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A few months back, I purchased a 2014 Mazda 6 for $19k with 23000 miles and I'm financing it. I put $8500 down and I'm planning on paying it off by the end of the year, or 2018 at the latest. I have a 4.3% interest. It was basically a steal for me, because it came fully loaded. I took a look at the 2016 models, which only have a few small cosmetic differences from the 2014, and they were between 25-29k, depending on the miles.
The vehicle is a pre-certified Mazda from a legit Mazda dealership. Perfect condition. I had always read that extended warranties may be unnecessary or a way for the dealer to make more money, when I was offered this extended warranty, at first, I refused, but the financing guy, said that it would lower my interest rate, which at first, was around 4.7% and I figured why not, after all, I'm planning to keep this car for 10 years.
I might as well cover my ass and make sure everything is perfect, you never know, peace of mind, well, it costed me $1800. It supposedly covers lots of things, not usually covered with pre-certified vehicles with no warranty.
Now, 4 months later, I feel like I screwed up by buying that extended warranty, the car is in perfect condition and if it wasn't for those $1800, I could now pay off the car sooner.
already screwed up, i probably never really needed it and now I just have to pay
how come there is no way to quit or remove this extended warranty, especially since you've never used it
Read your papers again, are you sure you cannot cancel? If it is really not possible, the answer is "because they want to increase their profit margin".
The only extended warranty I would even think of "purchasing" is a FACTORY EXTENDED WARRANTY. And i would want it thrown in on the deal. I wouldn't offer more than $200 if I had to buy it.
MOST if not all aftermarket extended warranties aren't worth the paper they are written on.
When buying a CPO, they should have gone over the entire warranty program for you with detailed information on the expiration of program warranty. So, they would explain the 12 month/12,00 mile Limited Vehicle Warrant. They would explain what it covers as well as when it will start (if still under factory warranty) or when it started (if you were out of factory warranty) along with the date and miles that this portion of the CPO program would end. Next they would go over the 7 year/70,000 mile Power-train Warranty using the same details. The purpose is so you know exactly when all CPO warranties expire so you are not duplicating what the program already provides. You do not want to buy an extended warranty on a CPO where half of the time or miles was already part of the CPO program; that's just wasting money. However, in most cases, if the extended warranty if the official Manufacture's Extended Warranty, usually each part won't kick in until the CPO warranty has expired for that portion. Just make sure you fully understand what you are buying.
I always said I would never buy one. So what did I do when I bought my used 2015 Honda Pilot? Bought the warranty of course. After driving company vehicles for so long I got cold feet buying my own vehicle.
Consumer Reports recommends only buying an extended warranty if you buy a car that has generally proved to be troublesome. I would consider it for : MB, BMW, Range Rover, Jag after their factory warranty expires and are expensive to repair. Make sure there aren't a bunch of loopholes , though.
I've purchased them twice. Both times I'm very happy I did. The first was when I was young and completely broke. I didn't know how to budget. I rolled it into the loan. Thank gosh I did. I blew a gasket on the car and I didn't have anywhere near the $2000 to fix it. I was in a full panic. I had no idea what to do. I thought I would have a nervous breakdown. The extended warranty covered it, and a rental car. It made a huge difference in my life at a time when the repair and being without a car for the duration of the repair would have been devastating in my life. It was such a huge relief for me to have had that warranty.
The second time I bought an extended warranty it was a direct warranty from Ford, not a 3rd party. I never used it. I didn't need it, and I ended up trading in the car way under the miles on the extended warranty. I can't remember, but like the warranty went to 70k miles and I traded in the car at 50k or something. Anyway, they gave me a quote for the trade-in, and it was a great quote. After I accepted the trade-in, they came back out and told me that they were giving me another $1100 that they hadn't realized at first. WHAT? You're freely choosing to give me more money? WHOA! Turns out they refunded me for the prorated amount of warranty that was left on the car. It was a happy little bonus that just totally made my day.
So, in my experience, both times it was something that reduced stress for me and brought me happiness and relief. IMO, worth every penny.
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