Extended TV Warranty - GM or Other?

[dpam]

Our GMC truck original warranty expires at the end of the month, so I'm wondering if I should buy the warranty from GM or other warranty providers? I assume buying from GM would be easy when there is a claim versus submitting a claim to a different company. I would appreciate any positive or negative feedback you have experienced with TV extended warranty.

[JandC]

Without making this too long, I purchased mine (F350) from Ford immediately prior to the factory warranty expiring. I am not sure what GM offers. I never really believed in extended warranties but since most of my TV miles are used pulling the Montana I felt it was a good investment for this vehicle.

[TAKPAK]

Entirely your choice, but I consider all extended warranties a bad investment. They don't sell them to lose money, that's for sure. You read articles about them and they are a big money maker for the dealer and the companies that sell them. It's a gamble, that's true, but I figure I can put that money in some sort of investment, and still come out ahead even if I do have to have some work done.

The ONLY extended warranty that I ever bought, and it did pay off for me, was years ago on the "infamous" GM 5.7 liter diesel (converted gas engine) that they attempted. The duramax itself is a proven engine.

[richfaa]

I have always been intrigued by the notion that the Extended warranty is a bad investment, makes money for the company and the dealer, will never get your money back. It is a insurance policy like all insurance policies we have and the same applied to every one of them They are not a investment but a protection policy. That notion seems to only apply to extended warranties. We have not got our money back on our home owners policy, auto,truck, camper policy in fact the only policies we have got our money back were on RV extended warranties. We do have extended warranties on the Truck (ESP) and the Montana (Good Sam) We.We have not got our money back and do not expect to have used both. When we started to find out the cost for big ticket failures on the truck we figured a affordable investment in a Extended warranty vs a cost that would devastate us was worth the price just like our home owners insurance.

[1retired06]

We have never had extended warranties on the RVs. Have never had a problem justifying the expense. We do carry extended warranty coverage the trucks, but only for the diesel engine because they are expensive to repair. Have never needed those either, but....

[8.1al]

My only worry with an independent warranty company is whether or not they will still be around when I need them. With the GM warranty you have a little more peace of mind, not to mention less hassle if repairs are needed. If you decide to buy a GM warranty shop around on the internet you will find dealers that may give you a better price than your local dealer.

[DQDick]

We've gone both ways over the years and currently don't have one, but are putting the money in an emergency account instead. It's a crap shoot as to whether you'll need it and will you need it before the account gets built up enough. On the other hand we don't go to Casinos except to eat and park so I guess we all have to gamble somewhere.

[grayghost03]

Dick kinda hit the nail on the head, we budget for emergencies and a 3000 dollar fridge or a 17,000 dollar engine, falls well within the budget, however a 350,000 home does not. If you have emergency money set aside and make money on it, to us that is the way to go. Sometime peoples financial situation prohibit building a emergency fund to address bigger outlays, to those, smaller payments to insure a stable future works better. All depends on your current and future situations.

[mobilcastle]

Your 2011 truck most likely has a cp4 fuel pump like mine. If it blows it is like a grenade going off inside the fuel system and metal goes everywhere. Cost to repair is 12 to 15K. I usually do not buy extended warranty but I did for my 2011. If you have a Ford, they are using these pumps also in newer models. I bought a GM warranty from this group:
Vaden Extended Service Agreement Group
GMPP Service Agreement 1-877-466-9166
Monday-Friday 10AM-7PM eastern
Saturday 10AM-5PM eastern

The price I felt was right.Good luck with your choice.

[mlh]

The normal thing that happens to these high pressure fuel pumps is they get contaminated fuel either dirty fuel or water in the fuel that gets to the pump. When they open up the HPFP if either dirt or rust is found the manufacturer says that is abuse and won't cover it. And it won't usually be covered under an ESP. Your standard insurance policy may however cover the HPFP.
Lynwood

[mazboy]

extended warranties are a bad investment.

here is an interesting article:
http://www.autoguide.com/auto-news/2...-your-car.html

[mlh]

Almost all insurance is a bad investment. Some people invest some put money in the bank knowing very well they will lose value.
Lynwood

[richfaa]

Sometime peoples financial situation prohibit building a emergency fund to address bigger outlays, to those, smaller payments to insure a stable future works better". that is us and why we have extended warranties.... Extended warranties are not a investment they are a protection policy like any insurance policy. Things that are investment can and do lose money.

[bigred715]

My factory warranty expired on my 2007 Chevy in 2012. Didn't get one right away and then had a modulator of some sorts that controls the 4x4 and had to pay over $400 to replace. Then I bought an extended warranty from my dealer, and the next time in for service I had around $1500 of repair work done and only paid $50. Front wheel bearing, another part on the 4x4 and transfer case leak. I have National Warranty bought at my dealership for additional 48 months.

[jlb27537]

quote:Originally posted by mobilcastle

Your 2011 truck most likely has a cp4 fuel pump like mine. If it blows it is like a grenade going off inside the fuel system and metal goes everywhere. Cost to repair is 12 to 15K. I usually do not buy extended warranty but I did for my 2011. If you have a Ford, they are using these pumps also in newer models. I bought a GM warranty from this group:
Vaden Extended Service Agreement Group
GMPP Service Agreement 1-877-466-9166
Monday-Friday 10AM-7PM eastern
Saturday 10AM-5PM eastern

The price I felt was right.Good luck with your choice.

