Extended Warranty on 2026 Tahoe LS 4WD 5.3L

OR VietVet said:

All the more reason to buy a nice GMT800 and skip all the touchscreen pushbutton nightmares that are made now. GMT800 was the last great series.

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I agree for most economical. But if you want the latest and greatest stuff you need to pay to play! I like the mag ride and the air suspension that raises and lowers the truck when you park but I know when they eventually crap out it’s $$$$$.

My wife loves the touchscreens too much now, she ain’t going back lol.




That being said my daily beater is a 2006 f150 and it’s very easy to maintain. I see both sides for sure. I love that truck and it will be with me till it’s literally dead and rusted into a pile of dust.

I see nothing but unneeded trouble in this pic. Also, wasted $ as well. But again, "Keeping up with the Jones's".

Be a great vehicle for a 36/36k lease I think. Otherwise, nope.

jamoody said:

I am purchasing a 2026 Tahoe LS 4WD with 5.3L engine. It comes with a 3yr/36K miles bumper to bumper warranty and 5yr/60K miles powertrain warranty. I'm looking into a 7yr/100K miles extended warranty (Premier Plus) costing $3500? The extended warranty covers most everything except consumable parts such as battery, bulbs, airbags (interestingly), rotors, springs, muffler, etc. I'm particularly concerned about lifters in the 5.3L engine. Opinions?

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I wish you only the best w your beautiful Truck.........BUT Ive been there! After 2 Dangerous Breakdowns on busy Freeways (44K and 65K) I dumped it! what good is a $3500 SWarranty of ANY KIND when u break down at 2am in a nasty City, with your family ....AFTER barely surviviing a deadly crash/Accident???? If GM GAVE us a 70K for FREE
( which they SHOULD!) I would and did, ditch them! The stats show way too many Blown engines on these berasts .....and I waited more than 21 days each time, while being "gifted" with a little Trax to drive for most of the period! BYE BYE GM......

OR VietVet said:

You are overlapping no matter which way you say it. If I was to buy one of the plans, never would, I would wait till the 3 year, 36k miles is up and then do it. If you think you are coming out ahead, then the GM people will laugh alll the way to the bank.

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This is the voice of experience.

Instead of buying these plans do exactly what GMAPP does and invest the same money into a safe no fee index fund when you buy the vehicle. Or you can just buy GM stock.

In the event of a problem before the factory warranty expires it will be covered so you are hedging against a serious expense after 3 years/36 months being greater than the 3 year return on the equity investment.
Statistics show that is highly unlikely.

Don’t trust me but look at the numbers, you will always be ahead of buying any protection plan.
Do you think buying any plan is smarter than some of the most successful most profitable companies selling these plans decades?

The only problem is most people don’t have the $3k to put into an index fund or stock and I think the plans can be financed which makes it even more profitable for the company.

OR VietVet said:

I see nothing but unneeded trouble in this pic. Also, wasted $ as well. But again, "Keeping up with the Jones's".

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Careful!
You are starting to sound like a grumpy curmudgeon!

The difference between what you see and what others see is the safety and convenience of modern technology while you see the potential problems from the mechanics perspective of replacing/repair.

The 360 cameras, ventilated seats and other convenience features are nice to have just like A/C and power windows and door locks. I love this stuff and I could care less about keeping up with the Jonses! In this area a tricked out Tahoe certainly is not ghetto but not in same league. The Jonses around here are driving Bentley’s and AMG G Wagons and staying only a couple weeks in their 10,000 sq ft homes. LOL

There is only so much "comfort/safety" that a driver needs. I wonder how we ever got by driving for the last 100+ years. Busy stuff in front of you means less time watching the road ahead. Plus, the cost of it all is so over inflated and yes, it is "keeping up with the Jonse's" and money flying out of the pockets. It is a waste.

Buy a low mileage GMT800 and preferably a 2005 or 2006 and you are in comfort and $ ahead.

I wouldn't think about commenting in a generation forum section of a vehicle I don't own.... But I guess that is just me.....

