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Hi All, I decide to replace my old bmw with ATS 2015. Currently, I get two quotas from autopriceshare dealers. The first one: 2015 ATS 2.0L I4 AWD $35309.0. Second one: 2015 ATS 2.0L I4 AWD + 3 years extended warranty $36529.0.
For the first quota without warranty, I compared with other shared deals in autopriceshare.com and felt it is a decent price. However, I am not sure about the reliability of the 2015 AWD and should I pay $1000 more for the 3 years extended warranty? Thanks in advance
(In addition, this is the 'dealer warranty' rather than 'Cadillac warranty')
 

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2013 3.6 RWD Premium - 2006 BMW Z4M
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Can't you make the same decision 3-4 years from now when the standard warranty is going to run out? 3-4 years from now you may not want to own it for 3 more years.

I am normally against extended warranties. On average the companies selling them pay overhead, the claims and still profit off of them. You deal with deductibles, hassles and normally come out the loser.

I thought Hoosier Daddy said it well in another thread

Since insurance companies make money on average, unless there is something about you that makes your risks higher than the insurance company knows or cares about, self insuring is the way to go with identifiable fixed amounts at stake IF you have the funds to do that. If the loss would be a hardship, get the coverage.
 

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'14 ATS 4 Black Raven 3.6 Premium
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Lots of variables and things to look at. How many miles come with the extended warranty? What type of deductible? Is the deductible per item or per visit? Is this 100% bumper to bumper or are some things not included? Most of the extended warranties are not worth it, which is why they sell them. You may be better off putting the $1200 in the bank. To some though it's worth the peace of mind to know they are covered for 3 more years for a few bucks more a month. Nothing wrong with that as there are some expensive components especially when billed at $100+ per hour for labor. Assuming they are giving you an extra 3 years 36,000 miles, $1200 seems fair to me.
 
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Discussion Starter #4
purchased the ATS without extended warranty last week. thanks
 

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'16 CTS V-Sport Black/'16 CTS Luxury w/V-Sport Pkg White
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if new you get a lot of warranty 4 year 50,000 mile bumper to bumper and 6 year 70,000 mile powertrain if you are going to keep the car beyond this timeframe an extended warranty is not a bad idea.....never buy dealer warranties only buy the manufacturers it will barely be more expensive (probably 1 or 2 hundred dollars more) but is a factory warranty good at any GM dealer nationwide (life happens...what if you move, the dealer warranty wont take care of you then) the factory warranty comes with roadside assistance (roadside is part of powertrain warranty extend that and you extend roadside) it can be canceled for a prorated refund and it can be added any time during your cars original warranty period (let it expire and you're out of luck)

one caveat is affordability as i said before you can extend the warranty any time while its active but it will be for the whole amount out of pocket....if you know for a fact that you want it at time of purchase get it then it will only add a few dollars to your payment

better yet have your dealer do a cost analysis for you and compare a 6 year purchase vs a 3 year lease plus 3 year purchase....often times you can save alot of money this way because lease incentives might actually be better than sale incentives and you still end up owning the car.....this method also plays into your hands because you can opt out of the extended warranty during the lease but get it at lease end when you buy the car.

don't be afraid to make the dealer jump through your hoops...right now you're jumping through theirs with their in house warranty offer.....MAKE them show you a lease and a buy and MAKE them show you a short term buy at lease end add up all your payments for both and go with the cheaper option

also as an interesting long term benefit if the lease+buy is cheaper at the end of 6 years your credit will show two satisfied loans instead of one very minor but a benefit nonetheless AND you may trigger more private offers from GM...a private offer is GM's customer retention program, basically in a couple years you will start getting post cards from GM saying dear valued customer you have earned $1000 off your next GM car for having purchased with us now you might get a different one for leasing too

and if you really want to get crazy get a GM card

now in year 6 when you're ready for a new car...you have whatever deal that is on the table...you can then ask you dealer to check the manifest list for any unredeemed private offers (if they haven't done this already for you, i was always able to find between $750 and $2500 extra dollars for about a third of our customers who purchased GM in the past) and whatever you earned on the card

who knows this might cover the extended Warranty on the next car:)
 

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You can always look at a certified pre owned. This will give you a long warranty then the factory.
 

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2014 ATS 3.6 Premium RWD, 2016 Corvette Z06, 2018 GMC Sierra Denali 2500HD Diesel
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I wouldn't waste money on anything except the one offered by GM; there are far too many horror stories of third party warranties excluding just about anything that can break, refusing coverage by blaming an owner induced failure, or in some cases the warranty company simply goes bankrupt. I only purchased one extended warranty and that was for my 1985 Monte Carlo SS because I knew in 1986 I was entering a Ph.D. program and didn't need any financial distractions. The extended warranty is basically an insurance policy and unlike other forms of insurance it isn't heavily regulated and the "payoff" strongly favors the provider. Certainly some individuals will benefit from the program but the probability is, like gambling, most players will lose.

If you really cannot afford an unexpected financial surprise then insure against it via the extended warranty but otherwise invest the money you would have spent on the warranty and over time you will be much better off. I have owned 15 new vehicles since buying the Monte Carlo which was the first new car I ever purchased. Over that time the only item I can think of that a warranty would have covered was a front hub assembly on a 2001 Olds Aurora and the dealership did a goodwill repair since it was barely out of warranty. If not I do my own maintenance and I would have replaced the assembly for the cost of the part which is a fraction of what an extended service contract would cost.

Final note, if anyone is still thinking about a third part warranty spend the time to read AND understand all of the fine print. My wife purchased a Nissan Altima a couple of years ago and the dealer added a "free" third party warranty. To stay in compliance with the terms of the extended warranty you would need a full time vehicle manager to ensure that all of the required conditions were met and any violation resulted in cancellation. The company could have added a line, "all oil changes must be done during a full moon by an Albanian midget with a nose ring" and it wouldn't have looked out of place with the other restrictions and conditions.
 
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HMMM...Punk Rock Albanian Midget Lube Technician....that might make some folks want the third party warranty
 
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