NEVER buy an extended warranty
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- Опубліковано 8 вер 2023
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I purchase a 2015 Toyota Sienna years ago, extended warranty cost me $1,000 a couple times in the shop was over $6,000 . Thank God, for extended warranty.
Exactly, nothing is 100% wrong, dave is wrong
We have a 13 sienna. The timing cover is already seeping when I inspected it before we bought it. Van is amazing and basically perfect for our family. $3000 extended warranty that will save us at least $2300 in the future for that job. Head gaskets and water pumps are extremely common issues too. So as long as the timing cover is done under warranty, we only lost $700. Any of the other things happens to go wrong? We come out ahead by a lot.
It might’ve worked out for you but statistically speaking most people get screwed on extended warranties, if it’s not gonna make the dealer money they wouldn’t offer it to you
in your unique circumstance, it worked out. they wouldn't sell it if it didn't make money, meaning more likely than not your paying more than the repairs would cost.
@@johndone8045
Dave is 100% statistically correct. But that isn't the same thing as being 100% correct in every individual circumstance.
You need to use statistics to drive your decisions. Not what could possibly rarely happen to an individual.
This guy is completely clueless of the cost of car repairs now.
Correct. This ain’t the early 200’s anymore.
He’s got a lot of good basic principles but I feel like a lot of his teaching needs to adjust to current times
He’s not wrong. If your car breaks down it may cost $4,800 to fix and the warranty will pay for it. But if the changes of you experiencing a covered breakdown are 3 in 25, then there’s a 22 in 25 chance that you won’t need the warranty. This works out to the warranty company collecting $40k in premiums and only paying 9out $4,800 in claims. The warranty is good if you are in those 3 out of 25 cars that will need it. But statistically speaking, you are less likely to need it, than you are needing it.
Nah if you buy an extended earnestly your an idiot
@@esoterictrinitarian1990early 200’s, I bet he was talking about an extended warranty on a horse. 😊
Ten years ago, I would agree with this 100%. Now, nope! The stuff we buy is not meant for years of use like years ago. It is built for extended warranty in mind.
Right. Nothing is built to last anymore.
I got the lifetime warranty on my Jeep Commander. Best investment I ever made. New transmission, new engine, 270,000 miles and still going.
@@oneimage84 I know somebody that has an 2009 Challenger. During the 08 financial crisis they were having a hard time selling vehicles. So they offered lifetime warranty on certain things. Might be the same situation possibly.
I have it on my 2014 charger, that piece of junk has cost my dealer around 13,000 over the years😂
Yeah that was the best deal ever for people that hold on to it
My father purchased a new Dodge Dakota in 2008. From the factory, it came with a lifetime powertrain warranty. He purchased an extended lifetime bumber-to-bumber warranty. The cost of the extended warranty has paid for itself, multiple times over. He still owns it today and has no plans of replacing it. Has around 170K miles......
Not lifetime when the insurance co goes out of business
I’m glad I got warranty, I ended up with a new transmission and fuel tank replaced on my car. I only paid $100 deductible.
Exactly! You did good!
Similar situation when I took out a credit union loan to help finance my used 2016 Equinox in FEB of 2020. Covers everything bumper to bumper, with the exception of the front end suspension. Both the StabiliTrak & engine went out w/in a year of each other. Both were 100% covered. That 5 year/ 100k mile extended warranty has covered my ass big time. Paid the loan off 19 months early & the warranty will still cover it until early 2025, or 189k miles. I know that I got lucky on this one. 😂
@@sweetiespoon5150 Which company did you go with? Or did the credit union provide you with one?
@@sweetiespoon5150189k miles on a god damn chevy of course u need warranty
@sweetiespoon5150 Quick Note on The Equinox Model 😊
Statistically you pay more in health insurance than you take, thats not a good reason not to get it.
Statistically if you have a heart attack, only 12% of your heart needs surgery
You can go bankrupt from not having health insurance too. The point of insurance is to cover a claim you cannot realistically financially recover from. You use an emergency fund to cover automotive REPAIRS.
I'm not saying you should get every extended warranty you come across, they are not all created equal. I'm saying a blanket no is not a great idea. If you are in baby step 2 and following Dave exactly and only have 1000 saved up that won't cover a lot of minor automotive issues at a shop not to mention major ones. In that case a good warranty that only costs a few dollars a month might be worth it to allow you to keep paying debt even through a car repair or roof replacement or something similarly large. If you are debt free and have 3-6 months emergency fund then they are probably not worth doing. My point is that it's still insurance just a different kind.
You can always buy another car you can’t buy another body.. bad example.
@@robertsquared2916 change it to homeowner insurance, now what's your new issue with the analogy?
