Extended Warranty - Turbo?

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2019 GTR
Hey all,

My dealership keeps calling me and offering me an extended warranty on my 19' GTR. I am on the fence with this since Mazda's are pretty reliable, however, I am not sure if I should be a little more worried since this is a turbo model. How many of you have and or plan to purchase the extended warranty for their CX-5?

Also, for those of you that have older CX-5's, especially the current generation 17+, what issues have you had with the vehicle?

I'd love some feedback, as I'm not sure if it's worth it or not. So far I have 11k miles, and had to replace a wheel bearing (I think that was just a fluke).

Thanks!
 
How much and how long does the extended Warranty run?

A big factor would be how long you normally keep a car, if you dont expect to own it beyond 5 years then an extended warranty may not prove its worth.

Mazdas 5yr/60k mile powertrain warranty should take care of the big stuff for awhile.
 
:
Pueblo county CO
:
CX-5 Sport 16.5 6M
I think the only thing warranties have gotten me is peace of mind. Usually the time expires before the mileage.
 

madar

Contributor
:
2016.5 CX 5 Touring AWD, 2015 SCION XB
Just keep in mind, the price on these is quite negotiable like everything else. I'd imagine during these times you could really bend their offering way back.
 

PaulZooms

16.5 GT Sensing
:
Lakewood, CO
:
2016.5 CX-5 GT
Just keep in mind, the price on these is quite negotiable like everything else. I'd imagine during these times you could really bend their offering way back.

That’s what I thought. Was offered this:
“For 9yr/100,000 $0 ded. Our cost is $2584.”

No sale! Since I probably won’t be buying, I did not negotiate the bid. $1k too high IMHO.
 

Avoidin Deer

Zoom Zoom, baby
Contributor
:
Central Virginia
:
2019 CX-5 Reserve
Keep in mind that the 2.5L turbo engine has been used in the CX-9 for a while.

I hung around the CX-9 forum before making my purchase for that specific reason and didn't see anyone commenting on issues with the turbo.

Maybe you want to post your question over there as well for CX-9 owenrs to comment on, since a big part of your concern is about this engine.
 

madar

Contributor
:
2016.5 CX 5 Touring AWD, 2015 SCION XB
That’s what I thought. Was offered this:
“For 9yr/100,000 $0 ded. Our cost is $2584.”

No sale! Since I probably won’t be buying, I did not negotiate the bid. $1k too high IMHO.
Absolutely. I bought one for my 2017 2 years ago, bumper to bumper Mazda original, 6year/100k miles, they stated their cost was $1300.
 
Why does the dealership keep calling you to offer an extended warranty? Clearly, because it is a big profit center.

While they are sold on the premise of "peace of mind", it is just a very inconvenient and expensive way to prepay for repairs. If every time you are offered an extended warranty, you instead decide to be the insurer by setting aside the premium, you will come out many thousands ahead over your lifetime.

The equation is always going to be: Premium = ExpClaims + Commission + Admin Expenses + Profit Margin + Risk Margin.
So Premium >>> expected claims, particularly since commission and profit margins are high. That's why the dealer can negotiate price, because they can always accept a lower commission.

This equation is true for any form of insurance, but it does makes sense to buy insurance for low probability, but high impact catastrophic claims like fire insurance, life insurance, disability insurance, etc... where your claim could be 100x or 1000x your premium. But for extended warranties, even the worst case scenario, your is only going to be a very small multiple of the premium.

You would rather be the insurer in these cases. So just self insure. Pick a reliable car brand (like Mazda) and never buy extended warranties, and you will be ahead many thousands of dollars over your lifetime.
 
:
Southwest Ohio
:
'19 CX-5 diesel
Extended warranty is like going to Vegas ... The policy writer is "The House" and "The House" doesn't loose (overall).

My last purchase (19 CX 5 diesel) they started at $2900 for an extended warranty to cover till 6 years /75000 miles and came all the way down to $1300. I still didn't take it. (Never do)

So "The House" (the experienced experts in the matter .... They do this for a living) bet based on experience is that there will be less than $1300 of repairs in that time. I think they're right! I'll keep my money in my pocket thankyouverymuch 😊
 
4

40752

Why does the dealership keep calling you to offer an extended warranty? Clearly, because it is a big profit center.

While they are sold on the premise of "peace of mind", it is just a very inconvenient and expensive way to prepay for repairs. If every time you are offered an extended warranty, you instead decide to be the insurer by setting aside the premium, you will come out many thousands ahead over your lifetime.

The equation is always going to be: Premium = ExpClaims + Commission + Admin Expenses + Profit Margin + Risk Margin.
So Premium >>> expected claims, particularly since commission and profit margins are high. That's why the dealer can negotiate price, because they can always accept a lower commission.

