vania-janet/multiturn-rag-retrieval-data huggingface dataset:
If you buy a new car, the odds that it will require repairs are fairly low, and if it does, they should be covered by the warranty. If you buy a used car, there is a fair chance that it will need some sort of repairs, and there probably is no warranty. But think about how much repairs are likely to cost. A new car these days costs like $25,000 or more. You can find reasonably decent used cars for a few thousand dollars. Say you bought a used car for $2,000. Is it likely that it will need $23,000 in repairs? No way. Even if you had to make thousands of dollars worth of repairs to the used car, it would almost certainly be cheaper than buying a new car. I've bought three used vehicles in the last few years, one for me, one for my son, and one for my daughter. I paid, let's see, I think between $4,000 and $6,000 each. We've had my son's car for about 9 months and to date had $40 in repairs. My daughter's car turned out to have a bunch of problems; I ended up putting maybe another $2,000 into it. But now she's got a car she's very happy with that cost me maybe $6,000 between purchase and repairs, still way less than a new car. My pickup had big time problems, including needing a new transmission and a new engine. I've put, hmm, maybe $7,000 into it. It's definitely debatable if it was worth replacing the engine. But even at all that, if I had bought that truck new it would have cost over $30,000. Presumably if I bought new I would have had a nicer vehicle and I could have gotten exactly the options I wanted, so I'm not entirely happy with how this one turned out, but I still saved money by buying used. Here's what I do when I buy a used car: I go into it expecting that there will be repairs. Depending on the age and condition of the car, I plan on about $1000 within the first few months, probably another $1000 stretched out over the next year or so.
Many reasons So in general you are paying more for peace of mind when you buy a new car. You expect everything to be working and if not you can take it back to the dealer to have them fix it for free.
I agree with the deposit part. But if you are buying a new car, the loan term should meet the warranty term. Assuming you know you won't exceed the mileage limits, it's a car with only maintainence costs and the repayment cost at that point.
Consider this before you buy one: I spent 1900 dollars for a car warranty years back when I bought a car. 9 months after I bought the car it broke down and it was covered by the warranty. Without the warranty the fix would have cost me 3400 dollars. This is a huge savings except for one thing... The warranty company went bankrupt so I spent 1900 + 3400 for a grand total of 5300 :) As you can imagine, I wasn't smiling at the time. Contrast that with my second warranty (I know, I know, don't put your hand in a fire twice) where I spent 2400 for the warranty and then got my transmission fixed for 4000 dollars, and it cost me 100 dollars (deductible). In summary: It's hit and miss, but make sure you don't pay more than 10-15% of the product price for the warranty.
This could backfire.  I was a field service engineer for Ford Motor Company in the early 1990s, and they offered an extended unlimited mileage warranty to customers (at an additional cost of just under $1000 per vehicle.)  Several fleet customers bought hundreds of vehicles and began driving them 24/7 - we had several trucks that we chose to buy back from customers that had exceeded 500,000 miles in just a couple of years.  People will take advantage if you give them an opening.
One important issue that has yet to be covered is the cost (to you) in terms of paperwork, lost time, and phone calls that you have to make to claim the insurance.  Such insurance claims often are very low priority on their customer service queues (for obvious reasons, since they have already made the sale). Therefore, you might have to spend up to a few hours of your time calling or writing emails to claim the warranty, which may often not be much (  Therefore, many people end up not claiming the warranty during the hassle. Much like non-scam mail-in rebates, more often than not you would either forget to or decide it is not worth your time to claim the warranty. Before buying such policies, other than the obvious cost-benefit calculations, you should also take this additional factor into account.   Therefore, many people end up not claiming the warranty during the hassle. Much like non-scam mail-in rebates, more often than not you would either forget to or decide it is not worth your time to claim the warranty. Before buying such policies, other than the obvious cost-benefit calculations, you should also take this additional factor into account.
