# Costs involved with maintaining new vehicle warranty



## Addy (Mar 12, 2010)

We have an old (1996) chev Astro van we want to replace with a newer (1-4 yr old) vehicle.

If we buy a newer vehicle, should we be concerned with costs associated with maintaining the warranty?

I have heard of people having to take their new car in to the shop or dealer every so often and it costs them a lot. We maintain our vehicles well (it's why our 96 van is running still quite well) so we have no problem maintaining things, I just want to know the ins and outs of new(er) vehicle maintenance costs.

Any advice or suggestions where I can find this info out? I certainly do NOT trust the dealerships or shops around here to give me accurate advice.


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## canadianbanks (Jun 5, 2009)

It really depends on the car you buy. If you buy a luxury vehicle (Mercedes, Audi, Lexus, etc.) the maintenance costs will be high. I guess your best bet is North American made vehicle and specifically getting a model that has a history of low-maintenance costs and reliability.


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## hystat (Jun 18, 2010)

most new cars have less frequent maintenance intervals than a 96 Astro. 

Read the owner's manuals and research specific vehicle warranty. Generally, any shop can do warranty approved maintenance, or you can do it yourself, just save all records/receipts. 

It is usually not an issue, for example, if a wheel bearing goes, they can't blame DIY engine oil changes.


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## carverman (Nov 8, 2010)

hystat said:


> most new cars have less frequent maintenance intervals than a 96 Astro.
> 
> Read the owner's manuals and research specific vehicle warranty. Generally, any shop can do warranty approved maintenance, or you can do it yourself, just save all records/receipts.
> 
> It is usually not an issue, for example, if a wheel bearing goes, they can't blame DIY engine oil changes.


You really have to read the fine print on an extended warranty..most only
cover the power train, and e*xclude wear and tear items* such as:
1. Electrical/tuneup plugs (battery. fuel pump) and sensors)
2. Brakes (rotors warping and pads)
3. Wheel aligment/suspension such as springs/shocks... and ... bearings ( which may be covered)
4. Belts (no)
5. Cooling system or rad (no)
6. Headlights, bulbs (no)
7. filters (no)
8. Tires (no)

So, most cover only the engine and transaxle (or differential), and transmission. Transmission repairs can be very expensive though.

Most extended warranties have a deductible as well, so you have to pay the deductible on any repair done under the warranty..so just like any insurance scheme, you have to pay something out of pocket. 

It is peace of mind, I suppose, but be prepared to be shocked at the cost of the next brake job when you present your extended warranty and find out that the several hundred dollar brake job IS NOT COVERED because brakes are considered wear and tear items! ALWAYS READ THE FINE PRINT ON THE EXTENDED WARRANTY TO FIND OUT WHAT IS COVERED..... AND WHAT IS NOT COVERED..FIRST!!!!..BEFORE COMMITTING TO PURCHASE IT!

read this on extended warranties
http://www.wheels.ca/TADA/article/167044

and this..
http://www.smartmotorist.com/auto-financing-warranties-and-leasing/auto-warranties.html


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## baker3232 (Oct 7, 2011)

Second last new car was an Audi, and while I know the price was included in the price of the car, all maintenance was included, so for 4 years it cost next to nothing to run to keep the warranty covered, and if you considered the price you negociated for the car to be good, it made it worthwhile to me. Present car is an Infiniti, and while I have to pay for the maintenance, the most I have paid has been $123. in 6 months, and most were substancially less. The work is done by a local garage, not the dealer. I don't consider less than $200 a year to be much of a cost to cover all maintenance for the car to meet warranty coverage.
BTW this is my first post on the forum, very informative reading and teaches me a lot. I retired last fall at the age of 56 and now only work a part time job.


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## Addy (Mar 12, 2010)

carverman said:


> ALWAYS READ THE FINE PRINT ON THE EXTENDED WARRANTY TO FIND OUT WHAT IS COVERED..... AND WHAT IS NOT COVERED..FIRST!!!!..BEFORE COMMITTING TO PURCHASE IT!


Wow. Perhaps you can go preach physics to NASA employees in your spare time.





