Actually you can pick up an extended warranty through after market companies at any time. However, as your car gets older, it gets tougher and tougher. Usually, when purchasing a used car through a dealership, you can get a 12, 24 or 36 month warranty of some type. However, you can pick one up from warrantydirect.com or other companies selling extended warranties.
The trick, as the car gets older it is harder to find a company willing to sell you one and even more of a trick is finding one in California. California has a law that states you MUST have a business office in the state and hold a certain amount of money is guarenteed bonds inorder to offer warranties. This was a shame law put into play to knock off the competition, sponsored by car dealerships! Oh well, nuff crying.
Wanted to get feedback from anyone who has purchased an extended warranty after the fact and who they did and if ANYONE has one for a 97 Lotus and if so with what company!
I never really quite understood the logic of purchasing an extended warranty on anything. It is a product, like most others, set up to make a profit, ie, it will pay out LESS than it receives in premiums. Otherwise, it would fail.
I would also suspect that most extended policies are DESIGNED to cover only those things that would NOT typically break down over the policy period. I think you would do better with your money in Vegas!
Why not just put $$ per month in a high-interest bearing account each month? That way, when and if something truly catastrophic happens that will probably NOT be covered under an extended warranty, you can withdraw out of that account to pay for it. If the catastrophic doesn't happen, you have a nice wad of cash to play with sometime down the road.
Here is the rule of thumb as posted by Car & Driver, Consumer Reports, and others. New cars should never be bought with anything except the standard MFG warranty, because you are giving money to the dealership. Most of the new cars these days will mostly have issues during the MFG warranty, the vast majority of them do not have warranty issues after the MFG warranty expires. Therefore, you are correct, the odds of using the money you spend on an Extended warranty are in the favor of the 'house'.
However, they exclusion starts at the high end sports car and exotics. The reviews have ALL said that a MAJORITY of the time, money spent on extended warranties for high end sports car and exotics will be used and then some. It goes on to expalin why and I won't get into reasons, anyone who owns high end sports cars or exotics can tell you the cost of maintenance of these cars.
Here is my example of TWO higher end cars I have owned, boarder line Exotic (because they both cost over 100K when new). A 1996 BMW 840Ci and an 1994 Porsche 928 GTS. Both of them I purchased used (about 3 years old or so) with less than 15K miles and they check out with a Pre-Purchase Inspection with ZERO issues, prestine cars! When I bought them I purchased an extended warranty of 4yr/48K miles and the both cost me about $4,500. ($4,500 for the 928 and $4,200 for the 840). I can tell you in the 4 years that the cars were under warranty I had in excess of 11K worth of work done on the 928 and 9K worth of warranty work on the BMW. I didn't put a lot of miles on the cars, I showed them, drove them about 10K miles a year. So, they were not trophy garage cars, were used but not heavily and the warranties more than paid themselves off.
I'm sure as there are as many members on this site will be stories that they have or have not had 5K worth of what would be considered work that would be convered by an extended warranty in the past 4-5 years. But, the odds are much more even or on your side that you'll be using the money you spent on the extended warranty.
Secondly, it is just like car insurance. How often do you get into a wreck in which you use your high priced car insurance for your high end sports car? Aside from it being the law, you are paying into a system that collects money and is banking on your good record that you will not crash and cause all sorts of issues. Same for the warranty people. So, it si all a gamble, but just like fire insurance, what-if!!!
I agree with you completely. Just for grins and giggles, I requested a quote from one of the companies listed above. Here is their response.
Thank you for your interest in Auto Repair Warranty. Below is our quote as you requested.
Bumper to Bumper coverage for 48 additional months, or 20,000 additional miles which ever occurs first, for $5,199.00 on your 2001 Lotus Esprit with 24,000 miles.
MEMORIAL DAY SPECIAL!!!!!!!!! 0 DEDUCTIBLE @ NO ADDITIONAL COST!!!!!!!!!!!!EXTENDED!!!!!!
I can easily see this paying for itself as a blown head gasket or broken belt on the V8 Esprit can easily lead to $15K worth of parts and labor. Second gear is a known weak spot and can easily run 7K to repair...
Talon, sounds like you get it. It is a matter of a type of 'fire insurance', you may never need it BUT if you didn't have it and something like you describes goes wrong, you are going to want to bash your head in! :wallbang:
Some might say, well $5,200 is an awful big insurance policy, but being that it goes for 4 years, you KNOW that something is going to go bad. I mean these warranties cover leaky seals, come on, can't tell me that you're not going to have a leaky seal or two in 4 years. I'm comparing this to my 928, which leaked like a Siv, so I may be giving the Esprit a bum rap.
Oh, the timing belt is covered on this plan and for the 928, that alone was a $3,500 bill!!! YIKES! Not sure about the Esprit.
Anyway, just thought I'd share the information and you all can do with it what you like.