Source
r/cars•
SDION

Would you buy an extended warranty for a 2013?

I'm looking at a 2013 Genesis Coupe 2.0t, clocking in at about 89 000km for 14k$.

A 3 year/60k km extended warranty is being offered at a price of 3100$ but taking it would reduce the loan interest rate, meaning the effective price of the warranty would be in the 2100-2500$ range depending how quickly I pay it off.

Had this been a 30 000$ used German car I wouldn't have hesitated a second but given that this is a Hyundai worth 14k, should I even remotely consider this?

Posted Mar 10, 2017, 4:32 PM UTC

332
A-Deo-et-Rege•

I wouldn't do this. And, getting it as a precondition of lowering your interest rate sounds sketchy. The dealer found the loan, right?

I'd try to get a loan independently of them, since you;re trying to save money.

I'd buy an extended warranty on a car that was either known for it's high repair rates or had a lot of expensive electronics that could cost more than the insurance. But $3100 any way you slice it is a lot of cash, and for a relatively simple Hyundai a way for the dealer to cash in.

13
mzspd2009 Cobalt SS/TC / 2015 Sierra 1500•

I wouldn't bother.. that is over 20% of the value of the car... I would just focus on paying the loan off quicker to avoid the interest.

8
SDIONOP•

That was my exact reaction. Pulled out my calculator and went "22% of the value of the car as warranty extension? It's a 3 year old Hyundai what the hell is going to break and cost me that much?".

Thanks for the confirmation.

5
Albodan•

I was under the impression Hyundai had 10 year unlimited mile wwarranties?

2
super_cheap_00708 Chevy Corvette•

Only if you're the first owner. Otherwise it's a 5 year 60k mileage. (Might be a 6 year, can't remember)

2
jldude842015 F-150 XLT V8, 2012 Kia Soul !, 2013 Kawasaki 650 ABS•

Lol I was too, but ya apparently that's only for the first owner. Ya got us with the fine print Hyundai. Plus that's only a powertrain warranty I believe. Pretty sure the bumper to bumper is still 5/60,000, which WOULD carry over to however many owners so long as it was within that period.

2
gsasquatch•

A warranty is them betting you it won't break, and you betting them it will break. Trouble is they have more data and more lawyers. They know that more than half the time the repairs that they cover on that car will be less than what they are charging you, so more than likely you are going to lose money on this deal. They are getting rich off people's fears of future car repairs, and by tricky language in the warranty that lets them back out often enough.

Think about how many people are working for the warranty company, what the salesman's cut of it is, how much profit the owners are making, and where that money is coming from.

A bunch of people will reply "the warranty saved my ass" because for a few people it did, and it was dramatic enough for them to reply, and they look like winners. People don't reply "I bought the warranty for $2100 and the repairs covered by the warranty were only $700" because the poster would have to admit his own foolishness for buying the warranty.

There are however plenty of posts "repair isn't covered by warranty, what to do"

Your best bet is to put that $2100 aside for repairs, and hope you only have to use a few hundred of it. There's an off chance you might come out ahead, but more likely you're going to lose a few hundred on this bet.

6
Hifi_Hokie2012 Jeep Wrangler Unlimited Rubicon•

And the only reason health insurance is different is because a losing bet there is $100,000 out of your pocket.

5
SDIONOP•

I'm in Canada, I don't bet anything on healthcare.

Ha!

1
SDIONOP•

Went without the warranty because of that exactly.

I figure statistically they win, which means statistically I lose. Worked in a casino when I was younger and they said "if the house is offering it, it's not in your favour". Was talking about blackjack insurance bets but probably applies to warranties as well.

Thanks!

2
jldude842015 F-150 XLT V8, 2012 Kia Soul !, 2013 Kawasaki 650 ABS•

Never thought about it like that. My luck has been such that most every car I had a warranty on never broke down, and most every car I didn't had all kinds of shit break. Welcome to my life.

1
Nyexx2010 Mazda 3 GT 6MT•

I would leave if a dealer tried to play those games with me. Your interest rate should be the same whether you take the warranty or not.

3100 for a 36 month warranty? NO.

5
SDIONOP•

Uh, I'm not a fan either but it seems pretty common to have "deals" where extended warranties allow for lower financing rates.

I'm fact this isn't even a dealer program, it's offered by Hyundai.

1
Astrobody1994 BMW 530i, 2013 Focus SE•

Does Hyundai Canada not offer a 100k mile/10 year warranty on all of their cars? The Hyundai you're looking at should still be well within the manufacturer warranty.

