Skip to main content

Car Buying | The secrets of Service Warranties & Manufacturer Warranties


Spanish Coches Vintage Dealership

Paying for Repairs & Maintenance


The problem with owning and buying cars (also applies to houses, appliances, etc)... is that they break down. Whether the car is new or used, there will be repairs eventually. Even paying for maintenance (tires, oil changes, timing belts, water pumps, etc.) can be costly.

So how are you paying for all of those repairs?

The Best Option: Cash


In a perfect world you would be that you have a significant savings, and you pay cash for all of these things. It's not as hard as it sounds. Just don't act like the costs above are a surprise. They WILL come up, just plan on that now.

Start making payments of any amount toward those costs now, into a savings account labeled "Car Fund". Whether you pay $5, $25, or $100 per month into the Car Fund, you will be prepared for most repairs before they come up.

Repair Insurance: Service Warranties


What many people realize is that they have failed to save in the past (for whatever reason) and may fail to do so in the future. These people opt to pre-pay for potential repairs. The primary difference between "Insurance" and "Warranty" is that Insurance is typically paid for monthly, and a warranty is a one time purchase of a specific amount of money, for a specific amount of potential reward.

As with any insurance company the corporation you purchase the warranty from is betting you wont' need it or use it. You will pay $X dollars betting they will pay $X+, they are betting they will pay $X-.

Cost


The average cost of a Service Warranty purchased as an Aftermarket Product from an auto dealership will be between $1,500 - $3,000. They are hoping that the total cost of any repairs they pay for you will not be more than that.

You should check to see what the lifetime payout cap is, if you buy a Service Warranty for $3,000, but the company will only pay $4,000 over the life of the warranty, you did not benefit from the purchase.

Exclusions


There are many exclusions often included with a warranty.

Most are "Powertrain" only. The Powertrain is your Engine and Transmission (internal components only). That means something inside the device has to break before you are covered. Items attached (alternator, air conditioner) do not count, and are not covered.

You could get Bumper to Bumper, but even then you need to read the list of items covered. They may cover the break calipers in case of breakage, but not brake pads or rotors.

No two warranties are the same, read, read, read, read them before you buy. Do not be surprised when you pay for $3,000 Service Warranty and then have a repair cost is does not cover (which is common).

Other Products



  • Manufacturer Warranties

A Manufacturer Warranty typically covers most major components for the first number of miles and years. One of the best I've ever seen was Hyundai, who claimed a 100,000 miles/ 10 year warranty. But Last I heard it was non-transferable. That means, if you  buy the car used at 5 years, you don't get the other five. You have to be the original new owner to use their warranty. Other's are transferable, so do your research.


  • Tire and Wheel

This essentially covers tire rotations, tires replacements, and even wheel replacements for a number of years, miles, or both. This can be a good coverage, but Discount Tires offers an equal protection for far less on their new tires.


  • Windshield Repair

This replaces your windshield if you have damage. Honestly, this is kind of a waste of money. If you have full coverage insurance, which I do even on my $2,000 cash cars, windshield replacement is usually built in. When it's not, it's available as a rider for cheap. Just get this through your insurance company.


  • Care Programs

This one is interesting. Think "Oil Changes", but it can encompass more. Imagine you could just pre-buy all your oil changes for five years. That's a weight off the shoulders of people living from day to day, with little savings.

Additional Costs


With any of these additional programs you purchase, you are adding a balance to your loan (assuming you are financing the car). ANY balance you add, will cost you interest on that balance over time. So you are not just paying $3,000 for a service warranty, or $800 for Care Program, you are paying interest on that over five years (or your term) also.

Therefore, as I said in the start, it's better that you run the Dave Ramsey plan and pay cash. Save for expenses. See my STORE for suggestions on books from Dave Ramsey.




The Insider

The Insider is a BIG fan of Dave Ramsey:

  • Go read/listen/watch Dave Ramsey and he'll teach you how to do it right!
  • Listen to The Dave Ramsey Show (HERE)

Comments

Connect With Me

Popular posts from this blog

An Open Letter: John Stumpf, Wells Fargo Board, and Policy Making Departments

On 12/28/13, I wrote the following letter to the then CEO & President of Wells Fargo, John Stumpf. It was in part, a response to the LA Times Article and the poor response from Wells Fargo leadership.

