First, this is NOT a thread about how Smart cars should have a longer factory warranty. They don't. Move on....
I got to thinking about those who refuse the extended warranty. Why in the world would you do that?
All newly-designed cars have potential failure issues as they age -- they have no history so bugs haven't been "tweaked" out. Plus, there aren't a lot of dealers yet, so taking one in for service and leaving without a loaner car may be a bit of a problem. Wouldn't you rather have a free loaner car than a pay-for-yourself rental car? And what about the cost of parts, since there are very few after market parts available?
Look at the numbers -- even the 100,000 complete warranty only raises a loan by $25/month. I know that these days $25 may not be that insignificant for some people, but that's one day of a rental car should you need to leave your Smart.
So is it really about the $25/month? Isn't that a little short-sighted? If it's not about the small additional money, what is it then? Are you being obstinate because you feel that Smart should have given you a better warranty to begin with? Isn't that even more short-sighted (and petty)?
To me, not taking the extended warranty because it adds to the total cost is potentially shooting yourself in the foot. These cars ARE going to have problems as they age. All cars do. And every single Smart mechanic in this country is just now learning these cars. Plus, because the cars are redesigned, they can only rely so much on the Smart's European history.
So when you have to take your car in for service to a dealer and rent a car to leave in, and the mechanic takes a bit of time diagnosing and repairing the Smart, and has to use OEM parts, you're going to wish you'd gotten the extended warranty...
OK, I'm done ranting. I really DO NOT understand the "I'm not getting the warranty" logic.
$25/month for say, 60 months, is $1500 over the life of the loan. That's 10% of the purchase price.
It has been my experience with most other cars, that by the 24th month of ownership, I've got a good feeling about whether this is a car that's going be good to go for the long haul, (ie the only thing I've had to do is put gas and oil into it since leaving the dealership with it) or it's going to be a long term nightmare. ( in 24 months it's been back a half dozen times for all manner of stuff). I've owned both kinds of cars.
If the smart becomes the second type, I won't own it anymore by the time the warranty runs out. If it's the first type, I'm playing the odds. Keep in mind, it's only a $15,000 ish car.
Because of a tight financial situation, I had to buy the car cash (it took some doing, with a limited annuity!) therefor an extra $+1,000 was way too much then. Maybe before the 1st year is over, if I can get a coverage that would be without too many exclusions.
Wich drives me to ask those who got the extension: what kind of limitations have you noticed yet? Did you read the contract?
You know: wear and tear that could exclude such things as clutch or AC. Obviously, few must have reached the 24,000 m. limit yet. But I suppose lots of us would like to know what issues they may encounter when it's time to claim: are we ready to face loopholes that would allow the issuer to walk out on us? Just wondering... Thanks.
Most of the modern cars will run 100K without major repairs. Especially if you buy the car brand new and perform all the maintenance. If it is used car, it is different story, because you never know how car was maintained. It can be old lady who never have oil change done in 30K miles or young punk who raced it every chance he gets. If the extended warranty would not be profitable for the company they would be out of business long time ago. So most of the contracts are not worth the money, especially with $100 deductible. If for example your car have intermittent problem, you`ll be charged $100 every time you bring the car to the shop, even if the problem could not be duplicated and fixed.
By the statistic you end up better by depositing that money to the saving account. If you are use it, you are use it. If not, it is extra money you would save. Also for some it is "just $25 a month",but for some who are not finance the car, it is $1800 out the pocket more.
$1,500 buys a lot of mods. I'd rather have a Smart with aftermarket upgrades, than one with an aftermarket warranty. Besides, some of us have relationships with third party service providers that are more than competent at looking after the Smart and addressing repairs. On top of that, it is not entirely accurate to categorize the 451 as an "all new" car. The Mitsu 3 cylinder may be new in this application, but both it and most of the car it has been installed in, have been in production a long time now.
But when my engine and transmission have a horrible failure at 99,999 miles that $100 deductible is going to look pretty good.
I bet that they wiggle the way out of paying the bill at 99,999 miles. JK
On the serious note, 100K miles smart might not worth much. If I facing major repair bill, Hayabusa here we go!!!!!! Lets just hope that someone will have the kit by then.
Why not buy the warranty? I rarely keep a car more than two years anyway. I'm currently driving an orphan and figured I would trade it in on my reserve car when I comes in. Besides, Warranty Direct will sell you a warranty up until the time your factory warranty expires. If I decide I cant part with this one, I have another 22 months to buy from them.
The truth is all warranty's are sold on the premise that about 95% of the people paying for them will never need them. Large unplanned expenses are why I've got savings accounts and zero balance credit cards, and I've got money saved up and zero balance credit cards because I don't buy extended warranties. I think it's an especially bad idea to finance paying for a warranty - you're not just throwing money at an imaginary problem, you're paying interest for the privilege.
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