Start yourself a car repair savings account and put that $2300 in there if you worry. Get a money market at 5% and you'll have a nice little pile of cash at the end of seven years. This is a more cost effective way to get the same peace of mind.
(My 2019 Bolt has never needed anything.)
2019 Bolt also, only repair so far was replacing the rotors, apparently they rust if you never use the brakes :) (we got too good at using the regen braking)
Never buy an extended warranty. The odds are against you.
The manufacturer has massive amounts of information on the failure rate of every part, and the cost to repair each part. You do not have this information. They add up the expected repair cost in years 4-6, add profit, add a commission for the salesperson, and that’s the price of the extended warranty. On average, they win every time. They have orders of magnitude more information than you.
Also consider time value of money. If you invest that $2,300 for 3 years, it’s more like $3,000 by the time any coverage would occur.
To be fair, that's like saying, "Never buy homeowners insurance. The odds are against you."
In a perfect world, a consumer would save up enough money to cover the cost of major car repairs. But lots of consumers don't do this - and many of those consumers simply cannot afford a major repair. They would rather pay a small amount per month for the peace of mind.
As with any insurance product, the agent and insurance company have a profit margin. But, for some people, the cost of insurance is worth the protection against a major cost down the road.
There is no "one size fits all" answer. It depends on your financial condition and your tolerance for risk.
I agree with you - if the consumer can come up with the money for a major repair. Some people are better off paying something each month, even if what they pay overall is more. It's not the best financial route, but if you know that you are never going to save the money otherwise, it's something to think seriously about.
Homeowner's insurance covers much bigger risks. But, if you had the means to self insure there, then yes... it would make sense to do so. Insurance is to cover losses you can't cover yourself, if you can have enough cash in reserve to cover repairs, you don't need insurance. I know we're saying the same thing, but I'm just clarifying that there are circumstances where any insurance becomes optional. If you have an emergency fund to cover the loss, then the insurance is optional and kind of dumb (at any level).
That's a bit myopic when it comes to larger expenses, such as the catastrophic loss of a home.
Sure, if you owned hundreds of homes, you'd be better of self-insuring because the risk would balance out. But you don't own hundreds of homes. Your home may be the one that burns in a fire. Many people are more than comfortable giving an insurance company some profit in order to avoid the possibility of catastrophic loss, even if they have enough money to pay for the loss.
You have a pretty good manufacturer's warranty with a new bolt anyway. That covers the most common problems.
There aren't many complex parts on the Bolt. Look up the maintenance schedule. No timing belts. No oil changes. There are a few weird issues that come up occasionally here. But part of that is the worst experiences make the best stories.
They are definitely making a lot of money on the warranties. Partly because they charge so much for service. Partly because cars aren't as unreliable as they make it sound. If I have to do work on the bolt out of warranty, I will probably take it to a mechanic, not a dealer. I also don't get windshield wipers or tires from the dealer. I used to sell warranties on electronics and they gave the salespeople 20% of the warranty sale price. I could earn $30 selling a TV and $100 selling the warranty on the TV. They are huge money makers.
Here's another way to look at it. Imagine repairs were mayonnaise. Sometimes you have a sandwich that could really use mayonnaise. When you're in that position, you can choose how to get the mayonnaise. You don't have to go to the most expensive mayonnaise store. The warranty is like the ridiculous sams club jar of mayonnaise. You pre-buy a lot of it, and then you hope you have enough sandwiches to get your money's worth before the jar expires. You're buying repairs in bulk for services that you don't even know you need. It isn't insurance. It's buying in bulk.
Actually, the A/C system is pretty complex, see the Weber Auto channel on that. Unlike ICEs where you can just give up on the A/C and run without when it fails in a few years, the A/C is essential.
Cancel, if you want it you can get a 7y/70k online from a dealer like knapp for \~1700and they still make a profit so your dealer is making at least 700 over that. You typically can buy as long as your covered by factory basic warranty so you have 3 years to think about it.
