Car Payment for Warranty Worth It?

[Fuamami]

Is it worth it to have a car payment and thus get a warranty? We haven't had a car payment in years, but this year we have spent about $4500 in car repairs so far, and need to spend another $500-1000. We were always of the mindset of buying a $2000ish car and then fixing it until we couldn't anymore, but we also live about 1/2 hour from town, and my dd is in public school now and I'm sooooo sick of breaking down.

My dh's income is unpredictable and a little bit hard to show, as he got laid off last fall and has been working as an independent ever since, so I don't know if it would work, but if we could buy a $10,000ish car with an extended warranty, does anyone think it would be worth the reliability?

[Rani]

Just my two cents, but the rule of thumb I use is its time to get a new car (or new for you) once you are spending more on upkeep than the value of the car. If that makes sense.

But, if you are buying a used car, have a care to make sure what is included is worth it.

Example: We had to replace our engine to the tune of 3500 this year. Our car is about 5 years old but only has about 50k on it. We replaced rather than get a new one because the engine we got only had 9k on it thus increasing the life of the car by a lot. So you have to really look at is does the repairs you are making extend the life or only fix the current fire - like tires or brakes or stuff like that. If its just nickle and diming you to death, its probably worth it to get another.

Don't know if that helps any...

rani

[AndrewsMother]

I would purchase an extended warranty and I always have. Cars are prone to failure and I could not afford to repair a transmission or an engine if it were to fail.


If this car is your sole means of transportation and impacts the financial stability of your household, I would purchase the warranty.

Some don't agree, but IMO it is worth it to pay monthly on an extended warranty for a car that is past 100,000 miles.

Last year the transmission in DH's car, our only car, failed. We drive a lot so a 2003 that we purchased in 2005 had over 140K miles on it. (we drive about 30-50K a year) We could not afford the $5,000 to repair the transmission, but we could have easily paid the $60 a month for two years for an aftermarket extended warranty that would have lasted us 2 years. In retrospect we wish that we had looked into aftermarket warranties after our dealer extended warranty expired since we still owed the bank.

[Fuamami]

Originally Posted by AndrewsMother

I would purchase an extended warranty and I always have. Cars are prone to failure and I could not afford to repair a transmission or an engine if it were to fail.


If this car is your sole means of transportation and impacts the financial stability of your household, I would purchase the warranty.

Some don't agree, but IMO it is worth it to pay monthly on an extended warranty for a car that is past 100,000 miles.

Last year the transmission in DH's car, our only car, failed. We drive a lot so a 2003 that we purchased in 2005 had over 140K miles on it. (we drive about 30-50K a year) We could not afford the $5,000 to repair the transmission, but we could have easily paid the $60 a month for two years for an aftermarket extended warranty that would have lasted us 2 years. In retrospect we wish that we had looked into aftermarket warranties after our dealer extended warranty expired since we still owed the bank.

Wow, I didn't even know you could do this! Our minivan has almost 190K miles and bluebooks at around $600, so I don't know if it would be worth it, or if they would cover it.

Rani, you're right. We are getting nickeled and dimed, and we're ending up stranded more than I am comfortable with. It's a little bit challenging having only 1 vehicle that our whole family can ride in and living out of town anyway, and then when it breaks down, it's such a pain!

[AndrewsMother]

Originally Posted by Fuamami

Wow, I didn't even know you could do this! Our minivan has almost 190K miles and bluebooks at around $600, so I don't know if it would be worth it, or if they would cover it.

Rani, you're right. We are getting nickeled and dimed, and we're ending up stranded more than I am comfortable with. It's a little bit challenging having only 1 vehicle that our whole family can ride in and living out of town anyway, and then when it breaks down, it's such a pain!

I think that the coverage must be purchased before the vehicle reaches
100K, but I am not sure. Google extended warranties and make a few calls to find out.

[Fuamami]

Originally Posted by AndrewsMother

I think that the coverage must be purchased before the vehicle reaches
100K, but I am not sure. Google extended warranties and make a few calls to find out.

Yeah, apparently you have to be under 150K. Thanks for the tip, though! It's good to know for future reference!

[quest4quiet]

Have you looked into the http://www.cars.gov/ program? They give you up to $4500 for going to a more fuel efficient vehicle. If your current vehicle is only worth $600, that may give you a leg up on the cost. It has to be a new vehicle, though, and your old vehicle has to fall into the under 18mpg when new category.

I know you can get some Hyundai's new for around $10k, if you don't need the size of a minivan.

We just replaced our dying van last weekend. I hate having a car payment now, but it's cheaper than fixing it all the time, for us. And I like not worrying about whether or not I'm going to make it to point B.

[SquishyKitty]

I think the extended warranties are a great investment.

I have saved thousands of dollars in repairs on my old SUV because the warranty covered the parts and the work.

[jeminijad]

The payment is worth it to me. I am a fan of warranties & of roadside assistance.

I grew up in a family that always had crap cars that were always breaking down, costing $$, and that was with a father who could fix anything that didn't require the equipment of a professional shop. I remember some breakdowns where we actually hitched a ride! DH & I can't fix anything worse than a flat or a headlight so the peace of mind is well worth the money, even when things are tight, even if I could "save" in the long run by not having a payment.

$4500 is easily a year, maybe more, of payments on a safe, new, warrantied vehicle.

Just my 2 cents.

[Norasmomma]

I'm in the minority, we had an extended warranty on our piece of junk Subaru(the biggest lemon ever) and it didn't do a darn thing we still had to pay labor, that car was the worst car mistake in my life. We just got a "new" to us car and the options for an extended warranty were pretty lame IMO. 3yrs or 30,000 miles. Knowing this particular car and it's being a Consumer Reports pick we opted out for a couple reasons, A. it was a lot of money for not much coverage B. most of the things that would go wrong are after the 30,000 miles or the 3 years(the car will barely have 70,000 miles). We did get gap insurance though, so if it gets wrecked we aren't out a bunch of money. Maybe this wasn't smart, but at the time and still it seemed like the best idea.

I would be researching through Consumer Reports, and finding a car that will fit your family and be a good value. We got a 2007 Ford Taurus and they are a CR best pick. All of the items they rate are super high.