: GM Extended Factory Warranty.... worth it?



freshchops
09-28-07, 12:54 AM
OK, so this is obviously an opinionated question but I've recently purchased an '05 STS (V8) second hand. It's creeping up on 50k miles soon, so goes the Factory Warranty. It's gonna cost me about $3000 to purchase the GM extended warranty which will cover me for about another 3 years.

My question, open to opinion is simply if it's worth it?

I feel a slight paranoid pressure that I should but something tells me (mainly from observance of B.S. warranties) is that they're usually set up for the Warrantor to win.

I guess my main concern is..... since I haven't owned mine too long, so I haven't had any experiences with the Dealer Services vs. major or common problems to be expected with the STS.

Nothing is more frustrating than investing in "piece of mind" to only bust out the wallet again and again when problems arise.

Do you think the $3000 is worth the 3 years piece of mind.... my likeliness to incur more expenses within that timeframe????

Thanks,
C

porkfarm
09-28-07, 07:10 AM
I was in the same boat. I ended up going with carchex 4yr 100K with roadside, car rental 100 deduct. for 2072. Plus 0% int monthly payment. Anymore money than that, I would have kept it in my wallet. 3K is to much if you ask me. ..

DG2
09-28-07, 10:13 PM
YES ! My advice is if you do not lease and own your car the GM warrenty is worth every penny. I own an '05 STS with 67,000 miles and I am covered till 100,000k.. My wife drives an '04 SRX with 59k and I wish we had purchased the warrenty.

Both cars have been outstanding but it is worth the money should a major repair happen. I have used it 2 times and there is no BS with GM. They covered everything ...

Buy it if your keeping it till 100k plus...:thumbsup:

freshchops
09-29-07, 02:51 AM
Porkfarm, I've requested a quote w/ CarChex. Thanks for the referal. Can you use GM service centers for repairs? Is there "anything" not covered in their standard warranty?

DG2, have you had any major repairs done under the GM warranty, any what would be expensive ones?

Thanks!

DG2
09-29-07, 06:22 PM
Porkfarm, I've requested a quote w/ CarChex. Thanks for the referal. Can you use GM service centers for repairs? Is there "anything" not covered in their standard warranty?

DG2, have you had any major repairs done under the GM warranty, any what would be expensive ones?

Thanks!

The Oxygen sensor needed to be replaced ( after a dealer tune up ! ) , the hood was not staying open and needed a new ( thing a jing) that holds it open. That was about it.

z06bigbird
09-29-07, 11:21 PM
$3000 can buy a ton of repairs. Most common problems might be windows, a/c vents, ??

I recommend staying miles away from aftermarket warrs, as so many of them go out of business annually, and their fine print is extremely restrictive in my opinion.

bigdog9586
09-30-07, 07:37 AM
Only time an extended warranty is worth the money is when you need it. It is always a gamble in will I need it or not. In my opinion I think most people who keep their cars for the whole 100K will get use out of it and if I ever was going to keep it that long I would buy it just for the piece of mind. With service departments charging well over a $100 an hour it won't take long to use up that money you saved on the warranty. Now having dealt with after market in the past and the hassles of it there is no way I would ever go that route again. The GM warranty is GOOD at every GM dealer but the after market may not be and most likely won't be. Most dealers don't want the hassle of trying to get their money from some other company and may make you pay up front and let you jump through the hoops to get your money back.

coati
09-30-07, 08:05 AM
Being that the STS is so hi-tech, computerized & electronics intensive, your average mechanic cannot fix the many possible problems that could arise.
Often times only the dealer can handle these kinds of problems which can be VERY complex & expensive.
My brother has his own auto repair shop & he doesn't even want to mess with my car if something major should go wrong with it (engine-Northstar or electronics/computer wise).
In this case, it is very good insurance if you can afford it & plan on keeping the car beyond 4-years/50k+miles.