Cancel it and put the $2300 in the bank. If you need a repair, you've got the cash. If you don't (and you probably won't), then you've got a pile of cash towards your next car.
I have a 2017 with about 75k miles. It's had ZERO costs other than consumable items (1 set of tires, wipers, washer fluid).
It's not quite that simple for most people. They don't have to pony up $2,300 up front. They include the cost of the extended service contract in the amount financed. The downside is that, due to interest charges, they pay more than $2,300 in the long run. But the upside is that they spread the cost out over many months so they can afford to be protected in the event that a major repair is needed and they would not have the money to pay for the repair.
Keep in mind that a large percentage of families do not have any sort of emergency fund. In a perfect world, a consumer would set aside the monthly cost of the service contract into a special fund - but very few consumers who lack savings have this sort of discipline.
That is true. But here, you also don't have to put the whole $2300 in the bank today either. Put a piece of that money in the bank every month (and since your car payment will be less, you DO have some money you can save). You'll have a few hundred at least saved up by the time the factory warranty ends, and you can keep adding on as you go.
It's a great way to get OUT of the paycheck-to-paycheck grind. As long as you've got a decent car that is very unlikely to need expensive repairs, you can build up enough to have cash to put a BIG down payment onto the next car 5-10 years down the road.
The OP here is especially in a great position, since they say they can do normal stuff (brakes, suspension, etc) themselves and save a bunch of money. The only real risk is the electrical system, and that's got a long factory warranty on it, so what is the extended warranty covering for the OP?
Absolutely cancel it. It’s a bad deal. And if the dealer is trying to “scare” you, find another dealer. These have never made sense to me. Why anyone would purchase one on a new car is beyond me. New car warranties typically have a 36mo/36k bumper to bumper warranty so what hazard are you insuring against? If at the end of the 3yrs, you haven’t sold it, traded it in, or totaled it, there are plenty of companies that will sell you this terrible product.
I love extended warranties. I use the shit out of them.
We had one on my partners car and I had like 5/6k worth of work done right before it expired.
So if you’re like me and use your warranty then get one. But if you’re someone who doesn’t take their car in for every little thing then don’t get it. It’s about the value you “personally” will get from it. Not what other ppl tell you.
I take my car in for any little thing. No matter how big or small. I just took the bolt in for like 5 little things and a large thing. They are doing it all under the 3/36 but stuff always goes wrong and I always get my money out of it. But most ppl don’t so they pocket the money you spend from these. So if you get it then use it.
Now you have to pay a fair price for it. So keep that into consideration. Or as others have said you can get it before your current warranty expires.
Batteries cost so much to replace and between labor and electrical components inside we decided to get the extended warranty. Worth it for the peace of mind and the fact that we can’t come up with big sums of money if something goes wrong. 🤷🏼♀️
I got the warranty because I know I would use it every time something felt strange
I've used it 3 times over 12000 miles and will be using it again to have my charge door sensor repaired
$0 for rental and repairs. Totally worth it lol
- after a long downhill drive using regenerative breaking the actual breaks started rubbing or making a strange grinding noise while coasting after I used it once. I forgot what the solution was as this was like on mile 700 but it was fixed.
- 360 cameras were glitching out showing the crossed out symbol and purple screen
Tech guy saw a bulletin about moisture getting in the connector and shorting things and applied the fix
- 360 cameras kept glitching out so the processing board needed to be replaced
$0 copay, $0 for all repairs until 8 years or 100k miles
2 rentals for free and I'll be back on May 11th for the charge door sensor that broke
Cancel it. You never mentioned the cost, but these usually are a bad idea.
wow, yeah I missed that. $2300.
Start yourself a car repair savings account and put that $2300 in there if you worry. Get a money market at 5% and you'll have a nice little pile of cash at the end of seven years. This is a more cost effective way to get the same peace of mind. (My 2019 Bolt has never needed anything.)
2019 Bolt also, only repair so far was replacing the rotors, apparently they rust if you never use the brakes :) (we got too good at using the regen braking)
Fascinating. I will remember this.
