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Extended Warranty


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I'm picking up a new LGT Wagon on Saturday. I'd like to be knowledgable about the Extended Warranty and Maintenance Plans. Please share any thoughts and experiences regarding these programs.


Do you need to purchase them when purchasing the car or can it be done at a later date?


Are the prices negotiable?


Is there a meaningful difference in parts covered under the Classic and Gold extended warranties?


Is the maintenance plan a good investment?


Any other comments are welcome.

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1) Any time up until the 3/36 expires, but if you accept the plan Subaru sends you in the mail, it's lower coverage (Classic) with $100 deductible. It costs less, but you get less too.


2) Yes, except in Florida.


3) Absolutely yes. For example, rear struts are not covered under Classic. The audio system is not covered under Classic.


Classic is what is called a "listed parts" plan; if a failed part is on the list, it's covered. Conversely... if it's not on the list, it's not covered. Gold+, on the other hand, is an "exclusion" plan. The exclusions from the contract are listed; all other parts are covered.


I think the value of the maintenance plan depends on the cost of the covered services in the area where you live. In my area, if you add up the coverages purchased "a la carte", they only come to about 60% of the cost of the maintenance plan. If the basic services cost more in your area, then the maintenance plan might be a better choice. It's misleading to think of it as an investment, though; it's better to think of it as a convenience. And for some people, being tied to the dealer for maintenance service is an INCONVENIENCE.


Without getting into my own, or others', opinion on the value of the service contract:


It's YOUR decision on how to manage your risk. Everyone will have an opinion on what you should or shouldn't do, but in the end you'll either feel better with the money in your pocket, or you'll feel better with the longer and more thorough coverage. Do the one that makes you feel best.


I would advise you that if you go with the coverage, go with the Gold+ or don't take any at all. Experience indicates that if a part fails that isn't on the list (and regardless of how great the cars are, every dealer has a service department and there are plenty of SAS claims) you will not feel satisfied. You're not gambling, you're managiing risk, which is a subtle but real difference. You're accepting the likelihood that you will not cover your premium with your claims, against the possibility of catastrophic failure that would adversely affect your financial position over and above car ownership.




FRA-GEE-LAY... It must be Italian!
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