Extended warranty on new Suburban

[ride2k]

We just took delivery yesterday on our new TV, a '05 3/4 ton Suburban with tow package, as the dealer said, "Pretty well tricked out". We await the arrival of our 31' Classic later this month. During the delivery process of the Suburban, the question arose, would we like the extended warranty. An $1800 option that would increase the bumper to bumper factory warranty from 3 yrs/36,000 miles to 5 yrs/75,000 miles. We've never been much on extended warranties, but as some of you who have responded to prior questions of ours know, we're newbies at this and would appreciate your thoughts on the value of the extended warranty from your experience. Thanks in advance for any help you can offer. David

[redeagle313]

First off, how long do you intend to keep the Suburban? Are you going to keep it for five years or longer? Even if you are planning on this being a long term vehicle, you do NOT have to buy this warranty now. You can buy it anytime right up to the day your "regular" warranty expires. Matter of fact, in two year and 6 months they will proabably start mailing you applications for the warranty. At that point, if you still have the Suburban, you can decide on the extra warranty.

With the extended warranty, you are basically buying an insurance policy on your vehicle. The seller of this warranty expects to make money on it, as they have your $1800 for 3 FULL years prior to their ever being liable for the first dollar of repairs.

[ride2k]

That's the question. How long will we keep the TV? We, at this point don't know. the dealer said the extended policy costs much less now than later. I don't know if that is sales BS or what, further never haveing had a car of that size and power I am uncertain what service and dependability to expect.

[Aray]

Don't forget that this price is negotiable. I've seen dealers come off this number quite a bit. If it wasn't such a good deal for them in most cases they wouldn't be pushing it as hard.

[jcanavera]

Originally Posted by ride2k

We just took delivery yesterday on our new TV, a '05 3/4 ton Suburban with tow package, as the dealer said, "Pretty well tricked out". We await the arrival of our 31' Classic later this month. During the delivery process of the Suburban, the question arose, would we like the extended warranty. An $1800 option that would increase the bumper to bumper factory warranty from 3 yrs/36,000 miles to 5 yrs/75,000 miles.

Like anything else David it's throwing the dice. From my own experience I've never once collected on an extended warranty on anything. I tend to keep cars and tow vehicles many years so I can tell you that I have not had a vehicle in my lifetime that started out new, and required $1,800+ worth of repairs in years 4 and 5. Maybe I'm lucky and maybe I'm really the norm. Unless you dog your vehicle I'd pocket the $1,800 and take my chances.

You know these warranties are profit makers for the dealers. Obviously the dealer is also betting that your vehicle will need less than $1,800 worth of repairs in these two years. I think the odds are in his favor.

Jack

[thenewkid64]

Ask to read the ACTUAL warranty docs. If they even have a copy. The pretty brochure does not tell the whole story. Unless it is a TRUE GM warranty you will find that you:

1 Have to jump through hoops to get a repair covered

2 According to most of the warranties I have read they say you must maintain the vehicle according to the manufacturers maintenance plan. AND have proof of all of it. How many of us actually do the 30K, and 60K dealer recommended service?

3. The sales guy says bumper to bumper, but it will not cover belts, hoses, tires, brakes, bulbs, etc. basically anything that they determine is a wear item. Different vehicles have different wear items, suspension is one I bet they will not cover.

4. They will disallow any repair that could have been caused by you not performing the Manufactures recommended service. The example I asked about was a timing belt issue on a sports car. I was told if it was not changed at or before the recommended interval and it snapped, no free repair. See how this works, they look back until they find something you missed and then loophole out of paying.

So I would pass. Put the 1800.00 in 3 yr savings bonds and you will have plenty for year 4 and 5 should something go wrong. If you maintain it you should not need to use the rainy day money.