Advice on "bumper to bumper" Warranty for certified pre-owned vehicle

I finally traded in my 10 year old Kia for a certified pre-owned 2014 model. Man, I hate dealing with car salespeople.

Anyway, one of the things they really wanted me to purchase (and I did so on the promise of being able to cancel if I wanted) is this “bumper to bumper” warranty from a third party (Not Kia - although the vehicle still has a 10 year/100,000 power train warranty) - Zurich is the provider. It’s almost $3,000 and covers Power train, electrical, steering brakes, suspension and AC.

But reading posts online about this company I see nothing but people complaining about their claims being denied. Several people had to have their engine put in pieces and then the claim being denied and being on the hook for the taking apart of the engine, the repair, plus the putting of it together again.

Are these things worth the money?

it really, really depends. Third party “warranties” can be a minefield of exclusions and “gotchas.” you’ve really got to read the fine print.

and I put “warranties” in quotes because most of these things are really just insurance policies; if you need something fixed you have to deal with adjusters, filing claims, using specific repair shops, etc. Someone here (I think it was FoieGrasIsEvil) had a 3rd party “warranty” on his car, and when the engine had a weird but catastrophic failure they would only pay to replace it with a used engine (not new, not remanufactured.)

If it was me, I wouldn’t pay for anything that wasn’t backed by the manufacturer. I had a Ford ESP when I bought my used Ranger, and the couple of repairs it needed were handled just like any normal warranty claim. Aside from the $100 deductible, that is.

that said, $3000 for a plan seems pretty high. if you know someone with a Consumer Reports subscription, you might ask them to look up the reliability data for the make, model, and year of car. if it looks good, I’d give the third party plan a miss.

You say they “…really wanted me to purchase…” this third party warranty. Hmm, is that because they were concerned about your ownership experience? Maybe. Or, perhaps because the dealership makes a ton of profit off of these. I would say that is more likely.

Your own research shows that these warranties are usually not worth the money. $3000 covers a LOT of repairs, most of which your 2014 model will not need for years.

Also it looks like Kia’s 10 year / 100,000 mile warranty does NOT transfer to a new owner of a used car. I would check your paperwork carefully.

"Although Hyundai and Kia are well known for offering the best powertrain warranties in the industry – 10 years or 100,000 miles – these legendary warranties aren’t transferable to a new owner. Fortunately, the warranty doesn’t become completely invalid when a new owner buys the car; it just changes to 5 years or 60,000 miles of powertrain coverage. "

The documentation specifically states I am covered, in addition to a 12 month coverage for some other stuff too.

Yeah I’m thinking I will drop the bumper to bumper.

Why can’t we just buy cars from Amazon? Why must we deal with salespeople?

because- decades ago- in many towns, the owners of car dealerships were among the wealthiest members of their communities, So they were able to influence people from city council all the way up to state houses/Senates to pass laws requiring cars be sold through independent dealer franchises.

Isn’t it always this. ::sigh::

I don’t see why this isn’t a violation of some type of Federal anti-trust law or law regarding interstate commerce. The Federal government should really restrict this - car dealerships are obviously heavily involved in interstate commerce in several ways, and shouldn’t get to be legally protected entities…

I’ve had the extended warranty a few times (once through a third party, and one through the manufacturer–the latter was Jeep). But this was in the late 90s/early 2000s.

In both cases I had a deductible (I think two hundred dollars). And in both cases, any work that needed to be done had to be pre-approved by the extended warranty company. And sometimes that could take days. I was assured once by the dealership that a certain problem would be covered–so I had the work done while we waited for approval. When the warranty found company found out I had it fixed prior to approval, it was automatically disapproved.

Brakes are not really covered–things like the the master cylinders are–but regular wear and tear? Nope. That warranty won’t cover brake pads, calipers, rotors, etc. The same holds true for any other part on the car (regardless of bumper to bumper). Anything that is normal wear and tear is not part of the deal.

I think prices have done so far as deductibles. I think a gal at work has a deductible of only $50.

But back when mine was $200–some of the repairs I couldn’t get approved or wasn’t worth it because it was only $150-$200. I had to pay the deductible so the warranty was useless.

My '06 Wranglerw as a perfect example. Kept getting the dreaded death wobble and they kept replacing ball joints or tie rod ends–which was way below the $200 deductible. And then the stabilizer bar–which was also under the deductible I had. So it was costing me thousands of dollars. I ended getting rid of that Jeep and switched to leasing.

Just my two cents.