I work in that business and I can tell you that if you own a European made vehicle a service contract/extended warranty is a must. We always lose on those contracts.
If you always lose on those contracts why sell them
@ethanriley2939 probably for regulations reasons and restrictions and agreements manufacturers accept to operate in certain markets.
If that is true, why wouldn’t you raise the prices lol
@ethanriley2939 its not always the dealer that sells the extended warranty. Sometimes its 3rd party. I see it all the time at my dealer. Also the extended warranty company wont pay anything more than MSRP of the parts. (Sometimes the dealer marks the parts up over msrp to make more money)
@@ethanriley2939 you have to take the good with bad in some cases
I bought a 5k warranty extension. I had repairs costing 4k. Thank bob. I still have 3 years of coverage
My last two cars i bought 100k warranties. Both warranties were about 2k each. The repairs on one were around 6k and the other was around 4k. It felt like a decent buy to me.
Just another instance of Dave wanting to ignore the nuance of something so he can continue to present himself as an authority that can sell you front loaded funds
you gambled and won. They wouldn’t be selling the warranty if they weren’t making money from it
@@chuckiejoseph4979 I hear you, but I think gambling implies I had less control over the outcome. I believe they rely on people not keeping their cars and not transferring the warranty, which probably happens. And they rely on people not maintaining their cars, which also happens. Me knowing these were new model years and would likely have issues was a calculation on my part and less of a gamble. Don't buy a warranty if you are buying a Toyota Camry; I'll agree on that.
@@chuckiejoseph4979 By your logic buying insurance is gambling too because the insurance company can turn a profit
For cars it’s ok. He’s probably talking about those appliances. I had extended warranties but they didn’t cover the parts so I ended up paying more. 🤷♀️
We had an outback and the transmission went at around 55k. Thank God for that warranty.
That is the standard Subaru Warranty, not an extended warranty.
If you had bought the extended warranty, you would have literally thrown that money away.
@@erc9468 Not if its OVER 5 years old. Its 5 year / 60,000 miles powertrain warranty by Subaru.
Subaru is gross I don't know how people buy them
@@eagle25311 I'd rather have an Outback or Crosstech than any Ford / Lincoln / Cadillac / Chevy / Kia / Hyundai. Plus their vehicles have the option of all wheel drive.
@@ag4allgood Known header and water pump issues. Meh.
I’ve had a transmission go out, and the starter. Both covered by an extended warranty I added to the cost of the truck. A life saver, in the moment.
Same. Had a transmission go out a few months into purchase and got it replaced for $200
As a service advisor/manager of many different manufacturers over the last 30 years I can say most people will not get their money back on any extended warranty. However, for the few that have a major component failure (trans, engine, etc) it will be worth having but only if you do the maintenance per the manufacturer recommendations and not what your fathers next door neighbors best friend said to do! If you’re going to do it your way or the way someone else tells you to do the maintenance or lack there of take $50-100 a month and put into an account for auto repairs caused by your LACK OF MAINTENANCE!
also buy a good brand like toyota or honda , ive seen some brands that are horrible like kia...
@@tyler93539 yea but the way you take care of said vehicle has a lot to do with it too. Most people “think” you only have to change to engine oil every once in a while, all other fluids should be good forever and you only replace spark plugs when a problem has been CAUSED!
I'll take stuff that isn't true for 800 Alex.
@@Nick_Gir then you’ve obviously never worked in a service department!
As someone who has worked in the service department at a car dealership and the sales department at a car dealership and talk to the lotta finance people at every car dealership I worked at your 100% true you can buy a car that is built like garbage and maintain it and baby it and it will last you a good long time and you can take a car that is like a Honda or Toyota that is built quality that is built to go half 1,000,000 miles and that car can grenade itself at 90,000 miles because the oil wasn’t change the transmission fluid wasn’t done basic maintenance was not done basic maintenance keeps you from having to do catastrophic repairs like an engine or transmission. But sometimes extended warranty even with good maintenance. Perfect maintenance is still good to have because you can do proper maintenance in the car. I have a Lexus GX I’ve had Toyota forerunners Camry‘s scion TC is the maintenance intervals for those with 10,000 miles between oil changes I ignore that and change my oil every 5000 miles I still have the extended warranty because I know that engine on my Lexus GX if something was to happen I can look at them and say I’ve changed my oil every 5000 miles at 90,000 miles my spark plugs got done at 60,000 miles we change the coolant that’s that and, I did all of my maintenance not on time but early why did my engine fail? Oh well, we screwed up at the building of it it’s covered OK but you are 100% correct basic maintenance like oil changes will keep you from having to replace your engine prematurely transmission fluid changes. Probably not a flush but a fluid change will keep you from having to replace your transmission prematurely same thing with the brake lines I just wish people would understand thatand a lot of people don’t want to do things like basic maintenance more regularly and change the fluids doing induction cleaning to clean up the carbon deposits because I don’t see the value in it because I think they only have to do not to change even those are important that is not the only maintenance you have to do
I went through a transfer case (about 12K at the dealer) and my power mirrors (about 1200) and my $2,000 warranty covered it all. Cars are too expensive now a days
Ramey strikes me as completely out of touch with most people these days. He's been on his schtick for so long he can see if the numbers or anything else has changed. And god for bid you be an employee that ever tells him he's wrong.
