For my 2016 with 15K miles, I was offered $6000 for 5 year extension for repairs, no maintenance with a third party insurer
I can pay in installments. Transferable or I can get refunded for unused time if I sell. I think I値l pass. I put very little mileage on as you can see and have had no real problems. I値l just pay for repairs if something happens

 

If you only plan on adding another 15k miles over the next 5 years, there really is no point in having an extended warranty.

 

Think of the boat payments they'll miss without your premium payments.

 

When would you consider an extended warranty worth it, and for how long? I'm working through the details of an MY2016 F-Type S. She has less than 10,000 miles on the odometer. There are 14 months and 50k miles left on the original warranty. My plan is to keep her at least 10 years, if all goes well, and probably drive less than 10k miles a year.

 

That is a loaded question - a properly maintained car can last for a million miles while another would require $20k in repairs. A car has literally thousands of parts that can fail and every day that they operate perfectly and without issue is a gift. A "warranty" is an insurance plan and like any insurance, it is a function of you level of risk tolerance. I have a 2016 with 15K and I will likely only drive it 2000-2500 per year if I try real hard - I have other stuff to drive, winter in Indiana involves snow, and I primarily work from home - that said, I will look into warranties simply to guard against a large and expensive failure. My car has been close to problem-free but things happen. I will however, not pay $5k for an extra year of assurance. If I could find a decent warranty (more years over miles which none of them offer) I would be willing to drop $2500 for 3 years of coverage, but having been in auto finance and insurance, it is unlikely I will find that. If you have something else to drive and a proficient and reasonably priced independent repair shop, you might be more accepting of the risk of driving t\without any insurance. If you only have a Jag dealer nearby, no mechanical knowledge, and the car is your daily driver, you may want insurance with a roadside and rental option. Bottom line is that there is no right answer or car actuary table that can predict the future. It comes down to your comfort level and whether or not you are good self-financing a warranty. I have also heard of people making installment payments on a warranty - if you are paying more in total to pay over time, you might want to re-think whether or not you truly can afford the car. Also, using that concept, you can bank $500 per month as a repair fund and have it ready in the event of a breakdown. Also important to note that insurance plans have deductibles and exclusions. If there is a way to avoid paying a claim, it will be explored. These plans are usually either named component (what is listed is covered and nothing else) or exclusionary (everything except what is listed is covered). Additionally, many plans do not cover fluids, certain diagnosis, or other miscellaneous items,and charge a deductible on each component replaced (i.e. an A/C system has several components and each may have their own deductible). In summary, paying for the warranty does not mean your financial obligation is done. I had an Infiniti G37 for like 9 years; literally zero issues for the first 8 years and 18K miles, one day the gyro inside the NAV system malfunctioned - $5500 repair (I was a loyal customer and always did service on time so they were nice enough to cover it). Just saying that even past performance is not always an indicator of future results. I am a person that does not value money differently - to clarify, if I save 15% of my gross income and I find $100 on the street, I will save $15 of it and likely all of it because its literally "found money". I also don't look at a tax refund as a bonus to be spent on something frivolous - I would rather owe money to the government than find out that I gave them an interest-free loan all year. To me all dollars are the same and I don't have to trick myself to save money for things or have a vacation fund etc. I also live under the principle that anything you have enough money to make go away, is not a problem; it's just an expense. Again, not trying to steer you in either direction, but thought I could share some of my experience and knowledge on the subject.

 

In our family of 20+ cars over the years, we've only kept 3 cars over 5 yrs.
For those 3, we've kept them 10 - 12 yrs, ave around 70 - 75k miles.
Those 3 were for a Corvette, BMW & Mercedes.
We will only buy extended warranty from the manufacturer for those 3 cars directly at Chevy, BMW & Mercedes dealer.
Paid $2000 - $2200 each
Never bought 3rd party.
All were for 3 extra years' bumper to bumper coverage, with no deductibles, up to 70 - 75k miles coverage
We wait until the very last month right before the factory warranty expires, then decide if we want to keep the car before purchase of EW,
We always go to online forums to get info on reputable out of state dealership finance managers who has the lowest price for factory EW coverage & buy directly from them, pay via credit card, get official factory paperwork, then call the manufacture 800# to confirm coverage.
It has paid for itself for 2 of vehicles...

