Mark: Hi, it's Mark Bossert. I'm here with Bernie Pawlik, Pawlik Automotive in Vancouver, Vancouver's best auto service experience. And today we're talking about extended warranties. Bernie, are extended warranties worth it?
Bernie: Sometimes yes, and sometimes no.
Mark: So what's the difference?
Bernie: Well, why don't we just go into a story? So recently we had a client who bought a Jag, expensive car, nice model. He bought an extended warranty which was offered when he bought the vehicle. He bought it used. What we found was a clunk in the front end, there was a fluid leak, transmission cooler lines were leaking and there's some worn out suspension bushings, which on this particular vehicle, you had to replace the whole control arm, which was an expensive part.
The warranty covered, I think the repairs were a bit under 5,000 dollars, but the warranty covered pretty much 90 percent of the repair. And you know, that was good. I mean, it was a good deal for that customer because that's possibly what he paid for the warranty. Maybe he got more value. And there's still much more time left on it. So this was a good warranty, good coverage, and you know, that's a good, happy story.
Mark: And there was a deductible, like these always have a deductible as well?
Bernie: Some have no deductibles, some have deductibles. There are many options and so you can get longer coverage, shorter coverage. Of course, longer and higher mileage and no deductible is going to be your most expensive and shorter coverage. And there's a variety of coverages too, so we can talk about that in a minute. This one was a very comprehensive warranty, covered pretty much everything. And everything doesn't mean everything.
Mark: So what do you mean by that? Give us an example.
Bernie: Well, most warranties don't include things like coolant hoses. They don't include the exhaust system. I mean, they'll include things like the turbocharger, but they won't include the exhaust system. Any maintenance items. Things like brake pads, they don't include them, but some will include brake calipers. So the caliper seizes up, which doesn't happen very often, you know, that's covered, but the pads, the rotors, those things aren't covered.
So, there are many things that are not covered. Spark plugs on a diesel, things like the exhaust system, the diesel particulate filter, you know, these are very expensive items. They're not covered under extended warranties.
Mark: So this sounds very complicated, to be honest, and like buyer beware. So how does one educate themselves? How do you make a choice about this?
Bernie: Well, I think the best thing to do is to weigh the cost of the warranty and then speak to someone who's knowledgeable in cars. If you're really knowledgeable yourself, you can make a decision. But if you don't know, find a mechanic or shop that you trust, someone who can give you some good advice, not the person selling you the warranty.
And just ask them, what kind of things are likely to go wrong with this car in the next five years? You know, and they say, well, these are really reliable cars. I'm just going to use Toyota for instance, they're generally really reliable. You probably don't need the most deluxe warranty. Maybe all you're worried about is the engine blowing up, which would be exceptionally rare, but could happen.
So maybe you want to cover yourself for that and not spend so much money on the warranty. But, you know, again, it's just sort of an evaluation of the car, certain other vehicles, it's very smart to have a warranty and a full coverage one, because so many things can go wrong.
Mark: Is it fair to say that the more expensive the vehicle with more and more luxury features and dual overhead cams and multiple turbochargers and turbocharged seats, you need to probably spend a little bit more money. More things are going to go wrong. So it's going to get expensive really fast to repair things?
Bernie: Yeah, absolutely. Yeah, definitely. I mean, higher end luxury cars are, you know, definitely more worthwhile. Of course, the warranties are going to be more money too. And the other thing I just want to say, they never sell this, but these are not warranties. This is breakdown insurance. So just like anything, if you're 65 years old and you want life insurance policy, you're going to be paying a lot more money than someone who's 20 years old for a life insurance policy because you know, it's calculated. And so, when they sell these warranties, they know that a Jaguar or Mercedes, they're going to have more problems. It's going to cost us more money. Whereas a Toyota or Honda are generally better. So the pricing can often be lower.
Mark: Educate yourself basically. Don't just buy what they're selling you that in that instant?
Bernie: Exactly. And there are many different types of warranty. So it's good to just evaluate all of them. Sometimes, some of them like powertrain, it's just engine and transmission basic, much cheaper, you know, a full coverage warranty includes all the electronic items, much more money, but then those are really expensive things to repair. And then there are also limits on warranties.
We had another client. A Jag as well. This guy had basically blown his engine up and it was like a 15,000 dollar repair and they basically covered the whole thing. But some warranties have a cap, it's only like 500, 5,000 bucks or a thousand dollars or whatever it is. So if you have one of those warranties, you know, it covers a thousand bucks. Well. Good luck. You'll probably hardly ever use it.
Mark: Yeah. Read the fine print, understand what you're actually purchasing and get expert advice about the vehicle you're buying. Is that sort of the takeaway here?
Bernie; Absolutely. Definitely.
Mark: If you're looking for expert service and knowledge in Vancouver, 40 plus years of serving Vancouver. Voted best in Vancouver 25 times by their customers. The people to see are Pawlik Automotive. You can book online at pawlikautomotive.com or you can call them to book at (604) 327-7112. You have to book ahead. They're always busy. Pawlik Automotive in Vancouver, BC, Canada. Thanks Bernie.
Bernie: Thank you, Mark. And thanks for watching.
