Monday, February 16, 2009

Money Savings Monday: Buy The Warranty


Last year we bought a used Saturn from CarMax as a second car. We only paid $6,000 for it and decided to buy the extended warranty. I am so extremely thankful because 18,000 miles later my brakes went out, my air conditioner broke, my engine blew, the sunroof stopped working and my seat stopped moving. My mother said I have a black cloud that follows me! I think she is right.

Well, there is a $50 deductible on each breakdown so when my air went out last summer I decided to wait to bring it in. I thought I would wait to see if anything else broke to save on the deductible. About 2 months later the seat broke, but it wasn't until the sunroof stopped working that I decided to bring it to the shop. Unfortunately I got busy that week and before I knew it the wheel cylinder went out and I lost my brakes as well.

It worked out that I was going to get everything fixed for $50. I was so excited until the tow truck showed up. I started the car to drive it to the truck and guess what? The engine blew! No problem, I thought, I had 2,000 miles left on the warranty.

Always read the fine print

I did not realize there was a clause in our contract that read:
5. Limit of Liability Our liability is the cost oto repair or replace any covered breakdown; but in no even shall this cost exceed the average retail value of your vehicle as determined by the NADA at the time of loss.

Damages were around $9,000 - what did they cover? $3,700! So, I get a new engine. I get my seat fixed. I get my brakes fixed. The rest is my loss!!! If I had brought it in for each thing as it broke down it would have been covered, but because I saved up all the problems to save on my $50 deductible I have to eat $4,300 worth of breakdown!

Moral of the story - sometimes it is better not to be so cheap. I don't regret buying the warranty, but I should have been fixing things as they broke.

Hope it isn't a hot summer,
Lisa

4 comments:

Irene said...

Ack! Sorry you had to pay so much! Hope your car stays running perfectly from now on though!

Betty said...

Goodness, I'm sorry. Why is it to expensive to repair cars? Why? :(

Quiskaeya said...

ACK! Sooo sorry to hear about the car situation. It is never fun to put out that kind of money. It's like a necessary evil. Love your blog! Found you through MBC! Your depression giveaway is so thoughtful and creative. :)

Debbie L said...
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