Anybody get extended warranty?

[exalted_one]

I was doing some research on extended warranties and for Mazdas only 20% of the people who purchased these plans actually saved any money. Only ones lower were Lexus, Toyota, and Acura.

These plans are 3rd party and from what I read online (multiple sources) dealerships get paid a 50% commission on these warranties and can generally ask whatever they think you are going to pay. So in other words there is a large margin for bargaining.

I would call some 3rd party warranty places (like the ones the dealership uses) and get some price quotes. When the dealer brings it up let him know the best price you found and what it covers. I bet my lunch money he beats it.

 

[Tabais]

Dealership here gave me the 72m/100k extended warranty for free because of being a USAA member.

 

[erhayes]

USAA member?

 

[NinjaNoises]

There is a new Mazda-backed extended warranty plan
Mazda Extended Confidence

But it is administered by a 3rd party, Warrantech. It seems a lot of these 3rd party warranty plans will give any excuse to deny coverage. To find out, see who is administering your plan, and do a google search for reviews. A lot of them are junk.

It is exactly as this man says.

We purchased an extended warranty on our Mazda MPV before, and it was totally not worth it when problems came up with the car.

We were continually denied coverage on many transmission and other problems. Each time we called in to resolve, they would point us towards a different disclaimer in the booklets.

 

[Tabais]

USAA member?

Yes I use USAA for auto insurance and this car loan. The finance guy just said I get the bumper to bumper extended warranty because automaticly and didn't even try to sell me on it.

 

[CX-SV]

Yes I use USAA for auto insurance and this car loan. The finance guy just said I get the bumper to bumper extended warranty because automaticly and didn't even try to sell me on it.

I might as well ask what interest rate went with that deal?

(Not that the warranty cost them much)

 

[JTNY]

Definintely buying one given my recent transmission issue... now that it is being administered by Mazda I will take a second look.

 

[Gio26NJ]

Stay away from any warranty named Warrantech, terrible rating on the Better Business Bureaum website with many customer complaints. Very surprised that there are dealerships that still do business with these guys. No self-respecting dealership should carry them. I always check these 3rd party warranty companies.

For me as I said before in this topic it was easy as a company I was familiar with in the past was the extended warranty company that the dealership I bought my CX-5 from was working with. They're an A+ accredited business as well. Be careful with these guys, a little homework will go a long way.

 

[Tabais]

I might as well ask what interest rate went with that deal?

(Not that the warranty cost them much)

I was given 4%

 

[DJHakim]

Cost wascabout $1600 over the life of the loan (60 months).

I got an extended warranty, cost was approx. $2200 and is for 7 years 120K...

The standard warranty (Mazda New Vehicle Limited Warranty) included with vehicle purcahse is 3yr/36k miles. So folks are being charged $600-$1000 per year just for the extension??

The Mazda Extended Confidence (MEC) brochure does state "Administered by: WARRANTECH AUTOMOTIVE, INC." and it is "The ONLY Mazda-Branded Vehicle Service Contract." One issue is that it states that the MEC includes Roadside Assistance and other benefits I don't think are included in Mazdas New Vehicle Warranty. Is there a way just to extend the New Vehicle Warranty, not enhance it?

 

[CX-SV]

I was given 4%

And that's why the warranty was sold as "free" (because it wasn't free), interest rate premium/uplift of about 2% more than covers dealer cost of warranty.

 

[CX-SV]

The Mazda Extended Confidence (MEC) brochure does state "Administered by: WARRANTECH AUTOMOTIVE, INC." and it is "The ONLY Mazda-Branded Vehicle Service Contract." One issue is that it states that the MEC includes Roadside Assistance and other benefits I don't think are included in Mazda’s New Vehicle Warranty.

Mazda New Vehicle warranty includes:

24/7 ROADSIDE ASSISTANCE
If Mazda vehicle is not driveable due to a warranted part failure during the coverage period of the New Vehicle Limited Warranty (36 months/36,000 miles), towing service will be covered to the nearest Mazda Dealer. In addition, if a Mazda vehicle is not driveable due to the failure of a warranted powertrain component, then towing service will be covered during the coverage period of the Powertrain Limited Warranty (60 months/60,000 miles).

 

[DJHakim]

Mazda New Vehicle warranty includes:

24/7 ROADSIDE ASSISTANCE
If Mazda vehicle is not driveable due to a warranted part failure during the coverage period of the New Vehicle Limited Warranty (36 months/36,000 miles), towing service will be covered to the nearest Mazda Dealer. In addition, if a Mazda vehicle is not driveable due to the failure of a warranted powertrain component, then towing service will be covered during the coverage period of the Powertrain Limited Warranty (60 months/60,000 miles).

