Mazda Extended Protection Plan (Extended Warranty)

Hi everyone! I have been car shopping for about 2 months and we have finally settled on a Mazda5 Touring with a 5-speed manual (although we may still get the automatic). The reason why we are buying a new car is because the car we have is a total lemon. We bought it used at 2 years old had every intention of keeping the car for at least 6 more years, but after just two years and it has been in and out of the shop too many times to keep. We kept our last two cars (both Japanese, a Toyota and a Isuzu) for over 8 years each with no problems.

I really think the Mazda5 is the best car for us but I am feeling a little "once burned, twice shy" on car warranties. I know the Mazda5 has a history in Europe and Japan, but this is the first North American model year. I am nervous about the reliability of a first-year model and I think I want to buy the 7/85K Total Care MEPP but it seems really expensive for an extended warranty (3 years/35K over the standard warranty) on a new car. Our local dealer wants $2600 with a $0 deductible and $1800 for a $100 deductible. The deductibles are per visit and not per problem.

So ... has anyone purchased the MEPP? Are these prices out of line? Should I shop around for prices? Can I buy a MEPP from out of state? How long (time/miles) do I have to buy a MEPP?

Thanks for any help you can give me. You have been very helpful in my decision to buy the 5 as I lurked waiting for my account to be approved .

I previously bought a Protege5 with Mazda Added Protection for an extra 2 years. Rock-solid reliability and never needed the warranty.

Traded in the P5 for a 5 without warranty. You may want to read this:
http://www.lemonaidcars.com/secret_warranties.htm

$2600 in the bank could fix most problems 5 years from now. You'd be paing all that money for a maybe rare total muck up. Otherwise repairs should not average more then $400. My Jetta, which is (was) expensive to maintain never cost me more then $450 or so, but I had that 2-3 times a year during my 3rd year of ownership. In comparison, the Mazda seems MUCH cheaper to fix and maintain so I'm actually happy that I will be saving money long term over my Jetta.

Here's the reality on these extended warranties... they're profit margins for the dealer. Most new car warranties are pretty good, and if there's a serious problem with the vehicle, it will likely show up during the the initial warranty period. Also, many serious problems that may show up later are often covered by recalls and service bulletins (like when Ford had to replace all those V6 engines a few years ago).

Extended warranties are really like a "pay it forward" system. I will pay you now for the repairs I will need later... the difference being that the policy and the dealer's interpretation of it decide what is covered and what's not. It's just like an insurance policy... literally.

Let's be honest, a car, like any machine, is going to wear out and break. Most cars today are built much better than those built 25 years ago. You should have a good 100,000 miles of trouble free driving with good driving habits and regular care and maintenance. Over time and use, however, things are going to fail, and it's going to cost you. It's only a matter of time.

Here's what I would do... price out what some major repairs would be. How much, for example, would it cost to replace an engine or transmission? Now, how much for the warranty? Now you decide... do I pay this now knowing that I may never get the opportunity to cash in on this insurance policy, or do I take that money, put it in the bank, and use it for repairs if the need ever comes.

Consider too how long you plan to keep the car? If you're going to get rid of the car after 4 or 5 years, the likelyhood of a problem is low. Longer than 5 years, then you start getting into a zone where cost of ownership may go up (depending on care and mileage, of course).

I also always feel a little put off when they try to sell an extended warranty. They spend all this time during the sales process telling me what a great car this is, then they turn around and want to sell me an extended warranty? Now it's like they're telling me this really great car is really a piece of crap and if you don't get the warranty you're going to regret it? It's an oxymoron.

The only time I've invested in extended warranties is when I've purchased a used car... and here's why. I don't really know who owned this car, how well it was cared for, how badly it may have been driven. In most cases the original warranty has expired, and it's those unknowns that tip me over the edge. With a new car, however, I've always felt pretty well covered by the factory warranty.

One more thing... the Mazda5, being built on the Mazda3 platform, has a pretty solid track record - It's a high volume platform, well designed and easily maintained. Also, although the 5 is new to North America, it's not new to Mazda. All these factors lean toward good long term reliability.

My feeling is that you're better off putting the extra money in your own bank instead of the dealer's pocket.

We intend on keeping the Mazda5 for 7-10 years. I wanted to keep my current car for just as long, but was at the dealer for major repairs three times in just 2006 alone. The previous 18 months were just as bad with a major repair (the same check engine light code again and again) every 4-5 months. I feel like a I have a ticking time bomb and I need to "pass the potato" before it goes off again. *sigh* We love the car ... it's nice, comfortable and fun to drive ... but it hates us! We paid 21K for that car used and we'll get 11K tops in a trade 2 years after buying it. 10K in depreciation in two years really pisses me off, but I don't want to sell it on my own and personally stick someone will a lemon.

So, I am viewing the MEPP from the standpoint of someone who wishes they had one on their current car.

So, are the prices fair? I know that extended warranties are a money maker for dealers so I was wondering how much wiggle room I have for negotiation.

So, what kinda car do you drive now, anyways? (naughty)

EPP's are a tremendous win for the dealers. You're Basically forking over, sAy $2,500 for warranty coverage, and what happens if during that time all you do is wear out a fuel pump and wiNdshield motor... say $500 worth of repairs. Guess what, you just gave Mazda $2,000 to wipe their arse with! IMO, the EPP is more risK than you realize.

Got it? Good.

