Car Service Contract Pays off

Discussion in 'The Tiki Bar' started by BillK2632, May 6, 2017.

  1. BillK2632

    BillK2632 Well-Known Member GOLD Sponsor

    Jun 25, 2009
    Lake Norman, NC
    1999 185 Bowrider,
    Mercruiser 4.3, Alpha I
    You know when you buy a car and you are in the with finance person completing all the paper work etc, and they always try to sell you paint protection, fabric guard etc etc. I am pretty good at saying no to all these extra service contracts, about everyone tries to sell them to you - Sears tried to sell me a contract on a $25 hand saw I bought recently! Two months ago we bought my daughter a 2013 Volvo S60, replacing the 2001 S60 that that has been in the family since new. The new S60 is a great car by the way.

    The car has the certified pre-owned factory warrant to 100k, but in a weak moment when I was closing the deal at the Volvo dealer I bought this protection plan that covers paintless dent removal, wheel/tire damage, windshield chips and key replacement. I figured young woman driving the car, she is in the medical field and constantly parked in hospital parking lots, outside at her apartment complex, figured I would get my money out of it on the paintless dent removal and tire repair - she has a habit of rubbing curbs from time to time. She is taking great care of the car - tells me she really likes it so I was having some buyers remorse over the $500 I paid for the service plan. Until this week - she lost a key fob while out jogging Tuesday night. We were particularly concerned because it was lost on the Wake Forest campus that her apartment backs up to. Very likely someone found the key and it would not take much driving around and pushing the buttons to set off the alarm on the car it goes to. Apparently this happens more than you would think, especially around places like a college campus. So it turns out Volvo is proud of those key fobs - $408 to replace it! But guess what, turns out the little contract I was stressed over paid for it 100%, not deductible, no hassle. Dealer treated it like a warranty claim. Boom! I still don't think I would recommend these plans, but in my case it has paid off - I know over the next 5yrs we are going to have a few dent removals and probably a wheel repair - I am pretty particular about the cars. So I think I might get ahead on this one.
    Last edited: May 6, 2017
  2. NotHerDecision

    NotHerDecision Well-Known Member PLATINUM Sponsor

    Jun 28, 2016
    Houston, Texas
    2001 Sea Ray 460 Sundancer
    2014 Seadoo 155 LTD
    2105 Seadoo 130 SE
    2013 Mercury Dinghy
    Cummins 6CTA 8.3L
    BMW asked me 2500.00 for the warranty. I laughed.

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  3. tdschafer

    tdschafer Well-Known Member

    Aug 24, 2009
    Long island , NY
    1997 330 sundancer
    twin 454's, Carb, V-Drives
    I usually pass on those warranties as well. When I took delivery of the 2016 Ram 2500 Megacab I had ordered I was once again offered the warranty. I had already qualified for a fair amount of rebates that were locked in when I pulled the trigger & placed the order. The aftersales guy offered me a Lifetime bumper to bumper warranty through Mopar for $3,500.00 when I took delivery of the truck. I wouldn't have considered it but purchasing it qualified me for another $2,000.00 rebate reducing my out of pocket cost to $1,500.00. At that price I decided What the heck & bought it. I plan on keeping the truck for at least 10 years and with the cost to replace some of the technology in these things I can rest easy knowing it won't be a big hit to the wallet.

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  4. DanW

    DanW Member SILVER Sponsor

    Apr 3, 2013
    Sacramento-San Joaquin Delta, Isleton, CA
    1988 340 Sundancer - "Nautical Smiles"
    1998 Regal 2100 LSR
    Sea Ray - Mercruiser 454
    Regal - Volvo 5.0Gi w/ Volvo-Penta outdrive
    Like most everyone else, I never buy extended warranties. In 2010, I bought a certified used 2006 Lexus GS300. For some reason, I bought the extended warranty for $3,000. Kind of regretted it at first. But then over the next five years, that car needed over $20,000 in repairs including a new engine that was $11,000 and two months in the shop while Lexus and the warranty company argued over who would pick up that bill. I didn't care as Lexus gave me a brand new car to drive during that repair per the warranty contract. Shortly after the extended warranty ran out, they told me it needed another $7,000 in repairs. I said no and got rid of it. But the warranty did easily pay for itself a few times over. I grew to hate that car.


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  5. Leardriver

    Leardriver Member

    May 24, 2016
    Denver, CO
    2004 270 Sundeck 8.1 Bravo III
    5.0, 5.7, 6.2 8.1 Bravo III over the years
    Save your $3000 and buy a car that is still under warranty.
  6. Strypes

    Strypes Active Member

    Dec 10, 2015
    Catawba Island
    12 Meter Trojan International Motor Yacht
    210 Sea Fox Center Console
    Avon 3.11 RIB
    454 Crusaders
    V6 Mercury Saltwater 150HP
    4 Stroke 5HP Mercury
    When I bought my 2013 Chevy 2500HD Crew Cab brand new I paid for an additional 8 years of warranty on top of the 3 year 36,000 mile warranty.