Speaking from a reliability point of view, Ramsey is correct however. It’s what we call in engineering the “bathtub curve”. Any product is significantly more likely to fail as soon as it rolls out, which is covered by manufacturers warranty, or near the end of its projected life cycle, let’s say a very very rough guess of 100,000 miles for any given car. You are statistically way more likely to see problems between 0-10,000 miles and 90,000-100,000 miles than in 10,000-90,000 miles.
I'll say what Dave says, " I call BS on that " 🤣🤣
SAME.
My wife bought a 2011 Expedition with cash and a $3000 extended warranty. Within 6 months it was a few trips into the shop and ultimately needed a new engine. Buy the extended warranty! It’s an insurance. Better to have it and not need it than to need it and not have it. We spent maybe $500 through all of that and if we wouldn’t have had the warranty it would’ve been almost $8000 out of pocket.
If they weren’t making bags of money on extended warranties they wouldn’t sell them.
I think you have it twisted, they wouldn’t offer it if they were losing on it.
I bought used car with low mileage from a dealer and got the extended warranty. Not long after I got it the check engine light came on and the whole engine needed replacing. I was glad I got the extended warranty. I also won’t buy from that dealer again.
how much is low mileage how old is the car and how long has it been sitting on there lot before you bought it all these are factors to engine wear
@@kendreamer6376there wont be engine wear if the car is just sitting
@johndone8045 From my experience you can run into serious trouble if it's been sitting in the elements on a lot. My cousin bought a use truck that's been sitting for awhile, it ran for a year before it broke on her.
@@kendreamer6376 a year, sounds like engine damage due to abuse
😂😂😂
What he didn't mention was this: Before you buy an extended warranty - make sure it's from the manufacturer, and not some fly by night company who will often deny claims, AND log your maintenance in a little book, and toss it in the glove box.
If this was 1992-2005, I'd agree without buying a warranty. But this is 2023. A transmission rebuild swelled from $1000, to now $6,000 on some big three models. Engines, due to both lack of maintenance and poor design, are north of $6,000 just for the engine, and $2,000 labor to install it. Remember the days, not 15 years ago that you could get an engine swapped for $400-800?
Instead of extended warranties, can we talk about inflated automobile prices and why we need to have GAP coverage?
RIGHT! And you can no longer get a reliable vehicle for 1000 to 2500 cash just to get to work and back because the used car market was so fucked for the last 5 years. Half the time it seems like Dave has no clue how much things actually cost these days. His emergency fund being only 1k still, its the pinical of it. You can't even get an apartment for under 1k a month these days. What does a 1K "emergency fund" do for you? It damn sure won't help you with a layoff.
I bought the extended warranty for $1250 on my 2018 Nissan Rogue when I bought it in 2020. I’m covered until 2025 or 100,000 miles. WCF
The piece of shit CTV tranny went out and they wanted $6,000 to replace it. They said the driveline wasn’t covered but I proved them wrong.
They put a new tranny in. 🖕
I've had two warranty company experiences. One was the GMPP I bought years ago - that ended up covering an ABS Pump, and a complete rebuild of a front differential Pre-Covid, but still would have cost me thousands to have the dealership do it. The Other Warranty was I believe the "Umbrella Group" warranty - It was sold to me by a GM dealership for their used cars. It was particular on what they would replace, but the dealership stood by them as one of the few aftermarket companies they would work with reliably.
The Key to look for is if they single out components they will or won't cover. Such as a Head gasket, but not the labor to put it on, etc. That particular company charged me $200 deductible, but rebuilt my engine. So, very worth the money.
@@rodneybrown6326
Yup happened to me. Even got rim insurance. They wouldn't honor it
I am the Finance Manager at a dealership and I know there are others in the business that will gladly sell service contracts just to make money and sell ones that don't cover a lot of stuff. I refuse to do that unless the customer specifically requests that. I want people to have their vehicle repairs covered and not have to play the guessing game. I want them to bring the car in when it breaks and KNOW that whatever happened will be covered.
