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Discussion Starter · #1 ·
Hello, my 2015 Volvo S60 is getting close to its 50,000 miles warranty expiration and I’m seriously thinking about buying a Volvo extended warranty. I plan on keeping the car a few more years, at least 4 more years. What should I be looking for? Do I need to shop around? Any suggestion on where would be a good place to buy the warranty. I previously owned a certified 2005 S40 and I loved the extended warranty on it. Would this be the same? Would anyone suggest not buying one and just pay out of pocket? Thanks - Mike
 

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With all of the electronics in cars these days, I personally enjoy the peace of mind with a warranty. I think Steingold Volvo is pretty well-known on the forum for their warranty sales, so they may be worth checking out. Consider what might go wrong in the next 50k miles and then decide if those repairs (potentially) outweigh the cost of the warranty.
 

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I just recently purchased a Steingold 6yr / 72k extended on our new to us 2015.5. It only had 29K on it when we signed on the dotted PDF line. Their price was unbeatable by local dealers by a huge margin here in NJ. In the end, the potential for engine issues w/ the 2015.5 drive e and like was said above, the reliance on so many electronics, we thought with the Steingold price it was a worthwhile purchase. We plan on keeping the car at least 5 years and driving 9-11K / year on it
 

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Hello, my 2015 Volvo S60 is getting close to its 50,000 miles warranty expiration and I’m seriously thinking about buying a Volvo extended warranty. I plan on keeping the car a few more years, at least 4 more years. What should I be looking for? Do I need to shop around? Any suggestion on where would be a good place to buy the warranty. I previously owned a certified 2005 S40 and I loved the extended warranty on it. Would this be the same? Would anyone suggest not buying one and just pay out of pocket? Thanks - Mike
Geico. If you have them as an insurer, they have a 7 yr / 100K policy for very cheap that covers everything similar to a Volvo CPO. If you don't have Geico, then ask yourself this question:

In the first 50,000 miles, how many repairs have I needed? Have these repairs exceeded the $1600 I would have spent on a Warranty? Remember, most problems are fixed within the first 4 yrs / 50K.

So if your car has been relatively problem free, then put the money aside you'd spend on a warranty for a "rainy day". Chances are you'll have much of it left over when you hit 100,000 miles (warranty end of life)...But of course, it's always a gamble, but skewed in your favor for not having problems.

That said, check out Geico. If you insist on a warranty call steingold and see if any are available for 15's /15.5's. As their website only sells for MY 16+
 

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Remember, most problems are fixed within the first 4 yrs / 50K.
This is an extremely misleading statistic to the point that, to whatever extent its true, it's not really useful.

Overall, I agree with you when it comes to buying a warranty (but not because of the above statistic). I feel like my overall car knowledge helps me navigate the car repair world better than a person who just takes their car to a mechanic every time something breaks. If I were the type to bring it in for everything, I would look at warranties completely differently. That being said, I did buy a warranty on my 2015 V60. BUT, that was AFTER I suspected an oil consumption problem and did my research on here about what was wrong. I don't know how long the car was burning oil before I bought it (@ 71k miles), but it seemed to start around 74-75k and then got real bad real quick. In the end, my $1,750 warranty purchase saved me $8,000. I don't know how many of the 2015-2016s are going to have the ring issue. But the fact that enough people had it that Volvo changed the rings they used going forward, and Volvo has a set protocol with a published technical journal to deal with cars with the old rings makes me think a powertrain warranty through 100,000 miles (or whenever you think you will sell it) makes sense for a 2015-2016 Drive-E Volvo. Every situation is different. This is one of those where I would get it. Most other times, I wouldn't.

OP: I got my warranty at Steingold. Negotiated down about $600 from the first quote they gave me.
 

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Discussion Starter · #6 ·
Thanks Everyone!

I contacted Steingold Volvo today and Mike got me a great deal on a Volvo Extended Warranty that for the price is very much worth the peace of mind. Mike was great to deal with and I highly recommend that dealership. Wish our local dealership was this friendly and nice to deal with. Feeling relieved that this is over with.
 

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This is an extremely misleading statistic to the point that, to whatever extent its true, it's not really useful.

