Stingray Corvette Forum banner

21 - 40 of 48 Posts

·
Registered
Joined
·
340 Posts
The question remains whether to finance the warranty and buy it now or to wait maybe a year or so...or even a few months, and buy later.
If you can avoid financing the warranty, then you'll be saving some $ in the long term. From what I'm learning, there are some savings to be made if locking in the warranty at an early stage, so maybe wait a couple of months & hopefully get the best of both worlds. Maybe see if they can give you a quote for the warranty taken initially & then after a few months & compare to the interest if financed, to see which is the best deal. Hope this helps you save a few $
 
  • Like
Reactions: redcorvette100

·
Registered
Joined
·
10,284 Posts
You are not correct ... GMEPP will sell you a NEW car Protection plan if under 3 years / 36 months ( and must be with 2 model years ... so since 2016 is out .. only 2014-2016 cars are eligible for new car plan even if you found a brand new 2013 left over somewhere - and 2014 owners will need to buy a plan before 2017's are produced) otherwise you have to buy a used car plan which covers much less ... You must supply your VIN and current mileage to the selling dealer. They will then determine your vehicles IN SERVICE date and GM will price the protection plan based on IN SERVICE Date, Current Mileage and VIN. Yes ... your warranty will be longer if you wait until 35 months (and less than 36K miles) but the plan cost will be more. Unfortunately no dealer has disclosed exactly how much the rate goes up over time and mileage.

So for myself who bought a 2014 leftover in May 2015 lets say 2017 C7's start going on sale SEPT 2016 ... the means even though I will be much less than 36M/36K on my Warranty I would have had only 16 months to go buy my GMEPP or I would have been stuck with a used car protection plan since 2014 eligibility rolls off once 2017's are being sold.
Okay, so I am only slightly wrong. The only part I was missing was the added stipulation that it must be within 2 model years. So, if someone buys a 2016 car this month, then within two model years means someone needs to get GMEPP before the 2019's come out (2018 will be within two model years of 2016). The 2019's will come out in about June 2018. So, the "new" GMEPP must be bought on 2016s before then; that is, by May 2018. So, instead of 2 years and 10 months from now like I thought, it is actually 2 years and 6 months (by May 2018).

But the rest of my idea seems to be valid. I definitely would wait until then to buy it. The only advantage of buying now is escaping inflation, but, to me, inflation is just unfortunately a part of life in this time and place. To me, the real downside of buying now is that there is a reasonable chance for many people that they will not even have their cars in a few years when the base bumper-to-bumper warranty expires (for example, total their car, sell it, et cetera), and every penny they paid on the extended warranty is for nothing.
 

·
Registered
Joined
·
340 Posts
The fact they ask for VIN & current odometer reading made me figure it was date/mileage based risk policy
 

·
Registered
Joined
·
10,284 Posts
They need the VIN to assign the policy to a car. They need the mileage to make sure you are still within the base bumper-to-bumper warranty, or to know by how much to increase the price based on just how many miles over it you are. and, finally, to know when to start the clock on the extended warranty (the present mileage plus how many miles you bought on the extended warranty).

If you are outside the base bumper-to-bumper warranty, there is no question that the price to buy a policy will climb more and more as the car's mileage gets higher and higher.

What I am trying to say is, in my opinion, do get the plan on the car while the car is "new", but get the plan near the moment when the "new" car is right on the verge of no longer qualifying for the "new" vehicle plan.
 

·
Registered
Joined
·
340 Posts
Okay, so I am only slightly wrong. The only part I was missing was the added stipulation that it must be within 2 model years.
I'm not concerned with the right or wrong issue, but trying to get the best bang for buck. My issue about mileage being a factor is why do they ask for an odometer reading on a brand new or for just a 2 month old car? I think it would be safe to assume neither has exceeded the 36K part of warranty, so I believe actual mileage is factored into the extended warranty pricing. Maybe there is an algorithm to figure if it is a DD, weekend driver etc, but it appears to me so far, that it does affect warranty cost. Help
 

·
Registered
Joined
·
10,284 Posts
I'm not concerned with the right or wrong issue, but trying to get the best bang for buck. My issue about mileage being a factor is why do they ask for an odometer reading on a brand new or for just a 2 month old car? I think it would be safe to assume neither has exceeded the 36K part of warranty, so I believe actual mileage is factored into the extended warranty pricing. Maybe there is an algorithm to figure if it is a DD, weekend driver etc, but it appears to me so far, that it does affect warranty cost. Help
I really don't think this is correct, but I am far from an expert on this subject. All I know is I plan on finding out exactly what the rules are for a car being able to qualify for the "new vehicle" plan pricing, and then waiting until the last moment when my car still qualifies before buying it.