I haven't looked at that warranty in detail, but generally speaking this should help. What is GAP insurance? In the case of a total loss/write off gap insurance covers the outstanding finance after your regular insurance pay out. The two won't match up usually because of the depreciation right after you buy the car. For example, if you take out $20,000 finance and buy a car, then write it off after six months, your insurance company may only value it at $16,000 but it's unlikely you will have cleared $4,000 from your finance. Gap insurance will pay out the difference and settle the debt. Will Chrysler change the engine, if it comes to bhore? Yes, unless they identify misuse or deliberate damage. For instance, if you do 1000 miles and the engine explodes, it's a mechanical fault that the warranty would cover. If they open up the engine/look at diagnostics and find it's been thrashed to within an inch of it's life, they may claim it was your driving which has destroyed the engine and you would have to prove it was an underlying fault and would have blown either way. Will car dents be covered with this bumper to bumper insurance? Not likely, as I mentioned in the last point, if it's your fault it wouldn't be covered. I think you may be confusing the terms insurance and warranty at this point. Insurance would cover your dents but a warranty only covers the manufacturer's faults, even in the case of extended warranties. What does basic mean in terms of warranty? Sounds obvious, but whatever Chrysler want it to mean! There's no legal definition of 'basic' so you would need to check the documents thoroughly or ask them to explain exactly what is and isn't covered. If they're reluctant, it's probably because 'basic' covers very little...
When adding a new or used car to the policy I have found that it is best to call the company in advance. I let them know I will be adding a car to the policy in the next few days, but I have no idea of the VIN or other info.  I have a policy with a different company and they have told me that I am automatically covered  as long as I provide the VIN and other details within 30 days. The next business day after the purchase I provide everything they need, and a new bill is generated. When removing a car from the policy it has worked the same way, a new bill is generated when removing the car. Depending on the timing and amounts they have either credited my account or sent a check.  They should have no problem removing a car that was accidentally on the policy. It might be that they charge you a days coverage. When you call them about the refund, ask if the coverage for an additional vehicle is automatic, that way you don't have to provide the info until after you get the car home.
When a car company offering an extended warranty shows up on my front page 4 times I think it's safe to say we're beyond circlejerk and into ultrajerk. People don't even read the part about the warranty only covering 8 years, they just read the infinite mileage claim and start gagging on Techno Jesus' balls. Reddit's obsession with Tesla is beyond cringeworthy.
There's an unavoidable risk of defects in any complex factory-built piece of equipment, price and quality notwithstanding.  Which is also a great justification for an infinite mile drivetrain warranty.  The only reason other car companies don't offer such a thing is because consumers have never had any leverage to ask for it.  Tesla does it because they can.
To take a higher level view of this, consider the warranty as buying insurance.  They want to sell you the warranty because there's profit in it for them over the aggregate of all the warranties they sell. So ask yourself, would having to replace this item out of your own pocket cause you a significant financial burden?  Items like houses we insure because we can't afford to lose the investment.  Items like cars we get liability insurance because we can't afford to pay for another person's medical costs if we're liable for their injury.   On the other hand, if you're talking about a $1000 piece of equipment in your house, this won't break you.  That means you can self-insure, and if you do that for all the items you purchase, over the long haul, then you will save money (equal to the profit that the company expects on the warranties). So I say, no, don't buy extended warranties.  The more they're trying to sell it to you, the less you should be willing to buy it (because the higher their profit margin is if they can convince you to buy it).
You SHOULDN'T lease one if you are going to get an economy car, if you don't drive too much (<15K / year), and you want to hang on to the car for a long time.  Otherwise, if you are a regular driver, driving a leased new quality car can be cost effective. Many cars now have bumper-to-bumper warranties that last as long as the lease (say 80K). So there is rarely any extra costs apart from regular maintenance. The sweet spot for most new cars is in the 5th, 6th, or 7th years, after they are paid off. But at that point, you may find you have maintenance bills that are approaching an average of $200 - $300 per month. In which case, a lease starts to look pretty good. I owned a 7 year old Honda Accord that cost only $80 less per month in maintenance than the new leased VW that replaced it.  Haven't looked back after that. Into my 3rd car and 9th year of leasing.
Why not get an estimate at few different shops?  Some that honor the warranty and others that don't.  Then you can make a math based decision on where to have the car fixed. While your fear is reasonable, information is a remedy.