1
warbeastqt•

100k 10 year warranty only applies to original Hyundai owners. Does not transfer

1
Astrobody1994 BMW 530i, 2013 Focus SE•

Huh, I thought it did, that's why the battery warranty specifies lifetime to the original owner. The more you know.

1
jldude842015 F-150 XLT V8, 2012 Kia Soul !, 2013 Kawasaki 650 ABS•

Lol ya. Either the dealer knows you could get the lower rate no matter what, and is just trying to fluff up the warranty option by making it sound like it's saving you more money, and they can still fall back on a higher, artificial rate if you decline it.

1
EntroperZero2016 and 2002 Mazda MX-5 Miata•

The price of an extended warranty is negotiable, and that doesn't sound like a good price. I think we paid around $2000, maybe slightly less, when we got a 7 year, 100k mile extended on a BRZ.

3
Llamathrust13 C63 AMG•

I paid I think $2100 for a 5yr/100k warranty on a C63 AMG. That price sounds awful.

2
[deleted]•

[deleted]

1
SDIONOP•

Surely this would have been covered by the basic warranty no? Given that it was a new car.

As far as oil changes go, they aren't covered. Nothing maintenance-related is (ie; pads, spark plug, tires, etc.) but the rest is fairly comprehensive.

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[deleted]•

[deleted]

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SDIONOP•

You're saying that your 1 year old car didn't have a manufacturer warranty? Doesn't Toyota offer at least 3 years/60k or 5 years/100k standard? What the hell.

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[deleted]•

[deleted]

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BrandonNeider2016 300S | 2015 Hellcat | 2013 Charger SRT•

I just bought mopar protection for my 2013 charger SRT I just got, 60k miles till 2021 (It currently has 15k miles). It's an exclusionary bumper to bumper. Only excludes exterior body panels and wear and tear. Paying 2100

1
lvl145jety•

I wouldn't get a dealership warranty. If you want one, tell the dealer you don't want it, and go shop around. I would guess you could get a 5 year warranty for around $1-2k

1
itsamamaluigi•

My last car I financed through my credit union, NOT through the dealership's finance department. My CU also offered a warranty and it was significantly less expensive than what the dealership offered.

I didn't end up buying it but if you really want a warranty, consider going through a third party. FYI the CU offer was about $2100 for 4 years/48k miles (about 77k km), on a $12k car with 103k miles on it already (165k km). So it's significantly cheaper than your offer for a longer warranty on an older (and thus more failure-prone) car.

1
Newbieloser•

Only extended warranty worth shit is one sold by the OEM, none of this 3rd party shit.

If it is 3rd party, tell em to fuck off.

If it is OEM, then ... maybe. I personally like them. The stability is worth it, being able to wash your hands of a dead transmission or engine is great. No one wants to be super upside down on a car due to bad luck.

3100 does sound a bit high though, honestly.

1
mortalomena97 Mercedes C280•

No way. Just pocket the 3000$ and use it for repairs. You using the dealer financing? You could probably get better interest loans elsewhere.

1
BuckTheFuckNaked2016 Acura TLX V6 SH-AWD Elite•

I thought most Hyundais of that era and later came with a 10 year powertrain warranty?

1
Bassdistortion2006 Impala LT 3.9•

Nice car! But to the point it usually isn't transferrable after the first owner from what I know.

1
jldude842015 F-150 XLT V8, 2012 Kia Soul !, 2013 Kawasaki 650 ABS•

As you said, if it was a VW, I'd have got a warranty quote before I even went to see the car. But Kia/Hyundais of late are apparently really good cars. I love my '12 Kia, it's awesome and it hasn't given me any major trouble whatsoever(aside from a little stint where the rearview camera wouldn't work in the summer humidity).

Assuming the car was clean, drove well, and wasn't "riced"(given it's popularity with younger, less responsible buyers), I honestly would skip a $2,000+ warranty unless there were obvious signs of neglect or poor maintenance. Have an independent Hyundai mechanic check it out, and try to get all it's records and vehicle history before deciding.

1
larrymoencurly•

Unless the warranty is actually backed by Hyundai, avoid because those warranty companies have high rates of bankruptcy, they deny claims for damage caused by components conveniently not covered, they require prior approval for repairs and often even require major replacement parts come from their substandard suppliers.

1
BlackDS•

I wouldn't buy an extended warranty unless I'm going Doug Demuro and buying intentionally unreliable cars. Companies know the odds of a car needing repairs and I'd say that most times you spend more on the warranty than you would on out of pocket repairs. A 2013 Genesis should hold up fine. If the title was clean and the car flawless I'd comfortably buy it.

1