Extended Warranty?

[Toomanyhobbies]

I paid $3200 for the same warranty recently on my 2022 RST 6.2. I also hate extended warranties but in this day and age we are all driving a computer on wheels, and there are a billion circuits in each chip. When you multiply the number of chips, the chances of something breaking seems to expand exponentially, at least to me. I would like to keep this truck for a while at this point. How long do we really think that digital display is going to last?

 

[Toomanyhobbies]

@DuraYuk Good tip about getting an inspection towards the end of coverage.

@Mean_Green
For me, I chose 96mo/80k cause I'll likely put 5k on this car a year if not less...bought it more as an expensive baby mobile for family trips where packing into the IS250 is too tight. For parts replacement, the language reads as below for gmpp:
D. Our Options
Administrator will pay the repair facility directly, or reimburse Youfor the repair or replacement of any part covered by this Agreement.Replacement parts utilized in covered repairs will be OEM newor remanufactured parts, unless unavailable; in which caseWe may use parts of like kind and quality

Here's another snippet from a different section addressing failure re-occuring: If the sameCovered Part previously repaired under this Agreement failsagain, the deductible will be waived.

Correction, the warranty I purchased has no deductible so it's not quite the same.

 

[jforb]

Now that cars are more like phones, it might be wise to look at them the same way as far as "upgrades"....after a few years go by, it's time to get a new one, no matter what condition the old one is in.

 

[WalleyeMikeIII]

Now that cars are more like phones, it might be wise to look at them the same way as far as "upgrades"....after a few years go by, it's time to get a new one, no matter what condition the old one is in.

Except it is highly unaffordable to do so...unless you hit that big PowerBall tonight...

I priced the identical Denali to what I have today, and the sticker is $9k more than what mine was in Feb 2022. Then because you are forced to now take RSE if you want advanced tech, you gotta add $1.995k for the screens in the rear seats. So thats now $11k on the sticker; you could argue this is an enhanced feature...but you can't ditch it...so its $2k stuffed on you.

Add to that interest rates have almost 3x'ed since then. When I purchased, they gave me 1.9% for 72 months...so I left my cash invested and used theirs...and am laughing all the way to the bank on that right now...

Until pricing gets back in line...not sure an annual "Upgrade" is really workable for most people.

But this is all off topic of Extended Warranty.

I still maintain, if the buyer takes the cost of the extended warranty (service contract), and invests it in a high yield savings account (can easily get one that is risk free for 4.5-5.5%), on the whole, the population will be money ahead vs. buying a service contract....it has to be this way -- or the service contract people would be out of business....

You might get burnt on a single car, but if you take this strategy over your lifetime of buying vehicles, you begin to approach the same population statistics as the general populous...and you will be money ahead over your lifetime...You have to have discipline to do the initial thing...even if you don't have cash on hand and are inclined to finance the service contract too, if instead you put the delta of the car payment monthly in the same high-yield savings...you will be ahead over your lifetime!

My Personal Experience on my 2013, which I purchased in November of 2013, put 116k miles on, and traded in Feb of 2022 was that I had $1950 in non maintenance repairs that would have been covered by a service contract...I did follow the "severe" maintenance schedule, because I tow often...the key repairs were:
1 Magnaride Shock
1 Rear Auto Leveling Compressor
1 Yaw Sensor
1 Broken Front Sway Bar link, had them replace both when doing it, cause the parts are cheap, and required an alignment after regardless.
All repairs were at my Chevy dealer...

YMMV

 

[jforb]

I guess we're all in different situations, and have had different experiences. I've never bought an extended warranty, and on the older trucks (99, 08, 12) never had any issues that would have been covered by an extended warranty. But then I also know how to fix stuff, and my wife and I are very good at saving money, we paid cash for the 22 Tahoe, and got the cheap model without all the bells/whistles. And can afford to sell it and buy something else in a few years if we feel the urge, or the modern technology starts acting up.

