Automotive

Is Extended Factory Warranty Negotiable?

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  • Jul 29th, 2020 9:33 pm
[OP]
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Is Extended Factory Warranty Negotiable?

A family friend is finalizing a 2020 Jeep deal and has been offered extended warranty - which he is contemplating

1. Is Jeep warranty cost static anywhere you go?
2. Can the cost be negotiated? He’s being told its set by Chrysler and similar across the board
3. Can he buy the car at one dealer and go add it on somewhere else by negotiating?

Any experience or feedback would be great
23 replies
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Jul 26, 2007
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Everything is negotiable, but if he tells you, you can't and you believe him, you can't negotiate can you?

Give the sales one out the door number including everything you want and go from there.
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Jan 27, 2004
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I rejected the extended warranty
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2005 - Ipod Shuffle (TD)
Deal Expert
Jan 27, 2006
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kiasu wrote: I rejected the extended warranty
At regular price, I absolutely agree. However, considering the dealership makes at least 50% on the warranty (more if it's a 3rd party warranty which should be rejected regardless of price), if they offered one at near cost (ie 40%+ off), then I would seriously consider buying it.
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My logic about extended warranties is to avoid them. Focus on vehicles with a track record for exceptional reliability. Take the $$ that you would spend in an extended warranty and buy some bank stocks with a dividend in your TFSA account. After 3 to 4 years, your stock would grow and you can always sell it if you need the money.

Put it this way: If you need an extended warranty for peace of mind, you will have better peace from buying a reliable vehicle in the first place. Look at Consumer Reports or JD Power Long Term reliability surveys (not their initial quality).
Last edited by hightech on Aug 7th, 2020 8:46 am, edited 2 times in total.
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craftsman wrote: At regular price, I absolutely agree. However, considering the dealership makes at least 50% on the warranty (more if it's a 3rd party warranty which should be rejected regardless of price), if they offered one at near cost (ie 40%+ off), then I would seriously consider buying it.
If they knock off 40%, that is not too bad. That being said, if a stealership offered extended warranty near cost, they are going to rip you off from some other way (low trade in value, additional fees, back end dealer holdback, etc.)
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hightech wrote: If they knock off 40%, that is not too bad. That being said, if a stealership offered extended warranty near cost, they are going to rip you off from some other way (low trade in value, additional fees, back end dealer holdback, etc.)
Yep. But that's part of the game, isn't it?

Realistically, if you have the time (ie aren't in any hurry), you can wait until the dealership's motivations align with your goals - ie when the fiscal year ends for the dealership and they need a few more sales to meet their targets. I was lucky enough for that to happen when I purchased my last car and the dealership actually threw in a few extras over and above the already agreed upon deal if I came in ONE day earlier to take delivery.
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hightech wrote: My logic about extended warranties is to avoid them. Focus on vehicles with a track record for exceptional warranty. Take the $$ that you would spend in an extended warranty and buy some bank stocks with a dividend in your TFSA account. After 3 to 4 years, your stock would grow and you can always sell it if you need the money.

Put it this way: If you need an extended warranty for peace of mind, you will have better peace from buying a reliable vehicle in the first place. Look at Consumer Reports or JD Power Long Term reliability surveys (not their initial quality).
Image
hightech wrote: If they knock off 40%, that is not too bad. That being said, if a stealership offered extended warranty near cost, they are going to rip you off from some other way (low trade in value, additional fees, back end dealer holdback, etc.)
Back end dealer holdback?

You don't always have to buy the warranty from the same dealer.
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Plus one for hightech says, the math is easy. And you don't usually need much fix in year 5 to 7, finger crossed, even you get an engine replacement that's about 10k in cost.
The peace of mind can simply be bought by get another vehicle right after year five. Is that extra little depreciation hit really so much more than paying for unknown possible chance of major fixing upfront? I will say just renew the car every five year.
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napoleonbot wrote: Plus one for hightech says, the math is easy. And you don't usually need much fix in year 5 to 7, finger crossed, even you get an engine replacement that's about 10k in cost.
The peace of mind can simply be bought by get another vehicle right after year five. Is that extra little depreciation hit really so much more than paying for unknown possible chance of major fixing upfront? I will say just renew the car every five year.
The same logic can be said about driving the car into the ground before getting a new one as the money lost in swapping cars every 5 years can easily cover repairs even in years 7+.
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Oct 13, 2010
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Get a Toyota.

Extended warranties hahahahaha
Sr. Member
Dec 13, 2006
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Like everything, it is negotiable only if you are ready to say no.

Extended warranty on my infiniti car is probavly what I negotiated the most in my life... But I was ready to walk away and did not really wanted it. So i trowed a crazy : I'll take it but only for x otherwise no i dont need it.
Deal Guru
Jun 24, 2006
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wmahmud wrote: A family friend is finalizing a 2020 Jeep deal and has been offered extended warranty - which he is contemplating

1. Is Jeep warranty cost static anywhere you go?
2. Can the cost be negotiated? He’s being told its set by Chrysler and similar across the board
3. Can he buy the car at one dealer and go add it on somewhere else by negotiating?

Any experience or feedback would be great



OP, What are they offering?

We just put a Deposit down on a 2020 Limited X, and they are offering to extend to 5yr/100k for $1500. Seems reasonable to me, I think we will go for it.
Last edited by Gutty96 on Jul 23rd, 2020 3:22 pm, edited 1 time in total.
[OP]
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I think they were offering him 7 year (not sure mileage) for $3900

He got some dealer in Edmonton to do the same for $3000
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hightech wrote: @BeaverLiquor What makes my post boring that you need to post that image?
Because not everyone wants to drive an appliance.

I would never trade my Focus for any Corolla sold here in the last 20 years.
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BeaverLiquor wrote: Because not everyone wants to drive an appliance.

I would never trade my Focus for any Corolla sold here in the last 20 years.
I have driven the Focus and didn't find it that great of a vehicle. That being said, there are lots of cars out there that are reliable, fun to drive and don't need to buy extended warranties. It all comes down to what you are looking for and the class of vehicle. I don't drive small cars as I just don't find them comfortable. How old are you BTW?
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BeaverLiquor wrote: Because not everyone wants to drive an appliance.

I would never trade my Focus for any Corolla sold here in the last 20 years.
Pot meet kettle.
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Was able to get 30% off the extended warranty for Honda Care without much negotiation today. I’m sure if folks negotiate hard they could get more.
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dolfan1980 wrote: Was able to get 30% off the extended warranty for Honda Care without much negotiation today. I’m sure if folks negotiate hard they could get more.
30% is pretty good considering most people who buy extended warranties probably paid full price.

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