My Mitsubishi Galant 2.0 Classic will be 3 years old in two weeks time. I rang my Mitsubishi dealer today and they quoted me £636 to extend the manufacturers warranty for 12 months (this includes breakdown cover).
Do you think this is worth it?
I am thinking of selling the car within the next 9 months or so - would having a manufaturers warranty make a big difference to the money I might get for it (I estimate it is worth around £5500)?
Thanks
Jason
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My Mitsubishi Galant 2.0 Classic will be 3 years old in two weeks time. I rang my Mitsubishi dealer today and they quoted me £636 to extend the manufacturers warranty for 12 months (this includes breakdown cover). Do you think this is worth it?
What is the biggest likely bill that will hit you during the extended warranty? Could you fund that if it came? If not, it is probably worth it. If you could fund it, then tell yourself that you're self-insuring it, and in the long term you'll make the profit that the warranty company would have made.
I am thinking of selling the car within the next 9 months or so - would having a manufaturers warranty make a big difference to the money I might get for it (I estimate it is worth around £5500)?
No.
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That's the big question isn't it? How big (the bill) and how likely is it to happen?
Would you pay £636 for it?
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Extended warranties - for whatever type of product - are normally a waste of money, even more so from new when at least the first 12 months is covered by the manufacturer.
It's worth remembering, for instance, that the Dixons store group was estimated to be making 20 per cent of its profits from selling extended warranties, some of which individually cost more than the actual products acquired by customers.
If you are able to afford to pay out £600 plus on a warranty, put it in a building society account instead, from which it can be withdrawn if required but will make useful interest.
At the end of 12 months it's virtually certain that you will be thinking what you can spend nearly £700 on.
Breakdown cover can be bought from around £29 upwards either direct, through your insurance company or a range of sources.
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What\'s for you won\'t pass you by
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"At the end of 12 months it's virtually certain that you will be thinking what you can spend nearly £700 on."
Stuart, let me know where you can get 15% interest.
Agree its better in the building society than in the dealers bank account
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>>Stuart, let me know where you can get 15% interest.>>
That's something you've dreamed up..:-)
A figure of £636 for warranty cover has been mentioned for a year and I've suggested it will be worth nearly £700 at the end of that period if invested.
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What\'s for you won\'t pass you by
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IMO this seems rather a lot for one year,But with costs of repairs now to certain parts that may possibly fail.it may not be a lot,I would not like to sway you one way or the other.If you find it reliable with minimal risk,then its possible you may be wasting money..but then who knows,I doubt anyone can predict whats going to happen/isnt that why insurance is offered
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Steve
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For comparison - when I imported my car from Europe in 2001, I took out a two-year warranty which is only now about to expire (after the two years I got as standard). It cost me something around £300 with Warranty Direct, when the car was brand new. That's around £300 for two years, not over £600 for one year.
I felt it was worth it at the time as I originally thought I might sell the car for what around what I paid for it after a year, but that it would need at least the same warranty cover for peace of mind for the buyer. However, when I decided to keep the car (I liked it too much) I was glad of the peace of mind. Wouldn't have paid £1200 for the same peace of mind (over two years) though.
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andymc
Vroom, vroom - mmm, doughnuts ...
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I rang my Mitsubishi dealer today and they quoted me £636 to extend the manufacturers warranty for 12 months
Warranty Direct (link to the left) will give you 2 yrs cover for that sort of money.
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To be honest I'd be very surprised if a Mitsubishi Galant began to have serious problems at only three years of age.
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What\'s for you won\'t pass you by
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Thanks for all your replies.
Spoke to Warranty direct today - they can do a Gold Cover warranty for £288!!!
Has anybody had any experience of Warranty Direct?
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I have purchased a warranty once. Once the documentation arrived I realised how little it actually covered. Never since. Prefer to take the 'self insrance' route as mentioned earlier.
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The problem with a lot of these warranties is that theyhave lots of clausesand stipulations so it makes it very easy for them not to pay out. If they do pay out a large number of them will pay for the actual item that failed but not for any subsequent damage.
That means if the cambelt snaps and as a result the head and valves get damaged they will pay a small amount for the cambelt but you will have to pay for the rest of the damages yourself.
Before signing up for a warranty i would have a very thorough read of the T&C's and then decide it's not worth it.
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Like all insurance, it may very well be the more expensive policy is significantly more generous in terms of coverage and payout. Don't just compare the base price, in the same way as you cannot compare fully comp with third party only.
My marque has a similar manufacturer's branded warranty I can buy. It's the same sort of money as you are being quoted but covers just about everything you can possibly imagine.
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Not quite the same thing, but the latest Private Eye talks about a certain bank who offers personal payment protection insurance: in 2003 premiums of £498m against payouts of £64m, in 2004 £423m v £65m. Nice business if you can get it!
btw the way I laughed at their latest cover...tinyurl.com/a2dne
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Simple answer is that the stats say this is never worth £636... or £300 from elsewhere frankly.
I look after a large amount of 2-10 year old cars and they need servicing, brake fluid/coolant changes, tyres, exhausts, brake pads etc... they might also get the odd niggle (that would never be covered by a warranty anyway)...but one thing they don't do is break down if maintained!
What really gets me is folks who will buy a car with no idea of its service history and then spend three times as much on a warranty as a decent service... and that bit of warranty paper doesn't help the actual mechanical condition one bit does it??
Save the cash of spend it on something else.
M.M
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M.M
Hello stranger. Long time no hear.
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Just checked my paperwork, my warranty cost me £232 for two years.
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andymc
Vroom, vroom - mmm, doughnuts ...
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Thanks for saying hello DD... life follows a very different pattern these days and rarely get the luxury of any forum participation time apart from a couple of make specific ones.
Just had time for a cruise round the other day and couldn't resist this thread.
You see what gets me is when I look over a newly purchased used car (at say £6000 or so) covered by a purchased warranty. Often they will just have had a "sales service" which means if it starts it's done.... and yet be overdue timing belt, coolant and brake fluid changes... often with old/dirty filters.
On many occasions the warranty cost would have covered all this work which is valid preventative maintenance.. the warranty booklet in the glovebox doesn't help prevent a disaster one jot.
And the thing is that the dealers and the warranty companies will usually accept the premium while ignoring the fact the the condition it is handed over in actually breaks the terms of the warranty from day one so even before you start any claim is on rocky ground.
M.M (standing on medium size soapbox)
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