 

[GTPace500]

I paid $3200 for the same warranty recently on my 2022 RST 6.2. I also hate extended warranties but in this day and age we are all driving a computer on wheels, and there are a billion circuits in each chip. When you multiply the number of chips, the chances of something breaking seems to expand exponentially, at least to me. I would like to keep this truck for a while at this point. How long do we really think that digital display is going to last?

By the time you need to 'replace' that digital display, it'll be cheap enough to buy the part and do it. Extended warranties - in my experience - have been hassles to deal with.

 

[DuraYuk]

By the time you need to 'replace' that digital display, it'll be cheap enough to buy the part and do it. Extended warranties - in my experience - have been hassles to deal with.

GMPP is easy. A 23 year old analog gauge cluster for a yukon goes for $300. Not really cheap all things considered. Plus GMPP has trip interruption also. It's for peace of mind and won't take much to hit 3000$ worth on these new vehicles.

 

[rmsnickers]

Does anyone have experience in the difference between geico's mechanical breakdown insurance (MBI) vs. extended warranty? I will call geico this week to ask but the descriptions online call out it's the same as the factory warranty...much cheaper tho.

 

[Tahoe14]

I would get a copy of Geico’s and a copy of GMPP and compare.

 

[rmsnickers]

Talked to Geico and they basically said the warranty is "mechanical" so it has to have some type of moving part or affect drivability. For instance, defective stitching on the seats wouldn't be covered nor would the GM logo light reflected on the ground that fogs up...but pretty much anything else is covered. Hard to pin them down but the reviews of the coverage are good.

The other notable difference is a standard $250 deductible...no ability to change this. Also confirmed that coverage isn't negated for any lift/tire mods although those parts aren't covered nor would any damage caused by those parts.

Almost sounds like the best of both worlds...low price which let's you set aside some money on your own like many suggest while also having pretty broad coverage for the big ticket items that can hit you.

 

[DuraYuk]

Talked to Geico and they basically said the warranty is "mechanical" so it has to have some type of moving part or affect drivability. For instance, defective stitching on the seats wouldn't be covered nor would the GM logo light reflected on the ground that fogs up...but pretty much anything else is covered. Hard to pin them down but the reviews of the coverage are good.

The other notable difference is a standard $250 deductible...no ability to change this. Also confirmed that coverage isn't negated for any lift/tire mods although those parts aren't covered nor would any damage caused by those parts.

Almost sounds like the best of both worlds...low price which let's you set aside some money on your own like many suggest while also having pretty broad coverage for the big ticket items that can hit you.

So when the infotainment goes out? Seat motors? Ac actuators that need dash removal? Air bags and connectors. ? Gauge cluster? Window motors? Door lock actuators? Air conditioning ? Lift gate motor and struts ?

Does geico cover those things?

 

[OR VietVet]

A phrase I heard in a movie once, comes to mind: "I don't care what it costs. Just what's the monthly payment?"

Something I see in these extended warranty threads all the time, just baffles the hell out of me! Why would ANYONE buy an extended warranty, when the vehicle is covered by a bumper to bumper warranty, initially? I call them, "Instead of Warranties"! If you just have to have an extended warranty, then buy it after the bumper to bumper warranty runs out and then it is TRULY an "extended" warranty. Also, if you do buy one, then never ever buy from the off brand warranty companies, that typically get in trouble in the states they operate in, close down the business and leave their customers in the lurch with warranties that are no longer any good and then open up business in another state under a new name. When in the shops for 35+ years, I dealt with lots of extended warranty companies and the better ones were always, IMO, the manufacturer extended warranty companies. They are all insurance companies and their main business model is to KEEP their money and not spend their money.

 

[rmsnickers]

@DuraYuk yes, all covered as they have moving/mechanical parts. There are 9 large systems (Engine, Steering, Air Conditioning, Transmission, Cooling, Brakes, Drive Axle, Suspension, Electrical) that describe the coverage and I'm also attaching a screenshot of the endorsement that Geico provided that calls out the coverage:

 

[rmsnickers]

A phrase I heard in a movie once, comes to mind: "I don't care what it costs. Just what's the monthly payment?"

