Are there car warranties for cars over 100,000 miles? If so where do I begin to look (that is trustworthy)?
Posted by Phineas-Bogg@reddit | Autos | View on Reddit | 8 comments
If any of you have them, what is the cost? Are you glad you bought one?
Any other recs about their value are appreciated.
nizzyflordon@reddit
I've been in the same boat with my car over 100,000 miles. I found that getting an extended warranty can give great peace of mind, especially with older vehicles. You might want to check out Chaiz for comparing service contracts – it's super quick and you avoid all those pesky sales calls!
stipsooly@reddit
I recently went through the same search for my car over 100,000 miles. Check out Chaiz. It’s a quick way to compare options without the hassle of spam or sales calls. I found some affordable choices there.
SF-cycling-account@reddit
I assume you mean aftermarket warranties and not manufacturer-warranties that are good for 100k+ miles from new
aftermarket "warranties" are best thought of not as warranties but as gambles. because that is what they are, gambles
aftermarket warranties are a product - they make money for the company selling them
how does a warranty make money for the company selling it? it must bring in more money than it costs
how does a warranty bring in money? only one way: the up front price (it is not recurring revenue)
how does a warranty cost money? through payouts for issues with cars
so the company needs to ensure that the total revenue of all the warranties they are selling is higher (significantly higher) than the cost of payouts on warranty claims
they do this by mathematically stacking the odds in their own favor. any one aftermarket warranty has a negative expected value - the majority of people buying these aftermarket warranties are not going to recoup the cost of the warranty in claims/repairs. if they did, the company would go bankrupt
so if you are looking at any aftermarket warranty that costs like $2,000 for example, you're gambling $2k that something so bad will mechanically happen to your car and cost over $2,000. but the warranty companies knows this, they know the average cost of maintaining each model of car over 10-20 years or whatever, they know the likelihood of the every model to have major issues, etc. they have all the info, data, and stats you don't have, and they are selling the warranties on terms that make them win. just like a casino
and this isn't even getting into how they may try to fight claims, how you need to be really on top of the maintenance, how you need a record of the maintenance (have fun trying to argue with them that you changed your own oil when you say you did), stuff like that. that can vary wildly based on the company and the contract language. there are inclusionary and exclusionary contracts, etc
its basically not worth it. if you can afford the warranty, just put that money into a savings account for when the car breaks. remember: the car is more likely to have warranty-able mechanical issues that cost less than the cost of the warranty itself. so why bother?
Phineas-Bogg@reddit (OP)
Thank you, it sounds about the same Gamble as any type of insurance, but perhaps more so.
I was thinking it might be worth it, as they're going to be a certain number of people that purchase the warranty, but end up selling their car afterwards, or not bother with filing a claim, and therefore the people that are diligent make it some benefit.
LeadfootYT@reddit
Insurance is regulated by the government and largely can be compelled to pay out. Aftermarket warranties are not.
If you can’t afford the repairs, you can’t afford the car. Simple as that.
Ran4@reddit
Lexus has a 10 year, 200k km warranty. Even when buying a used vehicle (if bought from them).
Phineas-Bogg@reddit (OP)
Did you have to buy the warranty at the time of purchase of the car, or could you go back anytime afterwards?
redoctoberz@reddit
That’s only 120k miles, not sure if they want a 20k mile warranty. That’s only about 1.5 years of driving.