I'm glad we got an extended warranty on my wife's new 2019 Traverse. After a year we noticed a small oil residue and got it checked out. The dealership "checked it out" and found no issues for almost another 2 years before I pressed the issue. The tech confirmed my original suspicion of a leaking rear main seal and a couple other failed seals. 3 months before the warranty expired and 2 major repairs later we had $7000 worth of labor and parts. We only came out of pocket $200 for deductibles so in my opinion the $2-3k extended coverage paid off 🤷🏼♂️
Had to replace a transmission twice and engine mounts within 100K miles. Glad my extended warranty covered it.
With the garbage manufacturing of this day and era, I’d buy it every time.
They don't make things the way they used too. The women aren't the same either
@@jeffyeager1997what is a woman?
@@Gstunfisksomeone who can make a living selling pictures of their feet?
💯
Don't buy an American car then.
I paid for a 2 year warranty and my transmission went out. Without that warranty I would not have been able to afford the repair. I think it really depends.
I would have had to pay 3000 for the work I had done. Only ended up paying half that.
Normally I wouldn’t buy one, but our primary vehicle is used to drive around 4 kids. 7 year/100,000 miles with no deductible. It’s paid for itself already with seat sensors, broken gas cover mechanisms and A/C lines with bad seals. I already know that it’s going to be in for service for valve cover gaskets soon too 😂
I saw enough of my elders have warranty issues. I've never regretted not buying an extended warranty.
I wish some of those people would chime in here. I feel like I would pay $$$$ for the warranty, only for my claims to be denied because I didn't document maintenance the right way or some other little technicality.
Every extended warranty I've had has paid for itself multiple times over. Especially now with just how expensive shops are.
Need more context.
Was your car bought brand new or did you buy a used car and was it beyond the manufacturer warranty?
An extended warranty was rolled into a vehicle purchase and I didn't catch it. In less than a year, the front differential had to be replaced. All towing (one to home, then to the garage that would work with the warranty), parts, and labor were covered. It was well over $2,000.
The transmission on my F-150 went out with 500 miles left on the extended warranty. Probably would have cost me $6000 +. So I’m a fan.
I agree. Never ever buy warranties. Even if you have a product that breaks down and you have to throw it away and buy a new one, if you'd bought all these warranties on all the products that you bought the cost of all that would have been miles and miles more than the products that broke down
Extended warranties have returned over their purchase to me on cars, HVACs, refrigerators PCs, furniture, and plumbing to date. A wise rule of thumb I use is if the item costs over 1 biweekly paycheck and warranty is 10% or less of the purchase price for 3+ years of coverage, I do it.
My grandma bought it, idk how much she paid, however it covered the AC replacement!!
Only time I bought warranty: 100% replacement warranty was when I bought a TV from a new manufacturer. The TV only lasted about 6 months before it started to have issues and I got it replaced absolutely no financial charge and they even came to my house to deliver/take away old set. Because the price was so low plus the warranty was still way cheaper than a brand name with no risk.
Yeah, don’t listen to this fu*k 😂😂
He’s literally talking to rich/upper class people.
Not the 95% of Americans living paycheck to paycheck
As it goes with most things in life when making a decision, it depends. Some places offer solid extended warranties that are reasonably priced and cover what you need it to and others don't.
You have to read the warranty carefully and if you're unsure bring a copy of the warranty to a mechanic shop and let them read it and explain it.
I did it once and never again. I payed $500 for extended warranty and they covered like $300. Bit car was in the shop 26 days instead of 6 days, so I had to get a rent-a-car to continue working. So at the end I lost...
I've been in the dealer service business for almost 25 years. I can tell you he's wrong.
If you plan to keep the car forever, get the best extended warranty plan that the manufacturer offers. Just don't buy it from the dealer when you buy the car.
This is what my wife and I do when buying a new car. (In my case a Ford because it's where I work.) We buy the car and then shop online for the extended warranty. We can usually find them at least $2000 cheaper somewhere else. Either directly from the manufacturer (Ford) or at another dealer.
I have never, ever, ever, lost money on an extended warranty. The average after warranty repair is $2000.00
Our last car had an 8 year 150,000 mile service contract. At 7 1/2 years and 140,000 miles, the transmission had to be replaced. I paid $50 for my deductible and the rest, including a rental car, was covered. That would have been a $6000 repair. Plus all the previous covered repairs, such as the radio, motor mounts, struts and other assorted items over the years.
You have to read and understand what the warranty covers. Most people don't do that and pay for things they don't have to.
