a car that had a longer warranty when new (eg Hyundai or Toyota for a 5 year warranty or Kia for 7 years), as more would still be left.

 

One final point. If you are considering the £499 option, then please check what exactly is covered. I believe some of them may be limited, and may not protect you against some (potentially still expensive) failures. Check the small print, and make sure you are still happy.

 

Edit. Just wanted to add...

 

Remember, modern cars are pretty reliable. Which is why some manufacturers are able to offer long warranties when new. They wouldn't be able to do this if they expected to have to repair their products very often.

Edited August 2, 2016 by Eater Sundae

[x-GiGgLeS-x]

You still have some kind of warranty guarantee from the garage you buy it from..

I believe under trading standards law the item purchased has to be fit for purchase for a reasonable amount of time..as it would be classed as second hand this isn't has high but the garage would have to have some reason ability . Be firm

[hauxwell]

I'm getting a new car on Tuesday (well a 63 plate but new to me) from a reputable company, I've been offered the extended warranty at £499 for an extra two years covering mechanical and electrical faults. The manufacturer warranty ends in September this year.

 

I've had a mechanic from a reputable garage tell me to get it.

I've had a manager from another reputable dealership say not to get it.

 

Kind of stuck, any advice?

 

You could phone trading standards and ask for advice about the extended warranty, and what guarantee the garage is responsible for if you do not take the warranty.

[alchresearch]

Car warranties are awful, they just claim natural wear and tear on most parts when you claim.

 

For me, it would all depend on the car - the mileage, how its been cared for by the previous owner and so on.

 

For example, lets say its low mileage, but had a lot of clutch use for pootling round town (but you won't know this). The warranty company won't cover that. And if its a dual mass flywheel clutch you could be looking at upwards of £600.

 

I'd also do some research on the car forums for that particular model to see what kind of common faults have occurred for other people.

[Berberis]

I'm getting a new car on Tuesday (well a 63 plate but new to me) from a reputable company, I've been offered the extended warranty at £499 for an extra two years covering mechanical and electrical faults. The manufacturer warranty ends in September this year.

 

I've had a mechanic from a reputable garage tell me to get it.

I've had a manager from another reputable dealership say not to get it.

 

Kind of stuck, any advice?

 

I can only give my experience and its a positive one but was from a few years back with Evans Halshaw. When having an MOT they identified some issues that means a failure. I notified them the car had the extended warrenty and they had to go away and fix the issues then give the free retest and pass it. They weren't too pleased and came back with more advisories but they couldn't fail the car as the previous tests faults had been fixed. Then approx a year later the indicator arm started acting up. Only a minor issue but they had to replace the whole steering column electronics which cost them nearly £3,000. All for what I think was a £600 extra cost on buying the car.

[ivan edake]

Buy a £500 (or less) car with a full test and trust to luck.Insurance companies that sell these warrantie just try to wriggle out of paying jus8t like all insurance companies do.

[DnAuK]

After working for many years as a manager in a large, well known, retail chain my views on extended warranties are a bit dim. They rarely benefit the customer. If they did there would be no incentive to sell it. All retailers are about one thing when it really comes down to it - profit.

 

As such it will largely depend upon the type of person you are. If you're risk-averse, like Mr Sundae, then you will buy it. If you're not then you won't. I suspect you're in the middle somewhere, hence your question. So I will leave you with the best argument a customer once gave me for rebuffing my attempts to sell an extended warranty.

 

He said that he put all the money he could have spent on extended warranties for everything he purchased into a savings account, and took any repair costs out of it. At the end of every year he generally had plenty left over to treat him and his wife to a weekend away. I had no answer to that. I suspect he was probably right.

[Berberis]

After working for many years as a manager in a large, well known, retail chain my views on extended warranties are a bit dim. They rarely benefit the customer. If they did there would be no incentive to sell it. All retailers are about one thing when it really comes down to it - profit.

 

As such it will largely depend upon the type of person you are. If you're risk-averse, like Mr Sundae, then you will buy it. If you're not then you won't. I suspect you're in the middle somewhere, hence your question. So I will leave you with the best argument a customer once gave me for rebuffing my attempts to sell an extended warranty.

 

He said that he put all the money he could have spent on extended warranties for everything he purchased into a savings account, and took any repair costs out of it. At the end of every year he generally had plenty left over to treat him and his wife to a weekend away. I had no answer to that. I suspect he was probably right.

 

This is about car warranties though, not your average everyday electronics such as a kettle. Cars don't come with the same kind of guarantee you get from an off the shelf product and on the flip side, your average electronics do not have to contend with variable conditions such as our roads or rain etc, plus if you are paying a few thousand for a car, the £499 for 3 years is relatively cheap considering the cost of replacing the parts in the car.

Edited August 3, 2016 by Berberis

[alchresearch]

Plus a kettle hasn't had a previous owner who might have neglected it.