2016 CX-5 Lease Buyout / Service Contract

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onemichael

Member
Hello - i'm new here and I know there are a few threads already on the site about service contracts, but I'm just hoping to get a little clarity on my situation.

I have been leasing my 2016 CX-5 for a few years, and have kept up on the maintenance schedule. Currently at around 62,000 miles.

Yesterday, I did a lease buy-out and the dealer sold me on a service contract: $3300 for 4yr 48,000 miles.

I got home after signing and did a little bit of research on service contracts... this seems like it might be a bit high but I don't really know what repairs to expect in the coming years, and whether or not the cost is justified.

Can anyone shine a light? Fully open to the possibility that I've been sold on something I don't need, in which case I can pretty easily cancel it.

Thanks!
 
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So that puts with a warranty to 110K miles?

Where do you live? Rust belt states have much higher repair rates.

Regardless. Most cars get to 100k miles with few issues. I would cancel it and put that money in the bank.
 
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What does the service contract cover? When I think of "service" that would be oil changes, filters, etc. as per the Mazda service schedule. Not necessarily for break downs and repairs such as brakes, muffler, transmission, etc. that will come with an older vehicle. IMHO neither a service contract or extended warranties are worth the cost. As someone note in an earlier post set the money aside... if you need it you have it... if it is not needed then you saved a ton of money.

Wade
 
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Hi Wade, the service contract does not cover any sort of maintenance like that. It only covers Mechanical Breakdown.
Appreciate the perspective, thanks!
 
Way too pricey. I wouldn't pay 2,000 for that coverage. Vehicles are a rapidly depreciating asset. 3,300, no way.
 
onemichael said:
Hi Wade, the service contract does not cover any sort of maintenance like that. It only covers Mechanical Breakdown.
Appreciate the perspective, thanks!
Click to expand...

Sounds a little fishy. What constitutes a breakdown? A/C compressor failing would not stop the car from running but would be a costly repair. I'd read the small print very carefully. See if you have a certain timeframe to cancel. If you did I'd cancel and put the money in the bank for future repairs.
 
onemichael said:
Hi Wade, the service contract does not cover any sort of maintenance like that. It only covers Mechanical Breakdown.
Appreciate the perspective, thanks!
Click to expand...

So it's essentially an extended warranty.

Personally I think purchasing an extended warranty can be worth the peace of mind it offers. I don't look at it like some others do, where they hope or expect something to go wrong in order to offset the cost. I opted for the extended warranty on my CX-9 because it's my first Mazda, my first forced-induction engine, and my largest purchase that wasn't a house. It also helped that I paid a lot less than the advertised price (I think I negotiated it down to a little over $1k CAD). At $3300 USD, though, I'd run.
 
OK. I used to sell service contracts and extended warranties in another industry and in another life, BUT the same basics apply to all. The dealer is betting that you won't have repairs even approaching the amount you paid ... that's how the dealer makes its profit. Otherwise, the dealer would lose money if the cost of repairs exceeded the amount you paid for the service contract.

IMHO, you are better off cancelling the contract and depositing the $3,300 into a separate account at your bank designated for "car repairs." I'll bet that in the next 4 years, you won't have repair bills that high, if at all. You can thank me later.
 
^ Agree 100% with Joe Willie.
sm1ke: Your perspective is also good since you expect that what you really got is peace of mind - it is worth something.
But here is the truth: You are much better off creating your own savings for car repair. And, separating out maintenance expense not covered by extended warranty (fluids, tires, brakes, wipers, filters, etc.) you will not spend $1000 to get the car to 110K miles.
 
davmac said:
sm1ke: Your perspective is also good since you expect that what you really got is peace of mind - it is worth something.
But here is the truth: You are much better off creating your own savings for car repair. And, separating out maintenance expense not covered by extended warranty (fluids, tires, brakes, wipers, filters, etc.) you will not spend $1000 to get the car to 110K miles.
Click to expand...

That's a safe bet, but it's not the hard and fast truth.

I can appreciate both perspectives, which is why I'll never dictate which approach is "better". There is no clear answer when it comes to an individual using their own priorities to decide whether they want to buy an extended warranty or not. There are just too many variables to consider, so IMO it's unreasonable to make the blanket statement that you should never buy an extended warranty.

Again, speaking for myself, I bought the extended warranty for peace of mind. Having the extended warranty eliminates a lot of variables for me (like engine/turbo reliability, for example). That's worth the extra $1200 or so, to me.
 
Can the op post what the contract is supposed to cover? People here are talking "extended warranty" but is it really or something the dealer created to generate revenue.
Who underwrites it?
$3,300.00 is serious money.

keep getting this message when trying to post --- The server is too busy at the moment. Please try again later.
 
Thanks everyone for the great feedback. I've decided that I'll just cancel the contract and get a refund - save the money for actual repairs should they be needed.
Within 30 days of signing, the contract can be fully refunded, so i'm all clear :)
 
onemichael said:
Thanks everyone for the great feedback. I've decided that I'll just cancel the contract and get a refund - save the money for actual repairs should they be needed.
Within 30 days of signing, the contract can be fully refunded, so i'm all clear :)
Click to expand...

Just be prepared for some pressure to keep it. I would start by calling them and telling them you want to cancel and when can you pick up the check. If you financed the purchase and the warranty is included in the loan, the agreement probably states that the refund will be applied to the loan and will reduce the principal. Cheers.
 
There's a DEDUCTIBLE too, right?
I bought one of these on a car a long time ago. I think it was only a grand back then. $200 ded. Water pump broke. It was $300. I had to pay $200. So I basically paid $1,200 to save $100 off a water pump repair.
 
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