I've seen hundreds and hundreds of customers financial situations saved by their extended warranty plans. I've seen thousands and thousands of people having to pay for very expensive repairs that would have been covered by an extended warranty had they bought one.
If you buy a cheap, non-factory extended warranty then you are probably going to regret it.
Stubborn fool sometimes, cmon Ramsey wake up
This is sorta the issue though. You’re an expert and know exactly what to do and what to look for. The average person isn’t as knowledgeable and will buy an expensive junk warranty that’s a waste of money…
U can read as everyone and underststand as everyone whats u read.@@everettsgoldenduo4999
I totally agree with what you said. I drive my cars. A lot. And forever. I never get rid of a vehicle before 200k. My 2011 Durango has a Chrysler MaxCare warranty on it. Dodge has put 30,000 into it. I'm good with that.
Heard this all my life! I do have to say I’m glad that we ended up purchasing one on my husbands truck.. transmission went out 6 months before the warranty was up! $50 for us to have fixed instead of thousands (cost more than what we paid for the warranty)
I did it one time and it payed off in spades. I spent $2,000 and collected over $5,800 by the end of the warranty.
I got one for my car. Ended up needing a full transmission replacement rear differential and power steering system. Not all at the same time but well worth the 1k I paid for it.
I wish my was that cheap. But it wasn't. My was 8k when purchasing the new car. I head people was able to buy extended warranty like from for around 1500. My was way too much and i wasn't going to pay for the dealer extended warrantie. And that only lasted me 10k miles more than factory warranty. There was no reason to spend 8k for that. Factory is around 60k for electrical or something. The ex warranty would have expanded it to 70k miles
@@jack8356 $8000 for an extended warranty?! Just got a bumper to bumper on 2022 Subaru Cross Trek for $1600.
I bought a 2010 mountaineer and got the extended warranty. The transmission went out 2 days later. They replaced it with a 3 yr unlimited mile transmission. 3 weeks later one of the cv joints went out. The extended warranty saved us thousands.
might as well questioning the build quality?
If it went out after only 2 days, then the original warrantee covered that.
@@rickovery I didn’t but it new. As is, so I paid for the warranty.
@@jimmyhardison2630younhad zero wareanty on a new vehicle and only had extended wareanty? Extended means theres an original wareanty so i dont get it..
@@dana102083 you didn’t read my post. We did not buy it new. We bought it used..
comments are spot on... i haven't met anyone who wasn't thankful they had an extended warranty.
I sleep better knowing i have a warranty, that's priceless lol
As a technician... please buy the warranty, the best one you can buy, cover everything, is not worth the stress.
Right. But the stress is worth money. I’d rather keep my money and deal with a little stress.
@@erc9468you going to be the same guy crying why it cost so much. I’m an auto tech purchased my vehicle with extended warranty. The rack went bad internally. The cost of the extended warranty 1k the rack and labor $1500
@@Batman_0381 the price of the rack was worth the cost of the warrty
@@Batman_0381 also I work on my own car now that is out of warranty. But warranty cost and what you get if rust is worth it for sure
Idk I kinda doubt youre a technician if youre telling people to get the warrenty, most mechanics I know absolutely hate warranty bc they only pay them for like half the hours.
I’ve only bought 3 extended warranty and everyone of them paid for itself. My 4 wheeler warranty paid for itself 4x over. But I used good judgment when purchasing them as well.
Not true. My extended warranty cost me 750 and 2 times in the shop cost me 5000 !!! I LOVE MY WARRANTY!!
Extended warranty is such a scam. Thanks for spreading the word
So is home insurance... But we pay for it because it gives us peace of mind.
Statistically, extended warranties HAVE to work against you for them to be profitable for the warranter.
As does all insurance
@@jeffwhite3021
Correct. Some insurance makes sense from cost/benefit analysis, and some doesn't.
Not true at all.
@@Later_Doober Shutup
Statistically health insurances HAVE to work against you for them to be profitable for the insurerer. You could literally use that line on any insurance
My emergency fund is also blanket coverage for home,car,and medical as well.
Exactly!
This is a smart move!
@@Batman_0381
I said blanket coverage.
My emergency fund is over $200k and growing.
I do preventive maintenance on HVAC an car. Fill tank of car once or twice a year so don't drive much.
Never had an issue or emergency.
@@Batman_0381 I believe what is being referenced here is a fully funded emergency fund of 3-6 moths worth of expenses.
@@Batman_0381you do realize that the $1k emergency fund is just a starting point. Dave never intended people to only have $1k in an emergency fund and not eventually add more to it.
It is like saying “don’t buy insurance because you probably won’t use it.” You buy a warranty for same reason you buy insurance, for the “what if” situations. When the “what ifs” happen, it is nice to be covered.
