Are Automobile Warranties a Scam?

Bar Sinister

Executive Branch Member
Jan 17, 2010
8,252
19
38
Edmonton
I've been wondering about this for a few years. Every new car comes with a warranty protecting the buyer against serious and expensive defects. However, how much is this warranty needed? In order to maintain the warranty the car must be taken in to the dealership every 5000 km. I worked out the service costs for a Kia (I used a Kia because that company actually has an online maintenance schedule with cost of service) up to 100,000 km and it works out to $3500 without including the costs of parts or various lubricants. Adding those could easily double the cost.


I've been buying cars since 1969 and the service period hasn't changed. It is the same old 5000 or 6000 km it has always been. This is despite the fact that the quality of modern vehicles is much higher than it was 50 years ago. It seems to me that this is little more than a money making gimmick for the dealership and a new car buyer might be better off ignoring the warranty schedule and just attending to basic maintenance like oil changes etc.



Any thoughts?
 

Twin_Moose

Hall of Fame Member
Apr 17, 2017
22,013
6,136
113
Twin Moose Creek
Dodge warranty can extend up to 150,000 km 5-6 years which ever comes first, and you can do your own servicing, keep your receipts and submit oil samples when needed.
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
21,155
149
63
They have mathematicians. Unless you are hit with extreme bad luck it will be cheaper to pay for repairs than benefit from an extended warranty.
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
21,155
149
63
Most will cover your base warranty issues without having to be in there according to schedule. Unless you've been negligent with maintainance.
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
21,155
149
63
For the record, I have a 2015 Honda and I've not been close to any schedule. I've even gone to schedule oil changes and they've told me to hold off until my oil life is less than 15%. Plus they've honored a couple of warranty issues along the way.
 

Hoid

Hall of Fame Member
Oct 15, 2017
20,408
3
36
Its a good question. My feeling is that they are not worth it in most cases, but in some cases they are really worth it. A friend of mine just has an entire engine replaced on warranty on his Santa Fe. It would have been thousands to do himself.
 

Bone357

Electoral Member
Nov 17, 2018
143
0
16
Zweden
I've been wondering about this for a few years. Every new car comes with a warranty protecting the buyer against serious and expensive defects. However, how much is this warranty needed? In order to maintain the warranty the car must be taken in to the dealership every 5000 km. I worked out the service costs for a Kia (I used a Kia because that company actually has an online maintenance schedule with cost of service) up to 100,000 km and it works out to $3500 without including the costs of parts or various lubricants. Adding those could easily double the cost.
I've been buying cars since 1969 and the service period hasn't changed. It is the same old 5000 or 6000 km it has always been. This is despite the fact that the quality of modern vehicles is much higher than it was 50 years ago. It seems to me that this is little more than a money making gimmick for the dealership and a new car buyer might be better off ignoring the warranty schedule and just attending to basic maintenance like oil changes etc.
Any thoughts?

Very complete with detailed information. :eek:ccasion7: