Should I get extended warranty on my 06?

[TuKool5]

I am going to buy out our lease on an 06 Mazda 5. It has been perfect for 3 years except for the squeaky bushings. I am interested in everyones opinion if the extended warranty is worth it. Is the 5 reliable enough that the extended warranty may not be worth it?

 

[AwaKeN]

Why don't you take a new one ? That's what i did, the montly payment was cheaper with a new one !

 

[TuKool5]

I only carry one car payment at a time. My car is going to need replacing in around 3-4 years, so I need to have the wifes vehicle paid for by then.

Besides, they have one sitting on the lot for 16,000 with more mileage than mine. My buy out is 13,400, and I know how mine has been driven and maintained. Kind of a no brainer.

 

[AwaKeN]

Yeah but if you want only one payment it's because you are going to pay the 13 400$ cash ? If not your gona finance it ? So it's still a payment. I've never heard that buy your car after the lease is good. You will pay the car for 6-7-8 years in total...

For your question, if you pay the 13 000$ cash i would not take the extra warranty but if you continu to pay it for 1-2-3 years i would take the warranty as a security.

 

[mazdaspeedster3]

Buying out leases is never recommended becuase the buy out is ussually higher than trade in value. Making payments on another car or the one you already have is no different, that is all psychological.

 

[TuKool5]

As a family we need 2 cars. I can't afford 2 lease/loan payments. Therefore we need to own one vehicle while paying off the other one. I need to pick up a vehicle that I will own in 3 to 4 years so that then I can replace my other car with something new.

-If I lease a new vehicle for 3 years, I will NOT own it in 3 years leaving me with possibly having to purchase 2 new vehicles.

-If I buy and finance a new vehicle, I would NOT be able to afford the payments required to pay it off in 3 years.

Therefore I am looking at buying a vehicle for around 15000 that within my budjet I can pay off in 3 years. If I want to buy an 06 Mazda 5, I can buy one off the lot for 16000, or I can buy my lease back for 13400.

If money was no object, sure I would get a new one. But we need to stay within our affordable budjet. I didn't ask to be critiqued on my purchasing decision. All I asked was peoples opinions on whether the extended warranty was a recomended purchase on an 06 Mazda 5.

 

[doctorz]

what's the warranty left on your car? General rule of thumb is that extended warranty is a waste of money for the consumer. Having said that, we have the 4 yr/50K mile warranty on our '06 and we've used it for suspension repair. I think if your 5 was in perfect shape I'd still pass. You know the car's history.

 

[Heat]

Buying out leases is never recommended becuase the buy out is ussually higher than trade in value...

Yes, but... they are in the Canadian market which is apparently significantly different than the US market. Less rebates so used cars hold their value much better.

on the extended warranty, keep in mind that it is priced so that you will pay more into it than you will take out, on average. That's just how insurance works. Unless you have been having problems with your car, put money into savings each money, money that you would have been putting towards the insurance, and use that as your car's emergency fund. Chances are you'll come out ahead this way and you won't be restricted on who can work on your car, specifically what maintenance needs to be done, etc etc. Though if you do it anyway, make sure you go through a reputable company like the dealership or your insurance company, there have been too many auto insurance companies that just go out of business when people start filing claims against them.

Here's an example of what can go wrong with an extended warranty: My friend bought a Ford Thunderbird Turbo in the early '90s which had serious transmission issues (not his car, all Thunderbird Turbos). He had been changing his enging oil per the owner's manual but the warranty paperwork said he had to change the oil more frequent (something like 3,000 miles vs. 5,000 miles). He had followed the owner's manual so they didn't honor his warranty for his transmission which wasn't really related to the frequency of engine oil changes. The point being - if he had just put the money into the bank he would have had money to replace the transmission.

 

[TuKool5]

put money into savings each money, money that you would have been putting towards the insurance, and use that as your car's emergency fund.

Actually, that is a very good idea.

 

[mazdadude]

I bought out my lease on the Mazda5 as well. In the three leases I have done, this is the first car I have still wanted. The other leases were on a 97 Civic, and a 98 Integra. The Honda and Acura leases worked out great financially, as I was way over mileage on both of them, but the cars higher resale value than the residual value made it very easy to trade the car in when I was ready for another without getting dinged hard at the end of lease term.

For the Mazda5,the trade in value was identical to my residual payoff, and I couldn't see giving it up. So I decided to just buy the darn thing.(screwy)

I also opted for the Mazda warranty, and was able to haggle the warranty price, as well as the jack up the term length, and bring the deductible cost to 0. There is also a place online where you can buy a factory warranty directly, however I do not remember the name of it.(scratch)

 

[rodslinger]

I am going to buy out our lease on an 06 Mazda 5. It has been perfect for 3 years except for the squeaky bushings. I am interested in everyones opinion if the extended warranty is worth it. Is the 5 reliable enough that the extended warranty may not be worth it?

Get GAP insurance instead. Cheaper. When it starts giving you problems, drive it through the service bay window right through the service managers desk and into a few RX8's getting the apex seals replaced in the shop in the middle of the night. Total out the old one, get a new one.... (rockon)