Scammer: “Sir, I’m calling you to offer you an extended warranty”
Dave:
I got a warranty from a company called Lions Auto Protection, they paid for my entire engine to be replaced. The only thing a cost me was $100 deductible. I didn’t even know where to go to get my car fixed. Thank God I bought a warranty and didn’t listen to Ramsey.
Omg hope no one listens to this and declines the warranty at a Audi dealership...
BMW, Mercedes, Porsche, Audi, etc *insert any performance German or Italian or British*
Exactly, everything is computerized now and expensive as h3ll down to a oil change.
If a car is so unreliable that you always need the warranty, you shouldn’t be buying the car.
Buy a reliable car, then you won’t need to waste money on the warranty.
@erc9468 lol, if you buy a "new" car, you don't know if it's reliable yet. Mine was the first year of the double clutch transmission. They had to fix the problems with it. No one knows if a car is reliable until it's tested by new car owners.
I had a small land Rover once and had to get a repair right before the warranty ended. I asked the tech what the cost would be if the warranty was out. He laughed and told me he wouldn't own one outside the warranty. I sold the car the next week and bought a Toyota
I got an extended warranty on my Ford Escape. That warranty cost was a fraction of what it saved me on a major repair.
However, don’t buy an extended warranty on an electrical product. If they don’t break in the first year, they won’t break during your extended warranty period.
Just look into the fine print, I bought it on my first car and it paid for itself when the AC and backup camera died. My last car I skipped because I read the terms and said it wouldn't work if a part hasn't been maintained and only if a part fails.. aka will probably never get to actually use the warranty. Plus the dealer was an hour away and I would have to go there for service to keep it valid
I’m typical against extended warranties but newer cars have so much stupid tech in them that they cost a fortune to fix.
Someone I know bought a 2018 jeep grand Cherokee. They got the extended warranty and it ended up paying off big time.
The extended wareanty only covers what makes the car front and back. No software or tech problems
until they tell u the warranty doesnt cover anything like those 400 dollar sensors
what did they expect buying a fiat
Got the extended warranty on my 2016 colorado. I was in Colorado for an internship when I got my oil changed and they screwed it up. While driving an hour back from Loveland to Estes, check engine light came on, I decided screw it I'll go into the dealer have them see the problem. Nearest dealer was 1.5 hours away in Denver. They cross-threaded the o ring in the filter. All the oil drained out. Engine seized 30 minutes from Denver. Luckily thanks to the extended warranty, I got a $12,000 engine replacement and rental car covered by the warranty. Got a brand new engine 2000 miles before my extended warranty expired.
The mere fact that extended coverages are offered tells you they’re (on average) a highly losing proposition for the customer. Companies don’t intentionally sell (and strongly promote) products with bad margins.
I got the extended warranty on a Porsche. And it it was possibly the best thing we ever did. It had tens of thousands of pounds worth of work done for free
Always buy an extended warranty...
Wisdom speaking...
Uncle Dave likes to make blanket recommendations as if there was only one right answer.
Right now I am doing ok and I don’t need one. But there were times in my life where they saved my neck.
Dave is forgetting Murphy’s law. The one time you don’t buy the warranty, the car is going to break down with humongous repair bills 😅
I bought an extended warranty for 3k. At 90k miles I needed an engine reseal, new head gaskets, and a timing belt. Good thing I had that warranty. And now I basically have a new engine.
My husband's car had transition problems, engine problems all the repairs costed $6500 we were so thankful we paid $1500 for the extended warranty.
With all the digital displays in cars now, when one of those breaks it's gonna cost you $2K. Either out of pocket or the cost of the warranty. Happened to me in 2 different cars - 2014 Mini and 2021 Gladiator....both covered by warranty. $2K for an extended warranty, as long as it's a manufacturer warranty, is worth it.
Why pre-pay for it? Just pay for it when it happens… IF it happens. You would have had that money and not the dealer until the time of the repair.
@@eedre4864 I get what you're saying and totally agree. But if I can get the warranty for $2K over the term of a 4 year loan ($10 a week), I'd rather do that and know that my cost of (yes, if) a repair is controlled. My recent screen I didn't ask the cost, wish I had, but the one in 2017 was $2K. That one is probably a lot more with inflation now. Insurance and warranties are just fear driven revenue generators. Damned if you get it, damned if you don't.
This guy makes a blanket statement. You have to evaluate the cost of the extended warranty to the value of the product
His numbers are completely out to lunch! They warranty will cost most people an extra 30 bucks a month, and most of us can afford that, but if your engine and transmission goes, how many people can pull 6 grand out of their pocket to pay for it.
