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Need advice - Extended warranty or no for $4500.00
I just purchased my first Jaguar, a 2010 XK-R with only 12,000 km on her. I bought (but can cancel) an extended 6 year 80,000 km extended warranty that basically covers everything but break pads, tires, hoses etc. My question is...with this basically being a new car other than the age....is this a wise use of my money or should I expect to be issue free for the most part for years to come with this car?
A couple of thoughts. I do all my own work so extended warranties are not of value to me. It's hard to answer your question as you put an "etc" in the exclusions so we don't really know what's excluded. There are good and bad aftermarket service contracts. Perhaps if you provide the carrier, someone with experience can chime in but you should definitely list the exclusions here for the rest of us. My heart says $4500 buys an awful lot of repairs, but does it? It buys a lot of parts for DIY.
Lastly, was it bought at a Jaguar dealership (car and warranty)? If it was and will be serviced there, the service manager is a good resource because they have a vested interest in getting things covered under warranty. They could give you an opinion on how the company stands behind the warranty you bought.
Yes the warranty is from a Jaguar Dealership. I will have to get the pamphlet to tell whats isnt covered but for the most part seems like everything other than parts that wear out like tires, brake pads, hoses are not covered. All electronics, engine, transmission etc. are covered.
As explained below, I wouldn't buy it. It's not a real warranty even though it's sold by a Jaguar dealer. It's a service contract with fine print to deny claims. You can't rely on the slick brochure; you have to read the entire contract. But if it makes you sleep better at night, it may be money well spent.
Copied from my earlier post.
UNDERSTAND THE DIFFERENCE BETWEEN A WARRANTY AND AN EXTENDED SERVICE CONTRACT
. A "warranty" is a promise (a contract) by the manufacturer of a product to repair or replace it at their expense within a specified period of time for specific failures caused by defects in materials or workmanship. Only a manufacturer can issue a warranty. The Jaguar Select Certified Pre-Owned program IS a warranty because it is backed by the manufacturer, Jaguar. It extends the original manufacturer's warranty subject to certain limitations and exclusions. The Jaguar Select CPO Warranty is a real extended warranty.
So-called "Extended Warranties" that are sold by Jaguar dealers and by other sellers on the internet are not real warranties. They are extended service contracts issued by various companies unrelated to Jaguar, and are like an insurance policy for car repairs.
Upon the expiration of the original factory warranty, Jaguar dealers will offer to sell you an "extended warranty" for various lengths of time and miles at varying prices. Jaguar dealers sell them because they're highly profitable. But they're not real warranties.
Salespeople often intentionally confuse consumers by saying "extended warranty", when what they're really selling is an "extended service contract". Even if that so-called "extended warranty" is summarized on a Jaguar dealer's letterhead, it is an extended service contract, and not a warranty. BUYER BEWARE! Aftermarket extended service contracts contain deductibles, exclusions and limitations that are often ambiguous and are used to deny claims. YOU MUST GET THE ENTIRE CONTRACT AND READ THE FINE PRINT BEFORE YOU SIGN AND PAY FOR IT! A sales brochure is not enough to make an informed decision. You must do your own due diligence. Those contracts typically state that the contract itself is the sole governing authority, and that you cannot rely on anything said to you or given to you in writing by or from anyone else.
If you think a particular extended service contract is attractive, be sure to Google it for complaints before you buy it.
Companies that underwrite extended service contracts are in business to make money. They have mountains of data, know the likelihood and cost of repairs by vehicle and component, and how to price their products. They also know how to write the fine print to deny claims. Any extended service contract company that loses money won't stay in business.
Think of it this way. It's like a casino in Las Vegas; the House always wins. Why? Because it's their game and they make sure that the odds are in their favor. Sure, once in a while someone hits the Jackpot. But that's just how the House keeps everyone else in the game - to make them think that they, too, will be winners. That's the same business plan for companies that sell extended service contracts.
Buying an extended service contract is a crapshoot. Just know that the odds are against you.
So, is there anything else that I can do? Yes. Assume that the cost of the extended service contract is $5,000. Instead of paying that money to the seller, put it in a separate savings account in your bank and use it only to pay for repairs that would have been covered by that extended service contract. If the exclusions and limitations would have denied or limited payment of that claim, treat that repair money the same way. Odds are that at the end of the term of that contract, you'll still have money left over in that bank account. That's the equivalent of the company's profit.
Forum members will tell you about their great experiences with their aftermarket extended service contracts, but few, if any, will tell you about getting ripped off because their claims were denied. That's because they sold "that POS Jaguar" and left the Forum.
As I said earlier, it's a crapshoot. Although occasionally someone will hit the jackpot, the House always wins. Jackpots are a psychological warfare tool the House uses to make losers think that they can win, too. Don't forget that you're the amateur playing against the pro and the odds are against you.
It's your car, your money, and your choice. If buying an extended service contract helps you to sleep better at night, then it's worth the cost. Unless those pleasant dreams turn into a nightmare.
When I got my 2009 XK in October 2018, I put $4500.00 aside to cover repairs in lieu of buying a warranty. Considering all maintenance and repairs over 4 years, I still have $2500.00 left. IMO, insurance companies spend most of their efforts in figuring out how not to pay you…
After searching about TriCare (the warranty company) and everything i've heard from XKR owners.... I've decided to cancel the extended warranty and keep my $4500.00
Like I said in your FB post, pocket the money in a MX account. At this low milage, your car will need things like coolant hoses and a water pump, not engine and transmission. Enjoy her, she is a beauty.
