Extended Warranty by Dealer Offered

[Rdr854]

Hi...I have a 2016 Yukon SLE with tow package and a little over 20k on the odometer. The dealer is offering me a 100 k mile ( or 6 years) new car coverage at $3800 . First service requires a $100 deductible. After which there is no more no deductible. Basically $589 per year. I typically don't buy extended warranties but at $49 a month it may not be a bad investment considering the cost of dealer service these days. I plan on keeping the truck at least another 6 years. Looking for some feedback.
Art

Just to clarify, are you purchasing an extended warranty that covers breakage or an extended service plan that covers maintenance?

I am also a strong proponent of manufacturer backed plans. That way you can be assured of coverage at any GM dealer without having to worry about third party providers that want to use aftermarket parts or not cover warranty claims.

 

[SnowDrifter]

Read the fine print very, very carefully.

Local Chrysler dealer had a similar offering on their vehicles. I inquired about it, and the gist of it was: All services have to be performed according to the owners manual. All fluids/filters etc must be OEM. Maintenance is to be performed by an ASE certified tech who's also received Chrysler specific training.

My conclusion: Good ******* luck maintaining that degree of documentation. Never made it past that to see if it was a reimbursement system or any of the other finite details.

YMMV shrug

 

[trailblazer]

What’s the purchase cost of the vehicle? Can you still get a quote from GMPP? IIRC there is a dealer in PA that sells GMPP just above cost. Like 25-40% cheaper than your hometown GM dealer. I’ve bought a couple plans from them for a newer used cars over the years.

 

[dwkehoss]

Just to clarify, are you purchasing an extended warranty that covers breakage or an extended service plan that covers maintenance?

I am also a strong proponent of manufacturer backed plans. That way you can be assured of coverage at any GM dealer without having to worry about third party providers that want to use aftermarket parts or not cover warranty claims.

 

[dwkehoss]

I have a 16 Tahoe LT with tow package and researched quite a while on extended warranties. If you use search engines you will likely come to the same conclusion I did. Generally you don't get back the initial investment. It is a gamble but so is all insurance. If I were to buy one I would get one that reimburses no matter where you take. Be aware of the ones that require ALL work to be done by the CHEVY dealer including routine maintenance unless you are ok with dealer labor costs.

 

[dmad1]

Check your lender. Usually much cheaper than the dealer.

 

[petethepug]

The factory backed warranty is always better than an aftermarket “service contract” (SC) usually referred to as a warranty. The third party administrator (TPA) is the guy who is sent out by the SC company to inspect your truck if it’s a high dollar or unusual claim.

With a true warranty there is no TPA or SC administrator to call about your claim. The eyes and ears are your dealer. The Mopar Dlr we purchased our 08 Denali XL loaded w/ all options except power running boards sold us a 48Mo/48k Mi SC for $3761 when the clock was at 99600. Zero deductible if selling does work or $100 for anyone else.

It’s a CA based Co from Napa Valley called AUL. It covers 90% of what we were concerned about. Surprisingly it paid for the rear bags & air shocks. It expires next month based on the 48 mo criteria. I’m having an Indy verify a knock at cold start up and leaky steering rack.

AUL recently paid out a little more than what we paid for the SC. The local GMC dealer has replaced the rear bags, air bag compressor, radiator, alt, 1 motor mount, rear main engine & trans seal, pan gasket plus the replacement coolant, engine & gear oil. The alt & rad have a Nat’l lifetime warr and all parts are Fact OEM.

Keep in mind this is on a 100k vehicle for 4 years. 07 & 08 6.2L Denali have no (active) AFM and the best reliability of the 1500 SUV line up so far. I can guarantee you that any Warr or SC that fully covers the f/r A/C, electrical and full drive train will pay for itself. Obviously the SC referenced has to accommodate other repair facilities if you’re away from home.

The VW we purchased for $17.5 in ‘90 had just under $24k in covered repairs by ‘96 when the 6yr/100k SC ran out. That SC Co went out of buss and had two underwriting Co take over during that journey. Yes, get something! If you sell the vehicle on and it has any Warr or SC left, I guarantee you’ll recoup what you paid for it plus some.

Our new 06 $36k Denali XL resold to a broker for $24k in early 09 w/ 40k on the clock during the gas crunch. It had a year left on a factory ext Warr. It was fact serviced and insanely clean. It’s in AZ now with 140k on the clock on 3rd owner.


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