I appreciate most of the answers so far, like the higher end machines are more expensive to perform routine (note I'm not talking repairs here) maintenance on which makes sense. And I have heard you can perform your own, or have your mechanic (non dealer) do it, so good to get another vote for that. We keep maintenance records on our vehicle so having a newer vehicle won't mean we have to change our habits.

To get an idea of actual costs I suppose I have to discuss with my mechanic, luckily whom I have a good relationship with and consider him trustworthy. Way better than asking at the dealership imho for an honest answer.

Essentially my concern is, our old van is paid off and the maintenance costs over the 7 or so years has cost us way less than a newer vehicle would, but besides the money aspect, newer cars (especially larger vehicles with the electronic stabilization they have now) are generally safer and offer a nicer ride than an old '96 van. But of course money still is a large concern, I don't want to buy something newer and pretty only to find out it's going to cost me $500 or more a year to maintain.


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## carverman (Nov 8, 2010)

Addy said:


> Wow. Perhaps you can go preach physics to NASA employees in your spare time.


Thanks for the suggestion. I see that you still want to scold me from my condescending sounding remarks from way back..*my dear*! 






> To get an idea of actual costs I suppose I have to discuss with my mechanic, luckily whom I have a good relationship with and consider him trustworthy. Way better than asking at the *dealership imho for an honest answer*.


Ask an honest and mechanically informed question and you will get an honest answer.



> Essentially my concern is, our old van is paid off and the maintenance costs over the 7 or so years has cost us way less than a newer vehicle would, but besides the money aspect, newer cars (especially larger vehicles with the electronic stabilization they have now) are generally safer and offer a nicer ride than an old '96 van. But of course money still is a large concern, I don't want to buy* something newer and pretty only to find out it's going to cost me $500 or more a year* to maintain.


A brake job today can cost over $300. electronic controlled transmission over a $1000. So other than oil changes,
everything is going to cost more these days...there is no way to get around it. The more gadgets, the more
chances of something going wrong. 

Newer vehicles have more electronic control. AWD has more components to service and wear out..it will cost more in the long run...many HUNDREDS! 4 Wheel ABS brakes while safer on some road surfaces have a lot more complexity and
require more attention to maintenance. Electronic traction control involves a lot more sensors and computer modules to facilitate this...modern cars have modern problems..once the manufacturers warranty times out, you are going to face (possible) expensive bills to diagnose the vehicle at a dealer that can afford to invest in the diagnostic equipment to scan an
analyze what the problem may be...but you know all this of course! 

Now..back to typing up my resume to teach physics to NASA..yes I'm sure I might be able to teach them a thing or two...


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## Karen (Jul 24, 2010)

> Now..back to typing up my resume to teach physics to NASA..yes I'm sure I might be able to teach them a thing or two...


I'm sure you would, Carverman! 

I bought my 2010 Kia Forte in the summer of 2009, and I bought a prepaid maintenance contract with it. It's good for the five-year warranty period, and it's great. I just take the car in when it's due for maintenance and don't pay anything. The cost of the prepaid contract was $1000 less than the dealer's cost of all the required maintenance visits over the five years - in 2009 dollars - so I thought it was worthwhile.


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## carverman (Nov 8, 2010)

Karen said:


> I'm sure you would, Carverman!


That was supposed to be an attempt at humour Karen. Addy has it out for me...I guess..
(maybe someone should spank me for my condescending remarks towards the ladies on this forum)..but these are not intentional...it's all in the wording...either your glass is half empty..or it's half full..it all depends on how you view things. 



> I bought my 2010 Kia Forte in the summer of 2009, and I bought a prepaid maintenance contract with it. It's good for the five-year warranty period, and it's great. I just take the car in when it's due for maintenance and don't pay anything. The cost of the prepaid contract was $1000 less than the dealer's cost of all the required maintenance visits over the five years - in 2009 dollars - so I thought it was worthwhile.


It depends on the maintenance contract and how it's worded..some are better than others. Some maintenance contracts include things like oil changes..others do not and don't even include wear and tear items which can cost a LOT of money..so you really need to know what is involved, read the fine print on the back of the contract for any exclusions and whether there is some kind of additional fees charged similar to a "deductible" for each visit. It can also additional profits for
the dealers, so you really need aware of the details. 

