Is extended warranty needed?

[brandobot]

I’m purchasing a pre-owned 2017 STI that comes with extended 7yr/70k warranty.

Is this needed as Subaru now covers powertrain up to 8 years due to the recent lawsuit/settlement? I am considering cancelling it and getting a refund.

How reliable are these cars aside from the powertrain?

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[oichan]

I never buy extended warranty; neither my 16 STI nor 19 WRX have extended warranty.

Given that your car is pre-owned, might be a good idea to get it if the price makes sense to you..

[F1EA]

Originally Posted by brandobot

I’m purchasing a pre-owned 2017 STI that comes with extended 7yr/70k warranty.

Is this needed as Subaru now covers powertrain up to 8 years due to the recent lawsuit/settlement? I am considering cancelling it and getting a refund.

How reliable are these cars aside from the powertrain?

The cars are not very reliable. They are ok, but not great...

If you want to modify, then do not get the extended.

If you don't plan to do performance modifications and you're getting a good deal on a manufacturer extended warranty, then I say go ahead. If it's a 3rd party extended warranty, don't bother. Also, make sure your dealer confirms the warranty is valid.

[rtv900]

There's a 99% chance you will not get covered repairs equal to or exceeding the cost of the warranty, hence cash machines for manufacturers.

that's all you need to make the decision, it just comes down to the math.

[brandobot]

Originally Posted by rtv900

There's a 99% chance you will not get covered repairs equal to or exceeding the cost of the warranty, hence cash machines for manufacturers.

that's all you need to make the decision, it just comes down to the math.

Thanks all.

I am planning to keep the car stock at least until the 5 year powertrain warranty expires in 2022. The car came with Subaru’s “added security” gold warranty. It was approx $3000 new. I am going to the dealer today to transfer the warranty to my name and see how much they would refund me if I cancel it.

[rtv900]

Typically it is pro-rated based on mileage or time as a ratio of the original warranty, whichever leaves the lowest refund.
Regardless, still could be a solid $2 grand. I'd take 2 grand in hand in a friggin second rather than rolling a 1000 sided dice with one winning side.

[caschnd1]

I never buy extended warranties. These are basically insurance policies. Companies that offer these policies have a VERY good method of calculating their risk and pricing the policies so they make a profit.

My response comes from a position where the financial risk of anything that might happen to the car is not of concern to me. If you are in a position where a $2000 repair would mean you can't pay your rent/mortgage this month, then maybe you need that insurance policy. But don't mod anything!

-Craig

[F1EA]

Originally Posted by caschnd1

I never buy extended warranties. These are basically insurance policies. Companies that offer these policies have a VERY good method of calculating their risk and pricing the policies so they make a profit.

My response comes from a position where the financial risk of anything that might happen to the car is not of concern to me. If you are in a position where a $2000 repair would mean you can't pay your rent/mortgage this month, then maybe you need that insurance policy. But don't mod anything!

-Craig

I see it differently. $2k is not the repairs, $2k is roughly the price you pay for the extended warranty. Warranty was $3k when new, would pro-rate about $1,000 to 1,500 now... so the of the warranty to you would be $1500 to $2000 now.

Some repairs are cheap, and below $2k when done under warranty. But not all repairs are, and the dealers charge more on out of warranty work. You never know if your issues are going to be small (specially in a 7yr period).. anything engine-related will likely be over $4k and pretty much any serious repair will run you more than the $2k paid for the warranty.

So the question is not "should a $2k repair mean I can't pay rent?". But instead: would I rather drop $2k now and not worry about how much my repairs in the next X-years will cost?

Obviously... this is only if you trust your dealer and the warranty provider. 3rd party warranties are usually a fraud... so don't get those.

The reasons why it is pointless when you modify are 1) modifying gives you the very real chance your warranty not covering the repairs and 2) modifying costs you the money you're hoping to not have to deal with. So why "protect" yourself if you're willing to drop $8k on parts, tune and light wheelz...

But yes... warranties are a bit like insurance. You're willing to drop a 'smaller amount' in the hope that should some serious problem arise, you won't be crippled by the total cost. I have $4M liability coverage and also have a personal life insurance. I am sure the insurance companies are making $ off me because I haven't had a $4M claim nor have I died...... but that's not the point.

