Discount Mazda Extended Warranty

[BGood]

My wife just bought a 2016 CX-5 and the dealer tried to sell us on a Mazda Total Confidence warranty for $2500, which he later cut to $1700. I'm trying to find if there are any U.S. dealers who are offering this warranty at a substantial discount.

When I bought my Toyota 2 years ago, I found a dealer in the Northeast who was offering Toyota extended warranties for less than half of what my dealer offered it for. Apparently that dealership is slicing their profit substantially and making it up in huge volume by offering the warranties online.

I'm wondering if anybody is aware of any Mazda dealers doing something similar.

Thanks, and zoom zoom.

 

[MikeM.]

Even discounted, extended warranties are typically a poor value, especially on a car like the CX-5 that has proven to be very reliable.

Part of the lack of value comes from the fact that you are paying upfront for something that you won't need until years down the road (if ever). I recommend putting the money you would have spent on a warranty in an investment account dedicated to unexpected auto repairs (S&P500 index fund is as good of a pick as any). You won't need much luck to find that, down the road, those deposits have grown to enough to buy a brand new car with cash. If you have to pay interest on your extended warranty, it is an even worse value (if "value" and extended warranty should even be used in the same sentence).

(2cents)

 

[paris1]

If your dealer has already cut the price by $800, he's obviously willing to deal. Come up with a number that YOU think the coverage is worth and make him an offer. The negotiating doesn't end with the sale price of the vehicle!

 

[AllezDada]

$1700 is still a lot of money. The $2500 figure is there just so he can offer you an $800 discount so it looks like a deal. I also had a Toyota and had gotten a warranty from a dealer from another state a few years ago - for half what local dealers were offering. That dealer stopped selling out of state because Toyota made him stop, from what I understand. As it was, I didn't end up needing that warranty, so even though it was only $800, it was still wasted money.