The other issue is whether the extended maintenance company that provides the warranty is going to be around for the next 3 to 5 years. There have been cases here in Ontario (in the past few years), where people bought expensive 3rd party
warranties and found out later that the warranty was not honoured by the garage because the company was no longer in business.

Now back to my resume for NASA...how do you spel FIZICs?


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## woodsman (Jan 26, 2012)

If you get a good one, keep it (spouses too). I buy the #1 seller when buying new to: a) ensure they make a lot of them, & therefore should have the process down pat by the time they (Dodge vans in my case) get to producing mine. I only go back to the dealer for warranty items ... my mechanic advises here; & b) know there will be lots of used parts available if I decide to keep veicle for many years. So, I keep my vehicles so long as they are safe to drive (assuming I got a good one). Currently have a 97 Dodge GC & a 2006, both properly maintained by trusted mechanics since new.
That said, I do not concern myself with warranties ... they might be worth the paper they are printed on ... but will GM, Ford et al be there when you want to enforce it/them?
We almost lost GM et al a few years ago!
I probably should have asked my inlaws for a warranty on _my 1st wife _(she calls me _her last husband_) ... but they are gone now!


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## carverman (Nov 8, 2010)

woodsman said:


> If you get a good one, keep it (spouses too).
> That said, I do not concern myself with warranties ... they might be worth the paper they are printed on ... but will GM, Ford et al be there when you want to enforce it/them?
> We almost lost GM et al a few years ago!
> *I probably should have asked my inlaws for a warranty on my 1st wife *(she calls me _her last husband_) ... but they are gone now!


I share your sentiment woodsman...I'm the carverman...but I've played the 'scarecrow..and the cowardly lion too, in my previous married life.
Unfortunately, just like life, wives do not come with warranties...if you get a good one..then you are set for life..if you happen to land on a bad one..well...then it's going to cost you more than many many car warranties over
the period of time you may be married..not to mention divorce court..and the ^?&*$$$$ divorce lawyers that rob you blind at $300 a hour..and on top of that the feds make 7% off your misery..and now as of 2010...McGuinty (if you happen
to be living in Ontario) reaps a 8% profit off the divorce costs to add to your financial misery. 

I have never bought extended warranties on anything in my life..except one VCR and I never collected on that one, because the store went out of business when I need it repaired, so I just shrugged, tossed it and bought a new one.

I own a 98 Dakota..a gas guzzler to be sure, but other than some manufacturing defects and the tons of salt they dump on Ottawa streets in the winter, it's never let me down on the road, inspite of ......2 seized brake
calipers, rotors, brake shoes and pads, a rusted out transmission line, a rusted out brake line, one transmission sensor, a muffler and 2 oxygen sensors, and a 2 serpentine belts. 

The rusted parts would not be covered under extended warranties.
The brake parts, nor tires would be covered either.
and neither the belt and muffller. 

So the chance of me collecting on the $1000 extended warranty (for 3 years) that the Dodge dealer was trying to sell me at the time would have been totally wasted money, since for about 5 years I had no real problems with it (other than wear and tear items that were not covered).... and it's only in the last 10 years of ownership..and I still own it that the repair costs have gone up...but compared to what my ex-wife cost me..IT'S A BARGAIN!


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## Guigz (Oct 28, 2010)

Karen said:


> I'm sure you would, Carverman!
> 
> I bought my 2010 Kia Forte in the summer of 2009, and I bought a prepaid maintenance contract with it. It's good for the five-year warranty period, and it's great. I just take the car in when it's due for maintenance and don't pay anything. The cost of the prepaid contract was $1000 less than the dealer's cost of all the required maintenance visits over the five years - in 2009 dollars - so I thought it was worthwhile.


Although the contract saved you 1000$ off the inflated dealership maintenance price, it is probably more expensive than a good independent garage. 

Also, I suspect the scam goes like this:

1- Offer a reasonable price for a maintenance contract on a vehicle
2- "Force" customers to come to said dealership for repair and maintenance
3- Upsell non covered items and repairs
4- PROFIT!