I agree, and extended warranties often don't have as comprehensive coverage as the manufacturer warranty. So, you may still be stuck with costly repairs.

robinb said:

...I wanted to keep my current car for just as long, but was at the dealer for major repairs three times in just 2006 alone. The previous 18 months were just as bad with a major repair (the same check engine light code again and again) every 4-5 months. I feel like a I have a ticking time bomb and I need to "pass the potato" before it goes off again. *sigh* We love the car ... it's nice, comfortable and fun to drive ... but it hates us!

Click to expand...

Well Robinb... I certainly don't want to talk you out of a new Mazda5, because we really love ours, but before you ditch a car that you seem to really like, I'd get a 2nd opinion. More often than not, it's not the car that's the problem, but the people doing the service. After all, a car is just a bunch of parts... find a problem, replace the part. A 2nd opinion may help you determine if it's time to trade out of it.

I drove a german import for 12 years and 300,000 miles. I loved that car, but it's petigree meant that I spent a lot of time in the shop. It took me quite a while to find service I could really trust. I can't tell you how many times I got bum advice about problems before I established a network of service people I could trust (believe it or not, one was a dealer).

A lot of dealerships work off a standard service advisory card or list, and many times techs don't have enough experience to think outside the box. Or maybe they're just not sure but can't spend the time to look deeper into the issue. Also, if you haven't yet, use the internet to research the problem. If you really like the car, it may just be worth the investment to get another opinion...

Can you imagine a Mazda at this mileage??
I leave the Mazda 5 to my wife (she has more time than I have to visit the dealer to fix the darn car.)

I rather drive my old MB
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well Jackd, sorry to say, but that's only 510,550 miles (lol2)

jmcglynn said:

Well Robinb... I certainly don't want to talk you out of a new Mazda5, because we really love ours, but before you ditch a car that you seem to really like, I'd get a 2nd opinion.

Click to expand...

We did get a second opinion of sorts. My husband talked to our local European indy car guys who took care of our last car of this same make/model after it was out of warranty. They specialize in this make and I have trusted them with my cars both Japanese and European for over 10 years. (BTW, I'll let the cat out of the bag about the make after I find a dealer to give me a good price ... you never know who reads these forums, I hope everyone understands.) Anyway ... he said that he believes that cars can have a "history" and that they can indeed be lemons. Since our car does have a "history" they recommended that we get rid of it. We also thought about buying an extended warranty for the car before it fell out of the manufacturer's warranty but it was $3,000. For just a few thousand more we're getting a brand new car.

I think I speak for most everyone on this board that you specifically have been an incredibly positive aspect to Acura ownership....and that is in terms of customer service, responsiveness, and competitive pricing. The post-sales service and support you provide is a primary reason why many of us stick with the Acura brand and consider purchasing additional Acura vehicles.

..............................

Dineshani(breakn)



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(guitar)

If you insist on an extended warranty, there are other providers out there for much less money.

This is how I would view it: the $2,600 is not the tipping point in whether or not you will have a repair. The $2,600 goes to pay for commissions, profit for the dealer, marketing, etc. The actual risk of repair is likely only a small percentage of the price. Let's say it is 20% and three trips to the shop. So the actual tipping point is $520.

So you will have $520 in repairs. Can you not just put that money in the bank for a rainy day?

(uhm)(scratch)(uhm)(scratch)(uhm)(scratch)(screwy)

robinb said:

Hi everyone! I have been car shopping for about 2 months and we have finally settled on a Mazda5 Touring with a 5-speed manual (although we may still get the automatic). The reason why we are buying a new car is because the car we have is a total lemon. We bought it used at 2 years old had every intention of keeping the car for at least 6 more years, but after just two years and it has been in and out of the shop too many times to keep. We kept our last two cars (both Japanese, a Toyota and a Isuzu) for over 8 years each with no problems.

I really think the Mazda5 is the best car for us but I am feeling a little "once burned, twice shy" on car warranties. I know the Mazda5 has a history in Europe and Japan, but this is the first North American model year. I am nervous about the reliability of a first-year model and I think I want to buy the 7/85K Total Care MEPP but it seems really expensive for an extended warranty (3 years/35K over the standard warranty) on a new car. Our local dealer wants $2600 with a $0 deductible and $1800 for a $100 deductible. The deductibles are per visit and not per problem.

So ... has anyone purchased the MEPP? Are these prices out of line? Should I shop around for prices? Can I buy a MEPP from out of state? How long (time/miles) do I have to buy a MEPP?

Thanks for any help you can give me. You have been very helpful in my decision to buy the 5 as I lurked waiting for my account to be approved .

Click to expand...

For everyone reading this thread: Don't settle with the first extended auto warranty plan that you are being offered either by your dealership or the salesperson on the phone. First of all, you don't have to purchase an extended warranty if your Mazda less than 4 years old. Your Mazda comes with a manufacturer's warranty that covers it for 4 years or 50K miles. You can extend you warranty right before the factory one expires, in most cases you can do that even after your factory warranty expires.
Second of all, get quotes from different warranty companies. SHOP AROUND! This is the only way to get the best price. I was offered an extended warranty for my Mazda for 2800 (by salesperson at the dealership), but was able to get it for 1600 directly from an extended warranty provider. You can just go online and search for auto warranty, you will see a lot of websites that have online quotes.

And FINALLY, make sure that the company is RELIABLE and trustworthy. It is very important. Companies like US Fidelis are out of business now and their customers were left without policies or money. I can recommend a few companies that you can go with, they all have good deals and have been around for at least 6 years: EnduranceWarranty.com, 5 Star Warranty, Warranty Headquarters, Carchex, Auto Repair Warranty. I know for a fact that these companies are reliable, but if you find more please share here.

I hope those who are searching to protect their cars will find this info useful. The most important advice that I can give you is TO DO YOUR RESEARCH.