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2009 Subaru Legacy Question: Extended warrenty

 

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Subaru novice, 2.5L 4 Cylinder, San Pablo, CA, November 28, 2010, 09:40
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It seems like the Subaru cars don't really need the big repairs until after 100K which is the maximum service contract I could get. Is it worth getting that contract? They want $1,800 for mine.

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    DaveJHM November 28, 2010, 22:41
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    This is a great question, and one that has an answer that is really is up to you.

    You can actually shop around for extended warranties. Is the one offered to you an actual Subaru backed warranty, or an aftermarket insurance company style? Always try to go for one backed up by the manufacturer. And even then - shop around other dealership for the best price. When you are buying the car, the tendancy is always to just do everything at once. Typically, though, as long as you are still under 3 years/ 36,000 miles (base warranty), you can still buy an extended policy with no inspection needed.

    As far as whether you should buy one or not...in the end, it's really what your comfort level is. Realize that any one major repair on your Subaru will cost you at least that $1,800 - or more. What an extended warranty gives you is the ability to more or less "set" your cost structure over the next period of months and miles, so that you can be assured you will not break your budget with an unexpected failure. Generally, warranties are good for peace of mind, but 75% of them (don't quote me...just a figurative and speculative number...) don't ever get used.

    Price shopping will bring the price down at least so that you can make a better decision. Good luck.

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    Subaru novice, November 28, 2010, 22:46
     Rookie

    Thanks for taking the time to reply. What makes me so angry is the finance guy told me I had to purchase the warranty at the time I bought the car and if I change my mind I have to pay $25 to get out of it. I hadn't done my research before, unfortunately I'm doing it after the fact, so I signed. He lied.

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    DaveJHM, November 28, 2010, 22:52
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    Ouch.

    Well... there are dozens of companies looking to sell you a warranty. And absolutely EVERY finance guy at EVERY dealership will sell you one tomorrow. Even non-Subaru dealerships will sell you a warranty. It's what finance guys do for a living and make their money on.

    The difference is: when selling you a car, the finance guy is paid on his "penetration" of sold products -- that is, did he sell you paint protection, fabric guard, an alarm, VIN etching, GAP insurance and an extended warranty? And then, he gets paid a percentage of the dealership profit on each.

    When you buy a warranty AFTER the car deal, the finance guy just wants to sell the contract usually and is willing to be price competitive. They know you're shopping now, and might say "NO" as an educated consumer.

    There is still time to cancel your contract, and I would fight even the $25 fee. Just shop around first to see if you can indeed get a better deal. Try another local Subaru dealership. They will love to earn your business.

    Good luck!

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    Visitor, November 29, 2010, 12:26

    He told me today that I had to purchase day of sale because rules for extended warranties are different for buying used car versus new car. I think I got screwed and have to suck it up because I'm doing my research after the fact and not before. Thanks Dave

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    Hal... (see my shops), November 29, 2010, 10:42
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    I won't take the extended on a newer Subaru. The head gasket problems were relevent 99-10 2,5s. Invest the money in something else.

    If you can't cancel the contract then at least you have additional coverage if when you need it. No use crying over spilled milk in this case. Is the contract transferrable?

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