Used car extended warranty - yes or no?

m_c

If it's a Ford extended warranty, it should be pretty comprehensive.
Aftermarket ones are generally pretty rubbish though.

Given you're obviously looking at something with an ecoboost engine, I think I'd personally take the warranty, as ultimately you're looking at a few hundred against several thousand for an engine.
Even with the modified coolant pipes, there are still a lot of them cooking themselves, and I know Ford are replacing quite a few outwith warranty on goodwill, but generally not without a lot of arguing, and only on lower mileage vehicles.

ESBlonde

Bridgehouse said:

Garthy said:

Volvo make some great cars. I toyed with the idea of a facelift C30T5R but we decided it was a bit sensible shoes.

Got a new xc60 in the end - it’s massive, but built like a brick shithouse and a lot quicker than it has any right to be. Also the safety kit on it is ludicrous. 

I bought a 4 year old one last year and it's a great car. last week I was driving past all these RWD low profile tyred cock wagons on my way to work in my 2WD XC60. You just laugh at them from the comfort of an arm chair surrounded by 17 airbags. Only slight disadvantage is that it's a wide car in very narrow lanes or streets. Very capable of a turn of speed and more than adequate for the UK roads.

FX_Munkee

m_c said:

If it's a Ford extended warranty, it should be pretty comprehensive.
Aftermarket ones are generally pretty rubbish though.

Given you're obviously looking at something with an ecoboost engine, I think I'd personally take the warranty, as ultimately you're looking at a few hundred against several thousand for an engine.
Even with the modified coolant pipes, there are still a lot of them cooking themselves, and I know Ford are replacing quite a few outwith warranty on goodwill, but generally not without a lot of arguing, and only on lower mileage vehicles.

This, very much so.
There is a massive difference between a manufacturers extended warranty, which is pretty much what it says, an extension of the original comprehensive warranty and a third party "warranty" which is an insurance policy against major breakdown which excludes 99% of the reasons your car will normally breakdown.

Moe_Zambeek

My wife’s car came with what I considered a shonky warranty but when the PS pump went (Focus - they all did that) they paid up promptly via the garage and it cost us nowt. I was quite impressed! 

I’ve had main dealer warranties extended on Honda and Subaru and got my money’s worth too. The Honda one even had the option of wear and tear cover for a modest sum that covered brake linings and suchlike too, which I’ve never seen anything like elsewhere.

rocktron

The other thing to consider is getting involved in more hassle in instances where the seller who you bought a car from is a very long way from where you live.

For example, if you live in London and bought a car from a trader in Manchester, it would be a long way to take the car back to get any repairs done.

The warranty guarantor company may have to agree to get any parts replaced by a local garage of your choice if that garage is not a franchised main dealer.

You may have to pick up the labour cost, which I think you will have to do anyway as only parts are under warranty. 

bobblehat

bobblehat said:

I wouldn't dismiss the idea without checking the small print . I had a 62 plate Focus that had a lambda sensor failure 2 months after the 3 year manufactures warranty ended. Ford didn't want to know and it cost me over £2k to put right. A £385 extended warranty would have been a bargain.

It was a bit more than just the lambda sensor but that was one the main issues.Cant remember the rest as it was a couple of years ago . Put me off ever buying a used car ever again. Traded it in for a brand new car with a 4 year warranty.Reasonable monthly payments and no hassle  

Garthy

bobblehat said:

bobblehat said:

I wouldn't dismiss the idea without checking the small print . I had a 62 plate Focus that had a lambda sensor failure 2 months after the 3 year manufactures warranty ended. Ford didn't want to know and it cost me over £2k to put right. A £385 extended warranty would have been a bargain.

It was a bit more than just the lambda sensor but that was one the main issues.Cant remember the rest as it was a couple of years ago . Put me off ever buying a used car ever again. Traded it in for a brand new car with a 4 year warranty.Reasonable monthly payments and no hassle  

The depreciation on a new car buys a lot of lamba sensors.

hobbio

All cars depreciate to some extent, and the offers on new (deposit contributions, lower APRs, servicing thrown in etc) along with full 3 year+ warranties and roadside assistance more than offset this for lots of people. Peace of mind is worth money to a large number of people too. It's just personal preference really.