[rtv900]

^most car maintenance is not covered by any warranty

"dropping 2k now" has less than nothing to do with what you will spend to maintain a vehicle in the future, most things will not be covered

[F1EA]

Originally Posted by rtv900

^most car maintenance is not covered by any warranty

"dropping 2k now" has less than nothing to do with what you will spend to maintain a vehicle in the future, most things will not be covered

Yes, not talking about maintenance. I'm talking about repairs... you'll never get a $5k maintenance bill. But easy to get a $5k serious repair bill; that's what you want to be protected against. You might only get hit with a $1k or $2k bill if something simple happens; but a warranty is not about making your money back, it's about protection against big repair bills.

If you have crappy dealers, then no point getting a warranty. But also... I wouldn't get a car from crappy dealers. I'd go with a dealer/manufacturer you can trust. That's the whole point of getting a car at a dealer (be it new or "pre-owned").

I've gotten cars with and without extended warranty... either can work and either can rip you off...

[ProjectN64]

Very interesting topic that people have mixed feelings on, got my sti with a third party warranty in 2016 which has by now covered 12k in repairs. Even had a k&n short ram intake at the time dealer didn't give a **** and just nickel and dime'd the warranty company during the shortblock replacement. My car will stay stock, I'm at 69k miles (3k on shortblock). I would recommend the warranty since you bought used

[turboblew]

Originally Posted by caschnd1

I never buy extended warranties. These are basically insurance policies. Companies that offer these policies have a VERY good method of calculating their risk and pricing the policies so they make a profit.

My response comes from a position where the financial risk of anything that might happen to the car is not of concern to me. If you are in a position where a $2000 repair would mean you can't pay your rent/mortgage this month, then maybe you need that insurance policy. But don't mod anything!

-Craig

PLUS you are at the mercy of whatever slapdashes are listed as "authorized" repair centers. No way no how do I want to be locked into a sub par network.
I noticed that now all the vehicle finance companies are trying to cover their loan bets by requiring some kind of extended warranty to be added on for the majority of the loan term... the catch is they discount the apr. Now on the surface that may seem like a "deal" but if you get out your loan amortization calculator you can see the economics arent in your favor.

Another thing Ive noticed is car OEMs are trying to defy the depreciation rule. Seriously... used hondas, toyotas, and other offshore brands were a couple grand less than buying new with a whole lot more miles. Made no sense. A used car is used...and the risk discounts arent there anymore. The reason?? There is more profit in a "used" vehicle than a new one.

[turboblew]

Originally Posted by ProjectN64

Very interesting topic that people have mixed feelings on, got my sti with a third party warranty in 2016 which has by now covered 12k in repairs. Even had a k&n short ram intake at the time dealer didn't give a **** and just nickel and dime'd the warranty company during the shortblock replacement. My car will stay stock, I'm at 69k miles (3k on shortblock). I would recommend the warranty since you bought used

Id question why a vehicle with so few miles... has such major issues.
Also what was the cost of the warranty that covers all this miraculous mechanical failure??
$12,000 at whose rate?? How much time were you without the vehicle???

[rtv900]

Originally Posted by F1EA

Yes, not talking about maintenance. I'm talking about repairs... you'll never get a $5k maintenance bill. But easy to get a $5k serious repair bill; that's what you want to be protected against.

you're missing the point

your whole argument is predicated on the notion that any and all repairs are covered, so you are 'protected' against them.
You aren't.
These things are designed with 100's of loopholes so that most things are not covered. That's why they sell them so hard.

[ProjectN64]

Originally Posted by turboblew

Id question why a vehicle with so few miles... has such major issues.

Also what was the cost of the warranty that covers all this miraculous mechanical failure??

$12,000 at whose rate?? How much time were you without the vehicle???

I'm the fourth owner, I imagine it was neglected and or abused, all I had to pay was 100 dollar deductible each time warranty company was contacted for repairs, I always ended up with a loaner car from the dealer even though contract suposedly covers rental cars. The contract was about 2500 for 4yr 75k miles. I would not have bought this car unless a warranty was available.

