I bought a 2013 Buick Lacrosse Premium 2 with 70000 miles. There are more gadgets, gizmos options on it than I will ever understand or use. I have never considered purchasing an extended warranty, but this stuff could be expensive. But some of these Service contracts are two to three thousand bucks depending on length. I have read a lot more bad reviews than good about these things.What says the brain trust ?Are there any good ones? Are they worth the money?

I have been told that the only extended warranty contracts that are worth considering, are the ones offered by the automobile manufacturer -- Buick or GMC in your case.

The same contract might be offered for different cost at different dealers, just as new car costs are likely to be different at different dealers, so it pays to shop. You can do much of this shopping online.

These are always entirely dependent upon the bona fides and financial strength of the selling issuer.

The issuer could be a scam from the get go. High pressure sales tactics, aggressive marketing, lots of fine print mark these. These campaigns pay big commissions, leaving little or nothing for claimants, if they intend to pay any in the first place.

Poor management, inept pricing, leave the issuer unable to pay all claims even they they want to and meant to.

You really should read all the contracts very carefully and make sure you know exactly what is covered, who is behind the contract, and their finances.

My guess is that it is sufficiently confusing and obscure so that few will be able to acurately analyze it even if one can rely on the information provided, and will succumb to the smooth blandishments of the sales people.

I almost certainly would avoid it. My finances are adequate and known, theirs may not be.

Put the cost of the contract into a savings account and draw from it as you need repairs. You are more likely to have money left in the account than not at the end of the term. Otherwise these companies would all be belly up. If you do buy the contract, you are essentially gambling the $2k-$3k cost of the contract that you will be the 1 in a 1000 contract holders who actually get more benefits than you paid in.

Like any insurance, if you can take the financial hit give it a pass. I have a credit card that I'm relying on if I have a big ticket repair. Costs nothing if I don't need it.

If I'm buying a car with known issues and relying on an insurance policy to keep me whole... I'm an idiot.

Thanks for the help guys. This is just about what I am thinking about these things. About as much chance to use them, as winning a lottery.

All service contracts & extended warranties have VERY high profit margins. 90% profit is common for appliances & electronics. At one time I saw the cost of an extended warranty for a Nissan Maxima. Cost was 25% of dealerships asking price.

Ever wonder how many service/ repair places accept these after market warranties?
Dealers service departments do not, most independent repair places do not, despite the warranty ad statements. You have to pay the repair place and then fight with the warranty company. You have already paid out of your pocket, and then hope to get reimbursed somethin so what have you gained except aggravation!
The previous post about saving the warranty payment amount. into an account for future repairs is the best advise!

quote:

Originally posted by Anush:
All service contracts & extended warranties have VERY high profit margins. 90% profit is common for appliances & electronics. At one time I saw the cost of an extended warranty for a Nissan Maxima. Cost was 25% of dealerships asking price.

Only purchase the Manufactures Extended Warranty. The price is VERY negotiable.

Yes, buy a contract from the mfr. I found them online a couple of years ago with very little markup. My local dealer came within $100 of the online cost and I bought there. I have already gotten my money back and still have a couple of years to go.

quote:

Originally posted by Anush:
All service contracts & extended warranties have VERY high profit margins. 90% profit is common for appliances & electronics. At one time I saw the cost of an extended warranty for a Nissan Maxima. Cost was 25% of dealerships asking price.

I have a friend who used to own one of the larger third party auto warranty companies.
He owned a private jet and had a retired USAIR pilot to fly him around the country for lunch etc...it is a very profitable business model...

Watch for one clause carefully. "Like kind and quality". Translation, "we use the cheapest aftermarket parts we can find or in the case of major assemblies like engines or transmissions a used assembly."

I bought a used 2006 Nissan Pathfinder that had 80,000 miles on it (end of factory warranty). After doing my research, I found a few possible big ticket items that I was concerned about, so we bought the offered 3rd party warranty.
We paid 2700 for the plan, and ended up using it once for a cam solenoid replacement that cost 3500.

I was probably just breaking even after factoring in interest, bit it did save me from having to come up with the cash at a very inconvenient time for us.

quote:

Originally posted by TXJIM:
Put the cost of the contract into a savings account and draw from it as you need repairs. You are more likely to have money left in the account than not at the end of the term. Otherwise these companies would all be belly up. If you do buy the contract, you are essentially gambling the $2k-$3k cost of the contract that you will be the 1 in a 1000 contract holders who actually get more benefits than you paid in.

I just went thru this with my car.
At the end of my contract I had used only about $400. in repairs.

Bob

I did some appraisal work for a guy who purchases these warranties in bulk. He is a wealthy man from this.

Read the fine print on what is included/excluded. You may be surprised what is actually covered.

No

Buicks are very reliable (the most reliable American car) and usually purchased/driven by responsible people who maintain their cars well. There are a lot of anti-GM posters here so you'll probably get replies telling you to sell it for an F150 before it crumbles to the ground, but I wouldn't worry about an extended warranty.