This equation is true for any form of insurance, but it does makes sense to buy insurance for low probability, but high impact catastrophic claims like fire insurance, life insurance, disability insurance, etc... where your claim could be 100x or 1000x your premium. But for extended warranties, even the worst case scenario, your is only going to be a very small multiple of the premium.

You would rather be the insurer in these cases. So just self insure. Pick a reliable car brand (like Mazda) and never buy extended warranties, and you will be ahead many thousands of dollars over your lifetime.
Great post and dead on with my thinking.
 

madar

Contributor
:
2016.5 CX 5 Touring AWD, 2015 SCION XB
They keep at it because sales are dead due to the lock down everywhere and they're trying to make a buck without having to bring people into the showroom..
 
:
2019 Mazda CX-5 GT Reserve
Extended warranty is like going to Vegas ... The policy writer is "The House" and "The House" doesn't loose (overall).

My last purchase (19 CX 5 diesel) they started at $2900 for an extended warranty to cover till 6 years /75000 miles and came all the way down to $1300. I still didn't take it. (Never do)

So "The House" (the experienced experts in the matter .... They do this for a living) bet based on experience is that there will be less than $1300 of repairs in that time. I think they're right! I'll keep my money in my pocket thankyouverymuch 😊
Good analogy.

It also annoys me to no end when they present all the add-on coverage as "Only adding $X dollars to your payment", not what the full price of the add-on coverage is.
 

sm1ke

Work In Progress..
Moderator
Contributor
:
Canada
:
'18 CX-9 Signature
Why does the dealership keep calling you to offer an extended warranty? Clearly, because it is a big profit center.

While they are sold on the premise of "peace of mind", it is just a very inconvenient and expensive way to prepay for repairs. If every time you are offered an extended warranty, you instead decide to be the insurer by setting aside the premium, you will come out many thousands ahead over your lifetime.

The equation is always going to be: Premium = ExpClaims + Commission + Admin Expenses + Profit Margin + Risk Margin.
So Premium >>> expected claims, particularly since commission and profit margins are high. That's why the dealer can negotiate price, because they can always accept a lower commission.

This equation is true for any form of insurance, but it does makes sense to buy insurance for low probability, but high impact catastrophic claims like fire insurance, life insurance, disability insurance, etc... where your claim could be 100x or 1000x your premium. But for extended warranties, even the worst case scenario, your is only going to be a very small multiple of the premium.

You would rather be the insurer in these cases. So just self insure. Pick a reliable car brand (like Mazda) and never buy extended warranties, and you will be ahead many thousands of dollars over your lifetime.

Can't disagree with you here. That said, speaking for myself, the peace of mind is well worth the extra $1300ish I paid. It depends largely on the individual and their preference.

Picking a reliable brand and never buying extended warranties is a great plan, but nothing is ever certain. Case in point - my dad's Toyota Highlander. Dealer maintained to the letter, and about a year after his warranty expired he started having oil consumption and mileage issues. Turns out he needed significant engine work done and he had to pay out of pocket. Now, his experience is the exception and not the rule, but the point is that there are no guarantees.

Personally, I'm in the camp of "get it if you can afford it at the time of purchase". If not, start a "potential repair fund". Ensure that you'll have $4-5k in that fund by the time the warranty runs out and you should be able to cover most out of pocket expenses.

I have a 2018 CX-9 with the 2.5T engine, and I opted for the warranty for a few reasons. First Mazda, first turbocharged engine (that had only 2 years of "real-world testing"), first new vehicle purchase, and I had just purchased my first home. So far it's been perfectly reliable and I haven't had to worry about anything. Even did an oil analysis to make sure everything was in spec. All I can say is that you should never pay their up front price. In my case, I paid 50% of the listed price.
 
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CX5 GT-R
I have a 2019 GTR, and paid $2400 for a 10 year, 150K mile bumper-to-bumper warranty that I bought from my dealer. Already under the 3/36, t hey have done $1500 in work to my CX5, so I appreciate the insurance policy of the warranty offered, considering the swivelling headlights, turbo, transmission, AWD diffs, NAV unit, air compressor, etc. etc. all this stuff...it can break. My girlfriend just had to replace the NAV unit in her Ford Edge, a 2016 with 88K miles on it. List price $1500, but since she'd just bought it from that dealer, they worked with her big time on it.

Modern vehicles have a TON of stuff in them, and I have yet to own a vehicle that this warranty would not pay for itself on.
 
:
CX5 GT-R
Extended warranty is like going to Vegas ... The policy writer is "The House" and "The House" doesn't loose (overall).

My last purchase (19 CX 5 diesel) they started at $2900 for an extended warranty to cover till 6 years /75000 miles and came all the way down to $1300. I still didn't take it. (Never do)

So "The House" (the experienced experts in the matter .... They do this for a living) bet based on experience is that there will be less than $1300 of repairs in that time. I think they're right! I'll keep my money in my pocket thankyouverymuch 😊
They make the bet because most people don't keep their cars long enough for it to matter and the factory warranty is used "first", so the sale of an extended warranty costs the dealership ZERO in most cases. THAT is what the real bet is.
 

