Extended Warranty

1932 Views 9 Replies 4 Participants Last post by sxr, Aug 26, 2021

sxr

Discussion Starter · Aug 24, 2021

Hello all. I’m in NJ.
We just bought a EX package. $2k over MSRP.
Went to buy a LXS, but saw that the dealer had one available EX and could not walk away.
I’m thinking if we should be buying the extended warranty for $1900.
Any suggestions? Thanks.

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Phantasm22

· #2 · Aug 24, 2021

sxr said:
Hello all. I’m in NJ.
We just bought a EX package. $2k over MSRP.
Went to buy a LXS, but saw that the dealer had one available EX and could not walk away.
I’m thinking if we should be buying the extended warranty for $1900.
Any suggestions? Thanks.

Kia already has a fantastic warranty and generally above average quality ratings. IMHO, an extended warranty is a strategy that focuses on risk mitigation rather than overall TCO. Over a broad spectrum of sales, companies make money on selling extended warranties but individually it's a piece of mind knowing that you have a fixed prepaid cost for any future repair. Personally, I've never purchased an extended car warranty or prepaid for any maintenance but given this is a new model year and some of the gremlins that have already cropped up (fuel line recall), I can understand the desire for an extended warranty.

If you do move forward with an extended warranty, just be sure to really read and understand the fine print and do research on the company providing the extended warranty. If the company declares bankruptcy a couple years from now, you can be out of a lot of money and with no extended warranty. Or if the company has exclusions like all maintenance has to be done at some specific location, that can also be challenging if you ever decide to move.

Good luck and welcome to the Carny family.

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UN-Limited

· #3 · Aug 24, 2021

Depends on how long you plan on keeping the car. If more than 10 years/100k miles, then MAYBE. I say maybe because these warranties still require a deductible to be paid out every time you use it. So that cost has to be factored in on top of the $1900. I personally wouldn't buy one.

Cars these days usually run just fine if you change the oil, rotate tires, and replace wear items as required. The powertrain components is the part that costs any real money to fix and it's covered pretty well by the factory warranty. The occasional computer sensor may crap out after year 5 but that's the case with any car. Mathematically, you'd likely have to replace 5 of those sensors to break even on an extended warranty. Highly unlikely in my experience.

Just my $0.02

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sxr

Discussion Starter · #4 · Aug 25, 2021

@Phantasm22
@UN-Limited

Thank you both. For some reason I was under the impression that the warranty is from Kia. I will read the fine prints and sit on it for a while.

This is our first Kia. I have been driving a BMW 328i for almost 10 years now and I had some expensive repairs. The EX comes with a lot of electronics and hence my exploration of the extended warranty.

Did I pay too much for the EX? (2K over MSRP) I could not find one within 200+ miles. That's why almost got the LXS. Then as the EX was available - I just wanted to get it to give it some time before winter is here..

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UN-Limited

· #5 · Aug 25, 2021

BMW's are notorious in the industry for being expensive to maintain. Kia has the exact opposite reputation. Most normal wear items are pretty easy for you to replace on your own (batteries, bulbs, filters, etc). As for the price you paid, some will say you should never pay more than MSRP for a car. But the market today makes that very difficult to stick to. Most dealers are charging a mark-up and unless you're willing to wait another year or 2 for supply to build up to meet demand, then it's going to be harder to find the few dealers who will honor MSRP (and have inventory). $2k over isn't terrible vs the 5, 10, and 15k we've seen reported.

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mtonne

· #6 · Aug 25, 2021

sxr said:
@Phantasm22
@UN-Limited

Thank you both. For some reason I was under the impression that the warranty is from Kia. I will read the fine prints and sit on it for a while.

This is our first Kia. I have been driving a BMW 328i for almost 10 years now and I had some expensive repairs. The EX comes with a lot of electronics and hence my exploration of the extended warranty.

Did I pay too much for the EX? (2K over MSRP) I could not find one within 200+ miles. That's why almost got the LXS. Then as the EX was available - I just wanted to get it to give it some time before winter is here..

Not sure where you're located but I had to drive from San Antonio to Dallas to get my LXS for anything close to MSRP.

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sxr

Discussion Starter · #7 · Aug 25, 2021

mtonne said:
Not sure where you're located but I had to drive from San Antonio to Dallas to get my LXS for anything close to MSRP.

Thanks. I’m in NJ. I used to live in Dallas 🙂.
I found the LXS with MSRP. But could not find the EX anywhere. So- decided to buy with the markup.

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sxr

Discussion Starter · #8 · Aug 25, 2021

UN-Limited said:
BMW's are notorious in the industry for being expensive to maintain. Kia has the exact opposite reputation. Most normal wear items are pretty easy for you to replace on your own (batteries, bulbs, filters, etc). As for the price you paid, some will say you should never pay more than MSRP for a car. But the market today makes that very difficult to stick to. Most dealers are charging a mark-up and unless you're willing to wait another year or 2 for supply to build up to meet demand, then it's going to be harder to find the few dealers who will honor MSRP (and have inventory). $2k over isn't terrible vs the 5, 10, and 15k we've seen reported.

Thank you!

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Phantasm22

· #9 · Aug 26, 2021

Let us know what you end up deciding and what your thought process was. I think it would be helpful to share with others that may be also considering an extended warranty.

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sxr

Discussion Starter · #10 · Aug 26, 2021

Phantasm22 said:
Let us know what you end up deciding and what your thought process was. I think it would be helpful to share with others that may be also considering an extended warranty.

Will do. Thanks

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