If the engine or transmission goes and you recently bought it, you send certified letter to headquarters CEO, and make them fix for free.
My dad was a mechanic.
@@arfriedman4577not how that works buddy.
That’s not the point. As he said, statistically, the scenario you presented almost never happens within the timeframe of the extended warranty.
@@davsaltego actually it does happen. Cars are not built like they used to be. If you buy a newer car out of factory warranty and do not get an extended warranty on it, you’re not being smart financially. You’re really just being insane.
@@arfriedman4577 that won’t help you if it’s a used vehicle you bought.
Nissan CVT has entered the chat
Lol or Q50 turbos 😂🤦♂️
Mopar cvt has also entered the chat
I bought a used, 6 month old car and bought an extended warranty and negotiated it down to $600 total. I never bought one before but had a feeling I would need it, and 5 months the later the turbo and transmission went out costing 6k but I got to use the warranty and then 2 months later the electrical went out, which was a 2k fix. That warranty saved me so much money, that I will always buy one but I also know that you can negotiate the cost of it, as I worked at a car dealership for a few years.
When my finances were such that I couldn't afford to car payments, I'd buy extended warranties, because having the warranty expire before the payments were done would have left me in a bad spot. I knew it was costing me in the long run, but it was eliminating a risk of a serious cash-flow problem.
There isn’t hardly anything on a car anymore that would only be $240. Alternator is 600-900, power steering pump, master cylinder.. etc all cost a lot. I’m not advocating for an extended warrant but once again Dave’s statistical numbers are bullshit as usual
If the part costs 2k and theres a 10% probability of it breaking then the warranty is worth 200$. To give dave credit
A few extended warranties are worth it, like getting Apple care if you rock your phone without a case and know youll break the screen.
Correct me if I'm wrong,but that's his point. It's only worth 240 dollars.
An Alternator costs about $150-200 for the part and it takes about 15 minutes if that to change it out.
What he is saying is the majority of those items aren't covered under many extended warranties. Thus, you'll pay out of pocket anyways for those repairs because the extended warranty doesn't cover the cost of the repair.
@@minkekj I agree!
I bought an extended warranty on a used BMW at the dealership with bumper to bumper coverage for $3500. A month later got a check engine light. The dealership told me i lt needed a whole new engine and refused to honor the extended warranty, but they did offer me a free detail if I got the 22k repair estimate done. In the fine print on the warranty contract, it said “all repairs are subject to denial at dealerships discretion”. Dave is right. Its a scam. Never again.
Sounds like a law suit to me
Some Of them are. That is most likely a DOWC (Dealer Owned Warranty Company) meaning they are the ones who handle a claim and have say on approval. Most other dealerships just sell the product and then the obligation for claims is with the third party company rather than the dealership.
Holy sh*t DOWC!!!!
Avoid that crap.
Sue sue sue sue sue. Any dealer that offers that should have their Dealer-license ripped from them and fined out the ass.
That most ridiculous old school B.S. paper.
Sounds like a New Jersey dealership gimmick.
It’s not illegal
@@aaronperkins4175 contact your local attorneys office and let them decide. Do you know how many cases are filed against said dealership for DOWC? No I don’t believe so.
Just because you deem something to not be illegal doesn’t mean that dealership isn’t practicing in illegal ways.
How many claims are denied?
How many claims are approved?
Do they have proper documentation for their PDSI?
Did they provide alternative warranties? (proper paperwork)
So many ways to have the dealership fix their wrong doings
I’m sure that dealership is charging close to if not more than a real reputable warranty (Veritas).
People are not informed of the choices they have at the point of sale and dealerships should be held responsible for that.
As a previous shop owner ( now retired ) this is absolutely correct. I remember a young lady bought a used car and her transmission failed, they would not cover transmission because she didn't change her engine oil every 5,000 miles like the contract said even though the car manufacturer's maintenance schedule requires oil change every 7,500 miles. I went ahead and made some fake work orders so she wouldn't get robbed by these crooks
You're one of the real ones bro!
Thank you for being honest.
Can u tip me how to check if tje vehicle have done some regular oil changes i am getting a second car this weekend.
I just wanna know what getting your oil changed has to do with the transmission
My extended warranty was approx. $2000 - it’s already covered more than $6000 in repairs and parts, and I still have lots of time left on it.
I paid $3,300 for a bumper to bumper warranty on a used truck, rear differential went out, along with several other parts, saved me $10,000 in repair bills.
It's better to have it and not need it. Then to need it and not have it.
What? Pay for something you don’t use? Just pay for the damn repair when it’s needed instead of buying it and maybe not needing it. You’re just wasting money.