Before totally canceling your contract….. read, reread and reread again the contract. With everything you’ve read on this forum anything that can go wrong with your car might probably go wrong sooner or later. If your warranty covered even part of these items you might be ahead of the game. That is the big “if”. $4,500 is nothing compared to the cooling system failures, suspension defects, a/c duck bill issues, and timing chains to only mention a few. Mileage is not the only factor for our car’s failures, but time plays a good part as well. If you have confidence in this warranty and a good relationship with a Jaguar service manager you have a good start. NOTHING is cheap on our cars and not too many dependable Indy’s work on Jags. My local Jag dealers are getting $299/ hr labor. I’d suggest reading your contract again and check the companies reviews. If the reviews are crappy… pass. Good luck with whatever decision you make.
If I hadn't read @ several engine failures of the 5.0 I would say put the money elsewhere.
But I have.
My step son had a. extended warranty on a Volvo S70...the extended warranty ended up paying out over 25k over the life of the policy.
I guess. Do your research, make your decision and be happy no matter what. Great looking car!
WJ
Read the fine print, the best warranties are exclusionary, not stated contracts, meaning they say EVERYTHING's covered except the following list of items. Many are quite vague. Some of the excluded items are like those the original factory warranty excluded and some can be the items most prone to failure. The question's not really if you'll get value out of having one, it's what it'll do or not do for you when you do need it. The cost is quite low in today's market. Is yours six years from the in-service date, typically, or from the date you purchased the contract? I've bought the good ones in the past and had relatively good experience with them. However more recently I'd considered one for one of the Rovers, and was quoted $12K for 3 years/36K miles and it didn't cover as much as I would've liked.
I paid about $4000 and mine paid out over $40,000 over the years (was good for 6 years). No blown engine (but did get a brand new e-differential), just a lot of repairs that are NOT cheap. If you want I can send you a summary. Here's ONE invoice from ONE service appointment: https://www.jaguarforums.com/forum/x...nvoice-225815/
I paid about $4000 and mine paid out over $40,000 over the years (was good for 6 years). No blown engine (but did get a brand new e-differential), just a lot of repairs that are NOT cheap. If you want I can send you a summary. Here's ONE invoice from ONE service appointment: https://www.jaguarforums.com/forum/x...nvoice-225815/
You're the exception, and not the rule. Otherwise, companies that underwrite extended service contracts would lose $$$ and go out of business.
As I explained above, you hit the jackpot - which is good for business and keeps the suckers at the table. It's really an advertising expense.
Maybe, but a few thoughts:
- there's one flaw in the "ripoff" thinking: a lot of the profit of these warranties comes from unused value -- many people never actually use theirs (some folks on the forums have made this observation about their own warranties), and some people buy used cars that carry a transferable warranty and don't even know it.
- for the OP, I'd point out that this is a very distrustful forum. People who have a good experience with their cars, or just bring them in to a dealer and have them do whatever's needed, or simply don't have any issues with their cars don't check in with these forums. The default mode is "they're a ripoff!" Also this is an incredibly competent DIY group (We actually have threads on here about which garage lift to buy. A garage lift! For your house! In that case, yeah, I might not go the warranty route either.).
- on the other hand, one interesting thing I learned is that California (where I live) has such strong consumer protection laws that over half of the companies that offer these warranties don't even do business in CA. I'm sure that has something to do with my success. Looks like you're in Canada? Honestly, I imagine that that's a bigger factor than whether the company is good or not. I'd look around on Canada-specific forums and see what they say.
- remember that the things we think of - valve issues, transmission issues, etc - are costly for sure, but with these cars it's things like touch screens and A/C compressors that are gonna kill ya. If you're up for replacing things like that yourself, fine, but I found the warranty to be a lifesaver in that regard.
- finally: the cost of the repairs is not the only value in the warranty. There is a dollar value to the peace of mind. Once my warranty paid out for the first time, I no longer feared the yellow triangle, the limp-home mode, any of that. For me, that was the best part of the warranty. (My first repair TWO MONTHS out of the warranty, the hated rear coolant crossover pipe, set me back $2000).
- Obviously, if you get to the end of the warranty period without issue you'll feel a bit like it was a waste. But you didn't know that the day you took the car home.
Just some things to consider.
Brilliant looking XKR and in the best colors. Good for you! I wouldn't bother with the warranty. $4500 buys a lot of service and odds are in your favor.
On the other hand, a blown engine replacement costs $25,000, so be your own judge.
Even with an extended warranty with good reviews.....For a blown engine.... If the policy owner plans on a settlement, they better plan on putting on their boxing gloves for a long hard battle.Sure to be plenty of loop holes for the insurance company. Won't be easy peezy.
On the other hand, a blown engine replacement costs $25,000, so be your own judge.
What makes you think that the Administrator of that Extended Service Contract will pay that $25,000 claim without a fight? That's the reason for the fine print, which places the burden of proof on the policyholder to have documentation that supports his assertion that the car was properly maintained. That's why the Castrol Unobtainium oil included a proprietary dye so Jaguar dealers could deny warranty claims because the wrong oil was used. Most of those blown engines are the 5.0L where the water pump failed and caused the engine to overheat. Those claims are likely to be denied because the driver failed to stop soon enough, thereby causing the engine damage.
Just because you have a big repair bill doesn't mean that your claim will be paid.
What makes you think that the Administrator of that Extended Service Contract will pay that $25,000 claim without a fight? .....................................
Just because you have a big repair bill doesn't mean that your claim will be paid.
10-17-2022, 12:26 PM
Need advice - Extended warranty or no for $4500.00