Overall, I agree with you when it comes to buying a warranty (but not because of the above statistic). I feel like my overall car knowledge helps me navigate the car repair world better than a person who just takes their car to a mechanic every time something breaks. If I were the type to bring it in for everything, I would look at warranties completely differently. That being said, I did buy a warranty on my 2015 V60. BUT, that was AFTER I suspected an oil consumption problem and did my research on here about what was wrong. I don't know how long the car was burning oil before I bought it (@ 71k miles), but it seemed to start around 74-75k and then got real bad real quick. In the end, my $1,750 warranty purchase saved me $8,000. I don't know how many of the 2015-2016s are going to have the ring issue. But the fact that enough people had it that Volvo changed the rings they used going forward, and Volvo has a set protocol with a published technical journal to deal with cars with the old rings makes me think a powertrain warranty through 100,000 miles (or whenever you think you will sell it) makes sense for a 2015-2016 Drive-E Volvo. Every situation is different. This is one of those where I would get it. Most other times, I wouldn't.

OP: I got my warranty at Steingold. Negotiated down about $600 from the first quote they gave me.
Dealers don't sell warranties because they are a money losing proposition. And insurance companies don't go broke by having to pay out more revenue than which the take in.. You know why? Warranties are a general cash cow, because far more of these policies yield less money spent than actual cost of said warranty.

Putting money aside each month for a repair is far more economical. Let's say he has $2500 set aside for repairs in an investment or interest bearing account. If in 3 years he even needs $2000 more in repairs, he has saved $500 + earned interest. Whereas a warrant is an all or none proposition. Meaning if he spends $2500 and uses nothing, he lost $2500.
 

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Discussion Starter · #8 ·
Dealers don't sell warranties because they are a money losing proposition. And insurance companies don't go broke by having to pay out more revenue than which the take in.. You know why? Warranties are a general cash cow, because far more of these policies yield less money spent than actual cost of said warranty.

Putting money aside each month for a repair is far more economical. Let's say he has $2500 set aside for repairs in an investment or interest bearing account. If in 3 years he even needs $2000 more in repairs, he has saved $500 + earned interest. Whereas a warrant is an all or none proposition. Meaning if he spends $2500 and uses nothing, he lost $2500.
I totally agree MyVolvoS60. But I’m the type that overplans and doesn’t like surprises. I feel better having spent 2300 dollars kowing that anything happens, I know my out of pocket will not be more than 250 dollars. It depends on individual personalities. But I totally agree, your argument makes perfect sense.
 

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I totally agree MyVolvoS60. But I’m the type that overplans and doesn’t like surprises. I feel better having spent 2300 dollars kowing that anything happens, I know my out of pocket will not be more than 250 dollars. It depends on individual personalities. But I totally agree, your argument makes perfect sense.
FYI: https://forums.swedespeed.com/showthread.php?578549-Volvo-(VIP)-Extended-Warranty-Pricing-Discsusion/page2

See this thread. I think you got screwed on your warranty....A 10 year/ 100K GOLD VIP Extended Warranty with $0 Deductible on a 2016 costs $2039 and 8 year / 120K is $2246. How in the heck can 4 years / 48,000 cost $2300 on a 2015! I'd call Steingold back and inquire, because the numbers don't add up.
 

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Dealers don't sell warranties because they are a money losing proposition. And insurance companies don't go broke by having to pay out more revenue than which the take in.. You know why? Warranties are a general cash cow, because far more of these policies yield less money spent than actual cost of said warranty.

Putting money aside each month for a repair is far more economical. Let's say he has $2500 set aside for repairs in an investment or interest bearing account. If in 3 years he even needs $2000 more in repairs, he has saved $500 + earned interest. Whereas a warrant is an all or none proposition. Meaning if he spends $2500 and uses nothing, he lost $2500.
I agree 100%. The warranty made sense for me because I had more information than the warranty company had. I also had a really broken piston/ring and not just "oil consumption," which isn't covered by a warranty. My issue was with your made up "most problems are fixed within the first 4 yrs / 50K" statistic.
 

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I agree 100%. The warranty made sense for me because I had more information than the warranty company had. I also had a really broken piston/ring and not just "oil consumption," which isn't covered by a warranty. My issue was with your made up "most problems are fixed within the first 4 yrs / 50K" statistic.
Are you fixed yet or still driving the sweet loaner ?
 

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FYI: https://forums.swedespeed.com/showthread.php?578549-Volvo-(VIP)-Extended-Warranty-Pricing-Discsusion/page2

See this thread. I think you got screwed on your warranty....A 10 year/ 100K GOLD VIP Extended Warranty with $0 Deductible on a 2016 costs $2039 and 8 year / 120K is $2246. How in the heck can 4 years / 48,000 cost $2300 on a 2015! I'd call Steingold back and inquire, because the numbers don't add up.
Because those are the prices people get when they buy the EXTENDED warranty at the time they buy the car new. It's not a 10 year 100,000 mile warranty, it's an extension that gets them to 10 years 100,000 miles. And the warranty company pockets the cash 4 years early. He's buying a warranty that is going into effect almost immediately. You can't compare the prices of the two apples to apple.
 

