Value of Mazda bumper to bumper warranty-should I get one?

[restlessmonkey]

Picked up a 2016 CX5 GT. Nice ride. (OTD $32,628; CX5 $30,304 GT/Cargo cover/remote start/rails)
Forgot about the finance guy's push to buy a warranty. I didn't get it yet. Was offered a 7 year /100k for $2200 (retail around $3200). I've purchased a Honda warranty from a different dealer in the past for half the normal cost.
Is that possible with Mazda and is the warranty needed?
Your thoughts are most welcome.
Thanks

 

[MikeM.]

Forgot about the finance guy's push to buy a warranty. I didn't get it yet. Was offered a 7 year /100k for $2200 (retail around $3200).

That's a terrible deal!

Put the money in your retirement account and watch it grow!

 

[restlessmonkey]

How about if it is $1600? They lowered the price.

 

[piotrek91]

How about if it is $1600? They lowered the price.

Honestly, $1600 doesn't sound too bad if it's a bumper to bumper warranty and it has no deductible.
Personally, I probably wouldn't buy it for $1,600 because I think the odds of my CX-5 requiring over $1,600 worth of repairs are low.

MikeM, out of curiosity, what price would you pay for a 7yr/100,000 mi bumper-to-bumper warranty on a brand new, fully loaded CX-5?
would you get it for $1500? How about $100?

 

[MikeM.]

How about if it is $1600? They lowered the price.

Would you want to do business with someone who basically just admitted they tried to take you for at least $600 more than the product plus normal profit margin is actually worth?

Most people don't need protection past the regular 3/5 year warranty and $1600 is a lot for what you could actually expect to need with a car this reliable during that fairly narrow time period in which it is active past the normal warranty. Just invest it in instruments that typically have positive returns instead of instruments like extended warranties that pay out less than they take in (and they pay it out in future dollars). If they will just tack the cost of the warranty on the car loan, it is an even worse deal (because you will need to pay interest until the warranty actually becomes active).

Disclaimer: I am not familiar with the particular product you were offered but this advice is based on the fact that the underwriters have the upper hand in pricing the products that they offer and the products are designed to pay out considerably less than they sell them for. Then add the sales commission on top of that. The purchasers of these products pay for all that plus the product development and research necessary for pricing the products as well as the administrative overhead of running the program (approving/denying claims, PR, distributing any claim awards, etc.).

 

[MikeM.]

MikeM, out of curiosity, what price would you pay for a 7yr/100,000 mi bumper-to-bumper warranty on a brand new, fully loaded CX-5?
would you get it for $1500? How about $100?

Without having the benefit of the breadth of experience and data available to the under-writers of these warranties, I would say the absolute MAX I would pay would be about 30% less than the cheapest price they were willing to offer it for. On top of that I think I would want to subtract some more for the time, expense and uncertainty of having to file a claim to get ANY benefit from the product so the final price I would be willing to pay would be about 40% below the cheapest price they were willing to offer after driving the hardest bargain I could manage.

In other words, I wouldn't do it at any price they were willing to offer (unless I knew something they didn't).

 

[piotrek91]

Without having the benefit of the breadth of experience and data available to the under-writers of these warranties, I would say the absolute MAX I would pay would be about 30% less than the cheapest price they were willing to offer it for. On top of that I think I would want to subtract some more for the time, expense and uncertainty of having to file a claim to get ANY benefit from the product so the final price I would be willing to pay would be about 40% below the cheapest price they were willing to offer after driving the hardest bargain I could manage.

In other words, I wouldn't do it at any price they were willing to offer (unless I knew something they didn't).

Valid point.

 

[jjp735i]

I was offered the same deal when I got mine a month or so ago. Salesman said half price deal, something like 1800, i can't remember. I turned it down even though this is the first Mazda I've owned. From reading the boards looks like they are reliable as Toyota's and should go well over 100,000 miles before anything needs replaced.

 

[CX-5um]

Where is the link for this so called Mazda Bumper to Bumper Warranty? Who is the real 3rd party provider? Ask the dealer who they contract their 3rd party warranty with. If its Fidelity run. If its a majority of 3rd party warranties run lol. I'd suggest you find out and research do review of whatever 3rd party company they sell. The best 3rd party bumper to bumper warranty company I know of is through Geico.

I also want to add that Mazda Certified used cars (in the U.S.) comes with a free 7 year 100,000 mile powertrain factory warranty (not 3rd party). http://www.mazdausa.com/MusaWeb/displayPage.action?pageParameter=cpoWarranty

 

[abunn3]

When we bought our 2016 GT in August they offered the 7 additional years for $1200. Located in San Diego.

 

[killary]

I wish I had read this before I signed. Underwriter sold me 7 year/100k warranty $0 deductible for $2100 with $500 of it lumped into my financing.

This is my first Mazda and I'm coming from Toyota, which never had any problems with electronics until it's 4th year- so I was out of warranty when the radio got fussy, aux port got fussy, etc. I figured the electronics coverage alone was worth it being that my GT is fully loaded with all kinds of things that could go wrong.

Now, having read this thread, I wish I had talked him down closer to $1500. Or at least had him throw in the deluxe coverage that included wheels/rims.

Sent from my SAMSUNG-SM-N900A using Tapatalk

 

[Kedis82ZE8]

I wish I had read this before I signed. Underwriter sold me 7 year/100k warranty $0 deductible for $2100 with $500 of it lumped into my financing.

This is my first Mazda and I'm coming from Toyota, which never had any problems with electronics until it's 4th year- so I was out of warranty when the radio got fussy, aux port got fussy, etc. I figured the electronics coverage alone was worth it being that my GT is fully loaded with all kinds of things that could go wrong.

Now, having read this thread, I wish I had talked him down closer to $1500. Or at least had him throw in the deluxe coverage that included wheels/rims.

Sent from my SAMSUNG-SM-N900A using Tapatalk

I could be wrong but I believe most of these contracts can be cancelled completely in some short period of time. ...also pro-rated at a later period