new Bolt extended warranty a good idea or not?

[Anonymous]

Just got a Bolt Premier and decided to take the 10 year extended warranty. (We keep cars a long time -- just got rid of a 2001 Prius.) Cost $2,888 after the $1,000 COSTCO discount -- comes out to $24 a month. I've got 60 days to change my mind. Could do a lot with that $ in the meantime. What do you folks advise? Was I foolish?

 

[LeftieBiker]

IF you plan to keep the car 10 years, and IF it covers all major systems, then it may be worth the peace of mind for you. You'd have to post the details for a better answer.

 

[DucRider]

Just got a Bolt Premier and decided to take the 10 year extended warranty. (We keep cars a long time -- just got rid of a 2001 Prius.) Cost $2,888 after the $1,000 COSTCO discount -- comes out to $24 a month. I've got 60 days to change my mind. Could do a lot with that $ in the meantime. What do you folks advise? Was I foolish?

F&I is the 2nd biggest profit center (and sometimes even the highest) for dealers after the service department.
The dealer and the warranty company both make a healthy profit off of extended warranties.
Probably better than 95% of extended warranties wind up paying out a lot less than their original cost. By the time you add in interest and deductibles on repairs, you would likely need to claim $4-5K to break even.
You're probably better off "self insuring" and placing that money in a money market or other savings account. If you need it for a major repair, it will be there. If you don't need it, you will get the principal back plus interest.

 

[SeanNelson]

Just got a Bolt Premier and decided to take the 10 year extended warranty. (We keep cars a long time -- just got rid of a 2001 Prius.) Cost $2,888 after the $1,000 COSTCO discount -- comes out to $24 a month. I've got 60 days to change my mind. Could do a lot with that $ in the meantime. What do you folks advise? Was I foolish?

Bear in mind that the extended warranty only covers whatever is NOT covered by the base warranty on the car. So, for example, you're really only getting a 2-year warranty on the battery and drivetrain because GM covers it for the first 8 years.

Instead of buying a warranty up front that can't possibly pay anything off for several years while the manufacturer's warranty is in effect, I would put that $24 per month aside to build up a maintenance fund for the car. That way if you do end up needing out-of-warranty repairs you'll have the money available, and if you don't need them then you'll be ahead.

 

[DNAinaGoodWay]

Just got a Bolt Premier and decided to take the 10 year extended warranty. (We keep cars a long time -- just got rid of a 2001 Prius.) Cost $2,888 after the $1,000 COSTCO discount -- comes out to $24 a month. I've got 60 days to change my mind. Could do a lot with that $ in the meantime. What do you folks advise? Was I foolish?

So, 10 years on top of the 3 year bumper to bumper factory warranty? What does it cover? Battery? Drivetrain?

Since it’s a new model, already exhibiting some issues, and parts can be modular and pricey, one big systems failure could justify the expense.

As for self insurance, you’ve stated you have other uses for that money, so could be you wouldn’t stash money away?

 

[joe]

Another important consideration is the mileage limit. If the warranty is 10 years/50k miles, it's basically useless

 

[Chargeit]

I'm 62, never bought an extended warranty and never once regretted it. That means someone else must be getting all my bad luck so you better hang onto your extended warranty since that someone might be you.

 

[SparkE]

Just got a Bolt Premier and decided to take the 10 year extended warranty. (We keep cars a long time -- just got rid of a 2001 Prius.) Cost $2,888 after the $1,000 COSTCO discount -- comes out to $24 a month. I've got 60 days to change my mind. Could do a lot with that $ in the meantime. What do you folks advise? Was I foolish?

So, 10 years on top of the 3 year bumper to bumper factory warranty? What does it cover? Battery? Drivetrain?

Since it’s a new model, already exhibiting some issues, and parts can be modular and pricey, one big systems failure could justify the expense.

As for self insurance, you’ve stated you have other uses for that money, so could be you wouldn’t stash money away?

No, 10 years from date of purchase. So, and additional TWO years for the battery and drivetrain, and an additional SEVEN years for everything else.

 

[TimBolt]

Just got a Bolt Premier and decided to take the 10 year extended warranty. (We keep cars a long time -- just got rid of a 2001 Prius.) Cost $2,888 after the $1,000 COSTCO discount -- comes out to $24 a month. I've got 60 days to change my mind. Could do a lot with that $ in the meantime. What do you folks advise? Was I foolish?

Is the warranty from GM, or is it a third party warranty being marketed by GM?

Many third party warranty companies have gone belly-up, leaving the purchaser with a worthless warranty.

If the warranty is being offered by GM, it’s very likely they’ll be around in 10 years, third parties, I’d take a pass.

 

[DNAinaGoodWay]

Just got a Bolt Premier and decided to take the 10 year extended warranty. (We keep cars a long time -- just got rid of a 2001 Prius.) Cost $2,888 after the $1,000 COSTCO discount -- comes out to $24 a month. I've got 60 days to change my mind. Could do a lot with that $ in the meantime. What do you folks advise? Was I foolish?

So, 10 years on top of the 3 year bumper to bumper factory warranty? What does it cover? Battery? Drivetrain?

Since it’s a new model, already exhibiting some issues, and parts can be modular and pricey, one big systems failure could justify the expense.

As for self insurance, you’ve stated you have other uses for that money, so could be you wouldn’t stash money away?

No, 10 years from date of purchase. So, and additional TWO years for the battery and drivetrain, and an additional SEVEN years for everything else.

So, the $24/month figure is off, more like $33/month for a 7 year stretch.

 

[SparkE]

I believe that the battery and drivetrain are covered for 8 years - and I would imagine that those are the two most expensive systems to fix/replace. You only get 2 extra years coverage with a 10-year extended warranty.