With an extended warranty, if it was free then everyone would have it. As it isn't free, the value only has to exceed price to make it worthwhile to an individual.

Yes, I'm a car salesman... 

FWIW, if I was spending my own money I'd go new wherever possible. I see a car in a similar way to a phone, or a sky subscription or something. Pay every month, upgrade every 2-3 years. Always in warranty, no need for MOTs, servicing usually included in the deal, the latest toys etc. I do like cars though, and I get that this doesn't work for everyone.

That's why I sell used cars too... 

midlifecrisis

the alternative to buying a new car, is to buy a really cheap old car £500 or less with a long MOT. they are more reliable than people think,. the last two ive had lasted about 18 months each without anything big going wrong. And when they do go wrong you scrap them, and get £120 back.  I know people will say they need something reliable and safe but tbh buy right and youl do ok. Privately of course, dealers will stitch you up.

hobbio

I used to run sub £500 cars exclusively before I was in the trade, so I agree with the above. I did have a few moments at the side of the road though.

midlifecrisis

hobbio said:

I used to run sub £500 cars exclusively before I was in the trade, so I agree with the above. I did have a few moments at the side of the road though.

as they say, a true musician is someone who puts £5000 worth of guitars in a car worth £500 to drive 100 miles to earn £50.

hobbio

It's the same with cycling, you're only a true cyclist if you have £5k of bikes on the roof of a £500 car.

DanR

Sometimes I read these threads where everyone spouts of about dealers just ripping people off.

Every thread decends the same way.

Maybe you should post what you do for a living so we can just tar you with the same brush as your colleagues.

A warranty isn't an insurance product as it doesnt have ipt.

Of course it has a lot of exclusions as does your manufacturers warranty but they are there to stop any confusion and help you know what's covered.

Kia 7 year warranty cuts what is covered on a yearly basis, not got full kia service history good luck, was it serviced independently can you prove it was done with genuine Kia parts and to the correct standard because if not you'e getting your claim rejected.

Of course it costs us less than we sell it for that's generally how a business works.

New cars are cheaper than used if you change regularly and want the cheapest payment.

Most manufacturers will help towards out of warranty costs if you have full main dealer history, if we have never seen the car since it was collected bar warranty work we wont.

bobblehat

Garthy said:

bobblehat said:

bobblehat said:

I wouldn't dismiss the idea without checking the small print . I had a 62 plate Focus that had a lambda sensor failure 2 months after the 3 year manufactures warranty ended. Ford didn't want to know and it cost me over £2k to put right. A £385 extended warranty would have been a bargain.

It was a bit more than just the lambda sensor but that was one the main issues.Cant remember the rest as it was a couple of years ago . Put me off ever buying a used car ever again. Traded it in for a brand new car with a 4 year warranty.Reasonable monthly payments and no hassle  

The depreciation on a new car buys a lot of lamba sensors.

I will be trading it in for another new one in two years time.Not the cheapest way to run a car but completely hassle free. Despite advances in technology cars seem to be no more reliable today than they were 20 or 30 years ago but they have become a lot more expensive to repair when something goes wrong. 

BRISTOL86

Just bought a used car (2011) today. Dealer threw in a year’s extended warranty - wouldn’t have paid for it but I guess I have a year to find out whether it’s worth the paper it’s written on! 

ICBM

bobblehat said:

Despite advances in technology cars seem to be no more reliable today than they were 20 or 30 years ago

I don't think that's true at all.

Cars are now so reliable that most people never even have to think about maintaining them, and they break down much less often despite higher average mileages.

It is true that they're more expensive to repair if they do go wrong though, partly because they're more complex and partly because many things are fitted as essentially sealed sub-assemblies which need to be changed.

hobbio

DanR said:

Sometimes I read these threads where everyone spouts of about dealers just ripping people off.