I respectfully disagree with @JohnFX's comment regarding new vs used. (John knows what is talking about though; he gave an awesome answer on buying a car: What are some tips for getting the upper hand in car price negotiations?) The answer to your question is based on whether or you not you can stand to have a small, loud, cheap but reliable car for the next 10 or 15 years. If you plan to keep your new car until it dies 20 years from now, then a new car can be a fine choice. I just bought a car and the difference between my 2013 Hyundai and a comparable 2012 Hyundai wasn't much. Furthermore, it was hard to even find a 2012 (which justifies the higher price from dealerships and the private market). Doing math in my head told me the reduced usage I will get out of the car wasn't offset by the slightly lower price. Depending on the specific age, insurance on newer cars can be cheaper than insurance on older cars. (But you have to have carry more insurance, so consider that as well.) There might not be a different between a 2010 and a 2012, but there will likely be for a 2005 and the 2013. New cars can be cheaper to operate. Lower fuel costs, better safety and possibly pollution costs. They are tuned up and you know everything about their history. Repairs and factory warranties might not be available on a used car, so if you car turns out to be a problem, your out of pocket is limited. These programs don't mean anything. Get an independent certified mechanic to check out any used car you buy. If the dealer won't let you get the car checked out, then they aren't worth your business. Certified cars don't justify their cost according to consumer reports, they are more for marketing than reliability. Don't waste money on a third party warranty. Either the car is good and doesn't need it, or it needs a warranty and you shouldn't buy it. If you new car comes with a factory warranty, that is fine. Radio host Clark Howard is indifferent if you want to purchase a factory warranty separately, but never a third party.
If Tesla had an serious (hypothetical) problem with their powertrain that needed to be fixed, could they avoid a recall by having it fixed under this extended warranty?    Having the same repair performed under warranty would be less damaging to their reputation.  Could this be their motivation?
"Evaluating the total cost of operation and warranty period are indeed important considerations, but the article is specifically about buyers making an expensive car ""feel"" more affordable to their budget by having smaller payments over a longer term.   &gt;“Stretching out loan terms to secure a monthly payment they’re comfortable with is becoming buyers’ go-to way to get the cars they want, equipped the way they want them,” said Jessica Caldwell, Edmunds executive director of industry analysis."
"In general, if you can afford to replace something, you are able to ""self-insure"". You really want to understand a little of the statistics before you can make a generic call, but my rule of thumb is that insurance via ""extended warranty"" is rarely a good deal. Here is a simple expected value math formula you can apply (when the > is true, then you should buy it): replacement cost x likelihood of using warranty % > cost of insurance You can then back-compute, what is the likelihood that I'd need to lose this item to break even? Given your numbers: $2000 x Y > $350 or Y > (350/2000) or Y > 17.5% So if you think there is a 17.5% or greater chance that you'll need to have you system replaced (i.e. not just a simple fix) AND (as Scott pointed out) you'll be able to actually use the replacement warranty then the applecare is a good purchase. Note, this only applies to items you can replace out-of-pocket without significant burden, because if you didn't have the $10k to replace your car, it wouldn't matter if the insurance wasn't such a good deal (especially if you need the car to get to work, etc.) So the obvious question is: ""Why would a for-profit company ever offer insurance on something they are statistically likely to lose money on?"" The obvious answer is ""they wouldn't,"" but that doesn't mean you should never buy this type of insurance, because you may have statistically significant circumstances. For instance, I purchased a $40 remote helicopter as a gift for my children. I also paid the $5 for a ""no questions asked"" warranty on it because, knowing my kids, I knew there was a nearly 100% chance they would break it at least once. In this case, this warranty was well worth the $5, because they did break it! Presumably they make money on these warranties because most of the purchasers of the plan are more attentive (or too lazy to make the claim) than in this case.
Hard to say in general. It depends on the actual numbers.  First you need to check the suggested retail price of a new car, and the price that you can actually get it for. The difference between these prices is between non-existing and huge, depending on the car. Some dealers will sell you a car that has done 50 miles for a huge rebate - that means they can't sell their cars at full price but don't want to reduce the price. Used cars can be quite expensive compared to a new car or not, also depending on the brand.  Estimate that a brand new car should drive 12 years and 200,000 miles without major repairs (go for a car with generous warranty or check reviews to make sure you are buying a long lasting car). Calculate the cost per year. Since you prefer driving a nicer new car, increase the cost for the first four years and reduce the cost for the last four years. With that information, check what the used car costs and if that is reasonable. Assuming 12 years life, a six your old car should be quite a bit less than 50% of a new one.  You can improve your cost a bit: If your annual mileage is low, you might find a rather new car with huge mileage quite cheap which will still last many years. Or if your annual mileage is excessively high, you can look for a car that is a bit older with low mileage.  Anyway, paying 70% of the price of a new passenger car for a used car that is six years old (you say <7 years, so I assume six years) seems excessive; it would mean the first user effectively paid 30% of the new price to drive the car for six years, and you pay 70% to drive another six years (estimated). You'd be much much better off buying a new car and selling it for 70% after six years.