The Cp4 pump usually only fails if it gets water in it. NEITHER Ford or the Extended Service Folks are going to cover the damage if caused by water. The reasoning is the failure was not the fault of the pump, but due to a external source.

Being retired from service management at the dealership level, been there, done that.

I do NOT believe service contracts are good investments.

Jim

[Tom S.]

I've bought well over 20 new vehicles in my time and never bought an extended warranty on any of them. The results? If the average warranty had cost me $1600, that's a total of $32,000. During that same period of time, I have paid out of pocket expenses of less than $3000. That's a savings of over $29,000. Maybe I'm lucky, or more likely, maybe it's the fact I take care of my vehicles, including doing my own maintenance.

The bottom line is it is insurance - one that makes the companies a lot of money. I worked for GM and know. Both they and their dealers love the extra income from their plan. It reminds me of people who go to Las Vega expecting to win. In this case, you are betting a couple thousand dollars that your truck is going to break down, while the insurance company / manufacturer is betting either it won't, or if it does, it will cost less than your premiums. Who's favor do you think the odds are in?

If you can't hold on to money, give it to a trusted friend or relative. In the long run, you will be far better off without the warranty. BTW: Consumers Reports agrees with me.

[richfaa]

I have the same problem with our Home owners insurance. I am betting that the house will suffer a large loss and the Insurance company is betting that it wont. In the 40 years plus that we have had home owners insurance it has costs us well over 50K and we have not used it at all. Had we put that money away over the years with interest we would not have the 400K plus to replace dwelling and contents in the event of a loss.

Same with the Montana and the truck. two Holding tank replacements in the 13 big sky cost over 1100.00.we do not ave that much in the Extended warranty in 15 months we have had it. For us the extended warranty has been a good investment. It is the only insurance policy that has shown us a profit.

[Tom S.]

quote:Originally posted by richfaa

I have the same problem with our Home owners insurance. I am betting that the house will suffer a large loss and the Insurance company is betting that it wont. In the 40 years plus that we have had home owners insurance it has costs us well over 50K and we have not used it at all. Had we put that money away over the years with interest we would not have the 400K plus to replace dwelling and contents in the event of a loss.

Same with the Montana and the truck. two Holding tank replacements in the 13 big sky cost over 1100.00.we do not ave that much in the Extended warranty in 15 months we have had it. For us the extended warranty has been a good investment. It is the only insurance policy that has shown us a profit.

Stop comparing apples and oranges. Unless you are talking about a home appliance warranty (which you weren't), you can't compare the two products because they aren't even remotely the same. Nor do I believe in those warranties either, but again, I fix things myself in most cases. Your extended vehicle warranty won't protect you against fire, flood or tornados. And lest I forget, home owners insurance is required by your mortgage company, so you don't have a lot of say there, do you? When my house was paid for, I dropped the heck out of my home owners coverage amounts and increased the deductibles, and reduced the cost by nearly $500 a year.

But let's get back to car warranties, since that's what the discussion is about, not home insurance. Here's your worst nightmare: a catastrophic failure of the engine. Yes, it does happen, and the bill for it is going to cost north of $8K, probably closer to $12K. However, how many engines have you had go bad in your life time? How many friends or acquaintances? Although I've read about a few, I've never had one, nor do I know anyone who has. The closest I ever came was a Saturn that ate some valves when the timing belt broke. That ended up costing me $750 (and was included in the $3000 I posted in the above post of my lifetime expenditures not covered by warranties). For the sake of discussion, let's say that 1 out of every 250,000 Ford engines built does blow up (from a non-abuse cause). Do you seriously believe the chances you will get that one engine are that good and is cause to buy an extended warranty? In the mean time, what about the other 249,999 owners? What are they getting for their 'extended warranty'?

Since it's obvious you don't want to take my word for it, I suggest you do some research on the topic and see what researchers and consumers groups have to say about extended warranties. They will flat out tell you that they are a waste of money. Then you can write letters to them and tell them how wrong they are.

From Consumer's Reports: http://www.consumerreports.org/cro/n...anty/index.htm

Another Site: http://www.clarkhoward.com/news/clar...er-vehi/nCKZt/
(Take special note where they cite that 55% of people who buy the extended warranty never use it and 45% who do, end up paying more for the warranty than the repairs cost.)

From Edmunds:
http://www.clarkhoward.com/news/clar...er-vehi/nCKZt/
(Pay attention to the last part titled "Bonus Question: Do you really need it?")

GenX Finance:
http://genxfinance.com/is-an-extende...ice-contracts/

Auto Guide:
http://www.autoguide.com/auto-news/2...-your-car.html

[richfaa]

We do have appliance warranties and warranties for inside and outside gas and water lines. We do have the Ford ESP Premium plan and the Good Sam RV extended warranty. We trade cars every 3 years so they are always under warranty. We do have health Insurance, home owners Insurance truck auto Insurance and even Golf cart insurance. I believe in most all kinds of warranties and have all kinds of warranties. I can't fix anything my self don't have the technical knowledge or the tools to do so.

Extended warranties are good for us and we will continue to purchase them. It is a fact however that if you never use them or any insurance you don't need them. They are all protection plans were one pays a small premium to protect against a large loss and yes the odds are not in our favor. Most of us will lose money on any kind of insurance or warranty. Your way is fine....so is mine.

[8.1al]

Thanks Tom S., some good reading there