Something I see in these extended warranty threads all the time, just baffles the hell out of me! Why would ANYONE buy an extended warranty, when the vehicle is covered by a bumper to bumper warranty, initially? I call them, "Instead of Warranties"! If you just have to have an extended warranty, then buy it after the bumper to bumper warranty runs out and then it is TRULY an "extended" warranty. Also, if you do buy one, then never ever buy from the off brand warranty companies, that typically get in trouble in the states they operate in, close down the business and leave their customers in the lurch with warranties that are no longer any good and then open up business in another state under a new name. When in the shops for 35+ years, I dealt with lots of extended warranty companies and the better ones were always, IMO, the manufacturer extended warranty companies. They are all insurance companies and their main business model is to KEEP their money and not spend their money.

I agree with what you're saying as far as why buy the dupe coverage and only buy from manufacturer. In this scenario, Geico is likely more financially sound than even GM and I think the other argument folks make is that the cost of the coverage at the end of the standard warranty is prohibitive. So even if you buy now and get coverage for a period that overlaps it's still the best deal.

 

[OR VietVet]

I agree with what you're saying as far as why buy the dupe coverage and only buy from manufacturer. In this scenario, Geico is likely more financially sound than even GM and I think the other argument folks make is that the cost of the coverage at the end of the standard warranty is prohibitive. So even if you buy now and get coverage for a period that overlaps it's still the best deal.

I completely disagree with your last 2 sentences. But everyone has the right for their opinion.

 

[the 18th letter]

I agree with what you're saying as far as why buy the dupe coverage and only buy from manufacturer. In this scenario, Geico is likely more financially sound than even GM and I think the other argument folks make is that the cost of the coverage at the end of the standard warranty is prohibitive. So even if you buy now and get coverage for a period that overlaps it's still the best deal.

The 3 yrs. 44k mile extended warranty runs current with the factory warranty? Meaning no extra years or miles? That's def a rip off, I was under the assumption that the extended warranty didnt kick in until after the factory warranty was exceeded or expired .

 

[OR VietVet]

The 3 yrs. 44k mile extended warranty runs current with the factory warranty? Meaning no extra years or miles? That's def a rip off, I was under the assumption that the extended warranty didnt kick in until after the factory warranty was exceeded or expired .

Assuming costs money. That is why I call it "instead". To buy any extended warranty at the same time as the BtoB warranty is a waste. You don't get that money back if not used or if you get rid of the vehicle before the BtoB runs out.

 

[DuraYuk]

Assuming costs money. That is why I call it "instead". To buy any extended warranty at the same time as the BtoB warranty is a waste. You don't get that money back if not used or if you get rid of the vehicle before the BtoB runs out.

You do get the money back if you don't use it or sell it and cancel. Won't be all of it but it's prorated. Gmpp is transferable too.

 

[DuraYuk]

@DuraYuk yes, all covered as they have moving/mechanical parts. There are 9 large systems (Engine, Steering, Air Conditioning, Transmission, Cooling, Brakes, Drive Axle, Suspension, Electrical) that describe the coverage and I'm also attaching a screenshot of the endorsement that Geico provided that calls out the coverage:

View attachment 411402

Thanks for posting that. I don't fully understand the terms they are using. I've also never heard of it before you. Curious how easy it is to use and if it actually is beneficial.

Is that what you are going with over the GMPP?

 

[OR VietVet]

I should have been more detailed. The overlapping time that you buy, is gone after that time goes by. You MAY only get back what time is unused that does not overlap. I know you can transfer but that time is gone. It doesn't get transferred and the new owner pays you for that time. You don't get that money. You have to sell it and you can bet, if the new owner is smart enough, they will not pay the full remaining price...

Slice it, dice it, any way you want. Any warranty/insurance that is overlapping the BtoB, is a waste of money.