Results 1 to 4 of 4

Thread: Extended Warranty Plans? General Questions.

  1. #1
    Senior Member
    Join Date
    Jun 2013
    Location
    Manitoba
    Country
    Canada
    Posts
    512
    Thanks
    179
    Thanked 95 Times in 66 Posts

    Extended Warranty Plans? General Questions.

    Just wondering about people's experiences with extended warranty - What Mitsubishi sells as the "diamond care plan" (though others have their own names). Is it just a warranty, or is it more like pre-paid repairs/repair insurance?

    It seems to me a warranty is usually to cover manufacturer's defects - a defect being something like a part that fails prematurely, under normal use, because it wasn't made right. I don't think things wearing out are usually covered, nor are accidents/improper use.

    My question then, is how could anyone say that after 5 years of use a part failing is a manufactures defect? If it is impossible to prove, would extended warranty cover it?

    Here are some examples - Do you think extended warranty would/should cover these things (numbered for convenience):

    1 CV joint snapped
    2 Wheel bearing
    3 Seat fabric tear
    4 Radiator leak
    5 Exhaust system rusted out
    6 Seat heater switch broken
    7 A/C needs recharging
    8 Alternator not working
    9 Power window motor
    10 ABS/wheel speed sensors corrosion
    11 Brake pads/shoes/discs/drums
    12 Battery
    13 Tires

    If the Diamond care plan is insurance against repairs it would make sense to cover everything, maybe charging more for things like the last 3 as they will certainly wear. If it is actually just a warranty - well if it didn't break in 5 years it probably wasn't defective.


        __________________________________________

        click to view fuel log View my fuel log 2014 Mirage SE 1.2 manual: 45.0 mpg (US) ... 19.1 km/L ... 5.2 L/100 km ... 54.1 mpg (Imp)


  2. #2
    Senior Member
    Join Date
    Apr 2014
    Location
    Central Illinois
    Country
    United States
    Posts
    252
    Thanks
    0
    Thanked 36 Times in 28 Posts
    Extended warranties (the best ones) mirror the manufacturer's warranty - for an extended period of time and mileage.

    Think of it just extending the time of premature failure of a covered part.

  3. #3
    Member Yttrium's Avatar
    Join Date
    Dec 2013
    Location
    Indiana
    Country
    United States
    Posts
    88
    Thanks
    1
    Thanked 32 Times in 16 Posts
    From what I recall 6 or so months ago, the extended warranty the dealer tried to sell me basically made the bumper-to-bumper warranty have the power-train duration. Since it was well over $1,000 for this option, after I stopped laughing at him I politely declined this option for my new $13,000 car.

  4. #4
    Senior Member
    Join Date
    Apr 2014
    Location
    Central Illinois
    Country
    United States
    Posts
    252
    Thanks
    0
    Thanked 36 Times in 28 Posts
    I agree it makes more sense to consider an extended warranty when the cost is a smaller % of the purchase price of the item.

    When I bought my Mirage I ended up with a bad navigation unit. Dealer quickly replaced under warranty, but the replacement unit retailed for over $2000 and is, of course, only available from a Mitsubishi dealer.

    My brother in law just had his air compressor go out on a Chevy that was just out of warranty. Part was over $1000 + the install and charging cost for the system. He ended up selling the car, but it probably would have been over $1500 to get the air working again on a 3 year old vehicle.

    All the manufacturers that offer the 5 yr/60,000 mile warranties have moved away from bumper-to-bumper to something slightly less. We've always known that things like batteries and tires are covered by their own warranty - separate from the car manufacturer. We also are used to the fact that "wear item" like brakes and wiper blades aren't covered under the vehicle warranty and adjustments - like alignments - are only covered for a year.

    What is hidden is the limitation on items like electronics - which includes things like the head unit/navigation unit.

    If you are the type of person that wants the most security in your purchase, and tends to keep your vehicles for a long time, an extended warranty makes sense.

    All prices are negotiable, something people tend to forget when they enter the dealer's finance office. If you want some of the goodies offered by the dealership's finance office, simply negotiate each part of the deal separately.

    I have found that the car pricing sites offer suggested pricing that is much higher than what I paid for my vehicle. There are discounts available to the dealer that are not shown on the manufacturer's web site. If pressed, they can use them.

    At my local dealership they call these hidden discounts "employee pricing" or "approved employer" discounts. In theory you have to qualify for these discounts, but in reality, they can find ways to use them if they need to in order to make a sale.

    For example, my town has an "approved employer" discount, which is something Mitsubishi agrees to with a an employer. It is advertised in the local credit union, where employees just have to show their ID badge to get the discount.

    This also can help people that do not work for the approved company, as each discount provided requires the recipient to fill out a form, show their ID badge, etc. This form also extends this discount to other people, usually shows as "friends and family". Sounds good to the buyer, as he can get others a discount.

    In reality, the dealership can give these unused approved discounts to whoever they want. They just add your name to a form they have on file and it's done - with no cash out of their pocket.

    Usually, these are in the $500 range.

    So, if you managed to get an extra $500 off your purchase price and really wanted the extended warranty, you could probably negotiate a couple hundred off the $1000 they wanted for the warranty. Then applying the extra $500 Mitsubishi gave you on the car, you would be able to get full 10 year/100,000 mile protection for a net out-of-pocket cost of about $200.

    Of course if your objective is to walk out of the dealership with the lowest negotiated price, you'd pass on the warranty and pocket the $500.



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •