Are Volve extended warranties a scam????

3 volvos · Dec 21, 2008

I am in the market to purchase another Volvo to replace my 1995 850 wagon w/ over 300k miles.

I test drove an 2005 S-60 w/ 73k miles that the owner had bought a Volvo extended warranty in 2007 w/ 4 year or 100,000 miles for ~ 1700. The dealer where the car and warranty were purchase close its doors 4 months ago. The owner call Volvo customer service to inquiry about transferring the extended warranty but was told that it was to expire early next year. Volvo claims that the 4 year period starts at the point were the car was made/2005 and not the 2007 purchase date.

Can you please share you experiences and thoughts with regard to this matter!!

Thank you,
Humberto

JRL · Dec 21, 2008

Re: Are Volve extended warranties a scam???? (3 volvos)

That is correct, it starts from the in service date.
It's usually "6 or 7" years, which means you get an extra 2 or 3 years from the in service date depending on the term that was purchased.
It's a good warranty and certainly not a scam.
This is the norm with factory extended warranties for most cars

ExBimmerBoy · Dec 22, 2008

it sounds like the original owner knew they would be driving a LOT of miles, hence the 73K in less than three years and wanted the mileage coverage rather than the years.

bmwguy22 · Dec 22, 2008

i also have the extended warrant that expires next June or at 140kms. I'm currently at 86k, so I know I can drive it's wheels off until then.

I was skeptical of getting the warranty transeffed to mefor the additional 80 bucks, but I currently have noticed a chattering/squealing interior fan motor. I'm going to go ahead and get them to replace this, as the motor alone is worth 250. I called the warranty company to see if this part is covered, and thankfully it is.

I'm going to spend a little more $ and supply my own syn. oil and filter and get that done too (i usually enjoy doing my own oil changes) to keep the engine under warranty.

I'm also experiencing the fluctuating idle, so b4 I use my CRC MAF sensor cleaner, I'll get them to replace whatever parts they think needs replacement, at their cost.

As soon as the paperwok clears (within the next 2 days or so), it's going into the shop for work.

JRL · Dec 22, 2008

Re: (bmwguy22)

Quote, originally posted by bmwguy22 »

i also have the extended warrant that expires next June or at 140kms. I'm currently at 86k, so I know I can drive it's wheels off until then.

That's an interesting way of thinking.
Beat the crap out of it until the warranty ends,

then possibly have a ton of problems begin AFTER the warranty ends!

3 volvos · Dec 22, 2008

Re: (ExBimmerBoy)

Hola ExBimmerBoy,
Thanks for the reply. The major problem is that the owner was never told that the warranty period was retroactive to the in service date. He drives a lot ~ 25 miles per year and basically feels very disappointed that 4 year/ 100k warranty that he purchase only cover an extra year. The 1700 cost seems very high for one more year of service. He has a lot of pull within the company's purchasing department is talking about putting Volvo and Ford on the none authorize purchase list for this company.

bmwguy22 · Dec 22, 2008

Re: (JRL)

yes, then sell it!

honestly, i've never "killed a car" by driving it too hard. All of my cars were over-maintained by myself, or my reputable import indy.

I just think I may as well enjoy the car while it's new, rather than trying to keep my mileage low for warranty purposes.

StarmanDXE · Dec 22, 2008

Re: (bmwguy22)

Extended warranties are almost always bunk. They rarely pay out more than they cost. It's like gambling against yourself. You're generally much better off putting that money you would have spent on the warranty into a savings account and gaining interest on it and then, if you need it, spending a portion on whatever requires it.

Bender · Dec 22, 2008

that is totally incorrect - both the volvo CPO warranty and the VIP warranty are very good warranties that will often pay themselves back in spades. As you start layering technology into the cars (as these do) repairs get more complex and expensive.

MagoonR · Dec 22, 2008

Re: (3 volvos)

Quote, originally posted by 3 volvos »

The major problem is that the owner was never told that the warranty period was retroactive to the in service date. He drives a lot ~ 25 miles per year and basically feels very disappointed that 4 year/ 100k warranty that he purchase only cover an extra year.

Actually, no extra year since the original warranty is 4/50. He bought an additional 50K miles which makes sense if he drives 25K/year.

Quote, originally posted by 3 volvos »

The 1700 cost seems very high for one more year of service.

See above comment.

Quote, originally posted by 3 volvos »

He has a lot of pull within the company's purchasing department is talking about putting Volvo and Ford on the none authorize purchase list for this company.

Most (if not all) OEM warranties will retro to the in service date. Do you believe that if you buy a certified car with a 6/100 warranty that you are getting an extra 6 years and 100K miles from when you buy the car?

MagoonR · Dec 22, 2008

Re: (StarmanDXE)

Quote, originally posted by StarmanDXE »

Extended warranties are almost always bunk. They rarely pay out more than they cost. It's like gambling against yourself. You're generally much better off putting that money you would have spent on the warranty into a savings account and gaining interest on it and then, if you need it, spending a portion on whatever requires it.

Depends on your driving situation and the cost of the warranty. I passed on the VIP but then again, my 04 only has 31K miles on it. I also have had a lot of items addreessed/updated during the warranty period.

AzNick · Dec 22, 2008

I thought these were a scam until I bought a Chevy Venture with extended warranty and boy did we use this thing!!!

StarmanDXE · Dec 22, 2008

I dunno. I still can't see how they would/could offer them if it wasn't just an opportunity to make money. If they are worth it to that high of a degree, either their reliability engineers or their accountants need to be fired!

So, what do these warranties cost, anyway? Standard is, what, 4-year/50,000 mile? And I see above the extended mileage is 100,000 miles for $1700(? Is that the VIP?) And CPO is like 6-year/100,000 mile? And for how much money...?

JRL · Dec 22, 2008

Re: (StarmanDXE)

Stop interjecting EVERY single post with inane and uninformed comments
You CANNOT buy a CPO, the dealer CPO's a used car.
VIP costs anywhere from $2200 or so to high $3000's depending on the car, the model year and mileage on it.

It MUST be bought BEFORE the original warranty (4-50) runs out

StarmanDXE · Dec 23, 2008

Re: (JRL)

Quote, originally posted by JRL »

Stop interjecting EVERY single post with inane and uninformed comments

Quote »

You CANNOT buy a CPO, the dealer CPO's a used car.

From what I was told at the dealership, they have the option of selling a used car CPO eligible without the CPO. (And they'll only certify cars which are very unlikely to have any issues...) But, there's definitely a cost associated with the CPO warranty.

Quote »

VIP costs anywhere from $2200 or so to high $3000's depending on the car, the model year and mileage on it.

It MUST be bought BEFORE the original warranty (4-50) runs out

So, what is the VIP exactly anyway? 6-year, 100k mile? (Trying to determine what it costs per year/mileage.)

MagoonR · Dec 23, 2008

Re: (StarmanDXE)

Quote, originally posted by StarmanDXE »

From what I was told at the dealership, they have the option of selling a used car CPO eligible without the CPO. (And they'll only certify cars which are very unlikely to have any issues...) But, there's definitely a cost associated with the CPO warranty.

Yes, a Volvo dealer can decide to CPO or not CPO but as to the "unlikely to have any issues".....good luck trying to determine which ones they are. Besides, the CPO cost isn't dependent on a car's history.

Quote, originally posted by StarmanDXE »

So, what is the VIP exactly anyway? 6-year, 100k mile? (Trying to determine what it costs per year/mileage.)

Please do a bit of research. A VIP can be for extra miles, extra years, or a combo of both.....and with 0/100/200 deductibles to boot.

AaronB · Dec 23, 2008

Maybe I'm lucky but I've NEVER bought an extended warranty. I've been winning the gamble for years and years. Will I ever lose? If so, I've got the $$ that would have gone out the window on all those "peace-of-mind" warranties.

