Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Refundable Extended Used Car Warranties

AR_Six · 01-25-2013, 11:18 AM

A friend of mine is buying a used car from a dealer tomorrow and has to make a call on warrantee. Basically, the car is under powertrain for about another year but is out of comprehensive warrantee. So the dealer has offered a 48 month / 40,000km warrantee that is intended to replace the comprehensive. It costs about $2800 for that, and apparently if the warrantee isn't used, you get about $1800 of it back in four years (vehicle cost is about $25,000). The vehicle is generally reliable.

There are a number of issues here - present value of money (considering forgone interest you're getting somewhat less than $1800 back in reality), the fact that clearly these things must make money for the dealers, and the likelihood of any problems with cabin electronics.

In general, what are peoples' opinions of these? Worth doing, or a waste of money?

01-25-2013, 11:18 AM	#1
AR_Six Lifetime Suspension Join Date: Nov 2011 Exp:	Refundable Extended Used Car Warranties - Good or Bad idea? A friend of mine is buying a used car from a dealer tomorrow and has to make a call on warrantee. Basically, the car is under powertrain for about another year but is out of comprehensive warrantee. So the dealer has offered a 48 month / 40,000km warrantee that is intended to replace the comprehensive. It costs about $2800 for that, and apparently if the warrantee isn't used, you get about $1800 of it back in four years (vehicle cost is about $25,000). The vehicle is generally reliable. There are a number of issues here - present value of money (considering forgone interest you're getting somewhat less than $1800 back in reality), the fact that clearly these things must make money for the dealers, and the likelihood of any problems with cabin electronics. In general, what are peoples' opinions of these? Worth doing, or a waste of money?