Dealer General Warranty

I bought a used 2020 Mazda CX-5 Grand Touring w/ premium package. I also purchased the 10yr/100 mile warranty (VSC Elite Exclusionary Dealer General Warranty) & also the tire & wheel protection. I didn’t really want it but I keep my cars til the wheels fall off so maybe it is worth it. I’ve heard so many bad things about extended warranty’s. The dealer gave me 5 days to come back and gave the warranty removed but in reading the warrant my it looks like I have 60 days to cancel. The dealer said he could only sell it at the time of car purchase.

I really planned on canceling it so I didn’t think about negotiating the price of the warranty down.

I paid $19K for the car
$3,200 for the warranty & $1,800 for the tire & wheel warranty.

Thoughts if I should keep or cancel the warranty?

Please advise. I’m so conflicted

 

Buy these policies direct from an insurer; much cheaper

 

I would advise cancelling both and putting the 5k into a car fund at your bank, or CU. That way if something goes wrong, you know you have the 5k and don't have to deal with the hassle of whether the warranty company will cover it. Also, if nothing goes wrong in that period, you still have your 5k to spend as a down payment on the next car. If you think about it these warranty companies spend a lot of time figuring out what they have to charge you to make money on the product. If they paid out more than they cost, the company would be out of business. You are gambling 5k hoping you have issues, which is very unlikely in a CX-5.

 

Damn $5k is a rip off for a warranty that's not really crystal clear if they'll cover much. I'd take that money and save it. These cars are reliable and only have some slight issues that can occur past the factory warranties.

 

My son purchased a newer used vehicle for college, we had already checked out the vehicle.
While I was at work his mother had the day off and went with him to "make a deal".
The vehicle was $9995 he got it for $8500 at the time, and they got talked into a $1500 warranty, which really irked me, but it was my son's choice.
A week before finals the transmission went in the vehicle. The dealer came and picked up the car and gave my son a ride to his dorm.
They repaired the transmission and took the car 20 miles back to my son's dorm and there was zero charge for any of it because of the warranty.
He kept the car through all four years college and two years doing intern work. Before he went to grad school, he sold it for $4000.
Moral is Dad isn't always right...I mean you just never know

 

Once in a while the house loses..... Not often though.

 

It's like playing craps at Vegas. Your son won.

When I bought my Jeep Grand Cherokee, I bought the Chrysler Lifetime "Extended Warranty" (not from the dealer) because of all the electronics and the air suspension). I've come out ahead on that deal, but I've never bought one on any other car. Unfortunately for the consumer, Chrysler dropped the lifetime version as I don't think they thought people would keep the cars as long as they do. However, those of us that have them get to keep them and they are great coverage. The non-Chrysler ones, not so much.

 

Out of curiousity, what vehicle was it that had the transmission go out?

 

If the Deal / warranty is honored as per the contract ,it's a great deal for the dealer and a fair deal for the customer. The dealer makes a big profit,bigger often the the sale of the vehicle itself. It's a fair deal for the customer who by betting against himself because he gets piece of mind and possible savings on some costly repairs should they be needed . In the end for most of us ,it's a total crapshoot. What I have always done is properly maintain the vehicle ,and roll the dice by not buying an extended warranty . So far in 57 years i'm ahead .

 

1998 Buick Century, I believe they were made in China at the time, not sure about the transmission.
And yes, I was totally surprised he picked the Buick Century, but not as surprised as I was a couple weeks later.
I was setting having breakfast one Saturday, my wife was working, and a girl friend (not girlfriend) come out of his bedroom to go the bathroom, not an uncommon thing after he turned 18 senior year.
My wife and I figure its best they be at home instead of the backseat boogie in his Buick.
Before I finished my coffee two more of his female friends came out and then finally my son.
Being the "good dad" I simply cooked them all breakfast and then they left in the Buick to go to their summer jobs.