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Because those are the prices people get when they buy the EXTENDED warranty at the time they buy the car new. It's not a 10 year 100,000 mile warranty, it's an extension that gets them to 10 years 100,000 miles. And the warranty company pockets the cash 4 years early. He's buying a warranty that is going into effect almost immediately. You can't compare the prices of the two apples to apple.
1. When I say 10yrs / 100K you know what I meant. Its 6 yrs / 50K since the factory is 4 yrs / 50k. I was just quoting the "policy".

2. The only argument that can be made for a more expensive warranty post purchase is the insurance company has less time to invest your money.

It is apples to apples though. Since the policy now or later remains the same, since both kick in ONLY after factory one expires.
 

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1. When I say 10yrs / 100K you know what I meant. Its 6 yrs / 50K since the factory is 4 yrs / 50k. I was just quoting the "policy".

2. The only argument that can be made for a more expensive warranty post purchase is the insurance company has less time to invest your money.

It is apples to apples though. Since the policy now or later remains the same, since both kick in ONLY after factory one expires.
You're making it seem like he overpaid for the warranty when he didn't. There are multiple arguments that can be made for a more expensive warranty when the car is outside of or nearing the end of the factory warranty. My case is the perfect example. A portion of the cars they are warrantying already have problems when they sell the warranty. But the argument that it doesn't kick in for 4 years is significant even without the other arguments. There SHOULD be a significant price difference between buying an extended warranty when the car is new and when the car is 3+ years old. It is apples to oranges. Why do you think you have to call the dealer and give them your VIN and mileage before they will give you a quote, unlike with a new car extended warranty where they don't need that info? Stop telling people they got a bad deal on an extended warranty from Steingold. How much did you pay for your extended warranty?
 

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You're making it seem like he overpaid for the warranty when he didn't. There are multiple arguments that can be made for a more expensive warranty when the car is outside of or nearing the end of the factory warranty. My case is the perfect example. A portion of the cars they are warrantying already have problems when they sell the warranty. But the argument that it doesn't kick in for 4 years is significant even without the other arguments. There SHOULD be a significant price difference between buying an extended warranty when the car is new and when the car is 3+ years old. It is apples to oranges. Why do you think you have to call the dealer and give them your VIN and mileage before they will give you a quote, unlike with a new car extended warranty where they don't need that info? Stop telling people they got a bad deal on an extended warranty from Steingold. How much did you pay for your extended warranty?
Again missing the entire point. Volvos are warrantied for 4 yrs / 50K. Whether you had zero or 100 problems in that 4 yrs / 50k, the presumption is these issues have been rectified by the end of the warranty. So purchasing within the 4 yrs / 50K, prior to expiration, shouldn't yield a penalty.

The only sound argument for a higher price is that the warranty company is given less time to "invest the money" you paid at day 1 vs year 4.
 

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I think there is also more risk the insurance/warranty company in that by waiting there might be an issue that you had been having that wasn't fixed under warranty or you suspect wasn't fully rectified, or in some of our cases we realized that there were issues w/ the engines that were confirmed by many others reported problems during that initial 4 year period. This is the first warranty we've actually purchased but when I looked with previous cars it was always more expensive to purchase after or near the warranty end than had I purchased one at the beginning.
 

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Again missing the entire point. Volvos are warrantied for 4 yrs / 50K. Whether you had zero or 100 problems in that 4 yrs / 50k, the presumption is these issues have been rectified by the end of the warranty. So purchasing within the 4 yrs / 50K, prior to expiration, shouldn't yield a penalty.

The only sound argument for a higher price is that the warranty company is given less time to "invest the money" you paid at day 1 vs year 4.
I am assuming you meant to say the opposite. No one is claiming that buying before the factory warranty is up will yield a penalty. The opposite is true, and rightly so.

The premise that most problems will arise in the first 4 years / 50,000 miles is not based on legitimate auto repair statistic I have ever seen. Regardless, that isn't what has an effect on the price differences of the warranties.

