Drive train failures, tire failures. Warranty vs None

[klutchdust]

Often the question is asked IF I should purchase a warranty. The usual responses appear, many just based on personal preference "piece of mind"
both for and against.
What tells the story is real life experiences. Sure, a warranty will replace an engine or transmission (they claim, sort of) but how often does that occur.
Tire warranties.Have you stopped to figure out your out of pocket vs a tire being replaced by warranty?
I purchased 30 tires over the past few years and declined hazard insurance each time.(yes 2 cars , 2 trucks a Jeep and the RV) Road hazard cost varies but I averaged it out to be around 20 a tire, some more some less.
In that time (so far) I have had 2 tire failures. One was worn pretty low so that would not qualify the other one a blowout that would have. So with no warranty I declined 600 in fees. The blowout tire cost 215 to replace, the jeep 40 dollars as it was a take off and my jeep was for sale. I spent 255 dollars ,I am 345 ahead.

Warranties and drive trains. what are some of the repairs done on these Ford engines and Gm engines. Friends of mine who have 300K and 450K reported water pumps and engine coils. Have you experienced an issue that a warranty would have paid for the repair. A poster reported out of pocket 700 dollars for a fuel pump replacement and a warranty was involved. Having wrenched on anything with a steering wheel as a career i question that cost.
What have been your engine and drivetrain repairs.

[Grit_dog]

My sample size is small, having only owned 2 out of dozens of vehicles with any factory or extended warranty in 30+ years and my experience this far is the warranties were largely not needed.

01 Ram purchased new, lost 2 rear differentials in the first 2500 miles. Warranty covered and I would have been out of pocket, however it was a rare and such a gross defect that it basically was bad before it pulled off the dealer lot 2x in a row. Freak deal mostly. But it was egregious enough that a dealer in the middle of bfe where the second failure occurred gave me a free max care max mileage warranty for my troubles (there are a few good dealers. Billion Chrysler in SD was one.) and 125k miles later, I used the ext warranty once for a minor trans repair. Stuck solenoid or something I recall I diagnosed and could have fixed for $100 and a pan drop. And it didn't render the vehicle out of service or even reduced ability.
New 2016 car had a leaky radiator right out the gate, early in factory warranty and likely to have been handled by the time it was purchased used, down the road. Or cheap repair at a radiator shop or worst case $400 and a few hours to RnR with a new radiator.

Have had about 20 new company trucks in the past 25 years though, and warranty work visits I could count on 1 hand almost (if it weren't for 1 lemon). Of that warranty work, the lemon was major items. Plugged cat burned up part of the engine bay and trans scattered on the highway, literally. Plus a few other issues. 1 Chevy with a new trans at 60k and the other few items between all the trucks were relatively minor in nature. Couple bad injectors, a coil pack, etc.
And this was on vehicles that get driven like a rental and used beyond their ratings.

Tire failures shouldn't even be part of the discussion. They're tires and literally subject to every hazard on the road. Treadwear warranties are an advertising bit and road hazard is a money maker for tire shops just like extended service contracts.

[Grit_dog]

^True story.
And a big consideration is a factory backed warranty vs an aftermarket "insurance policy."
Newer vehicle, optional Factory extended warranty, yes it costs some $ but you know what your getting and regardless of your experience with dealer service departments, it's an extension of some or all of the original warranty.
Aftermarket policies, often targeted towards vehicles that are past the limits of any factory warranty or extended warranty should give a person a cause for pause to think about what they are really getting. I.E. Do you think a vehicle that has no business being warrantied anymore will benefit your pocketbook by having someone cover the risk of mechanical failure? The answer is you're playing a game with much higher odds that you lose. Because no one is "giving" you anything.
If you amortize the financial risk vs reward of owning an older vehicle and the cost of repairs, it's likely over time, with a few prudent decisions along the way that you'll come out ahead paying out of pocket.
It's hard to apply this to a one time purchase as you're not spreading the odds, and many people look at it with nearsighted glasses and that's why these companies exist and make money.
Of course if you do t have the "time" to amortize out the costs and savings, the decision gets more difficult.
I've been "playing the odds" with warranties and insurance on items not required to be covered by insurance since I was 16, and 32 years later, I'm certain I'm well ahead of the game overall by buying used with no warranty and not carrying insurance on "toys" like trailers, sleds, dirtbikes etc.
Difference is I perform the vast majority of my own repairs on anything, anytime. But even if I didn't, I beleive I still would be ahead just with judicious selection of what I purchase.

