Alternative sources for extended warranty?

[gimhoff]

In another thread, someone has posted that the cost of extending the warranty for one year -- to 3 years, 36,000 miles -- will be $395. While I'm happy to pay a company to provide something I want, like the Smart Car, I don't want to reward a company for making a bad business decision or for gouging its customers, as Smart is doing by offering the worst warranty on any car in America. Unless $395 is dramatically less than another company would charge, I'd rather give the money to another company.

Has anyone received a quote from a reputable third-party warranty company that's lower than, or even within striking distance of, $395 for one year? The AAA Mid-Atlantic branch lists Smart in the drop-down box for extended warranties on its web site, but then says that they're not offering a plan. Has anyone spoken with a AAA representative who knows whether AAA will be offering an extended warranty for Smarts in the future? Any other recommendations?

[tbranca]

I paid $1200 for a 6 year 100k Warranty on my
$46,000 F150 I got my loan approved today for my smart. and I was told the cost has to do with the final price of the car. but they wouldn't quote me till I have the vin # I'm guessing between $600 to $1000 for a 100k warranty. I will let you know What it costs in a few days when I get the vin from the dealer.

[SmartAzz]

Originally Posted by tbranca

I paid $1200 for a 6 year 100k Warranty on my
$46,000 F150 I got my loan approved today for my smart. and I was told the cost has to do with the final price of the car. but they wouldn't quote me till I have the vin # I'm guessing between $600 to $1000 for a 100k warranty. I will let you know What it costs in a few days when I get the vin from the dealer.

Thanks, that would be helpful. What company is the extended warranty with and have you used it to cover any work yet? My main concern with third party coverage is the sense I get that what they actually cover is iffy and limited..

[kmeinhold]

I just spent nearly $2k to extend my XC-90 to 4 years/100K miles. In many cars like the xc-90 there are no serviceable parts in the major components - a simple solenoid in the transmission requires replacement of the entire transmission $4k!!! (I know this from experience) To me the Warranty made good sense on the XC-90.

I suspect the components in the smart are significantly less expensive, and the car will be pretty reliable even up to 36K mi, and the $395 price reflects that. Of course any job that takes an hour or two in labor would eat that $395 in a hurry. Despite its size its not a simple car and most apparently are heavily optioned - so there is more to go wrong - Beyond 50K is where the costs will get more expensive.

To me, the $395 seems like a deal - if for peace of mind alone.

If you are thinking of another source for a Warrantee - do your homework on the vendor.

[StevenM1TX]

For those that are thinking of extended warranties, keep the following in mind:

The people selling the warranty have all the facts in their hands as far as repair rates, parts prices, etc. They are also in business to make money and will do so in the long run. So it is much like playing poker where you can't see the cards in your hand and they can see theirs. True some people will get more back in covered repairs than what they spend, but most will not recoup their initial cost. If they did the warranty company would be out of business very quickly. I won't get started talking about some of the hoops the third party warranty companies want you to jump through to keep the warranty valid.

If the peace of mind is worth it to you, by all means pay the bucks up front, but keep in mind the average person will loose overall and loose quite a lot since the profit margins are very high on purchased warranties. As with most insurance you are betting against yourself, but in this case the other player has a whole lot more information than you do.

[smartfan83]

gimhoff, i can understand how you feel about the warranty. but to be honest, i know the car business and the warranties that car makers offer are not for free. most of the time they are inflated and included in the price of the car, i.e. the MSRP. so that raises the base price of the car. I've done some research and found that most auto makers in Europe start their warranties at 2 years/24,000 miles. I'm guessing that smart wants to hit a certain base price range and one of the ways to do this is to offer this warranty. but, as always, i could be wrong.

[sharonlee]

I think Steven is absolutely right about these extensions. I have never purchased an extended warranty on anything and have never regretted it. I seem to recall that Money Magazine ran an article on them and it said that generally they are a bad investment.

[tbranca]

I beleave some cars its a wast of time like my xterra but I have used it twice over on my VW jetta. My F150 not yet but I will Get my money out of it. ;)
they also pay for the rental car and loging if you break down on vacation. The smart is so new and there hasn't been alot of complates in the uk with the 451's but I work for a frence company. and even though I love working over there ( Vary laid back ) but there quality control is like thing made in China. but they do make great wine and cheese.

[spdickey]

$395 is one minor repair at a Mercedes Benz dealer. I would think the parts costs is pretty low, but labor here in Los Angeles is a killer. The Prius extended for five years was less than $500 (negotiable). I'm getting it for the smart, figuring if it covers just one repair, its paid for itself.

No way would I buy a third party plan. I'm glad we have to choice to have an extended warranty or not. I don't appreciate others wishing it was included (and thus increasing the cost of the cars for all). I like choice!

[Pivosmart]

Originally Posted by gimhoff

In another thread, someone has posted that the cost of extending the warranty for one year -- to 3 years, 36,000 miles -- will be $395. While I'm happy to pay a company to provide something I want, like the Smart Car, I don't want to reward a company for making a bad business decision or for gouging its customers, as Smart is doing by offering the worst warranty on any car in America. Unless $395 is dramatically less than another company would charge, I'd rather give the money to another company.

Has anyone received a quote from a reputable third-party warranty company that's lower than, or even within striking distance of, $395 for one year? The AAA Mid-Atlantic branch lists Smart in the drop-down box for extended warranties on its web site, but then says that they're not offering a plan. Has anyone spoken with a AAA representative who knows whether AAA will be offering an extended warranty for Smarts in the future? Any other recommendations?

Ask people that had warranties with National Warranty of Lincoln, NE. They went broke and screwed people. Best to have an extended warranty with the manufacturer.