Selling a warranty that goes into effect the moment it's purchased has a completely different set of assumptions than selling a warranty that will go into effect 4 years in the future. Those assumptions make the future warranty cheaper than the right now warranty. The other factor that you touched on (time value of money) also makes the future warranty cheaper. We can argue about how much the price difference should be, but your comparison of what people are paying on warranties for their 4 year old cars to what someone would pay on a warranty for a new car is invalid. I only continue posting this because of your blanket statements that people aren't getting good prices on their warranties. You may be correct, but you haven't presented any evidence of why. I ask again, what did you pay for YOUR extended warranty and when did you buy it? If you don't have one, I look forward to seeing what other data you have besides what they cost for NEW cars to base your claims on. If you don't have any, please stop telling people they got ripped off.
 

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my experience

I am assuming you meant to say the opposite. No one is claiming that buying before the factory warranty is up will yield a penalty. The opposite is true, and rightly so.

The premise that most problems will arise in the first 4 years / 50,000 miles is not based on legitimate auto repair statistic I have ever seen. Regardless, that isn't what has an effect on the price differences of the warranties.

Selling a warranty that goes into effect the moment it's purchased has a completely different set of assumptions than selling a warranty that will go into effect 4 years in the future. Those assumptions make the future warranty cheaper than the right now warranty. The other factor that you touched on (time value of money) also makes the future warranty cheaper. We can argue about how much the price difference should be, but your comparison of what people are paying on warranties for their 4 year old cars to what someone would pay on a warranty for a new car is invalid. I only continue posting this because of your blanket statements that people aren't getting good prices on their warranties. You may be correct, but you haven't presented any evidence of why. I ask again, what did you pay for YOUR extended warranty and when did you buy it? If you don't have one, I look forward to seeing what other data you have besides what they cost for NEW cars to base your claims on. If you don't have any, please stop telling people they got ripped off.
I agree with what you wrote - the two warranties are different, if only because one is purchased when the car is new, and the other when the car is 4 yrs old. I am a little surprised that no one has commented on the statement that most problems are resolved within the 1st four years. Some may be - ie latent defects, but in general an older car has more issues than a newer car. My four Saabs are applicable examples.

Hoses get brittle and crack, seals get dried out and crack, tie rods wear and become loosened, the water pump bearing wears and then breaks. The AC coolant system develops cracks. Basically, everything breaks eventually - some cars are better than others overall, but eventually everything does break.

Warranty prices are probably all over the map - like any other insurance product. Shop around and find some good advice here. As stated previously, insurance or extended warranties can often be negotiated. Just my 2 cents.
 

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I am assuming you meant to say the opposite. No one is claiming that buying before the factory warranty is up will yield a penalty. The opposite is true, and rightly so.

The premise that most problems will arise in the first 4 years / 50,000 miles is not based on legitimate auto repair statistic I have ever seen. Regardless, that isn't what has an effect on the price differences of the warranties.

Selling a warranty that goes into effect the moment it's purchased has a completely different set of assumptions than selling a warranty that will go into effect 4 years in the future. Those assumptions make the future warranty cheaper than the right now warranty. The other factor that you touched on (time value of money) also makes the future warranty cheaper. We can argue about how much the price difference should be, but your comparison of what people are paying on warranties for their 4 year old cars to what someone would pay on a warranty for a new car is invalid. I only continue posting this because of your blanket statements that people aren't getting good prices on their warranties. You may be correct, but you haven't presented any evidence of why. I ask again, what did you pay for YOUR extended warranty and when did you buy it? If you don't have one, I look forward to seeing what other data you have besides what they cost for NEW cars to base your claims on. If you don't have any, please stop telling people they got ripped off.
A. My car had a CPO. The price assigned to the CPO was $1600 at the time of purchase. I.E. 4 yrs / 50K factory (remaining from in service date) + 3 yrs + 50K miles extended warranty. All and all my car had 2000 miles + 11 months of service. So I got 73 months and 98,000 miles, or whichever comes first. Mine was the old 7 yr / 100K cpo.

B. Investing money is still the only legitimate argument. Again, New or 4 Years old changes zero. Things break, car gets repaired on Volvo's dime. So customer has ALL the incentive to effect repairs BEFORE the warranty runs out...In the event of a major failure BEFORE the 50K, Volvo is on the hook to resolve the issue. I.E. if engine starts burning oil really bad a 49,999 miles and Volvo attempts a repair that proves ineffective, Volvo cannot slam the door on you at 50,001 miles.

So I'm completely lost at how a car with 0 miles should carry a less expensive warranty than a car with 49,999 miles BUT still had all repairs done within said warranty.

Basically, the time to invest customers money is probably the main reason, though these companies won't admit to it So yes, I do think OP overpaid and should inquire about the pricing he received. Worst he can be told is "No?.
 
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