[bobndot]

Harvey51, its a good thing you were a good teacher :), and how many of those companies fold and go out of business, leaving the buyer high and dry ?

[Harvey51]

When we bought our 2004 class C, a former rental, in 2008 at a reputable dealer near our home town in northern Alberta the salesman was very nice and helpful. No warranty was mentioned until we met the accountant to do the paperwork. She offered a warranty at “half price”. Luckily I hung around to watch the guys checking the vehicle. One of them was a former student of mine. I asked him about the warranty. He said, “better read the fine print” - that warranty is void if you ever drive on a gravel road. We had arranged to pay and take it home the next day. The accountant halved the price of the warranty again but we didn’t take it. The MH has just had its second visit to a mechanic for routine maintenance like spark plugs, coolant change,I transmission fluid change, rear end and shock absorbers.

[Grit_dog]

So basically, do what klutchdust does if you know what you're doing with vehicles and do what bobndot do if you don't and still want some coverage.

Fwiw, I do both. New is new and if it's the right price or reason, I'll buy new. Not for the service after the sale but because it's the right deal.
But 90% of vehicles, implements and toys get purchased used. Of varying age, price and condition depending on the budget and or purpose it will be used for.
But the one consistent thing is I only buy from private parties, so I can judge how the item was cared for by judging not only its condition but the owner who's selling it.

However if I wasn't proficient in vehicle repair and very capable of accurately analyzing a vehicles condition, I would absolutely buy new, provided I had the means.

[bobndot]

All my problems were with used units. I never had any drivetrain problems with any new unit, car or rv. I put 200,000 miles on a few of those new vehicles.
As for rvs, talking to various mechanics, ext warranty companies have covered repairs but in some cases things got iffy on the 2nd repair of the same item. Some dealers have actually gone into their own pocket to make those repairs for good customers. When you buy from the dealer and he is allowed to make a profit, you offer him some wiggle room to help you.

[klutchdust]

A1ARealtorRick wrote:
Speaking of warranties, my wife and I are in the market for a used Class A. We're not in a huge hurry to purchase, but was wondering if anyone could give us some insight on how dealer's warranties work.

Several months ago we purchased a 3-year old Volvo from a Volvo dealer. It was a CPO (Certified Pre-Owned) car, and came with a 4-year, unlimited mileage, bumper-to-bumper warranty. Naturally, a BTB warranty excludes wear items, such as brake pads, wiper blades, and so forth, which is fine. It has no deductible. I know we paid a little more for the car buying from a Volvo dealer, but the peace of mind is definitely worth it to us.

Are there any RV dealers that offer such a warranty on what might be a 2, 3, or 4-year old unit? I know I can always 'buy' an aftermarket warranty (technically a service contract, and not a warranty). Just curious what I should expect if I buy from a big dealer?

