October 1, 2009

Extended Warranties

I'm not the guy to buy extended warranties for most things. An iPod? No thanks, when it dies I'll get a new one. A TV? I have faith in the manufacturer to make a unit that'll last 3+ years before it dies.

Now here's my predicament: My Car. I drive an '07 Focus bought in Winter '06. It's been three years this fall and it's at 57,000 km. My 3yr/60,000 km "Bumper to Bumper" warranty is practically up. That warranty covers things like: electrical, A/C, gadgets (heated seats, audio unit) etc. - an accessories warranty so to speak.

Jubilee Ford is offering me an in-house warranty that will extend my Bumper to Bumper for another 3 years / 150,000 km for $1900 (CDN).

I know nothing about extended warranties, is it worth not investing said amount and potentially being stuck with a broken A/C next summer that will cost me more to fix?

Any input would be greatly appreciated!

Note: I should mention I have two warranties. Powertrain (5yr / 150k) and Bumper To Bumper (3yr / 60k) In 2 years, I'll have a chance to extend my Powertrain should I choose to. I'm only talking about the Bumper To Bumper right now :P

3 comments:

  1. i don't believe in warranties either, but generally the extended warranty is a good thing because thats when major components start going. as a previous focus owner and someone who has had his transmission redone twice and front suspension for free, you'll probably thank yourself

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  2. Let me know what you do... I didn't buy any extended warranty on my vehicle either... 3years will come up quick :P

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  3. One thing to keep in mind, is that aftermarket warranties tend to act more like insurance agencies - they will try to weasel their way out of paying and there are deductibles involved.

    And I'm not sure I'd expect them to replace minor things, but it may be worth it for the other things - although you can repair a lot of car for $1900, especially your car since it's got common parts, and most mechanics can work on it.

    I don't buy extended warranties, unless they are being offered by the manufacturer themselves.

    If it's a Ford warranty, I'd say that's worth it. If its an aftermarket warranty (every dealer sells them for used cars) then I'd probably risk it. 57K is low, its not like your transmission will die in the next few years...

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