To each their own. Cheers!
 

·
Registered
Joined
·
340 Posts
RDSLON1, Cheers also & I mean that. I'm not trying to argue with you, as I think we are looking at the extended warranty from opposite ends. Me, early in ownership & yourself later in ownership & closer to letting factory warranty run its course. I'm just trying to see for myself if there is a concrete advantage to grabbing a policy now, or if it is better to follow your lead. If I can save a few $, that's my goal. Cheers again
 
  • Like
Reactions: rdslon01

·
Registered
Joined
·
10,284 Posts
Oh, there is no argument at all West Ham Utd. Again, I could be wrong about all this. All I am trying to do is put together the bits and pieces of information that I have run across.

One thing that I wonder about is why you say you are looking for an extended warranty "early in ownership". As long as you are within the base bumper-to-bumper warranty, what is the reason you would need an extended warranty?

Finally, I think there is no question that you will save a few $$$ if you buy it sooner instead of later. For one thing, inflation will cause the prices to go up every year. But, to me, if I spend an extra $50 by buying it approximately three years later, I am okay with that. My thinking is that if I bought it now, let's just say, for $800, and wrecked the car before 3 years/36,000 miles, I would see that as completely lost $800. But, let's say that I buy it 2 years and six months from now for $850. I am totally okay with that, as it would then be in place to offer peace of mind AFTER my base warranty expired.

However, if someone procrastinates until after the base warranty has expired first, then it is my understanding that the price skyrockets then. So, for people who want the warranty, I think they should not wait too long, because that could really make the policy more expensive, if I understand correctly.

Cheers, mate!
 

·
Registered
Joined
·
340 Posts
One thing that I wonder about is why you say you are looking for an extended warranty "early in ownership". As long as you are within the base bumper-to-bumper warranty, what is the reason you would need an extended warranty?
Well We had our C5 for 15 years, & will probably be keeping the C7 for hopefully the same amount of time, so that is My reason for looking at a long term warranty. As to the $800 Vs $850 if the car is wrecked, I'm not going to be worrying about a $50 saving if the C7 is laying upside down in a ditch, which a warranty wouldn't be much use for anyway. I think we are at opposite ends on this discussion
 

·
Registered
Joined
·
998 Posts
I'm not concerned with the right or wrong issue, but trying to get the best bang for buck. My issue about mileage being a factor is why do they ask for an odometer reading on a brand new or for just a 2 month old car? I think it would be safe to assume neither has exceeded the 36K part of warranty, so I believe actual mileage is factored into the extended warranty pricing. Maybe there is an algorithm to figure if it is a DD, weekend driver etc, but it appears to me so far, that it does affect warranty cost. Help
Very simple... You are buying an extend warranty that has a time and mileage limit from the time of warranty purchase (not the vehicle in service date unless you buy the extended warranty at the same time as you purchase a new vehicle). So, if you purchase a 5 year, 60,000 mile extended warranty when you have 5,000 miles and it is 16 months old, then your extended warranty runs until the car is 76 months old or 65,000 miles, whichever occurs first. From the GMEPP contract language: Time/mileage is added to contract purchase date and odometer mileage at contract purchase date.
 

·
Registered
Joined
·
340 Posts
Very simple... You are buying an extend warranty that has a time and mileage limit from the time of warranty purchase (not the vehicle in service date unless you buy the extended warranty at the same time as you purchase a new vehicle). So, if you purchase a 5 year, 60,000 mile extended warranty when you have 5,000 miles and it is 16 months old, then your extended warranty runs until the car is 76 months old or 65,000 miles, whichever occurs first. From the GMEPP contract language: Time/mileage is added to contract purchase date and odometer mileage at contract purchase date.
Thanks, I get that. I was just trying to find out if there was a saving in actual buying price of the warranty. Lets say I want a 72 month 80K mile warranty on a 16 car with 5 miles on the odometer. Will it be the same price as a 16 car with 2K miles on odometer even though I'm looking for the same end mileage/months. I will just get in touch with one of the sponsors at this point. Thanks again.
 