Bee iLL
09-30-07, 08:58 AM
Question, isn't that extended warranty only good for 5 years or 100,000 miles? I've been getting them a lot in the mail lately for my car. To me if you only get one more year out of the deal to put 50,000 more miles on the car, then it is not worth it. At least for me, but I probably won't even put 50,000 on in four years.

Lifer
10-01-07, 10:15 AM
:horse:
A GM or any other extended warranty – is it worth it?

Consider the following: First of all, most of you out there in Cadillac Land (and most other vehicles) makes a car payment monthly (lease or purchase) every month. Those of us who have decided upon the joy of ownership will eventually satisfy the lender of record, no longer make car payments, and keep the whip for few more years, squeezing all the value there can be had from it.

First, this presents a false sense of security, because now most of you spend the car payment you were use to making on wine, women, and song, while wasting the rest. Eventually the time will arrive when you will trade this paid-for vehicle and make a new purchase from the land of rust and pot holes (Detroit - if you are buying American) and will have to come up with a down payment and that nasty car payment again. Besides moaning and declaring major cuts in your budget, you are now tethered to that monthly responsibility.

My suggestion is this, and it has worked for me since Viet Nam was a small war and a pimple on Johnson’s buttocks. When you fulfill your purchase and loan obligation for the car of your dreams, do not stop making car payments. Take this unburdened cash and pop it into a savings account or a trustworthy mutual fund and proceed to save this car payment every month. This will satisfy a few problems that you may or will face in the future.

First, if you intend to keep this vehicle (an excellent idea, especially if it is a good one) this savings will aid you in handling unexpected non-warranty repairs. Consider that, for example, the payment you have been making is $500 every month. That is $6,000 a year, every year. So, instead of making GM or any other second tier warranty service rich with your bucks, hold your own money. If you had a five-year loan and your shiney ride is about out of warranty about the same time as the loan is covered, in one year you will have enough funds to manage most repairs (unless you have hit 100,000K mileswhere it may needs some expensive feature work by then). Batteries, starters, alternators, water pumps, some electronics, major service – you have the funds.

Second, since you are now saving some money, and the car is probably depreciating faster than a speeding bullet, when it does come time to push your pride and joy upon the dealers lot you will have two things. Yes, two things. First thing you have is a mighty down payment so you can either get a better ride or all the goodies the dealer wants you have ($profit time). The second thing you have is really the best. You have a discipline that takes care of that dreaded new-car feeling that get when you have to start making payments again. You just continue with the monthly payment (allowing for very minor adjustments due to inflation) and that first-payment-adjust-my-budget pain is not there.

So, my answer to the question to an extended warranty – is it worth it? NO!.

I hope this has been informative and helpful. It works for me. :cool:

porkfarm
10-01-07, 10:54 AM
2K was peace of mind for me, being my first caddy and also having a Jaguar in the stall, I just would like to know if these cars can do it. If the tranny, engine or Nav unit fails.. 2k will seem cheap. Just check on the northstar board and see some of the problems there. ( all be it most over 100K ) . Now if this was a toyota or a crown vic, yeah bank it, but this sled has more sensors, hardware, software and trip wires than the viet cong. I am just not sold yet that my STS is bullet proof.

hueterm
10-08-07, 11:49 PM
A major A/C job will also eat up the best part of $2K. Of the 8 current and former (all GM) vehicles listed in my signature -- I've replaced A/Cs in 3 of them. 1 was warranty, the other 2 were in the $1400 range.

For me it depends on the vehicle and the out of pocket cost. One of the reasons I got rid of my '04 Avalanche is that it was about to go out of factory warranty, and I was going to have to write a check for a couple grand for the Major Guard, plus another grand for tires. So instead, I swapped it out for the EXT, financed the GMPP at promotional interest, put off buying tires for a couple of years, and lowered my payment a few bucks.

Now, if I'm only paying a few thousand for a car, it wouldn't be worth a $2000 warranty.

Mike