V4L · Dec 23, 2008

Re: (AaronB)

Quote, originally posted by AaronB »

Maybe I'm lucky but I've NEVER bought an extended warranty. I've been winning the gamble for years and years. Will I ever lose? If so, I've got the $$ that would have gone out the window on all those "peace-of-mind" warranties.

and from what i've heard and read you are better off keeping your money and saving it like someone earlier said. esp. if you're going with the extended warranties from random used car lots. (eagle warranty; shadiest contract that i have ever read)

very few people are out to just offer a service; ie: warranty, car wash, etc.; however, there are plenty of people who want to make money and loads of it. alot of them will put you through the ringer and stretch payment for repairs out so long that you would just rather wash your hands of the contract altogether, while they ultimately never dish out a dime. very easy when done completely over the phone and more often than not located in a completely different region of the country.

i have heard that the CPO's from new car dealerships; not limited to volvo, are very easy to deal with and are quick to agree to repairs and payouts.

.02

StarmanDXE · Dec 23, 2008

Re: (AaronB)

Quote, originally posted by MagoonR »

Yes, a Volvo dealer can decide to CPO or not CPO but as to the "unlikely to have any issues".....good luck trying to determine which ones they are. Besides, the CPO cost isn't dependent on a car's history.

"Good luck" nothing. If they're offering a CPO warranty, then they have already determined that it's unlikely to have any issues!

Quote »

Please do a bit of research. A VIP can be for extra miles, extra years, or a combo of both.....and with 0/100/200 deductibles to boot.

I have looked around and there really isn't any good specific info that I can find... Do you have a link to this information you could share?

Quote, originally posted by AaronB »

Maybe I'm lucky but I've NEVER bought an extended warranty. I've been winning the gamble for years and years. Will I ever lose? If so, I've got the $$ that would have gone out the window on all those "peace-of-mind" warranties.

Basically, it's a business, and they're not in it to loose money! They aren't going to offer warranties if it will end up losing them money the same way casinos wouldn't be in business if they paid out more than they gained! Warranty = insurance. But you have a lot less to lose in car repairs than anything you should be buying insurance for (i.e. home, medical, automobile collision).

So, you people who are buying the VIP warranties, are you the same people who buy those warranties on computers, televisions, entertainment systems, etc. at Bestbuy and Circuit City?

ExBimmerBoy · Dec 23, 2008

here is the link...
http://www.volvocars.com/us/sa....aspx

MagoonR · Dec 23, 2008

Re: (StarmanDXE)

Quote, originally posted by StarmanDXE »

"Good luck" nothing. If they're offering a CPO warranty, then they have already determined that it's unlikely to have any issues!

Sorry to burst your bubble but the dealer doesn't know or doesn't care. He pays the CPO charge and the exposure is now on Volvo.......just like if you decide to buy a VIP. The dealer is not taking the CPO risk.

Quote, originally posted by StarmanDXE »

Basically, it's a business, and they're not in it to loose money! They aren't going to offer warranties if it will end up losing them money the same way casinos wouldn't be in business if they paid out more than they gained! Warranty = insurance. But you have a lot less to lose in car repairs than anything you should be buying insurance for (i.e. home, medical, automobile collision).

Which is why the VIP warranties, etc have gone up in price; especially in the last year. Volvo had some big outlays on the R crowd and is trying to recoup some exposure $$$.

Quote, originally posted by StarmanDXE »

So, you people who are buying the VIP warranties, are you the same people who buy those warranties on computers, televisions, entertainment systems, etc. at Bestbuy and Circuit City?

All depends on your comfort with the exposure.......for any warranty. If you're such the know it all warranty expert, why keep asking the questions?

njb8199 · Dec 23, 2008

Re: (MagoonR)

Quote, originally posted by MagoonR »

Which is why the VIP warranties, etc have gone up in price; especially in the last year. Volvo had some big outlays on the R crowd and is trying to recoup some exposure $$$.

