Need advice with extended third party warranty?
Posted by HeavyTea2085@reddit | askcarguys | View on Reddit | 2 comments
So I recently bought a used car from a honda dealership near me and it has relatively higher miles but it's a Lexus with an good history and maintenance record.
Just for my peace of mind I decided to go with the warranty. The dealer told me that I can cancel this anytime so I decided to go for it. I have never gotten a third party warranty before and wanted to know if anyone has experience with this particular one or has any suggestions in general. Thanks!
The name of the warranty is VSC warrantyvise and the plan I chose is the powertrain plus coverage plan.
Gunk_Olgidar@reddit
TL/DR: Cancel it and get your money back. Save your money instead for repairs.
Best bet with aftermarket "repair insurance" (aka extended warranty) is to call your mechanic and see which one they work with, who doesn't give them a hard time about authorizing repairs, doesn't lowball labor rate or does not require them to use low quality parts, etc. Consider it similar to going to a medical doctor. Which insurance they work with matters.
If the car is >10 years >100kmi old, then put aside $100/month in the bank for wear-out repairs and maintenance. If more than 200kmi, make it $200. Wear out repairs on AC, suspension, timing set/water pump, alternator, valve cover gaskets, etc. will be about $1-2k a pop, and they'll come every year or two. Doesn't matter which make or model the car is once you get to 200k. Sooner or later everything wears out, and the good news is that with Lexus it is usually later.
HeavyTea2085@reddit (OP)
That sounds like good and sane advice, thanks for that!
I have seen mixed reviews about these kind of vehicle service contracts and having this perspective helps a lot!