Extended Warranty Options

[TCM75]

I know there has been some prior posts on extended warranties but I wanted to see if anyone has had any recent experience.

First, some backstory. After nearly three years of relatively problem-free ownership, and the release of the D5, I've decided that I do want to keep my LR4 as my long-term vehicle (note that my biggest problem with the brand is the entire dealership experience). I entered a 4-year lease to give me an "out" and was told I could always purchase an extended warranty to give me up to 8 years of coverage.

I called the dealer the other day and was connected to one of the "finance guys". It was even worse than I could have imagined; just the stereotypical used car salesman trying to push me into another option. He told me "what I really wanted" is to turn the vehicle in at lease maturity and let them CPO it and then sell it back to me. This would give me up to 7 years and 100k miles of coverage. Costs would be: tax + doc fee + MV fee + $3,045 for the CPO warranty + "whatever is needed to bring vehicle up to speed" + $500 fee.

What I DO NOT like about the CPO route above all else is that it leaves the door open for extra dealer price gouging. He mentioned that brakes and tires alone could be $3000, which I do believe based on dealership rates. Besides the pricing I also have DuraTracs and likely do not want whatever tires they would want to install. Lastly, the $500 just seems to add insult to injury.

I then asked about the option of my original intent, which is a Continental product. It was clear he didn't want to sell me this one and quoted a price of $5,755 for the 8 year / 100k (not sure on the mileage). I believe I was quoted around $3,800 when I took delivery.

So, for those of you who have recently purchased an extended warranty, do you have any recommendations?

Thanks

 

[ktm525]

Explore the CPO route and grind them back on the terms and costs:

"no additional costs to bring it up to speed" and no additional $500 fee is a start.

Personally I would just buy it out if you like it and put aside that money you are spending on warranty and fees and roll the dice. That is what I am doing and so far so good. It does take money to keep these things in good shape and on the road. I budget in my head about $2400 CAN every year for upkeep.

 

[ryanjl]

I have a CPO warranty on mine that will cover it for about another 13 months and 35,000 miles. I have owned my 2012 for about 2 years.

It does not cover wear items, so, for example, I was on my own to replace the control arms after my bushings went out. It also does not cover trim panels, so, for example, when a stiff wind broke some of the fasteners on the exterior plastic panel on my passenger-side A-pillar, I was on my own to buy new ones (only about $20).

I had a coolant leak somewhere that it did cover. I am not sure what the cause of that was, or where it was, but it wasn't anything major.

I believe that all of these things would have been covered by some 3rd party warranty companies.

For me, its been peace of mind, but it hasn't really paid for itself yet (thinking of the cost difference between my LR4 and others that were not CPO). That could change, however, especially if the timing chain guides need replacing sometime in the next year (no sign of that yet, but if it happens, I'd really like it to happen sooner rather than later).

 

[toddjb122]

If you want that car, see if you can get it inspected by them, have the work done elsewhere, and then bring it back to them for re-inspection. Basically, if they say work needs completed to bring it up to CPO level, that's fair. Making you pay them for the repairs is not.

Barring that, you can get a third party warranty with none of those issues. Just ask a mechanic, or your service advisor, what after market warranties are easiest for him to work with. I was able to get that answer easily (I did not keep a record) just by asking which companies pay for repairs with the least hassle.

Good luck!

 

[cperez]

Following this thread. I did not have an extended warranty on my last pre-owned LR4. I drove it for 70K+ miles after purchasing it and had no catastrophes; just the usual maintenance stuff (LCA, tires, brakes). I did and still do all my own oil changes.

At close to 100K, it started acting up and making troubling noises. Best estimate without tearing it all down was either timing chain or possibly something higher up in the engine such as a cylinder head. This was a 2011 HSE which still had the inferior guides. I was advised to bail which I did.

I now have a new-to-me '13 LR4 that is well under the warranty mileage limit but about 1 wk away from the 4-yr limit. I am still leaning toward self-insurance because my understanding is that improvements were made to the timing chain and tensioner guides in MY13 and beyond. Between that and meticulous attention to oil changes (w/Castrol and every 5K miles), I'm feeling relatively safe about that issue.

But that voice in the back of my head is still saying I should consider an extended warranty. The finance guy where I bought this one offered me a full boat warranty that even included maintenance and wear items for some ridiculous price of around $2100. I read the coverage and exclusions (very few) and said hell yes. He told me that he got incentivized to move agreements regardless of the $$ amount and that he was happy to cut me a deal. Anyway the deal went away when he called the warranty company to finalize things. His computer told him that my vehicle qualified but they said no, unless I went up in contract price and deductible. So yeah, your dealership story is only one of many crazy behaviors you will witness. I think the finance guy got screwed in this situation and he was a decent guy. PM me if you're interested in reaching out to him for another option and I'll give you his digits.

I also fully agree with @toddjb122 that you should ask the guys at the place where you expect to get most of your work done. Because of travel and the holidays I'm not going to get a warranty before the factory one runs out. I may address it again in the new year.

To your main question, all of this is negotiable and your best leverage comes from having multiple options. Shop around. It also helps (and is fun) to be able and willing to get up and walk away if it doesn't feel right.

 

[TCM75]

Great information - thanks everyone!

Ryanjl, I have had the same problem with my A-pillars. Seems like this vehicle was not made to handle a crosswind, lol.

 

[toddjb122]

...The finance guy where I bought this one offered me a full boat warranty that even included maintenance and wear items for some ridiculous price of around $2100. I read the coverage and exclusions (very few) and said hell yes. He told me that he got incentivized to move agreements regardless of the $$ amount and that he was happy to cut me a deal. Anyway the deal went away when he called the warranty company to finalize things. His computer told him that my vehicle qualified but they said no, unless I went up in contract price and deductible....

That's funny!
To piggyback on this, I'd say definitely walk into a dealership and sit down with the finance guy instead of doing it over the phone.

When I bought my LR3 I bought the extended along the way... They sent me to a new Finance guy who didn't know the quote was coming up too good to be true and I ended up with a $100K zero deductible for about $2K. I just bought it and waited for it to self destruct. Never did. And I used it quite a bit.

 

[cperez]

Funny but not funny, Todd (haha)! I would have loved to have folded a $2100 extended warranty into my payment vs coughing up twice that much (or more) for one now! That is a big part of why I'm leaning toward self-insuring again... I would have loved that deal and I went in there educated on market rates. That made it even tougher when the deal blew up. Oh well...

 

[ktm525]

Great information - thanks everyone!

Ryanjl, I have had the same problem with my A-pillars. Seems like this vehicle was not made to handle a crosswind, lol.

That is for sure I have had numerous A pillar trim pieces come loose over the years on gusty highways. The clips that hold it are good for 4-5 years before they get brittle. Do not reuse clips when replacing windshields.

 

[toddjb122]

That is for sure I have had numerous A pillar trim pieces come loose over the years on gusty highways. The clips that hold it are good for 4-5 years before they get brittle. Do not reuse clips when replacing windshields.

Uh oh... I don't want to hear that (as CarMax is putting the finishing touches on a windshield re-replacement now and I'm hoping they didn't re-use these clips.)