Do you buy the extended warranty?
10-21-2010, 11:42 AM
#21
Instructor
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I bought an extended warranty to keep myself from modding the car. Simple as that. If I hadn't, I'd probably have done a H/C/I by now, and have yet another car that my wife won't ride in and I am constantly under instead of in.
No thanks!
-Mike
No thanks!
-Mike
10-21-2010, 12:25 PM
#24
Drifting
Member Since: Oct 2007
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I never buy extended warranty's and never will. Now after about 50 years of buying things that offered extended warranty's I have never and will never purchase one. The reason is simple - The money I've saved over the years will more than cover any catastrophic repairs.
10-21-2010, 03:11 PM
#25
Racer
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FWIW, I purchased a 2008 new, and at 1700 miles the transmission went bad. All fixed under warranty, but it made me think about down the road. So I purchased an extended warranty. I agree with the poster who said it keeps him from modding the car, same here. I usually do not buy the extended warranty, but with the high cost of repairs, I decided to take the gamble and buy the warranty.
10-21-2010, 03:26 PM
#26
Melting Slicks
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Don't buy a boat or RV if you think these are expensive. I just got a $860+ oil change/nothing special service in the RV. I don't even want to talk about the boat. Personally I think cost is the same/lower than other luxury cars in the same price range (mid-level Benz's, BMW's, and Lexus).
10-21-2010, 03:51 PM
#30
Team Owner
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In 55 years of driving I have never bought one either but I feel the Corvette is different. They seem like a car that can be very troublesome. I bought the GMPP five year extension at the end of the factory warranty and glad I did. I have used it twice so far and saved more than it cost.
10-21-2010, 05:27 PM
#31
Cruising
Thread Starter
Do you buy the extended warranty
Thanks to everyone for responding to my post. I needed to hear from the "owner's" stand point about your thoughts and expierences with a protection plan. You've been very helpful and informative, and I have finalized a decision.
Thanks again for your time and help.
Skyrex99
Thanks again for your time and help.
Skyrex99
10-21-2010, 05:34 PM
#32
Race Director
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When Consumer Reports concluded that most people don't make out in the long run with extended car warranties they had one caveat. If the car you are buying is unreliable then an extended warranty "might" make sense. They have also said over the years that Corvettes are not one of the more reliable cars. And people here are all up in arms about those statements. But just read the last few posts. Apparently a lot of owners agree with Consumer Reports that our beloved Corvette is not reliable. And they need an extended warranty to "sleep at night." Give me a break! Having said that I still think that a savings account makes more sense than an extended warranty. Here is what I said before:
Extended warranties are for people who don't understand the real risk of equipment failure and the economics behind the warranties. I’ve never bought an extended warranty on anything I’ve ever bought. Why? Simply because they don’t make economic sense. A recent article in Consumer Reports that studied the statistics from reader surveys found that only one in five responders said they had a net savings with an extended warranty. For automobiles 2/3s of the people with extended warranties recovered less than the warranty cost. Most of the other 1/3 recovered what the warranty cost and a few recovered more. Not very good odds in my opinion.
As a mechanical engineer I know something about equipment failure scenarios. A new machine will have a higher than normal failure rate when new because of manufacturing and assembly errors that are inevitable. Sometimes called infant mortality. We don’t have to worry about those failures because that’s what the manufacturer’s warranty covers. So you have a free warranty that covers the car for 36,000 miles or 3 years. After that time period almost all manufacturing and assembly errors will have been found and we enter into the normal failure mode that is very low. After a period of use the machine finally goes into the “worn out” failure mode where the failure rate once again begins to rise until the machine breaks. For an automobile the “worn out” failure mode rate begins to rise at around 100,000 miles. So the main reason an “extended warranty” is a waste of money is that it covers the most reliable part of an automobiles life.
As a general rule, you should only insure for those losses that you can’t afford to cover yourself or for which there is an abnormally high and unpredictable risk factor. That’s why automobile insurance, health insurance, homeowners insurance make sense. Most people can’t afford to cover the potential catastrophic losses that these risks present. And the risk is always there. The risk doesn’t change over time. At any moment you may have a heart attack, a drunk driver runs into you, your home catches fire, etc. Automobile failures are not the same as discussed above. They are actually fairly predictable. High when new, low during the normal life and high again as they wear out. A number of people note that the C6 has a lot of costly electronics that can fail. All that I’ve noted above applies to electronics as well. In fact it is even truer for electronic failures.