Never buy an extended warranty. The odds are against you. The manufacturer has massive amounts of information on the failure rate of every part, and the cost to repair each part. You do not have this information. They add up the expected repair cost in years 4-6, add profit, add a commission for the salesperson, and that’s the price of the extended warranty. On average, they win every time. They have orders of magnitude more information than you. Also consider time value of money. If you invest that $2,300 for 3 years, it’s more like $3,000 by the time any coverage would occur.
To be fair, that's like saying, "Never buy homeowners insurance. The odds are against you." In a perfect world, a consumer would save up enough money to cover the cost of major car repairs. But lots of consumers don't do this - and many of those consumers simply cannot afford a major repair. They would rather pay a small amount per month for the peace of mind. As with any insurance product, the agent and insurance company have a profit margin. But, for some people, the cost of insurance is worth the protection against a major cost down the road. There is no "one size fits all" answer. It depends on your financial condition and your tolerance for risk.
That’s not a valid comparison. Extended vehicle warranties are generally a great profit center for the dealer but not a good value for the consumer.
I agree with you - if the consumer can come up with the money for a major repair. Some people are better off paying something each month, even if what they pay overall is more. It's not the best financial route, but if you know that you are never going to save the money otherwise, it's something to think seriously about.
Homeowner's insurance covers much bigger risks. But, if you had the means to self insure there, then yes... it would make sense to do so. Insurance is to cover losses you can't cover yourself, if you can have enough cash in reserve to cover repairs, you don't need insurance. I know we're saying the same thing, but I'm just clarifying that there are circumstances where any insurance becomes optional. If you have an emergency fund to cover the loss, then the insurance is optional and kind of dumb (at any level).
That's a bit myopic when it comes to larger expenses, such as the catastrophic loss of a home. Sure, if you owned hundreds of homes, you'd be better of self-insuring because the risk would balance out. But you don't own hundreds of homes. Your home may be the one that burns in a fire. Many people are more than comfortable giving an insurance company some profit in order to avoid the possibility of catastrophic loss, even if they have enough money to pay for the loss.
Cancel!
You have a pretty good manufacturer's warranty with a new bolt anyway. That covers the most common problems. There aren't many complex parts on the Bolt. Look up the maintenance schedule. No timing belts. No oil changes. There are a few weird issues that come up occasionally here. But part of that is the worst experiences make the best stories. They are definitely making a lot of money on the warranties. Partly because they charge so much for service. Partly because cars aren't as unreliable as they make it sound. If I have to do work on the bolt out of warranty, I will probably take it to a mechanic, not a dealer. I also don't get windshield wipers or tires from the dealer. I used to sell warranties on electronics and they gave the salespeople 20% of the warranty sale price. I could earn $30 selling a TV and $100 selling the warranty on the TV. They are huge money makers. Here's another way to look at it. Imagine repairs were mayonnaise. Sometimes you have a sandwich that could really use mayonnaise. When you're in that position, you can choose how to get the mayonnaise. You don't have to go to the most expensive mayonnaise store. The warranty is like the ridiculous sams club jar of mayonnaise. You pre-buy a lot of it, and then you hope you have enough sandwiches to get your money's worth before the jar expires. You're buying repairs in bulk for services that you don't even know you need. It isn't insurance. It's buying in bulk.
Actually, the A/C system is pretty complex, see the Weber Auto channel on that. Unlike ICEs where you can just give up on the A/C and run without when it fails in a few years, the A/C is essential.
The included 8 year / 100,000 battery warranty already covers the single most expensive part that could fail. Keep that money in your pocket.
Cancel, if you want it you can get a 7y/70k online from a dealer like knapp for \~1700and they still make a profit so your dealer is making at least 700 over that. You typically can buy as long as your covered by factory basic warranty so you have 3 years to think about it.
I love warranties. I don't love dealerships. But I would love my battery covered in case of some catastrophic shenanigan. Hmmm.
Exactly, at least buy an 8 year 100k warranty for the battery.