And T6 transmissions (both S80 and XC90) and XC90 wheel bearings.

MagoonR · Dec 23, 2008

Re: (ExBimmerBoy)

Quote, originally posted by ExBimmerBoy »

here is the link...
http://www.volvocars.com/us/sa....aspx

Or some info from a past group buy:

http://forums.swedespeed.com/zerothread?id=70337

JRL · Dec 23, 2008

Re: (StarmanDXE)

Quote, originally posted by MagoonR »
Yes, a Volvo dealer can decide to CPO or not CPO but as to the "unlikely to have any issues".....good luck trying to determine which ones they are. Besides, the CPO cost isn't dependent on a car's history.

CORRECT

"Good luck" nothing. If they're offering a CPO warranty, then they have already determined that it's unlikely to have any issues!

YOU'RE SO WRONG, I REALLY DO WISH YOU WOULD STOP POSTING YOUR CRAP
Quote »
Please do a bit of research. A VIP can be for extra miles, extra years, or a combo of both.....and with 0/100/200 deductibles to boot.

I have looked around and there really isn't any good specific info that I can find... Do you have a link to this information you could share?

WHY DON'T YOU STOP ASKING AND ASKING AND ASKING, EVERY GOD DAMN THING ON THE PLANET, GET OFF YOUR STUPID ASS AND CALL OR VISIT A VOLVO DEALER. YOU CAN'T SEEM TO FIND ANYTHING ON YOUR OWN

StarmanDXE · Dec 23, 2008

Re: (MagoonR)

Quote, originally posted by ExBimmerBoy »

here is the link...
http://www.volvocars.com/us/sa....aspx

Thanks. Has some good info on the warranties and types, but I guess pricing is very case-by-case.

Quote, originally posted by MagoonR »

Or some info from a past group buy:

http://forums.swedespeed.com/zerothread?id=70337

Thanks. But still no prices mentioned there... :-/ (But there was a good tidbit about a dealership trying to sucker a guy into buying a warranty...

)

Quote, originally posted by MagoonR »

Sorry to burst your bubble but the dealer doesn't know or doesn't care. He pays the CPO charge and the exposure is now on Volvo.......just like if you decide to buy a VIP. The dealer is not taking the CPO risk.

So, what you're saying is that the dealer buys the CPO warranty from Volvo? But if they know it's a problematic car to start with, would they even allow it to be certified? If certifying is so willy-nilly, why wouldn't they certify every eligible car that goes through their lot? (Or do they? Or is eligibility not as transparent, which is what I'm trying to get at?

I honestly do not know, so maybe some of you know more than I.)

Quote »

Which is why the VIP warranties, etc have gone up in price; especially in the last year. Volvo had some big outlays on the R crowd and is trying to recoup some exposure $$$.

So maybe it's worth it for the warranty for the R models? (But only if you're really driving it hard?)

Quote »

All depends on your comfort with the exposure.......for any warranty. If you're such the know it all warranty expert, why keep asking the questions?

I'm just saying, considering what a warranty is and how it works, it wouldn't make financial sense for anyone offering it to expect not to come out ahead. I would be interested in hearing some stories of what kind of repairs have been needed by everyone and how much they cost. Then, that can be compared to the cost of a warranty and it can be seen if it would have been worth it to buy a warranty (assuming those repairs would have been covered under warranty).

But, I'm not ruling out the possibility that a warranty could be worth it. Maybe just for the cars like the R models which do have the more sophisticated electronic components and suspensions and whatnot. Maybe just certain model years have lots of problems right off the bat and the warranty is worth it. It's still all a gamble. And if the analysts at the companies are doing their jobs correctly, you will more than likely lose the gamble...

bmwguy22 · Dec 23, 2008

Re: (JRL)

i log in daily just to read your rants...I find it very amusing

Are Volve extended warranties a scam????

Top Contributors this Month

Recommended Communities