Extended warranty on a new tow vehicle

[Draggo]

Good Morning. First, let me say that I'm not basing whether I do it or not strictly off of what someone says on the internet . What I'm really looking for is the different points of view to see if there is something that I'm missing or not considering.

I am picking up my new 2021 GMC Sierra 2500HD SLE later today. Of course when I was completing the deal they offered a factory extended warranty through Ally. The offer is for $2,200 for 7 years or 70K miles B2B and supposedly covers everything other than wearable items like brakes and oil changes. I've never bothered with extended warranties on a vehicle before but I'm trying to determine if it may be worth it due to all the electronics found on the new vehicles not to mention that everything is more heavy duty on this truck than on my past 1500s so I'm assuming replacement parts will be more expensive in general yet alone in our current environment.

The way I figure it is that the extended warranty is giving me an extra 4 years and 34K miles for the B2B portion and 2 years and 10K miles on just the powertrain over what the original warranty gives me. I'm just not sure if it's worth it for what it buys me. Of course the risk is that at 3 1/2 years the stereo system goes out and I'm stuck paying full cost to replace it.

What have you done and why?

Thanks,
Mike

PS - I can't wait until the summer to see how this thing will tow my trailer!

[jeff64]

Originally Posted by Draggo

Good Morning. First, let me say that I'm not basing whether I do it or not strictly off of what someone says on the internet . What I'm really looking for is the different points of view to see if there is something that I'm missing or not considering.

I am picking up my new 2021 GMC Sierra 2500HD SLE later today. Of course when I was completing the deal they offered a factory extended warranty through Ally. The offer is for $2,200 for 7 years or 70K miles B2B and supposedly covers everything other than wearable items like brakes and oil changes. I've never bothered with extended warranties on a vehicle before but I'm trying to determine if it may be worth it due to all the electronics found on the new vehicles not to mention that everything is more heavy duty on this truck than on my past 1500s so I'm assuming replacement parts will be more expensive in general yet alone in our current environment.

The way I figure it is that the extended warranty is giving me an extra 4 years and 34K miles for the B2B portion and 2 years and 10K miles on just the powertrain over what the original warranty gives me. I'm just not sure if it's worth it for what it buys me. Of course the risk is that at 3 1/2 years the stereo system goes out and I'm stuck paying full cost to replace it.

What have you done and why?

Thanks,
Mike

PS - I can't wait until the summer to see how this thing will tow my trailer!

Please be so kind and informative as to fill in your profile as to who you are and what it is you are towing.

I will be more than willing to comment as I have the Silverado HD, am about to retire and DID buy the 7/70K extended warranty. Moved up from a Sierra HD w 6.0 and 4.10 gear

[Draggo]

Originally Posted by jeff64

Please be so kind and informative as to fill in your profile as to who you are and what it is you are towing.

I will be more than willing to comment as I have the Silverado HD, am about to retire and DID buy the 7/70K extended warranty. Moved up from a Sierra HD w 6.0 and 4.10 gear

Oops, never realized I hadn't filled in my signature.

I'm pulling a 2018 FE 279RLDS and the truck I'm getting is the gas version with the 3.73 gears.

[Mike134]

not sure about GM but you can buy the exact same
"piece of mind insurance" (warranty) for a Ford online for 1/2 what a dealer wants

[jeff64]

I think you are going to be happy with it. I haven't towed with it yet but am optimistic. Old sierra got 7-7.5 towing. and 12.5 on a good day. When I had 3 vehicles the truck got 8700mi/yr put on it
Back and forth commute at 32 mi one way according to the trip computer has been consistently 16.5-17.5 on the silverado. I'm thinking 9+ on the towing(from what I've heard).
For the same reasons you stated on the X-warr. Lots of electronic widgits to screw up. The dealer $ on the warranty was negotiable to some extent. With my age and projections of RVing by 80 I;ll have about 75K on the truck. Good enough?

[rsdata]

insurance, as it always has been is a crap shoot...

YES, parts and labor ARE much more expensive and everything is a computer these days and tons of sensors that go bad are expensive, not only to replace but just to diagnose... THAT needs a computer TOO...

Depends on your driving habits... I have a 2014 and just last year hit 100K miles, so I am at 7 years ( as of November 2020, on a Nov 2013 sell date), BUT way OVER 70K miles. I would EXPECT 100K of service before things start going bad, but time-wise is another story.

My $1200 radio/nav/clock/inside temp controller computer thing is a bit wonky and would be nice to have gotten under warranty, but is/was NOT covered now.

I would look at the cost of a 10 year 100K warranty AND you can buy warrantees from lots of places besides the dealership...

good luck on your crap shoot...

[Underthedog]

I've not bothered over the years since I would run out of miles long before time. I've saved a lot over the years passing on the offers. I've not kept track, but have managed thus far to have few expenditures that would have been covered.



As I'm planning retirement soon perhaps I will re-evaluate the next time I purchase a vehicle. For now I'm still leaning toward the NOT contingent. It seems the things most likely to fail while covered would do so under the original warranty.


Also remember you will be given many many opportunities of your lifetime to extend your vehicles manufacturer's warranty over the next several years.

[KKonyha]

I have purchased only factory extended warranties. I just did with a F-150 I bought several years ago. Aftermarket ones, I have found, have too many loopholes.
Don't forget also that you can negotiate the price of the extended warranty. That is not carved in stone.

