Thank you everyone for your input. I am really wrestling with this decision. There seems to be no clear decision whether to take it or not. I am currently leaning towards not taking it. The warranty they are offering returns a maximum of $1900 on a $3200 +/- investment if absolutely no claims are made. Works out to about 60%. The purchase price is almost 10% of the cost of the car. The Mazda factory warranty is 3yr / 5yr with unlimited mileage. It is tempting to bank the money and self insure. I can also envision a scenario of having to weigh the benefits of claiming smaller repairs, such as a wiper motor or any number of other $400 +/- ones in order to preserve the $1900 refund. This just adds to the bill at the end of the day. If one was unlucky enough to have a colossal failure, it is already half paid for. The case in favour of the EW is that these cars are much more complex, especially the on-board electronics. The EW also commits you to the car for 7 years. If it sold privately the EW can be transferred. If the car is traded it is gone. At my age I don't think I have the energy or interest in selling it privately. I appreciate everyone's insight.
Victoria Auto Dealers and news
Posted 14 April 2017 - 07:22 PM
Do your research on vehicle reliability, consumer reports is your best guide. By any reliable product vehicle or otherwise and never ever buy an extended warranty. Anything electronic will fail in the first year or two. Consumer reports recommends against extended warranties on any product pretty much.
Or you can buy a Hyundai or Kia in the US and they have a 10 year 100,000 mile warranty.
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Posted 15 April 2017 - 07:53 AM
I'm looking real hard at buying a new Mazda. And I know that when the time comes that I'll be wracking my brains over whether to buy the extended warranty. At over $3000 for a 7 year / 140,000 km package it just seems a bit steep. I'd like to get some feedback from the VV inmates whether you did or didn't take it, and how it worked out for you. Thx.
What they are trying to sell you is a used car warranty because in 3 years when it kicks in your car will used and old to them.
There are many many horror stories on the internet about bad experiences with them.
The companies do a lots to make its an uncomfortable experience.
Its a big ticket expense and probably a waste of money imo.
I used to sell extended warranties for products I sold years ago and it was great when I got a "sucker" I mean a customer to buy it because it meant good commissions and bonuses for me.
The more you sold the bonuses.
Heck you can go into a Source store or London Drugs and buy a $10 wire and they are asking if you want an extended warranty.
Do the math bud.
Posted 27 May 2017 - 10:06 AM
Whether to buy an extended warranty or not is really more of a question of whether you can afford to repair your vehicle in the event of a major repair? You are buying insurance and accordingly it will be priced such that the insurance company charges enough to cover future losses, administration, and commissions (to the dealer).
House insurance also doesn't make sense but most people choose to purchase it even though their premiums are unlikely to exceed any future claims. The fear of a major loss is what compels people to logically purchase it.
Bottom line is that if you could afford to replace a transmission or engine in the future, then probably not worth it, as either of these events are unlikely. However, if you couldn't afford such an occurrence it may be worthwhile for the peace of mind.
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