Used Car Warranty, Warranty wise, Warranty Direct vs Warranty Works, Worth it or not?

khampson

Hi, I have just bought a 2003 Hyundai Santa Fe 2.0l diesel with 50,000 miles on the clock, I bought the car private so it comes with no warranty so I did a seach and came up with these offering extended warranty on used cars.

Warranty Direct quoted me £320 for 13 months cover, but with a £50 axcess and offering me 100% of labour costs and only 70% of parts meaning I would need to pay 30% of the parts

Warranty wise quoted me 12 months cover for £720 which I thought was a little steep, I never looked at the terms and conditions so I am unsure if there is any excess or other clauses in there policy

Warranty Works quoted me £272 for a years cover, this is at an independant repair garage, I am unsure if these charge an excess or if they pay 100% of all costs parts/labour, was the best quote with the option of a 2 year qoute for an extra £120 but a maximum claim of £750.

So what are your thoughts on extended warranties? are they worth it or do these companies play on the wear and tear policy to get out of paying? are there other companies offering simular products, has anyone had any good or bad dealings with them or is it just worth staying away from them?

What are your thoughts suggestions?

Keith

forgotmyname

Does your car have anything that doesn't wear or break that you want to cover in case it breaks?

If it wears then its wear and tear and probably wont be covered.

property.advert

If you have £10,000 to spend, you cannot spend it all on a car.

You should keep £1,000 for insurance, £1,000 for immediate consumables such as a service, tyres, tax etc. and another £1,000 in your rainy day account for repairs or an insurance claim excess.

That leaves you only £7,000 to spend on the car.

(adjust numbers for your circumstances but you get the drift)

khampson

So basically what your saying is there not worth it?

Keith

movilogo

They are not worth it. They often refuse to pay. There are many way out clauses. Search the forum and you'll get plenty of such stories.

Lum

Buy a £20 shredder from tesco and run 5 £50 notes through it.

This will be cheaper than all of the above options and will get you the same level of cover.

Alternatively send those £50 notes to me and I promise I'll provide the same level of cover and payout as those warranty companies in the event that something goes wrong with your car.

adr0ck

My own personal experience with Warranty Direct is do not bother.

(I have recently cancelled my own policy after 2 years as I have decided its not worth the paper its written on)

What warranty direct seem to do is if you take out a policy in say September 2010 and keep the policy going and claim in say October 2011 under the warranty - they will turn round and say that the claim isn't valid as you only started the Policy in September 2011 (i.e. 12 months after policy originally taken out).

Therefore Warranty Direct won't pay out as according to them you have only been paying that policy for 1 month.

they seem to see every 12 months as a new starting point no matter what

thenudeone

There are some good warranties (and some poor ones as well) but they are just like every other type of insurance i.e. they have exclusions, and ON AVERAGE, you would be better off putting the money in the bank rather than paying a warranty company's admin costs and profit margin, but that does not help if yours is the 1 car in 20 that develops a major and very expensive fault. 19 other people are a bit better off by not buying a warranty and you are much worse off!

I let the warranty lapse on a car a few years ago. Within months the diesel pump failed and the cost of parts alone was over £1700:eek:

Perhaps instead of buying a warranty, spend £1k less on the car and put the money into a savings account to pay for any repairs?

There was a lively debate about the value of warranties here some time ago. https://forums.moneysavingexpert.com/discussion/3084630 The posts also contain some good information about what to look for in a warranty if you decide to buy one. I can't comment on any of the companies you mentioned.

Gloomendoom

adr0ck wrote: »

My own personal experience with Warranty Direct is do not bother.

(I have recently cancelled my own policy after 2 years as I have decided its not worth the paper its written on)

This post echoes my own views on Warranty Direct exactly.

I can't comment on the others.

khampson

Warranty works have quoted £263 for a year and £370 for 2 years, no excess or hidden charges for a claim, what's you opinion on these? Defo not toching warranty direct after what I've read on here.

forgotmyname

Its OK if you want to pay £263 or £370 to cover parts that dont wear out or break.

If something that doesnt break and is not worn actually breaks you might made a successful claim.


Or then again you might not.