·
Registered
Joined
·
10,284 Posts
Well We had our C5 for 15 years, & will probably be keeping the C7 for hopefully the same amount of time, so that is My reason for looking at a long term warranty. As to the $800 Vs $850 if the car is wrecked, I'm not going to be worrying about a $50 saving if the C7 is laying upside down in a ditch, which a warranty wouldn't be much use for anyway. I think we are at opposite ends on this discussion
Actually, from the scenario I mentioned, the difference would be $0 (never buying the extended warranty) versus $800 (buying it early) if the car were wrecked before the base bumper-to-bumper warranty expired.

Also, the "not being of much use anyway" is the other part of the point. An extended warranty is of no use while the base bumper-to-bumper warranty is still in effect.
 

·
Registered
Joined
·
2,933 Posts
Its not really a warranty. Its repair insurance. Why would anyone want it? Because they would rather pay a fixed amount, certain, that they can afford, to avoid the possibility of paying a much larger amount, which would be less easy to afford. The same principle behind any form of insurance.

And if you never had a claim, you did not "lose". Its like term life insurance. Those who collected on it are the true losers.
 

·
Senior Member
Joined
·
18,667 Posts
Extremely well said Milliwatt Rob!

I fit into that exact category, having enough left over in my C7 budget at the time of purchase, that I choose to add "that option."
 

·
Registered
Joined
·
1,303 Posts
Very simple... You are buying an extend warranty that has a time and mileage limit from the time of warranty purchase (not the vehicle in service date unless you buy the extended warranty at the same time as you purchase a new vehicle). So, if you purchase a 5 year, 60,000 mile extended warranty when you have 5,000 miles and it is 16 months old, then your extended warranty runs until the car is 76 months old or 65,000 miles, whichever occurs first. From the GMEPP contract language: Time/mileage is added to contract purchase date and odometer mileage at contract purchase date.
For people that do not extensively mod the powertrain like I do this is an excellent way to give yourself piece of mind. The fact of the matter is the new Stingray has some of the most sophisticated systems of any car both mechanical and electrical incorporated into any car. The other issue is the compactness and the ingenious way GM put everything within the vehicle so it would perform. Just as an example -- if you have to have an ECM replacement the front fender drivers side, must be removed so the costs of working on the Stingray is not the same as the garden variety GM product.
 

·
Registered
Joined
·
5,046 Posts
But the rest of my idea seems to be valid. I definitely would wait until then to buy it. The only advantage of buying now is escaping inflation, but, to me, inflation is just unfortunately a part of life in this time and place. To me, the real downside of buying now is that there is a reasonable chance for many people that they will not even have their cars in a few years when the base bumper-to-bumper warranty expires (for example, total their car, sell it, et cetera), and every penny they paid on the extended warranty is for nothing.
The fact that they consider the car "new" as long as it's within 36/36K doesn't mean the cost is the same no matter when you buy it. The more miles and time on the car when you buy the warranty, the more you'll pay for the same coverage. That's been made clear by the forum vendors who sell the product.

Thanks, I get that. I was just trying to find out if there was a saving in actual buying price of the warranty. Lets say I want a 72 month 80K mile warranty on a 16 car with 5 miles on the odometer. Will it be the same price as a 16 car with 2K miles on odometer even though I'm looking for the same end mileage/months. I will just get in touch with one of the sponsors at this point. Thanks again.
See above. But yes, check with a forum vendor to confirm.

And if you never had a claim, you did not "lose". Its like term life insurance. Those who collected on it are the true losers.
Well, you are out the cost of the insurance that you didn't "need" to use. I've had extended service policies on a few cars in the past, and never came closed to recouping in covered repairs what I paid for the policy. In each case the dealer and insurance provider "won."
 

·
Registered
Joined
·
54 Posts
Guys, I used to work for an insurance company that wrote these warranties. As a result, I will never buy one. At the time, we estimated the actual loss costs at about 25 cents on the dollar. The rest was company profit (10-20%), agent commission (25-30%) and dealer profit based on whatever the traffic would bear.
 

·
Registered
Joined
·
442 Posts
3rd party warranties are a huge profit source for dealerships, they get anywhere from 40-55% on each one they sell. Also as mentioned above, getting these 3rd party outfits to actually pay a claim is next to impossible.
The one Rusty Wallce was pitching didn't pay him and he had to sue them; I think they went out of business like many others.
I'm sure if you do a little digging on Master Tech you'll find some dirt / bad reviews. Google is your friend.
 

·
Registered
Joined
·
2,933 Posts
Unless they are closely affiliated with the car manufacturer, I view these companies to be unregulated insurance operations. Buyer beware.
 
21 - 40 of 48 Posts
Top