So it really comes down to playing the odds. The people selling the extended warranties know what the risk is that they are taking. They are the house. They have all the statistics If they are selling a policy for $1500 they know that the vast majority of owners will make claims that are well below that number and that’s how they make money. If you can afford a C6, you can afford to be the house and cover the potential costs of repairs. Put that money that you were going to spend for an extended warranty into a savings account and let it earn interest and use that account to cover repairs. Most likely when you are ready to sell the car there will still be money in that account that you can use to cover your new car.
Bottom line, the best extended warranty is a savings account.
Response from forum member 3GenVettes on 16 May 2009
Wow -- I can hardly believe I just took the time to read all the posts on this subject from beginning to end. Or at least up to this point. It's an unknown when the real 'end' will be.
This has been both an informative and an entertaining read. (Maybe that says something about me.)
Since I'm a CPA and analytical analysis is where my bias lies, I have to agree with Walt.
However, I respect the point made by WAwatchnut with regard to A) having the money to make the repairs and B) withstanding the negative impact if expensive.
The greatest opportunity to satisfy the A and B criteria noted above comes from consistently applying the advice from Walt. Each and every time that you pass on an extended warranty you improve your odds of winning. You gain the cumulative amount of savings from every extended warranty avoided putting you in the position to satisfy the A and B elements of risk.
My thanks to all for the lively and educational debate.
Extended warranties are for people who don't understand the real risk of equipment failure and the economics behind the warranties. I’ve never bought an extended warranty on anything I’ve ever bought. Why? Simply because they don’t make economic sense. A recent article in Consumer Reports that studied the statistics from reader surveys found that only one in five responders said they had a net savings with an extended warranty. For automobiles 2/3s of the people with extended warranties recovered less than the warranty cost. Most of the other 1/3 recovered what the warranty cost and a few recovered more. Not very good odds in my opinion.
As a mechanical engineer I know something about equipment failure scenarios. A new machine will have a higher than normal failure rate when new because of manufacturing and assembly errors that are inevitable. Sometimes called infant mortality. We don’t have to worry about those failures because that’s what the manufacturer’s warranty covers. So you have a free warranty that covers the car for 36,000 miles or 3 years. After that time period almost all manufacturing and assembly errors will have been found and we enter into the normal failure mode that is very low. After a period of use the machine finally goes into the “worn out” failure mode where the failure rate once again begins to rise until the machine breaks. For an automobile the “worn out” failure mode rate begins to rise at around 100,000 miles. So the main reason an “extended warranty” is a waste of money is that it covers the most reliable part of an automobiles life.
As a general rule, you should only insure for those losses that you can’t afford to cover yourself or for which there is an abnormally high and unpredictable risk factor. That’s why automobile insurance, health insurance, homeowners insurance make sense. Most people can’t afford to cover the potential catastrophic losses that these risks present. And the risk is always there. The risk doesn’t change over time. At any moment you may have a heart attack, a drunk driver runs into you, your home catches fire, etc. Automobile failures are not the same as discussed above. They are actually fairly predictable. High when new, low during the normal life and high again as they wear out. A number of people note that the C6 has a lot of costly electronics that can fail. All that I’ve noted above applies to electronics as well. In fact it is even truer for electronic failures.
So it really comes down to playing the odds. The people selling the extended warranties know what the risk is that they are taking. They are the house. They have all the statistics If they are selling a policy for $1500 they know that the vast majority of owners will make claims that are well below that number and that’s how they make money. If you can afford a C6, you can afford to be the house and cover the potential costs of repairs. Put that money that you were going to spend for an extended warranty into a savings account and let it earn interest and use that account to cover repairs. Most likely when you are ready to sell the car there will still be money in that account that you can use to cover your new car.
Bottom line, the best extended warranty is a savings account.
Response from forum member 3GenVettes on 16 May 2009
Wow -- I can hardly believe I just took the time to read all the posts on this subject from beginning to end. Or at least up to this point. It's an unknown when the real 'end' will be.
