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Buying my GMC truck from lease - Extended Warranty or not?

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Buying my GMC truck from lease - Extended Warranty or not?

Old 12-07-2020, 01:48 PM
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Default Buying my GMC truck from lease - Extended Warranty or not?

I know this is a basically a dice roll but need some opinions here. I am in the process of buying my GMC Sierra 1500 double cab truck from a credit union. Avoiding the dealership to save fees, etc. The credit union has offered an extended warranty - 7 years (from when I sign the papers) or 125,000 miles. Which ever comes first. I'm taking a 60 month loan but they can extend it to 66 months if I want to purchase the extended warranty. The cost of the extended warranty is $2419 by Assureguard. Covers basically everything except normal wear things like brake pads, rotors, tires etc. It will cover lost keys, remotes, etc. Also a one time tire blowout or rim repair/replace.
I know it's a gamble and a nice piece of mind but wanted to see what you truck owners think. I've never been a fan of these type of warranties but sometimes it just seems worth it. Thoughts?
Thanks for your help.
Old 12-07-2020, 02:16 PM
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What Year and mileage of the truck your buying?

I have done extended warranties and come out about even until recently. I just sold a 2011 Z71 Suburban w/ 110,000 miles, only had a few problems that warranty covered! Then broken motor mounts, common on GM. I decided to keep it. Then it developed a lifter tick, famous on GM’s, then it decided to lose compression in a cylinder, basically came down to replacing the engine for $7k.

I would get the warranty, as long as you know it will be honored at dealers as well as private shops just in case. Especially if you can transfer to another owner.

Old 12-07-2020, 02:35 PM
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20 years here in the car bizz ... on "Service dept " side of things. Personally, I am not fond of extended warranties as more times than not , whatever you end up needing is somehow never a covered item. If you elect to purchase one, please check with your servicing dealer FIRST to see if they accept it. We don't take any 3rd party warranties. If its not backed by the manufacturer then we don't accept. Some of those 3rd party warranties, even the ones sold at credit unions can be sketchy. They like to use LKQ , aftermarket parts first or if the repair is big enough, say such as a transmission or differential, they try and source one from a donor car with less miles first. ( junk yard ) . They wont tell you this. You think you're getting a brand new crate motor. yeah right.

I hear it all too often, Carmax buyers buying MaxCare extended warranty policies , credit unions , Ad's on TV ,etc.


Oh and no , your dealer is not obligated to participate. Why would they, they're not evening buying OE parts and are cutting book-time labor for install. There is slim money to made all while I'm sure the person wants a loaner car. It certainly is a dice roll but I would not finance that $2,419. Keep it and draw from it as you need it. ( that is if you have the cash ) .

Good Luck brother
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Old 12-07-2020, 02:39 PM
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Thanks for your reply. The truck I am buying is a 2017 GMC Sierra Elevation 1500 double cab. Currently has 32,600 miles. Warranty is over - 3 years or 36,000 miles. The three years was up September 20th of this year. Also, this warranty is transferrable which could be a good selling point if I choose not to keep it. I had a 2003 chevy 1500 pickup that I kept for 14 years before leasing this truck.
Old 12-07-2020, 02:51 PM
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My local GMC dealer does accept Assure Guard so that's a good thing. I was told that any licensed RI mechanic will accept it.
Old 12-07-2020, 04:14 PM
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I would never buy a third party extended warranty. Only extended warranty worth considering is from the manufacturer. Third party warranty companies are created to bring in cash and go out of business when the liabilities get too high. Then the principles relocate and start the same scam all over.
Old 12-07-2020, 05:12 PM
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I have NEVER brought an extended warranty. For 2 reasons. I don't keep most of my vehicles more than 2 yrs and if I have a vehicle that needs an extended warranty, its not a vehicle I want to own. If I have one that spends more than a few visits to dealer when under warranty, I get rid of it and move on. Remember that extra cost of warranty should cover your negative equity if you decide to get out of it.