Avoidin Deer

Zoom Zoom, baby
Contributor
:
Central Virginia
:
2019 CX-5 Reserve
Good analogy.

It also annoys me to no end when they present all the add-on coverage as "Only adding $X dollars to your payment", not what the full price of the add-on coverage is.
"For less that the price of a cup of coffee a day..."
 
:
2019 CX-5 GTR
oh boy wall of text ahead.. prepare for eyes to glaze over.

yes @sm1ke has already said some of this.

Of course no manufacture is 100% reliable or without manufacture flaw. In this day and age however companies are MUCH more deliberate in quality manufacturing. Mazda as a whole is a good built vehicle, it doesn't have a history of glaring product flaws that cause failures in a wide range of vehicles. Specifically the CX-5 model has performed quite well in terms of reliability and lower repair costs. Still this doesn't mean your vehicle wont fail in some manner even with great maintenance and moderate use.

as others have said extended warranty coverage is about a few things

1) to make profit for the dealer
2) to sell you fear; fear of no protection from expensive repairs
(maybe to also sell you convenience)

ask yourself this question: How financially disciplined are you?

If you can honestly say you can take the $1300 or $2600 and put it in a dedicated low interest savings account and NOT touch it until the car is paid off / sold - do that. note: the vehicle repair fund in the household should be separate from the 3 month expense emergency fund.

If you waiver on the thought of being able to ignore the $$ sitting in there begging to be spent on a new TV or stickers for the car .. or you can't logically separate your money for a variety of reasons, then maybe putting the warranty into the car payment is a good idea. Or maybe you buy the warranty outside of finance (even better financially).

your original questions were:

How many of you have and or plan to purchase the extended warranty for their CX-5?
-- I'm not sure this data point is helpful to you. You simply don't know the situation of other CX-5 buyers (see above).

Also, for those of you that have older CX-5's, especially the current generation 17+, what issues have you had with the vehicle?
-- This is valid question. However are you attempting to gather data about low cost vs high cost repairs to access the risk of ownership?

decent resource:

what typical repairs cost:

take a bit of time reading this owner's forum and others - do your homework on the failure rate for the vehicle - is there a common theme you keep seeing that concerns you? If yes then evaluate that risk for your vehicle and usage then decide on action.

Sometimes a product like extended warranty provides hard to calculate value in terms of your time and effort. Your time has to be worth something.

No warranty -
DIY? Research the method of repair. Source part(s). Do repair. Test.
Find a local repair shop. Did you research the shop, how long did that take you? Wait for repair with no loner vehicle? Get a ride? Family has two vehicles?
All that is time. Time is something you can not get more of.

Warranty -
Drop it off; they provide a loaner, they fix it, you go about you day. Maybe they don't cover it, and you still have to take it elsewhere.

Is either scenario worth the cost to YOU?

We haven't even started to talk about WHICH warranty product the dealer is selling. Yes some products, like so much in life, are better than others.

TLDR; it will take more than a forum post to determine what is financially reasonable for YOU. Sure you can gather some anecdotal feedback here - and hopefully that feedback is enough to provide you guidance to making the decision.

Report back when you decide and let us know why you decided the way you did. This thread will be helpful for the next 10 times this comes up. :)
 
:
CX5 GT-R
My last cx5 required almost $1500 in work by the dealer to be saleable when I traded it in at 106k miles. It had no turbo, no swiveling headlights, no sunroof, no HUD, no folding mirrors ($750/per, to replace the motor at the dealer...fyi).

You can argue "oh, I'll use an indy". Cool. So how cheap is that swiveling led headlight setup?
 

Avoidin Deer

Zoom Zoom, baby
Contributor
:
Central Virginia
:
2019 CX-5 Reserve
I wonder if I can get a deal on an extended warranty for my 2019?

I didn't buy one when I bought the car, but I bet the dealer would be glad to sell me one now, and probably at a good price.
 

Chocolate

Harpy Eagle
:
2019 CX-5 AWD
I think they only make sense if you can get it at the right price. I didn't buy one with my CX (lease with plan to buy), but my last vehicle (2013 LX 570) had a certified pre owned warranty that covered a $900 suspension failure about a year before the warranty ran out. That certified pre owned warranty used to be 6 year, unlimited mileage, now it is 3 years with 100,000 miles. I guess it was too good and they want to increase take rates of their extended warranty.

I didn't want to own something with a hydraulic suspension out of warranty and the payments were too high so I sold it for my CX. I never bought an extended warranty for that LX because every dealer quoted a price for thousands of dollars. Your length of planned ownership will also determine whether the warranty makes sense.
 
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