Extended warranty

[surrey86 352]

If anyone else is looking at extending their warranty, Abbey Toyota Redhill just sold me a 2 year 30k mile warranty for £495 over the phone. 12 direct debit payments of £41.25 over the first 12 months.

Just sharing this as the Toyota website was quoting £516 and I've seen higher prices around £540 quoted by other dealers.

[Deacon 1357]

58 minutes ago, maurice said:

If anyone else is looking at extending their warranty, Abbey Toyota Redhill just sold me a 2 year 30k mile warranty for £495 over the phone. 12 direct debit payments of £41.25 over the first 12 months.

Just sharing this as the Toyota website was quoting £516 and I've seen higher prices around £540 quoted by other dealers.

Cheers for that. I'm just about to sort mine out so hopefully RRG will be able to price match it. 

[Varelco 211]

Whats the catch? "we don't cover the interior, the wheels, clutch etc"

[alucardo 55]

@maurice Your car is quite modified so what is the warranty covering exactly as its something I have considered but I saw no real point having changed bits and bobs on my car.

[spikyone 139]

I don't see much value in extended warranties.  Warranties in general are frequently misunderstood; they're basically a manufacturer saying "we believe we designed it right and built it right, but if one of those has gone wrong we'll sort it for you".  They're not saying "if anything breaks on your car, we'll sort it for you".

The nerdy bit:
It's worth reading up on reliability engineering - there is something called a bathtub curve, that plots the chance of failure against the amount of time that something is used.  Initially, you have a higher probability of failure, mostly due to manufacturing defects.  If something hasn't been built right, it will fail pretty quickly.  That's known as infant mortality, and it will fall within your warranty period (especially so with a 5yr/100k warranty) so your warranty covered infant mortality.

Then the risk of failure decreases to a low steady rate - random failures.  Those may also be covered by your warranty, but the risk is generally low enough to be negligible in that period.  Finally as something is used for a very long period, risk of failure increases again due to wear-out and component ageing.  Those are not covered by your warranty.  When you draw the graph of probability of failure vs time you get a flattened U shape that looks like the shape of a bathtub:

If you're outside of the manufacturer's warranty period, you're going to be well into that low, constant failure rate.  The chances of failure are minimal, assuming there are no design issues (and all of the big ones for our cars should have been sorted in warranty anyway).  And as I already said, warranties do not cover you against the high failure rate that occurs during wear-out.  So you're covering yourself against a low probability of failure.

Just my opinion, but £500 for a very low chance of having a failure that you could actually claim for, is not worth the money.  YMMV.

[surrey86 352]

On 3/28/2018 at 1:28 PM, alucardo said:

@maurice Your car is quite modified so what is the warranty covering exactly as its something I have considered but I saw no real point having changed bits and bobs on my car.

My car isn't that modified really. So far Abbey have warrantied every issue I've presented without quibble. It's getting over £500 of warranty work done next week (a pillar corrosion just started, and bonnet panel). They've never once even mentioned it's modified.

 

[Willtl 54]

I don't like these sort of warranties as normally they aren't clear on exactly what isn't covered. Like all insurance, they are created to favour the house, not the gambler.

[Deacon 1357]

@Riceburner posted in the RRG forum the what is and isn't covered stuff here:-