I later worked for the executive office and saw how they handle these letters. They assign them to a paper-pusher who could care less. They draft a form response, and it gets tallied in the statistics.

By the time it makes it to the CEO, it's only data in a pie chart. "We had 365 complaints this month. x number of complaints about checking, y number about sales practices, Etc." They tally it up, if it's not a big enough stat, it gets zero attention. Most things that do require attention get just enough to make it go away, but never deal with the root.

I was one of many hundreds who spoke up loudly and actively for years before 2013 and years after. The news cycle of 2016 showed that it cost them $185 Million dollars to ignore the feedback their frontline Team Membe…

Topos Transitions

Transitions are rough. I've been through many seasons of my life where I had to make a transition. At each and every stage it was tough. There are always things you miss about the last season, things you are hoping for in the next season, and things you can't wait to be rid of in the season you're leaving behind.Whether you are sensing the winds of change blowing you out of your current situation, you are in the middle of the trip, or the winds are at your back and you settling in to your new spot... Remember this word: ToposTopos is a Greek word and it essentially means:Your strategic position of opportunity and influence.Make your Topos count today, wherever you are.Darrell




What doesn't kill you makes you stronger????

What doesn't kill you only makes you stronger.Ask a Vet with an amputated limb if they feel stronger now or before the limb was taken... I'd bet before. Injury, all injury, is by definition a lack of perfection. What doesn't kill you, more often than not,  makes you weaker, more timid, more cautious, slower... Not stronger.Sure, we can learn from the past, become more resilient. We can use pressure, under certain circumstances, to build resistance based strengths, like a body builder pushing back on the resistance of the weights... But by no means is the saying: "What doesn't kill you only makes you stronger" an accurate portrayal of Truth, nor should it EVER be spoken to someone in pain.The enemy comes ONLY to steal, kill, and destroy, that's why the pain/attack came, not to make you stronger but to kill you.God's Grace brought you through but He didn't bring you to...God's Grace can heal you too.Selah#LiesAboutGod

White Nose | Scene 3

The Aleve took effect with the help of two breakfast whiskey sours. It had been three days since his tussle in town and he still couldn't sleep, despite the nighttime cocktail.
Beams of light broke through the trees outlining Ash's house, tucked back off of the main road by a mile long rock driveway. One such beam was tanning his pale country face as he rocked on an old wooden chair he'd carved himself. Whittling was one of his most relaxing and profitable talents.
One look in the mirror each summer reminded him that he only retained two colors, pale Irish freckle and redneck red. Ash was careful to avoid too much contact with summer's star.
Dust down the drive revealed the presence of a visitor before the sound of tires on gravel confirmed it. Ash hasn't been visited by more than three people in the eight years he'd been back in town, so he picked up the hunting rifle, just in case.
The scope showed the local sheriff, his friend Dan. He didn't usually com…

Writers Block - How do you write when you don't know what to write?

So, I recently had a comment on this blog. I'm not sure if it's ligit but I think that it's a question a lot of writers ask:


"... I was curious to find out how you center yourself and cⅼear your tһoughts before writіng. I have had trouble clearing my thoughts in getting my thoughts out. I truly dߋ take pleasurе in writing, however, it just seems like the fіrѕt 10 to 15 minutes is wasted just trying to figure out how to begin. Any recommendations or tips? Appгеciate іt!" AnonymousJuly 1, 2017 at 4:31 PM


The way this is phrase means that this is either a spam comment or it's just a google translate comment. Not sure. Nevertheless, it's a good question.

Having a mind that is clear isn't necessary for writing. Writing requires thoughts. My professor once said: "Throw up on the page, we can clean it up afterward". And that's done wonders for me. If you are going to write, just start. You could end up with something so long and winding that you…

What is a Topos? A strategic position of opportunity and influence

What does Topos mean?Topos is a Greek word meaning: "Place, or Opportunity"
Properly:Any portion of space marked off, as it were, from surrounding, space Metaphorically: The condition or station held by one in any company or assemblyopportunity, power, occasion for actingA spot (general in space, but limited by occupancy; whereas chora is a large but participle locality). As used by me: Topos is a strategic position of opportunity and influence
Topos: Your Calling Everyone has a God given calling on this earth. There is something you were created and designed to do. What you are doing now may be "The Calling"; or, it may be the calling for this season of your life. Either way, you are either in your Topos, or you need to find it.

As you read the stories of biblical heros like Noah, Abraham, Joseph, Moses, David, Nehemiah, Peter, and Paul... etc... you find that God put them in the right place to do the right thing at the right time.

They ended up in their Topos, …

Valley Seasons Church Notes

Pastor JO

Heart Of The City Church
June 10, 2017
====================================
Mountains, Valleys & Plains Part 2
null
http://bible.com/events/230949
====================================
• You have to learn to live with and in the valleys.

II Corinthians 11:23-27 NKJV
Are they ministers of Christ?—I speak as a fool—I am more: in labors more abundant, in stripes above measure, in prisons more frequently, in deaths often. From the Jews five times I received forty stripes minus one. Three times I was beaten with rods; once I was stoned; three times I was shipwrecked; a night and a day I have been in the deep; in journeys often, in perils of waters, in perils of robbers, in perils of my  own countrymen, in perils of the Gentiles, in perils in the city, in perils in the wilderness, in perils in the sea, in perils among false brethren; in weariness and toil, in sleeplessness often, in hunger and thirst, in fastings often, in cold and nakedness—
http://bible.com/114/2co.11.23-27.N…

Freedom From vs Freedom ToBe

For many Freedom is understood through the lense if being free from...Addiction
Pain
Loneliness
Him/Her
The Situation
The Job
Debt
Poverty
Etc.So we follow the rat race seeking whatever we think will make us free. When that doesn't provide the freedom we sought, we seek another fix, and another... An endless cycle of seeking freedom but never being free.What if Freedom has nothing to do with whatever jail you are in, however you've defined your personal jail.What if Freedom is about becoming WHO you were always meant to be... And in that pursuit all the "other" (addiction, pain, the jails) falls off when you aren't even looking...You don't know when you got "free from", you just look back and realize you don't have all the issues you had. You have battles in front of you but you have definitely won some battles too, and you didn't​even notice you had won.It's as though the act of becoming a butterfly was so profound that you have trouble…

White Noise | Distortion | Scene Two | TBC

A few THC pills, more than necessary, stopped Ash's hands from shaking as he filled a short glass with ice and Jameson's. Topping it off with a sleeping pill, and the night was sure to embrace him soon.

The night air bit his nose as Ash stepped out onto the patio; he'd spent worse nights than this in the deserts. Ash zipped up the sub-zero sleeping bag and settled into the hammock. Night owls and bats were still out this time of year and they're combined symphony was the final step to his sleep concoction.

***

The mess hall wasn't as full this time of day. The food was dry by late afternoon but it was never very good anyway. Ash twirled spegettiini on his fork as two guys nearby chattered on about what they'd do when they get home.
Suddenly time slowed down. The roof caved in and a compression wave through him against the wall. He slid down the wall losing consciousness. 
When he came-to a few moments later there was total chaos. Other buildings were collapsing, m…

Become not do

From 7 Habits of Highly Effective People:As Emerson once put it, “What you are shouts so loudly in my ears I cannot hear what you say.”It's one thing to put on a smile at work on a bad day because the customer doesn't need to know about that. You got a job to do. We've all had to do that and it's ok.It's another thing to lie to those closer to you, or worse yourself. Who you are produces what you do. If those two are not aligned it creates cognitive dissonance, spiritual tremors, anxiety breakdowns.The solution isn't to stop doing good or well... though that's exactly what you'll be tempted to do to some the cognitive dissonance.The solution it's to become who you were created to be. As you become, your doing gets better as a byproduct.#ScratchTheNewLimb
#ChangeTheFocusDarrell

About Me

My photo

Hi! My name is Darrell G. Wolfe. I am a wealth of random information and I make complicated things simple at DarrellWolfe.com.

I have a knack for absorbing information, breaking it down to its root elements, and teaching it to others.

Most importantly, I help purpose-driven people to understand their place in His-Story and provide them the tools they need to fulfill their unique position of opportunity and influence in this world (their Topos).