[rtv900]

Originally Posted by ProjectN64

Very interesting topic that people have mixed feelings on, got my sti with a third party warranty in 2016 which has by now covered 12k in repairs. Even had a k&n short ram intake at the time dealer didn't give a **** and just nickel and dime'd the warranty company during the shortblock replacement. My car will stay stock, I'm at 69k miles (3k on shortblock). I would recommend the warranty since you bought used

I swear this type of thing is just so sketchy.
EVERY SINGLE time somebody on this forum backs extended warranties and shares their experience they just so happened to redeem five to TEN times the cost of the warranty in covered repairs.

Never a, "yeah I barely broke even", or a "I got a hair more than it cost", or a "yeah I almost got back my initial spend".

It's always five figures of covered repairs. And this story is a 3rd party warranty no less?????
How can it possibly be I've never known a single person in real life who's had an experience anywhere close to this with an extended warranty?
But on an internet forum it's the "I struck gold" stories.

sorry, I call BS on this. It just is not even remotely believable that you got over 12 grand in repairs from a 3rd party warranty, those 3rd party warranties are total scams, blatant scams.

[TheNovaScotian]

I currently own a 2019 WRX and I am happy I bought the extended warranty.
So far I have had 2 separate transmission warranty issues in the first 30,000 kms.
One was a gear fork tolerance issue and one was a defective input shaft.
With those issues happening so early in my ownership, I am happy with my extended warranty purchase.
P.S.
I love my car

[ProjectN64]

Originally Posted by rtv900

I swear this type of thing is just so sketchy.

EVERY SINGLE time somebody on this forum backs extended warranties and shares their experience they just so happened to redeem five to TEN times the cost of the warranty in covered repairs.



Never a, "yeah I barely broke even", or a "I got a hair more than it cost", or a "yeah I almost got back my initial spend".



It's always five figures of covered repairs. And this story is a 3rd party warranty no less?????

How can it possibly be I've never known a single person in real life who's had an experience anywhere close to this with an extended warranty?

But on an internet forum it's the "I struck gold" stories.



sorry, I call BS on this. It just is not even remotely believable that you got over 12 grand in repairs from a 3rd party warranty, those 3rd party warranties are total scams, blatant scams.

BS? Not even remotely believable? Take your retardation elsewhere I have already posted an invoice proving I have had coverage in a previous thread when discussing third party warranties

[rtv900]

Originally Posted by TheNovaScotian

I currently own a 2019 WRX and I am happy I bought the extended warranty.
So far I have had 2 separate transmission warranty issues in the first 30,000 kms.
One was a gear fork tolerance issue and one was a defective input shaft.
With those issues happening so early in my ownership, I am happy with my extended warranty purchase.
P.S.
I love my car

Dude, your manufacturers warranty covered those items, you have a brand new car. That is not a reason to be happy about spending an additional 2 or 3 grand. Thus far you still just gave away that money.

Originally Posted by ProjectN64

BS? Not even remotely believable? Take your retardation elsewhere I have already posted an invoice proving I have had coverage in a previous thread when discussing third party warranties

Frankly bruh, you wouldn't be so upset about me saying that if your story was true.
And no, it isn't remotely believable like I said. Third party warranties are well known scams designed to dupe people out of money and designed to cover virtually nothing that actually happens. So it is extraordinarily hard to believe that you got 12 grand in repairs.
sorry, that is what I think.

I mean seriously, what did you get? Two new engines, 3 airbags and a couple trannies for gods sake? It's a subaru, 12 grand would buy a used car with the mileage you said you have on it.

[F1EA]

Originally Posted by rtv900

you're missing the point

your whole argument is predicated on the notion that any and all repairs are covered, so you are 'protected' against them.
You aren't.
These things are designed with 100's of loopholes so that most things are not covered. That's why they sell them so hard.

Not ANY and ALL repairs, but definitely all applicable repairs. So yeah, no maintenance... frankly, it's mostly engine and transmission and maybe major electrical stuff. That's what most people care about.

They do have loopholes, but so far I've never had any issues with my Subaru dealer on warranty work (and the same with a couple of friends of mine who have Subarus). If I ever do, then that's the last Subaru I would own. Period. So I doubt Subaru (it's actually Toyota credit) is masterminding a plan to lose customers over a $3k extended warranty plan.