This has been both an informative and an entertaining read. (Maybe that says something about me.)
Since I'm a CPA and analytical analysis is where my bias lies, I have to agree with Walt.
However, I respect the point made by WAwatchnut with regard to A) having the money to make the repairs and B) withstanding the negative impact if expensive.
The greatest opportunity to satisfy the A and B criteria noted above comes from consistently applying the advice from Walt. Each and every time that you pass on an extended warranty you improve your odds of winning. You gain the cumulative amount of savings from every extended warranty avoided putting you in the position to satisfy the A and B elements of risk.
My thanks to all for the lively and educational debate.
10-21-2010, 05:42 PM
#33
Intermediate
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Location: Mansfield Texas
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I've worked in the auto industry for over 20 years now. I have never seen a dealership built with out a service department...
My advice to you is: BUY AN EXTENDED SERVICE POLICY!!!.
Even if you don't use it, the peace of mind is worth it. If you use it just once, you can bet you covered the cost of the policy.
My advice to you is: BUY AN EXTENDED SERVICE POLICY!!!.
Even if you don't use it, the peace of mind is worth it. If you use it just once, you can bet you covered the cost of the policy.
10-21-2010, 06:01 PM
#34
Melting Slicks
I don't extended anything. But I did on my Z06 and I'll tell you why
1) too many expensive things to go wrong
2) resale- If someone is looking for a used car. The seller with GMPP has an advantage over the seller who does not. Everything else being equal..........
1) too many expensive things to go wrong
2) resale- If someone is looking for a used car. The seller with GMPP has an advantage over the seller who does not. Everything else being equal..........
10-21-2010, 06:19 PM
#35
2005 Beast
10-21-2010, 06:22 PM
#36
I picked up the extended warranty GM Major Guard 0 deductible from Dennis Fichtner (Forum Vendor) very easy process and it gives me piece of mind in case something goes south...I think he can give you a very competitive price vs what you have been quoted if your car qualify's.
http://forums.corvetteforum.com/kens...one-plans.html
http://forums.corvetteforum.com/kens...one-plans.html
Unless you find one of the few members that has advised you against buying the GMPP that will volunteer to pay for what could be very expensive repairs down the line.
Obviously, GMPP is not in this for charity reasons. However, 2-3-7 years down the line labor and, parts will be more expensive then they are today without any question. I do not have a crystal ball to tell you if you will have issues with the Corvette you own and, neither do the people telling you not to buy the GMPP. It is always a smart move to be prepared for obstacles down the road.
BTW..The saving account comment is funny with the interest being offered in this economy and will not change for several years. Heck, getting 1.3% is a boom.
Last edited by Never Say Never; 10-21-2010 at 06:31 PM.
10-21-2010, 06:26 PM
#37
When Consumer Reports concluded that most people don't make out in the long run with extended car warranties they had one caveat. If the car you are buying is unreliable then an extended warranty "might" make sense. They have also said over the years that Corvettes are not one of the more reliable cars. And people here are all up in arms about those statements. But just read the last few posts. Apparently a lot of owners agree with Consumer Reports that our beloved Corvette is not reliable. And they need an extended warranty to "sleep at night." Give me a break! Having said that I still think that a savings account makes more sense than an extended warranty. Here is what I said before:
Was this the same issue they also reviewed toilet paper? 
10-21-2010, 06:33 PM
#38
2005 Beast
10-21-2010, 06:42 PM
#39
To make it easy just google Consumer Reports bias and you will not only be shocked you will be amazed.
Search ResultsStatistical problems of Consumer Reports auto ratings
Consumer Reports' ads imply that they have no bias. Their articles prove otherwise. When they say they are unbiased because they do not accept advertising, ...
www.allpar.com/cr.html - Cached - SimilarShould You Trust Consumer Reports? - AutoSpies Auto News
Consumer Reports, the publication of Consumer's Union, has long been accused of a bias toward imported cars, particularly those made by Japanese brand ...
http://www.autospies.com/.../Should-...Reports-18905/ - Cached - Similar
10-21-2010, 09:53 PM
#40
Pro
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I would never buy an extended warranty. This tells me that I bought the wrong car to begin with. If I have to buy an extended warranty for a car, I shouldn't be buying that car, it must be a pos.