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I was an independent mechanical inspector for an agency that worked with several warranty companies for about a year; I would have stuck with it but there was too much running me around the state and I was using my own car. I would inspect the vehicle at the repair facility, make a report, take pictures and call it into the insurance company. Here's what I learned: read and be aware of the fine print in the warranty provisions. Most will have a grace period to protect them against pre-existing conditions. Save your receipts for servicing. Some companies are really good and some are really bad. I remember doing a claim on a 132,000 mile Dodge Caravan for Corinthian Management and they covered both a bad engine and transmission without any ifs, ands or buts. There was another company in Florida that did what they could to deny any claim they got and always gave me a hard time; their warranty didn't cover any seal failures nor damages caused by leaking seals, which pretty much meant 99% of the automatic transmission problems, turbo failures and power steering repairs were not covered. I really don't recommend them for most people, but some are good for some people depending on their circumstances.
 
A friend of mine bought a used Land Rover from a dealership and at the time of sale also purchased an extended warranty. He was very happy when his car died on the highway on a road trip 400 miles from home and he remembered he got the extra warranty. Unfortunately, somewhere in fine print was a disclaimer that said damages due to overheating were not covered. He said the car just stopped working as he was driving. The dealership says it overheated. He can't pay the $6000 plus to fix the car. So it's been sitting on the dealers lot for the past 9 months or so while he continues to make payments on it as he tries to resolve the situation. He is dealing with lawyers now.

I won't buy an extended warranty. Too easy to hide stuff in the fine print. Even if you read and understand the fine print, how are you supposed to prove a negative, as in proving a disqualifying event didn't happen when they say it did?
 
My neighbor was looking for a new vehicle and came over to look at my new Frontier. He liked it so well ( I let him drive it) that he bought one from the same dealer that I had.
He said he got the extended warranty (I said nothing) but he added the dealer sold him an aftermarket warranty....not even a Nissan factory warranty.
I assume that the dealer made more money on the aftermarket warranty. He’s happy that he can go anywhere to get it repaired without being restricted to a Nissan dealer....ouch!!
 
$2500 is cheap in the long haul (just over $1 a day) but almost 10% of the value of the vehicle. Thoughts?
The fact that they're charging $2500 means that they've calculated that they'll need to pay out considerably less than $2500 in claims over the length of the warranty.

I say "calculated", because they have plenty of statistical data on how much they have to pay out in warranty claims for your particular year and model.

They don't offer warranties out of the goodness of their hearts. They offer them to make money - which means that they charge several times as much for a warranty as they'll ever pay out in claims for it.
 
I'm guessing 90% of policy purchaser's never even read the actual policy or contract that they sign.And alot of those don't really understand what they're reading.Most of the insurance companies selling these warranties seem to use fear of economic demise as motivation, beings a 500$ repair is beyond the monthly budget of half of America if you believe statistics.
 
There’s got to be a bunch of money on these warranties, far beyond what they expect to pay out. They are propagating everything.
I just bought a $17 watch and on amazon and I was offered a warranty at extra cost. Wow!!
 
At one time, extended warranties and insurance policies were only offered to cover expenses that the average person couldn't possibly afford to cover by him/herself - Things like your house burning down, the death of a wage earner, an illness that required a lot of expensive medical treatment, crop failure, major structural defects in a home, etc.

Most folks understood that the policy underwriter made money on the deal, but that it was still better than being bankrupted by a major catastrophe.

Nowadays, policies are offered for thousands of things that the average person could easily afford to cover him/self - or at least pay off over a few months on a credit card.

We have forgotten the real purpose of insurance.
 
When I bought a new frontier, the salesman recommended me an extended warranty of 2400. I didn’t want to buy it but I was embarrassed to refuse, so I dealt with him at a low price. In the end, it dropped to 650, but I didn’t buy it. I was surprised at the profit of the extended warranty How big is it! Even if it sells 650, he still has a profit.
 
In a similar place with no more miles than you have on it, I’d likely keep the vehicle.

An ozone generator can help take care of the mold issue.


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