I haven't purchased from a dealer on my used vehicles and here is why.
Dealers get their stock from auctions, trade-ins or repossessions. In my opinion if a vehicle is repossessed or maybe an accident rebuild etc, where are the service records. If an owner was going to give up their rig do you think they are giving it or have given it any love. When was the last service done? Sure, the dealer can say we changed the oil, serviced the transmission but what happened before that? Adding new oil to an abused component is like painting a turd.
I buy used vehicles from original owners only.period.
I buy vehicles with service records like i do service records.
I live in California, I purchased my 09 Cambria in Minnesota from the original owner .it had 19K miles, the owner had access to the factory and did some major upgrades, stored it inside during the winter. I flew there after viewing documents and photos/videos for about a month with a big check in my hand. I have never regretted that decision.
Could I have purchased locally? well, none that met My criteria were local.
My advice, not to you just general advice I give to family. Find what you like, pay a mechanic or RV mechanic to inspect the unit and decide from there. IF they say walk away, then walk away. There are many out there.The money you spend for an inspection can save you a bundle in the long run especially dealing with class c with the overhead bunk which tend to leak. My Cambria does not have a front bunk but a streamline nose that houses the entertainment center. Perfect. Roof leaks can be heartbreaking.
Take your time, ask for advise and inspect,inspect inspect especially roof areas.

[RetiredRealtorR]

Speaking of warranties, my wife and I are in the market for a used Class A. We're not in a huge hurry to purchase, but was wondering if anyone could give us some insight on how dealer's warranties work.

Several months ago we purchased a 3-year old Volvo from a Volvo dealer. It was a CPO (Certified Pre-Owned) car, and came with a 4-year, unlimited mileage, bumper-to-bumper warranty. Naturally, a BTB warranty excludes wear items, such as brake pads, wiper blades, and so forth, which is fine. It has no deductible. I know we paid a little more for the car buying from a Volvo dealer, but the peace of mind is definitely worth it to us.

Are there any RV dealers that offer such a warranty on what might be a 2, 3, or 4-year old unit? I know I can always 'buy' an aftermarket warranty (technically a service contract, and not a warranty). Just curious what I should expect if I buy from a big dealer?

[hotjag1]

When we bought the Allegro Bus I purchased an extended warranty. Mainly because I don't know that much about diesels and there were limited service records available. I'm glad that I did because in the first 6 months both fuel pumps started leaking and were replaced under warranty. The bill was over $3000 and they paid all except my $500 deductible.

Two years later the side by side fridge quit working. The warranty paid for a new cooling unit which was around $1800.00 installed. Again, I only paid the $500 deductible. Both times the warranty company didn't try to deny any part of the repairs or installation.

With that said, the warranty cost me $5000 up front and the covered repairs were about $5000, so I broke even. Now that I know more about diesels and servicing maintaining them properly, I wouldn't purchase the extended warranty. I have a separate account for repairs which so far, I haven't needed to use.

[carringb]

I bought my van from Enterprise with 105,000 miles. Because of the high miles on some of their vans, they used to (maybe still do) included a powertrain warranty up to 150,000 miles. Never needed it.

I finally ended up replacing my motor at 458,000 miles, because a valve seat burned up (which was my fault to start with). It came with a 3-year unlimited mile warranty from Ford. It's been 1.5 years, and haven't needed it.

My transmission is original still, at almost 480,000 miles.

My trailer OTOH... Went back to factory twice for Schwintek rebuilds under warranty. Now at a private shop to do it all over again. I probably would have come out ahead if I the Good Sam extended warranty on the trailer.

It's unlikely I'll ever buy another mass-produced RV. They're all garbage, frankly, besides Class B camper vans since they still have OEM bodies. If you want something that will hold up, converting a box truck, bus, or cargo trailer is probably the way to go.

[jdc1]

I had a lift pump replaced on my '01 CTD at 70K, which Dodge knew was an ongoing
problem for thousands of CTD for years. They eventually relocated the pump to the frame vs the engine block. It was covered, $750.00. But, they denied warranty coverage on my overteating problem. Said the radiator wasn't covered. I searched the forums and found that "lint" would build up on the back-lower side of the radiator and cause the overheating. So, that cost me an hour to remedy. That was the only time I ever purchased a dealer warranty, or any other kind. Their restrictions are written so badly, you never know what is covered and what isn't, unless you consult a lawyer.....who wouldn't know the difference between a solenoid and a fuse anyway.