You never hear about "breaking even" or "getting my money back" out of warranty because that is not the point of a warranty. Same with health/life insurance. I've never broke "even" with my health and life insurance

I didn't go long enough with my WRX, but I got covered under regular OEM warranty for 1)battery, twice 2)A/C compressor 3) re-alignment 4) Front strut towers all done at the dealer. No issues, no questions asked. And my WRX was modified; not heavily, but it had some stuff.

Would have likely needed more repairs if I had ridden out the warranty period, took worse care of or had more kms in my car... I also got back about 75% from the extended when I traded the WRX after 3yrs.

Also, Subaru extended the CVT warranty, so that leaves the auto transmission out of the question; I guess that makes a bit of an argument against extended on a CVT WRX... but extended warranty on an automatic Subaru makes A LOT of sense. Probably makes more sense than buying one in the first place.

They push warranties in the same way they push to sell you a new car; Sirius radio; the under chassis protection and whatever else. It's no surprise, they're in the business of selling stuff. But not everyone needs it.

I can think of 3 reasons NOT to get extended: 1) keeping the car for 4yrs or less 2) plan to modify it 3) drive a TON of miles per yr.

Then 3 reasons for: 1) buying a used car at a dealer 2) keeping it long term without a ton of miles 3) it's got an automatic transmission.

[ProjectN64]

Originally Posted by rtv900

Dude, your manufacturers warranty covered those items, you have a brand new car. That is not a reason to be happy about spending an additional 2 or 3 grand. Thus far you still just gave away that money.







Frankly bruh, you wouldn't be so upset about me saying that if your story was true.

And no, it isn't remotely believable like I said. Third party warranties are well known scams designed to dupe people out of money and designed to cover virtually nothing that actually happens. So it is extraordinarily hard to believe that you got 12 grand in repairs.

sorry, that is what I think.



I mean seriously, what did you get? Two new engines, 3 airbags and a couple trannies for gods sake? It's a subaru, 12 grand would buy a used car with the mileage you said you have on it.

I'm upset because you're jumping to conclusions with no basis, I'm pretty sure I posted that invoice in the other thread because someone (most likely you) tried calling me out on it.

Shortblock
Steering pump
Steering rack
Wheel bearing
Transmission teardown to replace toasted bearings
Cam and crank seals (before shortblock replacement)

All done at a subaru dealer that is more than happy to up charge third party companies

[rtv900]

So you're at 69k now and got 12 grand in extended warranty repairs when the factory warranty is 60k miles?
So all of this happened between 60k and 65k?


Which trans bearing?
So what happened to the short block exactly?

[rtv900]

Originally Posted by F1EA

You never hear about "breaking even" or "getting my money back" out of warranty because that is not the point of a warranty. Same with health/life insurance. I've never broke "even" with my health and life insurance

well what is the point of an extended warranty if you don't at least break even?

anyhow, no way to compare that to an insurance system, particularly Health Insurance considering it isn't even insurance at all anymore and more resembles a ponzi set up of some kind.

[ProjectN64]

Originally Posted by rtv900

So you're at 69k now and got 12 grand in extended warranty repairs when the factory warranty is 60k miles?
So all of this happened between 60k and 65k?


Which trans bearing?
So what happened to the short block exactly?

I noticed oil consumption soon after buying the car, dealer technician recommended I replaced cam/crank seals because they were leaking (had timing belt/water pump done while there) too bad for the warranty company they paid for that repair when there was a cracked piston ring too. Why are we discussing factory warranties? I bought the car in 2016 with 57k miles, as for transmission bearings invoice just says "bearing" X2 and "bearing cup" X2

https://imgur.com/a/1TSU0BM

[F1EA]

Originally Posted by rtv900

well what is the point of an extended warranty if you don't at least break even?

anyhow, no way to compare that to an insurance system, particularly Health Insurance considering it isn't even insurance at all anymore and more resembles a ponzi set up of some kind.

Because warranties are not about breaking even. Not for everyone at least.

Maybe 1 out of 20 will get that hefty $12k bill as ProjectN64; the rest will get anywhere between $0, a couple of grands or a bit above breaking even. Universal health care, cancer policies, accidental death insurance, liability insurance, etc. all work in a similar fashion.

But yeah, your trust is on the warranty provider/OEM to honour it. Which for most people not modifying or abusing their cars.... should be ok.