 

+1 - good tips and I have also had numerous experiences - One paid for itself 3 times over, another was never used, and one saw the company go out of business (and I paid it all up front to save a few bucks), but amazingly I got all my money back.

 

As I mentioned elsewhere, I got 3 years of coverage and an additional 40k miles (a total of 75k when it expires) for $3200 a month before the IEM coverage expired. I値l probably use about 30k of that over the next 3 years. That seemed reasonable to me.

 

I wish I would drive mine that much and at that dollar per mile ratio, I would be a buyer. of course fewer miles doesnt always equate to less failures, but most of what I have seen has been between $3500 and $5400 for up to 3 years and I'm having trouble justifying it for 6 to 7000 miles.

 

Extended warranties are an insurance product. You buy them for peace of mind, not as a financial investment. Like all insurance, you're betting that your car is a piece of crap and the warranty will save your shirt. The insurance company is betting that the car is gold (or planning to weasel out of paying claims). You hope they're right and you pay the premiums to think like that. (old joke)

There's a LOT of profit margin built into extended warranties. Losses are modeled at <50%; the rest of your premium covers overhead and profit. Statistically speaking, you should never expect to come out ahead with a warranty. But, that doesn't mean it isn't "worth it" if you can't afford the potential actual loss, or you cherish the peace of mind. Financially speaking, you come out ahead if your car ends up being one of the more extreme losses (and if the warranty company is still in business, and you can get them to honor the repair).

Some people will come out ahead. Most people will leave money on the table. The choice is a personal decision. You won't know the "right" answer before the end - and maybe not even then. (The "best" financial decision you might make would be to buy a winning lottery ticket; but, that doesn't mean it was "smart.")

Personally, I don't believe in extended warranties unless:
- I know more about the risk than the insurer and/or believe they can make repairs (properly) for 50% less than I can (to overcome the overhead/profit hurdles). AND,
- I have confidence that they're smart enough to still be in business, plus honest enough to pay the claim, when the time comes. I cringe at the stories of warranty companies claiming that items aren't covered because of "scope, wear, modification, abuse, or neglect."

The first point tends to negate the financial appeal. Wondering about the second one negates any peace of mind benefits.

But, again, there are people who come out ahead and/or just sleep better at night. I'm just not one of them.

WMMV!

 

under those conditions, I wouldn稚 consider an extended warranty either.

 

I just received a letter from Jag offereing an EW on my '17 F-Type. After 11K miles, I have had the side window molding replaced twice, and no other problems. When asked, the agent(Dealer agent?), offered 6 years at $4600, financed over 5 years. Sounded as if I had to decided that day, and tap danced around exactly how long I had to decided. I have a good backup car(XK8), as well as my wife's SUV, and also a good independant mech. Decided to 'drag my feet' on deciding and check the Forum for experience. Car was purchased new in April of 2018.

 

Keep in mind, that's really only a 5 year extended warranty as you probably still have a year on your Original warranty. Since the car is only driven ~3k miles per year, it would only be a 5yr/15k mile warranty.

 

If you bought it new in April '18, then your factory warranty should be good until April '23, no? From what I've seen on here, extended warranty from Jaguar has been available to others up until the factory one expires.

 

In the UK I had until the date of expiry to buy the extended warranty. But no later.

 

I've decided to pass on the extended warranty for now. This car has 14 months left on the factory warranty, and there are plenty of other companies that sell them. The idea that I'd be paying for a 5 year warranty, and only getting 3 years and 10 months of actual extension (because it's 5 years from date of EW purchase) was a major factor. The fine print set me off, too. Their total, comprehensive, everything-but-the-kitchen-sink warranty excluded the clutch and certain components of the suspension. Nope nope nope.