Ok, I called my local dealer to get some rates on extending a friend of my clients' s type warranty for an additional 2 years

so while i had him on the phone I asked for XJ rates for a 2006 factory extension:

for an additional 2 years its $5,3xx and for 3 years its over $7,xxx

WTF! how much have you guys paid for extensions?

He said if the car is bought there the 2 years is only $2k as its select edition otherwise they have to charge the rates above

This sounds like a serious rip off but I only want a factory warranty

Thanks as always for your input -Erik

 

Might one consider that as an inducement to trade in their car on a shiny new one? Otherwise, it reflects a certain amount of skepticism about the reliability of the old one.

 

I went through www.aaautowarranty.com and it was around $2800.00 I think? I know many used car dealerships use www.aaautowarranty.com then mark it up to the end consumer as this company was a suggestion of my friend who owns a very large used car dealership.

I have not brought the car in for service on this warranty yet, but plan to do so in a few weeks.

 

I think I'd stick the money in the bank and take my chances for those kind of prices.
I would also bet there is a deductable you'd have to foot as well.
just my 02 cents

 

Yea, me too! Unless the engine or tranny goes, you can have repairs for less than $2800 in two years. Just my way of thinking. My 04 XJ8 has 27K and I just can't justify that amount for a warranty that is not bumper-to-bumper all inclusive. I've got a good certified mechanic that is not tied to a dealer's shoestrings, so I will forgo that warranty.

 

yeah i agree with you guys plus the car will have minimum a year and a half to two years left on it full factory....if that price is indeed correct ill just sell it before factory is up and upgrade with the cash i would have spent on the warranty lol

im going to talk to a couple of other dealers i have contacts at to see if this is indeed a real price

 

I just bought a 2005 XJ8-L from the local Jaguar dealer, it has 28,500 and still has 18 months on the factory (Select Edition) warranty for used cars (6 yrs or 100,000). I went ahead and rolled a two year extension (now good through 11/2012) into my payments and it only added about $55 a month to the payments (36 months). That's under $1,900, but I suspect that I got that price because I did it at the time of purchase, Select Edition.

 

I don't buy extended warranties on the things I buy (besides cars). I wish I had started keeping a record of all the times I said no thanks after asking how much$. Then put the money I would have spent on the warr. extension in an account and let it grow there. After saying no to all of them I am sure I would have enough in there to cover the odd time when something broke and needed repair/replacement.
The latest offer was when I was at an office supply store purchasing a computer mouse for my laptop. As I was checking out the clerk asked me if I would like to purchase the optional replacement coverage for two dollars and change. Good for up to three years she said. (the mouse I was replacing was about four years old and heavily abused from alot of travel). No thanks I said. The new mouse costs 14 dollars!
Personally I think the extended warranty is a huge profit bag for the retail community and as a result the sales forces are required to really push the stuff.
I have asked an independent shop which extended warranty they have had the best results with and they told me they are all basicly a PITA. And as a rule they add one hour to the repair bill for warranty paperwork in the office. Said the customers weren't too happy about that but what's the guy going to do? He has to sit in the office on the phone with the warr company, on hold, to get the ok to do the repairs when he could be out in the bay making money. Also has to do the diagnostics first and then wait for authorization before proceeding thus tying up a repair bay while waiting.
With as complicated as these cars are though, I can understand why people don't want to "fly without a net" so to speak.
Chad

 

Thom sounds like you had the right idea! See you get a much better rate if you buy the car from the dealer and do the CPO at same time, this is Jaguars rule though not the dealers.

I learned Fidelity Warranty's coverage at Platinum level basically mirrors select edition. However their price is 50%-75% less then a factory extension! I asked a few unbiased dealers I have exp with and have handled them and said they pay out just like factory and wouldn't hesitate buying one themselves. Especially at the huge difference in price.

Chad (and Lew): I totally agree with you regarding only buying a warranty for a car. Youre 100% right about it being a profit bag for retailers. Circuit City (before bankruptcy) sourced 100% of its profits from warranty sells.

I also would never buy a warranty with a deductible. Say you have the same concern you take you car for 2 or 3 visits to the dealer for. Well youre stuck paying 2 or 3 deductibles for something that should have been fixed right the first time or they couldnt find (techs have off days too lol). If your warranty deductible is $0 you have nothing to worry about.

I would never plan on going at it alone when extended is an option, Im one that likes peace of mind in this area! I will also have 1.5-2years approx of factory warranty left on it when I buy it so that will give me time to see what I want to do.

Moses: I just filled out the form for a quote on the warranty company your friend recc. Im interested to see what information I get back. Ill post it here when I do, hope the Corgi is doing good

 

Hey guys sorry to take so long for an update for those of you that might be interested.

After around 3 business days I received an email From a AA warranty representative. Instead of quoting me multiple options he only quoted me just one type and it was a very low coverage warranty and a crazy price.

I was very disappointed to say the least! Especially since they send 2 or 3 spam emails a day out to you!

Moses, Im not sure if your dealer friend has an inside contact or what but their online execution from a retail standpoint is horrible. I hope you didnt have to go through it.

Hope this helps others.