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Canajun Finances Home » Extended Warranties: An Update

Extended Warranties: An Update

I bought a Pontiac Montana in the early 2000’s. Luckily my mechanic convinced me to pay for an extended warranty. The original warranty was only for 3 years, but I extended it two more years, and luckily I did. The car was a Lemon, and without the extended warranty I would have junked it much earlier.

As I chronicled a while back, I bought two more years warranty for my Van. This was under the advice of my regular mechanic (who makes no money off this van when it’s under warranty, so I respected his opinion). Last winter my wife ran into issues on a long road trip to Toronto. Thanks to the warranty she got a loaner and the Van was repaired on the weekend, all for no cost. My opinion is that part of the moneys I forked out was recovered in that incident.

A good facsimile of that Van

The Van was leaking coolant (and overheating while sitting in traffic jams when the external temperature was only about 20 Celsius, so not good). We took it into the dealership yesterday and it is still there. The radiator leak has now begotten an oxygen sensor glitch, and possibly other issues, so we now have another car as a loaner while the Van is fixed. I am hoping that all this work will be covered by the warranty (it should, but you never know), so my assumption is that with this incident the extra money I forked out for the warranty will be covered.

Now yes I had to fork this money out about a year ago, so there is present value of money to remember, but I am grateful (so far) to my mechanic for telling me to get the extended warranty.

Now does this mean YOU should get one? Well, you need to think how much you are paying for it, and whether the device or vehicle will need repairing (you need to research that first). In my case for this vehicle, I seem to have made the right decision (I’ll update the blog if this is not the case).

Moral: Think about why you are spending your money and figure out what the value of the service is that you are purchasing with your hard earned money!!


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