[bikendan]

I would NEVER buy a 3rd party extended warranty. But I will buy a factory extended warranty.

[kcmusa]

I have a 2015 Chevy with the diesel. Not a single problem and I have 50k on it now.
I passed on the extended warranty, truck has been great.

[pgandw]

I have always bypassed the dealer-offered extended warranties. Especially when we have bought mostly Hyundais, Kias, and Toyotas for the past 15 years. Hyundai and Kia have 100K/10 year power train warranties, and I have never had reason for an extended warranty with a Toyota.

But my daughter bought a 2016 Hyundai with 200 miles on it last summer. It has spent almost all it's life in storage. While in storage, battery was shot, rats had chewed through some of the wiring harness in the engine compartment, tires rotted. The B2B 5 year warranty transferred but the 100K power train did not. B2B ended a month ago, and I purchased a highly rated extended warranty to give her some piece of mind. Cost was $2900 to carry vehicle to 110K miles.

Changed my mind and cancelled extended warranty. Warranty company offered to cut price to $1900 to keep me as customer. That confirmed to me my decision to cancel was correct.

just my experiences
Fred W

[lewisra]

Originally Posted by Mike134

not sure about GM but you can buy the exact same
"piece of mind insurance" (warranty) for a Ford online for 1/2 what a dealer wants

Exactly what I was going to say. And it is through Ford.

https://www.knappvehicleservicecontracts.com/

[Gm Mike]

Congrats on the new truck. It’s a personal choice IMPO on extended warranties. I have never bought in the past and have never had any issues. My current GM is my first diesel and the dealer found my weak spot and talked me into it. I’ve never been happy with the fact that high pressure tactics are used to separate a buyer from their money. I’ve had good luck with my Duramax as the only issues I have had are factory recalls.

[acadianbob]

Vehicles are pretty well made nowadays. I have had zero issues with my last 3 Fords. Any niggles that you might have are very likely to occur early; under factory warranty.

[mikeyk101]

I have a 2016 Silverado and didn't buy the plan when I purchased. I waited. I kept getting emails from Chevy to purchase one. About a couple months before my bumper to bumper expired, I pulled the trigger and bought it. It ended up extending mine for another 5 years and 60,000 miles. Mine wasn't through Ally but through Amynta. It ended up being a little more than yours because I waited but felt it was worth it and it is the actual GM plan. I chose the $0 deductible option too. Like you, all the extra electronics in these made me seriously consider it. And right now, mine is in the shop after discovering a leak in the front. Turns out I have a considerable crack in front differential housing. At least that's what the dealer is telling me. No idea how it happened and dealer couldn't tell me either. But it is covered and plan is already helping to pay for itself. And it is providing a rental car while truck is in the shop.

[Gm Mike]

Originally Posted by acadianbob

Vehicles are pretty well made nowadays. I have had zero issues with my last 3 Fords. Any niggles that you might have are very likely to occur early; under factory warranty.

X2

[Lins]

Get in writing to see clearly what is, and what is not, covered under the extended warranty. My mom bought a fairly new, lightly used 2005 F-150 5.4 3v years ago and opted for 3rd party extended warranty. For those familiar with those engines, it ended up having a failed timing chain guide a few years after owning it. Didn't do a lot of damage, but the local Ford dealer wanted to replace the whole timing chain and cam phaser setup. Very expensive, but the third party replaced it. Definitely paid off for her.

For our 2017 Ram, we opted for the extended warranty through the dealer when we bought it. We have not had any issues, but as one example: reading online there are lots of instances where dealers are getting out of covering the turbo actuators as the warranties read similar to 'turbo and internal components'. The actuator sits outside so more and more are being denied warranty. There is a cheaper and better aftermarket solution, but not everyone knows that or work on their own vehicle. Also, emission components aren't clearly covered under extended warranty and emissions warranties are also written different between the US and Canada.

Just a couple things to think about.

[AlaskaErik]

Over the years I've turned down close to $40k of extended warranties. My out of pocket for unexpected repairs? About $300. I get a lot more peace of mind over the money I didn't spend on extended warranties than I would have gotten having spent all that money on warranties that would have paid less than a penny on the dollar, if anything at all. I always buy new and take good care of my vehicles.

[CGK]

$2200 doesn't seem like a lot to pay for B2B 7/70k - with all the electronics on modern trucks, I would think it might be a wise purchase....IF the warranty company is good and has good reviews (you need to do due diligence), and AFTER you negotiate your best price for that coverage. It is unlikely that price is cast in stone, so you may be able to do better. Congratulations on the new truck - I'm sure you'll love it!

[Bob2019]

I generally don't buy extended warranties. but it is a pure crap shoot and gamble. I bought a warranty from Ally for 7 years and never used it for $1,800 for a GMC Terrain. Just one thing to fix and you come close to cost of warranty. Frankly, I'm OK with that. I had a '90 GMC truck that was costing me $5-700 a month after month for repairs. Finally I just gave up and bought another truck. The money I spent also on this one left me stranded at least 3 times to tow, power streering hose broke, two fuel pumps went out and on and on. I was lucky I had a policy that the dealer sold on this used vehicle. So the Terrain warranty was not used, but I least I never had a problem and left me stranded. The vehicles today a built better. The question: Do you feel lucky?