Stbentoak said:

I wouldn't think about commenting in a generation forum section of a vehicle I don't own.... But I guess that is just me.....

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If you are talking about me, not sure but "if", I am commenting on this for many reasons. I have been in the shops for close to 45 years. I have even worked on newer generation models than my GMT800. I have very strong opinions about extended warranties. I also am VERY aware of the "gadgets" causing lack of attention and therefore wrecks. I don't necessarily like when anyone tells me what I should or should not comment on but I also know they have the right to say so like I have the right to comment. If a member, again only if you are referencing my comments, presumes I don't have knowledge of a new Tahoe/Yukon, then they would be wrong.

But I guess that is just me.....

Here's my suggestion on service contracts:
Put the cost of the vehicle service contract in either a High Yield Bond Fund or a High Yield Savings Account the day you buy the vehicle.
Let it sit there.
Remove money only for repairs (I don't mean maintenance -- things like brakes, tires, batteries, fluid changes)
My prediction: Your money will sit untouched for about 5 years and 60K miles, then you might have a small 500-1000 repair.
Leave it sit longer...

After 5 years, at 4%, if your service contract costs 3800, you will have $4624 in it.
Pull your 1000 out and pay your repair bill.
At 8 years, you will have $4700 in the account again for some more repairs.

Vehicle service contracts are an insurance (financial) product.
They only make money for the issuer, they don't prevent you from losing money.
Yes, possibly on one specific vehicle, they may help.
Over your lifetime, I promise the actuaries at these insurance companies have stacked the deck so you will lose, not win.
Be self insured...you will be money ahead.

If you don't have the cash for the service contract, and were planning to finance it, don't.
Instead, take the amount your car payment goes up by buying it, and put that in the same account I indicate above...you will be paying yourself the interest you would have been paying the bank on this financial product.

WalleyeMikeIII said:

Here's my suggestion on service contracts:
Put the cost of the vehicle service contract in either a High Yield Bond Fund or a High Yield Savings Account the day you buy the vehicle.
Let it sit there.
Remove money only for repairs (I don't mean maintenance -- things like brakes, tires, batteries, fluid changes)
My prediction: Your money will sit untouched for about 5 years and 60K miles, then you might have a small 500-1000 repair.
Leave it sit longer...

After 5 years, at 4%, if your service contract costs 3800, you will have $4624 in it.
Pull your 1000 out and pay your repair bill.
At 8 years, you will have $4700 in the account again for some more repairs.

Vehicle service contracts are an insurance (financial) product.
They only make money for the issuer, they don't prevent you from losing money.
Yes, possibly on one specific vehicle, they may help.
Over your lifetime, I promise the actuaries at these insurance companies have stacked the deck so you will lose, not win.
Be self insured...you will be money ahead.

If you don't have the cash for the service contract, and were planning to finance it, don't.
Instead, take the amount your car payment goes up by buying it, and put that in the same account I indicate above...you will be paying yourself the interest you would have been paying the bank on this financial product.

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Exactly!
Finally someone gets it!
The extended warranty is hedging against something major going wrong after the OEM warranty expires.
As you have eloquently stated the insurance industry is statistically superior than any of us buying extended warranty to hedge that bet.

You will always be better off financially if you invest your money like those warranty companies do.
Their risk profiles prove this and that’s exactly how they calculate premiums!

The reason these warranties cost $1k more after 12k miles is because that’s what the warranty company would have made in profit if you purchased the warranty before 12k miles.

Anyone who counts cards gambling, or sells warranties knows these statistics before they place that bet or quote that policy.

On one of my other vehicles. I took it in for a check engine light. They told me what it needed would cost $3900. I brought it at home and fixed it myself for about 800.
But if I had that warranty. It would have paid that $3900. The part alone was 2450. One good repair pays for the warranty. Except the good thing about that is. after it's fixed, the warranty is still in effect. If you keep it in your account, your account is drained. And then three months later you could have another problem. A vehicle from 20 years ago. I probably would have skipped the warranty as I could have fixed most things and they were potentially more dependable. A vehicle today based on their track record of mechanical, infotainment and even wiring issues. Makes me think that buying the warranty right before the one year 12,000 miles Is at least a reasonable money spent. The platinum warranty I want to buy is less than $2000. It covers the time frame and miles that I certainly plan on having this vehicle.