Every thread decends the same way.

Maybe you should post what you do for a living so we can just tar you with the same brush as your colleagues.

A warranty isn't an insurance product as it doesnt have ipt.

Of course it has a lot of exclusions as does your manufacturers warranty but they are there to stop any confusion and help you know what's covered.

Kia 7 year warranty cuts what is covered on a yearly basis, not got full kia service history good luck, was it serviced independently can you prove it was done with genuine Kia parts and to the correct standard because if not you'e getting your claim rejected.

Of course it costs us less than we sell it for that's generally how a business works.

New cars are cheaper than used if you change regularly and want the cheapest payment.

Most manufacturers will help towards out of warranty costs if you have full main dealer history, if we have never seen the car since it was collected bar warranty work we wont.

Brother! How's your March going?

midlifecrisis

DanR said:

Sometimes I read these threads where everyone spouts of about dealers just ripping people off.

Every thread decends the same way.

Maybe you should post what you do for a living so we can just tar you with the same brush as your colleagues.

A warranty isn't an insurance product as it doesnt have ipt.

Of course it has a lot of exclusions as does your manufacturers warranty but they are there to stop any confusion and help you know what's covered.

Kia 7 year warranty cuts what is covered on a yearly basis, not got full kia service history good luck, was it serviced independently can you prove it was done with genuine Kia parts and to the correct standard because if not you'e getting your claim rejected.

Of course it costs us less than we sell it for that's generally how a business works.

New cars are cheaper than used if you change regularly and want the cheapest payment.

Most manufacturers will help towards out of warranty costs if you have full main dealer history, if we have never seen the car since it was collected bar warranty work we wont.

its a huge industry and very competitive with high price items and people feel vulnerable, a lot of the time buying a car, is a product they dont really know much about. Of course you cant tar everyone with the same brush, but my personal experience and perception is that car sellers seem to be the most aggressively pushy salesman ive encountered. The warranties are foisted upon you as a be all and end all thing that will save you when your car decides to not work.
Cant agree that a new car is cheaper than used if changed regularly.  Even paying £200 a month (excluding the first payment and the final payment).
TBH ive always thought it strange when people say manufacturers will help towards out of warranty costs... of course they bloody well should. Barring self inflicted damage, they should be liable for making their product properly, maybe for at least 6 years. ok wear and tear and accidental damage, but if the engine or gear box fails in that time, thats a manufacturing fault no ifs or buts, just bloody fix it.
 

crunchman

DanR said:

Sometimes I read these threads where everyone spouts of about dealers just ripping people off.

Every thread decends the same way.

Maybe you should post what you do for a living so we can just tar you with the same brush as your colleagues.

A warranty isn't an insurance product as it doesnt have ipt.

Of course it has a lot of exclusions as does your manufacturers warranty but they are there to stop any confusion and help you know what's covered.

Kia 7 year warranty cuts what is covered on a yearly basis, not got full kia service history good luck, was it serviced independently can you prove it was done with genuine Kia parts and to the correct standard because if not you'e getting your claim rejected.

Of course it costs us less than we sell it for that's generally how a business works.

New cars are cheaper than used if you change regularly and want the cheapest payment.

Most manufacturers will help towards out of warranty costs if you have full main dealer history, if we have never seen the car since it was collected bar warranty work we wont.

New car is not cheaper than used.  If I buy a 3 year old car that's big enough for my family, and get a bank loan to do it, and then trade it in 4 or 5 years later I might be paying £6k over 5 years.  That's about £100 per month.  Show me a new family sized car (ideally with 7 seats) that I can get for £100 per month.

I can also get cheaper servicing at an independent garage.

Even if I do have to spend a bit of money on the car I'm still going to be several thousand better off by the end of the process.

hobbio

New cars generally have a cheaper payment is what the man said. Residuals are higher on new, and with deposit contributions and promotional rates a new car will be cheaper monthly on PCP against a nearly new, ex-demo or pre-reg example of the same model. PCP also works better with a 2.5 to 3.5 year change cycle.