Always buy a car extended warranty. They pay for themselves. I don’t on other things.
my warranty paid for itself twice.
I used to think like this. Through experience, Now I always get the extended warranty.
Good thing those $240 engines are in mass production now.
😂😂😂😂
Dave's an idiot sometimes. I got a 3 yr extended warranty on my work truck, 1.5 yrs later transmission went out. Warranty was $2,350 transmission replacement was $5,100. Another genius take by Dave 😂
Was it a Silverado 1500?
That was not a good decision on your part. You just happened to get lucky. You’re not understanding what Dave is saying. The probability of a warranty being worth it is not in the buyer’s favor. Sure, some might get lucky such as yourself.
Shout out to the previous owner of my car who bought an extended warranty, saved me a whole lot of money on a whole new motor
Yea I'm not agreeing with Dave this time. I don't buy them just out of principal, but can understand why many do.
Not only that but they will fight you the whole way when you make a claim. They will try everything to get out of paying and will find any loophole.
That's what I'm afraid of. They'll find some little stipulation like I didn't document the maintenance properly or something.
Everytime I try and use those warranties, they always try and find loop holes to not repair item. My expensive hair straightener that I only used twice started malfunctioning. I told hair dresser and she said oh yeah they’re known for their computers to be faulty inside so just bring it in and we’ll fix it. But because there was a small bite mark on cord from my cat, that had nothing to do with computer insude and didn’t even come close to piercing through to the wire, they would do nothing for me and I was out almost $400 😩
Bad advise. My extended warranty just saved me over $12k for a new motor
This is such a lie.
Sometimes it is worth it.
I work at a dealership and the amount of times an extended warranty has saved people thousands and thousands of dollars is staggering. They key is paying the right price for it.
The key is not buying it at all. It does not math, and it never will. There is no debate here.
This applies to more than cars. I've bought many items in general and I never get an extended warranty. The practical use you get out of the items you should be buying generally outweighs the price of buying a new one when it brakes.
Friend of mine bought a 2016 Jeep and got an extended warranty for $1,000 and within a few months needed an entire power steering system replaced which was about $4,000 out of pocket and then needed new suspension which was about $2,000 out of pocket and she didn’t pay a dime out of pocket. It’s like insurance, you may not need it but you’d definitely want it if the time comes. That’s like saying never have full coverage because you’ll likely spend more on insurance than you’ll get out of it, may be true but if something happens you’ll wish you had full coverage instead of just liability
Bought an extended warranty and the transmission went three times after the original warranty expired. Paid for itself many times over.
I purchase them every time. The first time it paid for itself, the 2nd time it didn’t. It’s about piece of mind, just like with any insurance
It's most likely to break within the first 5 years anyway
Every vehicle forsale online by private individuals has some major problem that your gonna need to fix before you even drive the vehicle. And the price on that used vehicle is more than most Americans can afford. Tires $150 each, Tune Up. $1000
Brakes $200 each wheel. Oil change $80. There’s nothing left over for gas to drive it.
I worked for Sears in the 80's. Think of it this way, it was pure profit for Sears. Our job depended on selling those warranties.
Bought a $2500 warranty on my Jeep, have had about $6500 in work done so I’m satisfied.
I didn't finance my warranty, but purchasing a used car, it paid for itself twice in the first two years.
As a former car salesperson, I can tell you that there is a massive profit margin on those warranties. If it's a reliable vehicle, don't get the warranty, if it's not reliable, get it if you can afford it.
Seconded. I once worked as a computer programmer for an extended warranty company and the amount of commission to the dealer AND the middleman was outrageous when you bought a warranty for a used car from a dealer at purchase.
I don't know about shopping for an extended warranty separately. That MIGHT be much better.
I have an Infiniti Q50 that I purchased the extended warranty and it covered 2 different issues totalling $4k
Interesting fact one issue was the transmission that was quoted as $3,300 but when insurance covered it the cost went down to $2,200😮dealerships overcharge 😢
You are going to pay one way or the other...
Bought a extended warranty on a van. It payed off great.
I bought a 2000$ extended warranty and 5 months later the engine failed. The engine was 17,000$ and was fully covered. Cost of the total job was 20k. My car was bought at cash value 20k
If you can get a good price on a manufacturer extended bumper to bumper warranty, most definitely should consider it. Even in 30 to $40,000 vehicles, the electronics are very expensive to replace. My heated seat module alone on my Mazda was 2900 and the warranty was 1600 for a 6-year bumper to bumper
Have multiple pieces of equipment with extended warranty. Has saved us thousands more!
I had a land rover and the extended warranty was $2500 but repairs were over $10 grand. So happy i bought the extended warranty.