Victoria driving, automobile, auto dealership and related news

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.

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.

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.

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.

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.

House insurance is also a contractual requirement if you have a mortgage which almost everyone does.  In my case $1400 for a $1 million rebuild is a no brainer

Sigh.

I'm shopping for a car at the moment and my experiences with Island dealers have mostly been overly negative. From salesmen outright lying about their bottom barrel price (like arguing that they're giving me their best price imaginable while I later find the vehicle is listed for several thousand dollars cheaper on their website), to hysterics, and in one case even aggression from a manager who didn't like that I asked him to call me if he felt like moving down from his super-duper maximum lowest price ever.

Why does the sales process have to be so difficult?

Yeah, it's horrible. We are starting to think about picking up a second vehicle, and I'm dreading every second of it. 

Hehe, I love car shopping, have some good relationships with a few dealerships in town so if you need any help, let me know.

Which dealerships?  

Edited by Mattjvd, 05 March 2018 - 12:00 PM.

I'd love to see a car dealership operate with a "no bartering" model. Have sticker prices a little lower than other lots, but the sticker price is final, take it or leave it. Put a QR code in the windows of the cars with a link to their specifications, service history, accident history, etc. And only have to talk to the sales staff for a test-drive.

I don't think that model has proven to work.  The way it's done now is just reality, if a dealer is to be successful.

Edited by VicHockeyFan, 05 March 2018 - 12:02 PM.

Which dealerships?

Acura, Infiniti, Porsche, Audi, Fiat, Lexus and Ford

Your Acura guy sure has a passion for cars

I'd love to see a car dealership operate with a "no bartering" model. Have sticker prices a little lower than other lots, but the sticker price is final, take it or leave it. Put a QR code in the windows of the cars with a link to their specifications, service history, accident history, etc. And only have to talk to the sales staff for a test-drive.

Alternatively, a bidding model similar to real estate, but put it all online and make it fast and easy to put in a bid/counter offer.

I'd love to see a car dealership operate with a "no bartering" model. Have sticker prices a little lower than other lots, but the sticker price is final, take it or leave it. Put a QR code in the windows of the cars with a link to their specifications, service history, accident history, etc. And only have to talk to the sales staff for a test-drive.

Thats like asking 'how long is a piece of string?'!!!

Dealerships are in the business of moving product. They get financing from the manufacturer and the interest rate is adjusted based on the volume of product moved in a month, quarter and year. So when they are close to a threshold they are more likely to loosen the reins a bit. The problem is thats a state secret and you will never find out.

Then theres 'trunk' money, thats where manufacturers pay a dealer an incentive to push a particular model either because its being discontinued or there is a model update coming in and they dont want to have old product competing with new. Always a good thing to research and buy a model that just going out of production.

White cars used to be the kiss of death, dealers hated them as they were cursed, now they are quite popular, I think in part to nicer design trim specs ie gloss black trim or chrome accents...not to dicount the asian influence as well.

Financing is also another area they make money, the longer the term the bigger the kick back is to them. 

The big money makers are used cars, there are massive margins to be played with on 2-4 year old cars. You just have to be reasonable and persistent, keeping in mind they do this type of thing 6-10 times a day, you, if you're lucky once every 2 years. You'll never outsmart them, once you accept that and recognise the only power you have is you can walk out the door and decide this is not the hill you will die on today, you become much more at ease.