Extended warranties - worth it?
Discussion
I have just bought a 2006 Volvo V50 diesel as a daily workhorse from a Volvo main dealer. The car comes with a 12 month Volvo warranty which appears to be pretty comprehensive. I have been offered the option to extend it for a further 12months for £349. I declined it initially and was told I could take it up at any time over the first 12months. Is it worth taking at that price? Or worth sticking it in the bank for such a rainy day? £349 doesnt really get you a great deal at main dealer prices these days so would seem like a good deal or with the age of the car are most problems likely to be contested on wear and tear grounds?
My Lexus manufacturer warranty is about to run out at the start of March, and I have to say its been excellent with NO quibbles. However, feedback on every other provider of warranties has been poor. I have asked, I have searched and I have looked elsewhere on the web and found that you typically do not get the kind of payback from the scheme that is originally advertised. As one previous comment here on PH - they are more interested in selling you a policy than from paying it out!
Oh, and one leading provider proved its worth - internet quite came in at £540 for the year. Chap phoned up and within minutes its down to £450. I umm and ahh about it for a while and its down to £340 for the year. To give you an idea the Lexus one is £900! Cheaper yes, dramatically cheaper? Nope - suspicious in my book. To be honest, put the money aside just in case.
Oh, and one leading provider proved its worth - internet quite came in at £540 for the year. Chap phoned up and within minutes its down to £450. I umm and ahh about it for a while and its down to £340 for the year. To give you an idea the Lexus one is £900! Cheaper yes, dramatically cheaper? Nope - suspicious in my book. To be honest, put the money aside just in case.
As with any insurance policy they only seem like a good idea when you need them. Make sure you see the t's and c's of the warranty before deciding as the level of cover will vary wildly between two seemingly similair policies.
It is also worth checking if the dealer offers a non franchise warranty as these can often offer very similair cover for much less cost. As a comparison we sell a 36 month warranty for cars upto 4yrs/40k from £399 if your engine size is below 2000cc. This however can only be purchased at the time of sale.
It is also worth checking if the dealer offers a non franchise warranty as these can often offer very similair cover for much less cost. As a comparison we sell a 36 month warranty for cars upto 4yrs/40k from £399 if your engine size is below 2000cc. This however can only be purchased at the time of sale.
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