522 replies to this topic

[MarkoJ]

Someone who makes their living playing the real estate buying game is complaining about the buying a new car from a dealership game?

 

I am one of 1353 agents in Victoria offering a service where I am trying to take myself out of the game -> http://markojuras.com/849-flat-fee/

Edited by MarkoJ, 26 March 2017 - 09:52 AM.

[VicHockeyFan]

Everyone is wearing suits for some reason, but I knew more about the product than half the sales people just by watching YouTube videos/reading a few reviews/quickly scanning the specs. 

 

Buddy of mine just bought a Fiat here at the dealership, he said the same thing.  He knew a lot more than the salesperson about the car he factory ordered.

[todd]

A friend got a notice in the mail yesterday from his friends at the Ford Motor Company about his 10 year old vehicle :

 

The highlight:

 

“On your vehicle, the passenger frontal airbag inflator may rupture in the event of a crash necessitating airbag deployment. A ruptured inflator may result in metal fragments from the vehicle striking occupants causing serious injury or death.”

 

They go on to tell him that they have no solution yet but they will let him know when they have one, and will someday fix it free of charge.

Sounds like a waste of time just to get you into the store ultimately…. in the 10 years haven't even used the airbags, never had an accident, eh.   

[Mike K.]

What's the vehicle, Todd? Do you know?

[sebberry]

FYI, you can find Canada Takata recalls here: http://www.tc.gc.ca/...tions-1433.html

[HB]

I got 9ne of those for one of my jeeps 3 years ago then another about 6 months ago still no parts available but the manufacturer has done their legal part by informing the consumer of the recall if there are no parts there are no parts I was told the vehicle is a 2002

[todd]

In the meantime guess disable it strap your head to the headrest.

Edited by todd, 01 April 2017 - 05:55 PM.

[exc911ence]

My 2007 Dodge pick-up falls under that recall. The driver's side airbag has already been replaced under the recall and I have recently received notice on the passenger side unit as well, but there are no parts available for it at the moment.

 

This involves millions of vehicles from all manufacturers, not surprised that they're having trouble keeping up with the demand.

[sebberry]

I had mine replaced I think within about 4 months of getting the first notice. 

[Lorenzo]

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.

[Mike K.]

Take it! But only if you plan to drive 140k in seven years or if you want to sell within 6.5 years. Selling six months before the warranty expires gives the next guy huge piece of mind.

I can't speak to the reliability of Mazda's but you should be able to figure out through reviews what tends to break and when. If the vehicle has 4x4 or is AWD having that warranty is great if folks say the tranny goes by 150k which also means you could have other major issues related to the AWD system and components.

[VicHockeyFan]

I will say this.  Nobody loses money selling extended warranties.  They have very nice profit margins for the selling company and salesperson, when they average them out (selling $$ vs. repairs they must give).  Having said that, if you use your vehicle more hard, more miles, and in more extreme weather than the average, than you might be ahead.  But the opposite is also true.

[rjag]

I wouldn't buy one. The new car warranty is already 3 years or 60,000km. You are spending $3k on something that won't take effect till year 4. It doesn't add much value to the resale either, how many 4-5 year old cars sold privately with extended warranties are priced $2-3k higher on autoTRADER than ones without the warranty?....none.

Take the $3k and bank it. Extended warranties on new cars is like diamond coating and underbody rustproofing of 20-30 years ago.

Edited by rjag, 14 April 2017 - 07:38 AM.

[VicHockeyFan]

I will say this.  Nobody loses money selling extended warranties.  They have very nice profit margins for the selling company and salesperson, when they average them out (selling $$ vs. repairs they must give).  Having said that, if you use your vehicle more hard, more miles, and in more extreme weather than the average, than you might be ahead.  But the opposite is also true.

 

And just to be clear, the only reason extended warranties are so lucrative to companies, is because they have little or no competition in selling it.  So they can sell it for whatever price they want.

[rjag]

https://www.edmunds....d-warranty.html

 

This is a very good article about warranties. 