A lot of articles about this kind of thing ask you to do the simple math: $5k < $15k.  If you've got a trustworthy mechanic, and you're looking to save money, it's simple, you're looking at $10k in savings, not even counting interest, higher insurance, etc. On the other hand, if you're just lusting after a new car, and don't mind spending the extra money, then why not? As you mentioned, however, if you think you'll get at least the value of your repair back, you might as well get the car repaired for $5k, so you'll be able to get around town.  If you still decide you want a new car, then you'll have a trade-in worth $6500 instead of $1500.
"You seem to be on the right track.  I feel, though, that it's worth addressing your maintenance budget.  Even if both cars described in your question are from the same model year, one has been in service 2x more; one car has been on the road, in weather, twice as much as the other.  I'm not sure what's being represented in the $6k of maintenance, but a whole host of systems can require maintenance or replacement at 200k+ miles.  A/C compressor, all sorts of rubber parts (seals, hoses, belts, bushings), computer systems, stereo, window regulators, the list goes on.  I don't know at what point the battery on a hybrid needs to be replaced, or what that replacement entails, but likely the battery or the hybrid recharge system will require something after 200k miles of service.  I would learn more about what actual maintenance a high mileage prius can experience. To answer your question though, at this level of ""used"" I don't think the dealership adds anything to the equation.  When you're buying certified pre-owned, the dealership/manufacturer relationship and warranty can be meaningful.  When you're buying a 100k+ miles car from a random small used car lot it might as well be a stranger on craigslist..."
"My knee-jerk reaction was ""no, they are not worth it"", but I took a little time to look up what some of the trusted names in consumer electronics reviews had to say about extended warranties/service contracts. A cnet writer said that your decision should consider the price of the service contract relative to the price of the item you're buying, as well as the amount of hassle you're willing to endure, should something go wrong. Consumer Reports believes that the warranties that come with your products are almost always enough, and they say that electronics and appliances are so well-built nowadays, the likelihood of you needing extra service before you upgrade are slim-to-none. And the folks over at epinions.com offer the same maybe-yes-maybe-no advice as the cnet guys: depends on your appetite for risk and the options available to you. So I would suggest that the answer be ""no"" most of the time, but consider it anyway."
Text of the whole entire article that got upvoted out the wazoo because it has Tesla in it:   &gt;Tesla has extended the warranty on the drive unit for the most popular version of its Model S sedan to eight years or infinite miles (whichever comes first). The policy, which previously started at four years or 50,000 miles, applies retroactively to earlier buyers of the 85 kWh electric vehicle. The warranty for the 60 kWh version is eight years or 125,000 miles. In a blog post, Chief Executive Elon Musk said the change will have a “moderately negative effective” on earnings. “However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.”
Note: This is what one of the people responsible for this process told me quite a few years ago, it might be different today. I work in insurance, but I don't follow this particular process too closely.   New cars necessitate a judgment call, which usually involves a look at claims rates for similar (existing) cars, manufacturer-specific labour and parts costs, expected regional distribution (for example, a new BMW will probably sell better in Bavaria than in other areas, which has higher labour rates than most of the rest of the country, and will be categorised accordingly), and other factors, depending on the situation.   These preliminary judgments are largely discarded when the new statistics are compiled, though, which is once a year. New insurance groups are published in early September and usually applied to insurance contracts on January 1st.
If the car is in otherwise good shape, it's always less expensive to keep it longer. Think of it this way: you have to buy new tires no matter what. It's just a question of whether or not those new tires are attached to a new car or your current car.
"Generally, a polite decline. However, I have dealt with sales people who take first refusal as a ""test"" response, and decide to go into the details anyway. The longer they talk the more robust my responses. See this Telegraph article that discusses why their experts think it's a ripoff, and why you should check your credit cards and home insurance policies as they may already have you covered (possibly UK/Europe only). http://www.telegraph.co.uk/finance/personalfinance/2820644/Extended-warranties-In-our-view-its-a-rip-off.html On a different note, see this list of questions to ask if you are considering going with the extended warranty. The source doesn't rule for or against the idea, leaving it at caveat emptor: http://www.choice.com.au/reviews-and-tests/technology/home-entertainment/accessories/extended-warranties/page/questions%20to%20ask.aspx"
"I think it is stated perfectly in the question, ""unforeseen critical needs."" You know you will need to buy new tires for your car, they are critical but not unforeseen. However, if a tree falls on your car and you need to pay the insurance deductible for the repairs it would be unforeseen. You should budget for the expenses you can plan for in advance like car maintenance and repairs. An emergency fund is for items that are out of the ordinary."