extended warranty, is it worth it?

My alero is an 00' GX with 87500 miles and i just ordered a 25 months 25 thousand mile warranty on the car and it costed 1,475 dollars....it coveres everything major and also rental reimbursals etc...is it worth it to get this warranty? im debating as i can call up and get my money back any time within the first 30 days....oh and the warranty company is continental warranty, anyone ever heard of them or had them???

To be honest, I don't think it's worth it, especailly since you have the 2.4L engine. Since it only lasts about 2 years, the only trouble areas you may enounter are bearings or maybe an alternator. Even if you had the 3.4 I would still be iffy on it.

Jeremy

so is it pretty safe to assume that my car should be alright if i take care of it...i just dont want to be screwed cuz im gonna have this car till college is just about over probably...4 more years...so is the 2.4L a pretty reliable engine overall, it has been for me so far.

Any warranty is an insurance policy against major repairs. If you expect to keep the car and are afraid of having problems then the warranty is worth it. Especially if it covers AC, Transmission and Engine. These are the three most common problems that you may run in to over the next 25K miles. If you are absolutely certain that the car won't lose a tranny or engine then don't spend the money. I don't know anything about this warranty company but you can always call the Better Business Bureau to see if they have had any complaints against them. With all the problems the Alero and the Grand Am its sister vehicle have I would pay the price. The ultimate decision is up to you.

deciding on whether to get an extended warranty depends on a number of things. if you would not be able to afford a major repair such as replacing a transmission, then an extended warranty might make sense. if you are risk averse you may get more piece of mind. if you can get a really great deal on the warranty on a car you purchase used it may pay off if the individual unit had a poor reliability history that you weren't aware of. but getting an extended warranty on a new car would rarely make sense because you have 3 or more years of the original warranty before you can even use an extended warranty. that's like giving someone a free loan. and the financial burden is compounded if you are paying interest on it.

if you have sufficient savings to cover a major repair, extended warranties will be a guaranteed waste of money over your life of owning vehicles. they wouldn't be offered if they weren't profitable. extended warranties become even less desirable if you have the ability to make some repairs on your own or if there is a chance that there is a manufacturer's "hidden warranty" for a problem or if a problem can be corrected by the "good will" of the manufacturer. also, there are so many exclusions on even the most comprehensive contracts that many things are still not covered.

in your case, you need to determine how bad you need to have the use of your vehicle and whether you have access to enough cash to pay for the unexpected expensive (though unlikely) repair. your car is likely to need some repairs over the next couple years. but on average the costs would be expected to be significantly less than $1,475. (if you think about it the cost of the contract is close to 40% of the current value of the car!). and, if you keep the car close to 4 more years the plan would have long expired unless you can continue with the same or another contract and pay significantly more for the coverage.

I've got a 99 GX with almost 86000 miles on it - so far I've had to replace a blower motor to the tune of $135 installed (too cold in the winter to do it myself, and it ain't no fun in Michigan in January with no heat). Maybe I'm lucky, but I haven't had any of the issues that I see discussed here so often. It's a gamble at best, as Jeremy and Rob stated.

IMHO, I'd pass on it, put the $1475 in the bank, and take the gamble.

If you go with it, make sure you verify their definition of a "major" repair. Some of these warranties are powertrain only and won't cover items like alternators, starters, AC, wheel bearings, etc.

GTP Dads right, the Grand am's and Alero's go through wheel bearings rather quick. And those 3.4's are great when they arent blowing intake gaskets. But as long as you arent drag raceing it for college money, it should last you a good 2-3 yrs. \,,/