Extended warranty due to new truck prices

testerdahl

testerdahl

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Staff member
Just curious people's thoughts on extended warranties now with new truck prices being higher and trucks filled with electronics. I'm seeing this as something more people are considering these days. I wonder if it is an upward trend to buy them or if it is normal.
 
I bought an extended warranty. The cost of repairs has exploded and buying a good warranty that covers the essential + electronics brings me peace of mind. I have a 250$ deductible and then they cover the rest. Labor rates are between 140-190$ an hour around here so if it takes more than an hour, I'm ahead.
 
Nope. I still don't believe in them. If repair costs were so high and so common, they'd never make money on those warranties. Yet they sell them like crazy. To me, I still equate it to buying a lottery ticket. Except if you win, you really lose because your truck broke.
 
I bought one for the first time for my used Ranger because of all the electronics. I just don't think I can do any work on these modern trucks.
 
In 1999 I bought a used, I think 97 or 98, Dodge Ram 1500. It only had 20k ish miles. I purchased an extended warranty with the truck. Less than a year later the transmission has been replaced, the front diff had been rebuilt and the catalytic converter was replaced. I remember seeing the invoice for over $4k for one of the items and I paid for fluid and gaskets. The dealership took that truck back and let me pick another truck on the lot. I picked a 99 Dodge Ram and drove that truck for about 3 years until as I was approaching 90k miles the transmission started to slip and it had also had some diff work. I immediately traded it in. (That's where my disdain for Dodge/RAM came from)

Since then I've purchased 2-3 new vehicles and 1-2 used. I've bought an extended warranty for each one and have had to use it one other time for sure that I remember. So, in total I'm 3/6-7 or so in being thankful I puchased a warranty. Each time the warranty paid for itself with the needed repairs.

I'm at a place now where I can afford the peace of mind, so I purchased the extended warranty for my GMC when I bought it new in 2021.
 
The wife always gets a warranty and tried to use it for a van back in 2004 for the tranny, but it was denied. Mech knew the TQ convertor was going but the warranty company said they'd take the chance it wouldn't fail before the warranty ended. They won that bet and we ate it as it failed shortly after the warranty expired. Her latest was a 2015 Nissan Rogue and I thought for sure the warranty would be used on that but even the CVT has held up well.

I took the price quoted for the warranty on my last two trucks and just stashed it away for "just in case". Didn't need to use it on either one so the money sits in an investment, still growing. And when/if I buy another truck, I'll add more to that investment. Biggest repair I've done was $700 for a new condenser but that was after 100K so a warranty probably wouldn't have helped anyway. The 2019 I sold before the factory warranty expired so I don't know if that one would have helped. I just feel the odds are in my favor.
 
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