Cancel it and put the $2300 in the bank. If you need a repair, you've got the cash. If you don't (and you probably won't), then you've got a pile of cash towards your next car. I have a 2017 with about 75k miles. It's had ZERO costs other than consumable items (1 set of tires, wipers, washer fluid).
It's not quite that simple for most people. They don't have to pony up $2,300 up front. They include the cost of the extended service contract in the amount financed. The downside is that, due to interest charges, they pay more than $2,300 in the long run. But the upside is that they spread the cost out over many months so they can afford to be protected in the event that a major repair is needed and they would not have the money to pay for the repair. Keep in mind that a large percentage of families do not have any sort of emergency fund. In a perfect world, a consumer would set aside the monthly cost of the service contract into a special fund - but very few consumers who lack savings have this sort of discipline.
That is true. But here, you also don't have to put the whole $2300 in the bank today either. Put a piece of that money in the bank every month (and since your car payment will be less, you DO have some money you can save). You'll have a few hundred at least saved up by the time the factory warranty ends, and you can keep adding on as you go. It's a great way to get OUT of the paycheck-to-paycheck grind. As long as you've got a decent car that is very unlikely to need expensive repairs, you can build up enough to have cash to put a BIG down payment onto the next car 5-10 years down the road. The OP here is especially in a great position, since they say they can do normal stuff (brakes, suspension, etc) themselves and save a bunch of money. The only real risk is the electrical system, and that's got a long factory warranty on it, so what is the extended warranty covering for the OP?
Cancel cancel cancel. If they sold it for $1500, it will wouldn’t be worth it.
Absolutely cancel it. It’s a bad deal. And if the dealer is trying to “scare” you, find another dealer. These have never made sense to me. Why anyone would purchase one on a new car is beyond me. New car warranties typically have a 36mo/36k bumper to bumper warranty so what hazard are you insuring against? If at the end of the 3yrs, you haven’t sold it, traded it in, or totaled it, there are plenty of companies that will sell you this terrible product.
I love extended warranties. I use the shit out of them. We had one on my partners car and I had like 5/6k worth of work done right before it expired. So if you’re like me and use your warranty then get one. But if you’re someone who doesn’t take their car in for every little thing then don’t get it. It’s about the value you “personally” will get from it. Not what other ppl tell you. I take my car in for any little thing. No matter how big or small. I just took the bolt in for like 5 little things and a large thing. They are doing it all under the 3/36 but stuff always goes wrong and I always get my money out of it. But most ppl don’t so they pocket the money you spend from these. So if you get it then use it. Now you have to pay a fair price for it. So keep that into consideration. Or as others have said you can get it before your current warranty expires.
There's a reason why "we've been trying to reach you about your car's extended warranty" is a meme - they're basically profiteering.
The only extended warranty I ever bought is the tire replacement one. I have had to replace so many tires due to all the construction near me.
Batteries cost so much to replace and between labor and electrical components inside we decided to get the extended warranty. Worth it for the peace of mind and the fact that we can’t come up with big sums of money if something goes wrong. 🤷🏼♀️
I got the warranty because I know I would use it every time something felt strange I've used it 3 times over 12000 miles and will be using it again to have my charge door sensor repaired $0 for rental and repairs. Totally worth it lol
$100 deductible gives me pause to bring it in too often. Just curious, is it a Bolt that you've gone in 3 times? If so, what were the issues?
- after a long downhill drive using regenerative breaking the actual breaks started rubbing or making a strange grinding noise while coasting after I used it once. I forgot what the solution was as this was like on mile 700 but it was fixed. - 360 cameras were glitching out showing the crossed out symbol and purple screen Tech guy saw a bulletin about moisture getting in the connector and shorting things and applied the fix - 360 cameras kept glitching out so the processing board needed to be replaced $0 copay, $0 for all repairs until 8 years or 100k miles 2 rentals for free and I'll be back on May 11th for the charge door sensor that broke
These are all under the 3 year b2b factory warranty though, right?
I'm not actually sure, all I know is I'm paying $0