How much is a fair price on a "silver" extended warranty? 2007 Kia Rondo 48,000 miles?
February 25th, 2010 | 
Author: I bought a car with 48K miles and a silver warranty which covers basic stuff like transmission, engine repairs, brakes (not pads of course), basic electronics, etc.
The price given to us was 1,900. Fair? My instinct is to drop it…..
You didn’t mention where you got the quote from, but I would suspect it was either a dealership or a direct solicitor (internet, mail, phone, tv commercial, etc)… They tend to mark the price up quite a bit. I would check with your local CU and Personal Auto Insurance agent as they prices should be much lower.
The vehicle is still under the basic warrant until 60k (or approx 2011) whichever occurs first. However, the 10year/100K drivetrain warranty is only good for the first owner.
Posted in Silver Price
No way. Invest $80 in getting it inspected before you buy it and if it checks out, all of that coverage is a waste of money.
You can use $1900 to pay for all of the maintenance between now and when the warranty runs out.
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If aftermarket warranties were so necessary, the providers would be out of business due to all the repairs bleeding them dry.
Can you smell that?
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That’s a lot of miles for a 3 yr old car. $1900 seems a little steep but $1200-1500 is more like it. Try to negotiate a better price.
Kia’s do not have the best reputation for reliability so seriously consider getting a warranty. The other idea is to put $100 per month into a car repair account and do not touch it unless your car breaks down. Most people who live paycheck to paycheck cannot do this, but if you make a lot of money, this will save you from buying a warranty.
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That sounds very steep for a stated components coverage. I am a finance manager for a car dealership and know the actual costs of warranties, so no guessing here. In fact, I sell warranties through my site, but I’m not here to sell you anything, but to tell you that $1900 is way too much for a coverage that is not even comprehensive. By the way, comprehensive coverage is the only way to go as it eliminates any confusion when you do need to have work done (what’s covered, what’s not).
I’d give you a quote, but unfortunately the vehicle is out of its basic factory warranty, which means no go for Internet sales. I can tell you that you should be able to buy a comprehensive coverage for well under $1500. Of course, this will depend on the term and miles of coverage, but that will give you a general idea.
For anyone reading this, I’d like to stress one more time do not buy stated component coverage unless you are a mechanic and know exactly what you are getting!
References :
12 Questions to Ask Before Buying an Extended Warranty
http://www.insider-car-buying-tips.com/extended_auto_warranty.html
Never buy an extended warranty. This KIA is still covered under the original factory warranty. Why would you pay $1900 for something that comes free with the car.
A KIA Rondo comes with a 5 year 60,000 mile warranty. 10 years and 100,000 miles on the power train. You’ve still got 2 years and 12,000 miles of free warranty on this car. If anything is going to go wrong with that used car purchase it will happen within that time period. Roadside assistance is also included with that coverage so you don’t even need AAA.
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You didn’t mention where you got the quote from, but I would suspect it was either a dealership or a direct solicitor (internet, mail, phone, tv commercial, etc)… They tend to mark the price up quite a bit. I would check with your local CU and Personal Auto Insurance agent as they prices should be much lower.
The vehicle is still under the basic warrant until 60k (or approx 2011) whichever occurs first. However, the 10year/100K drivetrain warranty is only good for the first owner.
References :
Work for an "extended warranty" company…