But with all that, if I was buying a GM (which would be when hell freezes over) you almost have to have a warranty. Them things love seeing the service dept.
Old 12-07-2020, 06:16 PM
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Originally Posted by vman24 View Post
My local GMC dealer does accept Assure Guard so that's a good thing. I was told that any licensed RI mechanic will accept it.
Ask the local dealer’s finance manager about similar coverage with a GM plan, it couldn’t hurt!
Old 12-07-2020, 06:20 PM
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Originally Posted by N747JB View Post
Ask the local dealer’s finance manager about similar coverage with a GM plan, it couldn’t hurt!
Great point.
Old 12-07-2020, 06:43 PM
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There are warranties left, 5yr/60k on powertrain, 8yr/80k on major emissions parts.

I look at it this way, if it sells for $2500, the salesman makes say $1k. The warranty company has admin fees and profit, say $500, so they are estimating that on average they will pay out $1000 on that vehicle. So you are paying $2500 for a $1000 risk on average (about the same as state lotteries). So nope, not worth it, plus the hassles of using it and so much stuff not covered.
Old 12-07-2020, 06:51 PM
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vman24,
I just sent you a PM with info on buying a GM extended warranty.
Hope it is helpful.
Aflyer
Old 12-07-2020, 11:29 PM
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I'm not a fan of extended warranties but when we got the wife's previous Honda we purchased the extended warranty through Honda basically it was added into the sales price and made sure that the payment on that car was going to be constant for the entire note of the car. Luckily we didn't have to use it but it was piece of mind at a time where money was much tighter.

I wouldn't do it now as I could absorb the cost and I would only go with a manufacture sponsored warranty that way you don't end up with dealer issues. Its all good if your dealer supports 3rd party now but what happens in a year when it sells. The same reason all these Lifetime warranties from a dealer usually don't work out.
Old 12-08-2020, 05:27 AM
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Thanks for all of the replies. Since I'm financing through a credit union, they would roll this money into extended months (6). If I go to the dealer, I would have to purchase this outright (whatever the cost would be). Tough decision to make. Have to decide by today or tomorrow.

THanks
Old 12-08-2020, 08:28 AM
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Agreed with the above statements, I'd only buy one that is from the OEM manufacturer. The other thing you can do is leave the cost of the extended warrantee in a 'fund' that is only for vehicle repairs. Then add to it once in a while, you'll have the money you probably need for repairs outside the warrantees it comes with. I had the Chrysler certified warrantee on my '07 Jeep till it had 80,000 miles on it but didn't need to get anything fixed by then. The only replacement which was covered under the 8 years 80K fed emissions warrantee was the cat converter.
Old 12-08-2020, 08:35 AM
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I have NEVER brought an extended warranty on anything.





.

Old 12-08-2020, 08:41 AM
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I will say that 99% of the time I am against extended warranties but I did buy a 2006 Tundra a few years ago that had very low miles, and since I had a loan on the vehicle, I wanted to warranty it. I bought an extended 'Platinum' warranty from the Toyota dealer that sold me the truck for around $2200. That warranty paid for itself within a year and I ended up getting new rack and pinion, coilovers and shocks, ball joints, waterpump, etc.
Old 12-08-2020, 08:54 AM
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Just my .02, but how much is a similar Certified pre-owned (CPO) in your area? They usually include a 100k warranty, and have been gone over with a fine tooth comb. Yes, they are usually a little more but if you're dumping $2200 on some extended warranty which is a pia, it may make sense. I am sure your credit union would still be happy to finance you.
Old 12-08-2020, 09:28 AM
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CPO if you can find it the way you want, is the way to go. I would for sure do it again.
Old 12-08-2020, 04:24 PM
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Originally Posted by vman24 View Post
Thanks for your reply. The truck I am buying is a 2017 GMC Sierra Elevation 1500 double cab. Currently has 32,600 miles. Warranty is over - 3 years or 36,000 miles. The three years was up September 20th of this year. Also, this warranty is transferrable which could be a good selling point if I choose not to keep it. I had a 2003 chevy 1500 pickup that I kept for 14 years before leasing this truck.
Wait - so you leased this truck for 3 years and now you want to buy it after the lease is over?
Old 12-08-2020, 04:56 PM
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Originally Posted by jobowker View Post
Wait - so you leased this truck for 3 years and now you want to buy it after the lease is over?
Yes why? Is that not a good move. I can buy it for alot less than what it's worth. Trucks are expensive. Have you looked into what a new lease is now?

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