If you were planning to always go at the dealership anyway, then it can make sense, otherwise, I would not bother.

Besides, one doesn't need a PhD in mechanic to check cooling fluid level and brake pad wear (i.e., do your own basic maintenance and outsource only complicated tasks).


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## carverman (Nov 8, 2010)

Guigz said:


> If you were planning to always go at the dealership anyway, then it can make sense, otherwise, I would not bother.
> 
> Besides, one doesn't need a PhD in mechanic to check cooling fluid level and brake pad wear (i.e., do your own basic maintenance and outsource only complicated tasks).


What you said about the extended warranty scams is basically true..most of these schemes are profit driven.

But..as far as having the mechanical and electrical knowhow in diagnosing your own vehicle..fine..I can do it..you may be able to do it..but some customers are women.... and they are not exactly "in the know" about maintenance,
preventative maitenance, and diagnostic abilities..so they get convinced by the dealers with "peace of mind warranties"...
ie: "buy the extended warranty through us..we have a terrific service dept and we will look after you".

At the time of signing..the car purchase/extended warranty..they don't go into every detail of what is covered and what is not and how much they are going to charge you everytime you show up with a problem.

Ok..now having said that... I'm going to send in my PHD (piled higher and deeper) resume to NASA..as I can suggest some maintenance procedures on the space shuttle.....what? it's not flying anymore!!...NASA is bankrupt?...NO!!!!!

I'm desparate here folks....here I thought I had a good chance...


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## Karen (Jul 24, 2010)

Guigz and Carverman,

For someone like me who knows absolutely nothing about vehicle maintenance, I think my service contract was well worth the money. I have always taken my cars back to the dealer for servicing in any case, and my maintenance contract so far has covered absolutely everything. I have taken the car in to the dealer every four months, as specified, since the summer of 2009 and have never been asked to pay a penny. Note that this is not a warranty, it's a service contract.

Re the matter of extended warranties, my last car was a 1999 Chev Malibu for which I paid $1700 for an extended warranty. I said "no" to the warranty at first, but when I learned that it was completely refundable if no claims were ever made on it, I decided to take it. I spent a total of a few hundred dollars on repairs over the years, but I paid for those myself and at the end of the warranty period, I received my $1700 back with no problem.


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## carverman (Nov 8, 2010)

Karen said:


> Guigz and Carverman,
> 
> Note that this is not a warranty, it's a *service contract.*


That is something entirely different Karen...I think we were discussing extended
warranties and the pitfalls that consumers can fall into thinking that EVERYTHING is covered.



> Re the matter of extended warranties, my last car was a 1999 Chev Malibu for which I paid $1700 for an extended warranty. I said "no" to the warranty at first, but when I learned that it was completely refundable if no claims were ever made on it, I decided to take it. I spent a total of a few hundred dollars on repairs over the years, but I paid for those myself and at the end of the warranty period, I received my $1700 back with no problem.


Well, ok..you may have come across a "sweetheart deal" in that case. Most
extended warranties do not offer a refund if there are no claims in the
warranty period..as the dealer sucks up a bit of the cost of the warranty,
some go to admin costs with the warranty company and sometimes they
are no longer in business when you go to claim your refund..but it's
the luck of the draw.


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## Karen (Jul 24, 2010)

> Quote:
> That is something entirely different Karen...I think we were discussing extended warranties and the pitfalls that consumers can fall into thinking that EVERYTHING is covered.


I realize that the main topic of this thread is extended warranties, but there has been some discussion of maintenance in general, so I felt the comment about my maintenance contract was appropriate. I'm afraid I don't agree with some people on the forum who consider going off topic under any circumstances to be a terrible sin!


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## carverman (Nov 8, 2010)

Karen said:


> I realize that the main topic of this thread is extended warranties, but there has been some discussion of maintenance in general, so I felt the comment about my maintenance contract was appropriate. I'm afraid I don't agree with some people on the forum who consider* going off topic under any circumstances to be a terrible sin!*


Father "Carverman" says: "there,there my child, you are forgiven for going off topic..
go forth and sin no more".


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## Karen (Jul 24, 2010)

And I don't even have to do penance?


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