    I have no regrets in doing so.

    The truck currently has 21,000ish miles on it.

    Different strokes...
  7. SloBurn

    SloBurn Member

    May 30, 2013
    Greenwood Lake, NY
    1994 270 Sundancer. 7.4L Merc. Tow with a 2006 Dodge RAM Hemi
    340 HP Merc 454 c.i.
    I got one for our Sebring convertible. When it had an electrical problem with seat belts, they said it was ELECTRONIC, not electrical, therefor NOT covered. I won't make that mistake again.
  8. Blueone

    Blueone Well-Known Member SILVER Sponsor

    Jan 24, 2007
    Lake Erie, Ohio
    2004 420 Sundancer
    Cummins 6CTA 450's
    My son bought a new Chevy pickup and asked me to co-sign the loan so I had to go down and sign the papers at the dealer. We get into that finance office where the "accountant" goes over the paperwork. Everything was good...payment and monthly charge 0% interest and then he hits us with extended warranty... My son said no way.... And the sales guy says what if I could get it for free?... So it was a what ever moment. He leaves to talk to "upper management" and comes back with the contract and says he got it for free... We were surprised and skeptical but what ever. We had already been through the contract so just needed so sign it when he came up with the extended warranty so we Signed the papers and away we went. Two weeks later the contract came in the wife goes threw it and caught the dealer changed the months to finance from 60 to 64 in Pen. The monthly payment stayed the same but the months to pay it increased. It was son went back and got it reversed and we have boycotted that dealership group and told everyone their tactics.
    Just be careful on the extended warranty or anytime your in that back room with the so called "accountant"
  9. copb8tx

    copb8tx Well-Known Member

    Jan 26, 2008
    Lake Texoma, TX
    2005 420 Sundancer
    T-8.1S Horizons
    A dealer's 'accountant' is typically an ex seasoned salesman. The profit margin made in the finance room is huge and they normally catch you once you've let down your guard because the car negotiation is over.
  10. RollerCoastr

    RollerCoastr Well-Known Member

    Nov 15, 2007
    Cedar Point, OH / Miami, FL / MacRay Harbor, MI
    1997 400DA
    340HP 7.4 Mercruiser Bluewaters
    Garmin 741, 742, 8212, 24HD, Intellian I2
    1999 280BR
    Twin 250HP Merc 350 Alpha Ones
    Very similar thing happened to a friend of mine. Two years ago he leased a car from the same dealership he always had. Last month he got the statement in the mail prepping him for the turn-in process. The letter stated his contract was for 10,000 miles per year. He had asked for 15k. He pulled out the contract and sure enough, the sales guy and pulled a fast one on him to lower the pmnts.
  11. OllieC

    OllieC Active Member

    Mar 11, 2013
    2005 Weekender 215
    Mercruiser 5.0 mpi, Bravo III
    These things are negotiable at the dealer.
    I negotiated my extended warranty for my truck from a 10 year 100K to an 8 year 80K at 1/2 the price. I used every bit of the $1500 I paid. I had my rear sliding window defrosters fail where the whole thing had to be replaced at $3k...Also had a $60 driver/passenger climate control actuator go bad & the whole dash had to be taken out at $2K - adds up real quick
  12. Creekwood

    Creekwood Well-Known Member GOLD Sponsor

    Apr 26, 2009
    Oakville and Georgian Bay, Ontario
    '97 330 Sundancer, Raymarine C80 suite with radar, Mercury 310 Hypalon w/8hp Yammie 2stk
    2X 454 carbs w/ vDrives
    You should have taken it. I was spending that much every 6 months on average once my X5 went out of warranty.
  13. trflgrl

    trflgrl Active Member

    Jun 23, 2014
    Middle Tennessee
    1989 Sundancer 300
    Twin 350 Merc/Alpha 1 Gen 1; Quicksilver 4.0 gen
    I'll consider extended warranty on my next one, as I purchase new and drive until annual cost (whether in dollars or pain and suffering!) is greater than cost of getting a different car.

    My first new car had 2 top end rebuilds, among other things; its ultimate demise was the transmission at the 10.5 year mark.
    My current vehicle will hit the 10 year mark in September. It's had new engine mounts, alternator, and an actuator of some sort--the details of which I can't remember other than it's not available as an individual part so required replacing the manifold--totaling well over the $1500 - $2500 warranty price tag.

    My credit union offered extended warranty coverage at a lower price than the dealership, and I believe you could buy it any time before the original manufacturer/dealership warranty expired, regardless of where you financed the car. Will look into the details again to be ready!!

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