BacDoc said:

Exactly!
Finally someone gets it!
The extended warranty is hedging against something major going wrong after the OEM warranty expires.
As you have eloquently stated the insurance industry is statistically superior than any of us buying extended warranty to hedge that bet.

You will always be better off financially if you invest your money like those warranty companies do.
Their risk profiles prove this and that’s exactly how they calculate premiums!

The reason these warranties cost $1k more after 12k miles is because that’s what the warranty company would have made in profit if you purchased the warranty before 12k miles.

Anyone who counts cards gambling, or sells warranties knows these statistics before they place that bet or quote that policy.

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This is compelling advice I wouild follow.

Not to mention, by self insuring, you don't have to deal with the warranty or service plan reps who are just claims adjusters.

So if you have a lifter go out, you aren't going to deal with a situation where the warratny will only cover 1 bank of lifters.

Stbentoak said:

On one of my other vehicles. I took it in for a check engine light. They told me what it needed would cost $3900. I brought it at home and fixed it myself for about 800.
But if I had that warranty. It would have paid that $3900. The part alone was 2450. One good repair pays for the warranty. Except the good thing about that is. after it's fixed, the warranty is still in effect. If you keep it in your account, your account is drained. And then three months later you could have another problem. A vehicle from 20 years ago. I probably would have skipped the warranty as I could have fixed most things and they were potentially more dependable. A vehicle today based on their track record of mechanical, infotainment and even wiring issues. Makes me think that buying the warranty right before the one year 12,000 miles Is at least a reasonable money spent. The platinum warranty I want to buy is less than $2000. It covers the time frame and miles that I certainly plan on having this vehicle.

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If you buy the extended warranty and that $3900 repair would be covered if you bought the vehicle new and it is in the 3yr/36k OEM warranty.

What we are saying is that buying one on a new car is not worth it.

If you’re talking about buying a used car outside 3yr/36 that’s another story. I haven’t priced that but the premium goes up somewhere around $1k for every 12k miles since new. A platinum plan on a 40k+ miles 4yr+ Tahoe/Yukon is going to be a lot more maybe $4-5k or more depending on the mileage.

I would be hesitant on buying any of these 2021 and newer used.
As the Oregon Vet has pointed out there’s way too many things that can go wrong and replace or repair.

Strictly on a financial basis it would be better to buy new, if the latest options are important, and invest $3-$4k, or buy a GMT or 2 used at a good price and still invest the money.
Both scenarios will provide a great truck over several years over thousands of miles.

You can buy a rock solid GMT800 Tahoe or Yukon and try to stick with a 2005 or 2006. Buy one that has no rust problems. Lots of them in the PNW and southern states. The 5.3 or 6.0 engines are strong and are 300k to 400k mileage engines if has been taken care of. I am on the lookout all the time and if I see what interests me, I immediately ask for repair and maintenance paperwork. If they say they did the work themselves, then I want parts tickets. My 2005 Z71 Tahoe had the paperwork and at 135k miles, I bought it. I then made it mine in the Build Thread here. Most comfortable seats ever. If you want a touchscreen in the middle of your dash, then do it.

But if you just have to spend gobs of money on over priced gadget wagons and go in to debt, do it, but do not buy an extended warranty at the same time you buy new. That is a waste of money to try and save $2k. Buy new again at the end of 3 years, if you must. You have a 3 year 36k miles warranty when you buy. You need nothing else!

But, personally, I never ever ever would buy or recommend an extended warranty. In the shops, I dealt with them and they fight tooth and nail to never ever pay a claim. The ODDS are always in their favor.

I honestly have no idea just how many gadgets and crap a driver NEEDS to have, to divert their attention. Plus, a shop, if needed, can fix a GMT800 way easier than anything newer.