Then the MEC upgrades to (according to brochure):
"• Towing to nearest Mazda retailer, even if required for something other than a covered failure
• Trip Interruption Expense Reimbursement Benefits
• Battery Jump Start
• Flat Tire Service
• Fuel Delivery
• Lock-Out service if your ignition key is lost, broken or accidentally locked inside your Mazda and you are unable to locate a spare
• Computerized Trip Routing/Map Services for professional trip planning that includes detailed maps, clearly marked to indicate the most direct or scenic route to your destination.
• Winching Service to remove your Mazda from mud, sand, snow or ditch."

 

[CX-SV]

Then the MEC upgrades to (according to brochure):
"• Towing to nearest Mazda retailer, even if required for something other than a covered failure
• Trip Interruption Expense Reimbursement Benefits
• Battery Jump Start
• Flat Tire Service
• Fuel Delivery
• Lock-Out service if your ignition key is lost, broken or accidentally locked inside your Mazda and you are unable to locate a spare
• Computerized Trip Routing/Map Services for professional trip planning that includes detailed maps, clearly marked to indicate the most direct or scenic route to your destination.
• Winching Service to remove your Mazda from mud, sand, snow or ditch."

Yes, sounds like same as AAA service that many of us already have. They probably have contracts with exact same towing service providers.

 

[DJHakim]

Yes, sounds like same as AAA service that many of us already have. They probably have contracts with exact same towing service providers.

Wish there was a true Mazda *extended* warranty w/o extras!

 

[Bombadil]

The Mazda Extended Confidence (MEC) brochure does state "Administered by: WARRANTECH AUTOMOTIVE, INC." and it is "The ONLY Mazda-Branded Vehicle Service Contract."

Oh boy, Mazda has contracted extended warranty services to WARRANTECH ?!!?? This is not a good thing.

If you insure with GEICO, there is the option of adding their Mechanical Breakdown Insurance (MBI). They rip you off in that you must start it before your vehicle is 15 months old or has 15,000 miles, when they have no expenses until you exceed your original 3/36K warranty. But I would trust them to handle long-term repairs better than I would WARRANTECH.

It would be nice if Mazda offered a reasonable cost option to extend bumper to bumper out to 5/60K to match their power train warranty.

At least all of the new SkyActiv components are covered out to 60K. Could be that they find some problems in the first few years.

 

[jtl]

Extended warranties are a huge rip off. For every person that makes out thousands never use them.

 

[Bombadil]

Extended warranties are a huge rip off. For every person that makes out thousands never use them.

It depends upon the vehicle. I agree extended warranties do tend to be rip offs, particularly on electronics. But much less so on cars. When I purchased a Grand Caravan in the 90s, I knew they were having major problems with their 4-spd auto trannies. So I did pay $1200 for a 7 yr, 100,000 mile warranty. At 75,000 miles the tranny completely failed, $2600 repair. All told I had about $4,500 in covered repair expenses under that warranty.

But when I purchased a Corolla, I figured I wouldn't need it. And I didn't.

On most electronics, about 95% never use the extended warranties. On cars that number is much lower.

At the standard asking prices, I do feel most of them are ripoffs. Sometimes you can get good discounts on them. I once said no when offered one for $1700. Then 5 minutes later, as we wrote up the contract, he offered to me at $1400. I said no again. Then he offered it, the same exact manufactuer's warranty, at $1100, right at the end of the paperwork.

 

[Bombadil]

On a major Toyota forum, there is information as to how to purchase a significantly discounted, authentic Toyota extended warranty, from a dealer selling them at about $100 above cost. The list prices are way, way above dealer cost.

Some of their prices are as follows:
7 yr, 75,000 miles: $559
6 yr, 100,000 miles: $689
7 yr, 100,000 miles: $814

Many dealerships offer these at about 3X the price.

It would be very nice to have such options on a factory Mazda warranty. The numbers above are pretty low for peace of mine. And the odds of not having a single repair in 7 years are very low.

 

[MikeM.]

And the odds of not having a single repair in 7 years are very low.

Apparently not so low that the issuer of the warranty loses money (on average).

For a company to offer an extended warranty program at a profit, the cost of the warranties issued must include the cost of administering the warranty program (which is not inconsequential), the cost of selling/advertising (which is not inconsequential) and all payouts for parts and labor.

If the warranty was a zero sum game (on average) the issuer would go out of business due to the cost of selling and administering the warranty program. The only good reason to purchase an extended warranty is if your financial position is so precarious that a large repair would ruin you financially. I suppose another valid reason might be if the purchaser had a mental condition related to excessive worry. Even if these worries about expensive repairs (that may or may not materialize) are not logical or supported by the evidence, the fact that they exist and could possible be eased by the purchase of an extended warranty could (in extreme circumstances) be worth the premium price of an extended warranty. Most of us are better off taking our chances (the odds are very much in our favor or the extended warranty companies would be out of business) and dealing with less paperwork (and perhaps less frustration if and when we are told the needed repair falls under a warranty exclusion).