 

Most cars today are very well built and have minimal issues if maintained and driven properly. The restrictions on a claim can be onerous, if they show you drove it like you stole it then they wont cover you, also you need to consider what is actually covered and what may go wrong.

 

Google is your friend, simply find a user forum for the make and model and ask questions from actual owners, you'll find loads of solid info.

[VicHockeyFan]

For the dealer, it is more important than ever to sell an extended warranty when they sell a car. The National Auto Dealers Association says that the average car dealer is losing money on the sale of each new car, so tacking on the warranty is crucial for them to make money.

 

Unfortunately, more people are buying it. Ten years ago, according to the NADA, 23.5% of people who bought a new car bought extended warranty plans. That figure has risen to 34.4% in the first half of this year.

 

Recently, Consumer Reports surveyed 8,000 of its readers about warranties and discovered that 65% of them spent significantly more for the new car warranty than they got back in repair savings. That means, with no debt and an emergency fund, you can afford to fix what goes wrong with your vehicle without buying this rip-off.

 

 

https://www.daverams...-warranties-dr/

[Mike K.]

I disagree that new vehicles are being better built. Japanese luxury vehicles have always held up well, but American cars remain terribly unreliable and even European cars are sliding.

I have a brand new car that has had several issues and it's only 13k in! Luckily it's a lease and I'll be returning it. Others with brand new cars have had major, major issues with basic components. I mean I've never heard of transmissions failing within the first 10k, but that's happening with these new 10-speed trannies.

Hell, brand new Ford Explorers are experiencing a major problem where they stall at about 8k and require an engine repair. It's a known issue but Ford has successfully avoided a full-on recall. And the new Escalades, holy moly there are some bizarre issues with what should be GM's flagship vehicle.

[rjag]

Good points Mike, You're right about domestic cars, especially Chrysler products. It comes down to personal experience and research. I would never buy a dishwasher or Fridge without an extended warranty. However with cars you can buy the manufacturer extended warranty right up to just before your original warranty expires. You at least will be armed with the knowledge of how that vehicle has performed and your intentions to keep it or not. 

 

Its a catch-22 tho' if its performed flawlessly and you decide to keep it, then save the $3k for that rainy day scenario. However if its been a rattle-trap then its probably wiser to use the $3k as part of a trade-in to a different model.

 

http://www.consumerr...pensive-gamble/

 

Owned or purchased a crapload of cars in the last 20 years including at least a dozen delivery vans for commercial use. The absolute worst hands down was a dodge ram pickup and a Landrover LR3. The only good use for them was as a boat anchor and even then they would probably fail.

 

All of our delivery vans were high mileage (50k/yr) and were maintained monthly. We bought extended warranties on a few to cover major components up to 140k. Only ever used the warranty once out of a dozen of these vehicles. Once we got above 160k then we started to have water pump or drive rack issues etc, but they wouldnt have been covered anyway as the mileage was too high.

 

I guess it comes down to doing your research and being informed as there is nothing quite like the pressure exerted by upsellers. They do this several times a day and are trained to know every objection in the book. You either stand fast or wither ;-)

 

Heres an article related to warranties on a Mazda purchase

 

http://www.theglobea...rticle12780828/

[UDeMan]

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.

 

Does this extended warranty come with a money back option?  If no claim is made at the 7 year mark, you get about 80% of the money back. 

 

I believe Mazda sells these types of extended warranties.  Coworker bought a Mazda and had one of these warranties, no claim, and he got a check back at the 7 year mark.

 

Also, I believe if you do any warranty work at the dealership you bought the warranty, there is no deductible.

 

Insurance/warranty is something you want to have, but hope you never need to use.

Edited by UDeMan, 14 April 2017 - 10:18 AM.

[lanforod]

I bought a partly refundable extended warranty for my first car, back in 2001. Got a nice cheque back after 5 years, never had an issue with that car.

 

Currently my Mazda has had no issues (until someone smashed a window a week ago ). Have had it exactly 5 years now, but just 65k km. I believe Mazda's are very reliable in general, and my personal experience has been fantastic. I did not get an extended warranty with it.