Mazda Warranty
- Thread starter JRoll
- Start date
I bought a 19 Signature from a dealer with the best price (love it BTW) and then went on line to get the Mazda extended warranty pricing. Bought it from a local dealer who matched my best price. 8 yr, 100k, $100 ded for $1300. The Mazda warranty covers pretty much everything so I did it for piece of mind. Probably won't get my $ back but you never know. Had a similar plan on the Volvo I traded and it saved me over $4K for front end repairs.
But does the Mazda warranty cover the turbo? I had a quick scan of the warranty pamphlet and I don’t recall seeing the turbo in there
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- Canada
Same here, bought a 2018 with extended warranty. I negotiated the warranty into the vehicle purchase to get them to give it to me at half the price they originally wanted (which I believe was $2400, so I paid $1200).
I opted for the warranty because this is my first Mazda, my first turbocharged vehicle, and the 2.5T drivetrain is still fairly new. I also wanted the peace of mind for the length of the finance term, just to avoid any potential large expenses in the event of a major component failure.
To add to PTGuy's comment, the equation works like this:
Premium = Expected Claims + Commission to Sales Person + Commission to Dealer + Profit Margin + Risk Margin + Admin Expenses.
In the extended warranty business, the Premium is significantly higher than the expected claims. The underwriter has lots of figures to gauge expected claims.
Yes, a minority of buyers, it will turn out to save them money. But the odds are you would rather be the insurer than the insured in that equation. This "peace of mind" that the dealers talk about is just a very expensive way of prepaying for repairs. So just set the money aside and be the insurer. You will come out ahead mnay thousands over your lifetime if you never buy an extended warranty.
Now this equation holds to some extent for all "insurance". But true insurance is for low probability, but high impact things like fire insurance, liability insurance, life insurance, etc... For these if you have a claim it will be thousands times your premium. And for these types of insurance, the commissions and margins are not as large.. So buying insurance makes sense as you can't self insurer a catastrophic claim. But for extended warranties, what's the worst case scenario? maybe a claim of 4x to 5x the premium at the worst (very rare). these things, it makes sense to self insure and keep funds aside to pay for repairs. The other consideration is if a car model has some really major issues, manufacturers may extend the base warranty to address complaints.
Also you're buying a Mazda, a brand with very high reliability scores. Buy reliable brands, have money set aside, and self-insure.
Premium = Expected Claims + Commission to Sales Person + Commission to Dealer + Profit Margin + Risk Margin + Admin Expenses.
In the extended warranty business, the Premium is significantly higher than the expected claims. The underwriter has lots of figures to gauge expected claims.
Yes, a minority of buyers, it will turn out to save them money. But the odds are you would rather be the insurer than the insured in that equation. This "peace of mind" that the dealers talk about is just a very expensive way of prepaying for repairs. So just set the money aside and be the insurer. You will come out ahead mnay thousands over your lifetime if you never buy an extended warranty.
Now this equation holds to some extent for all "insurance". But true insurance is for low probability, but high impact things like fire insurance, liability insurance, life insurance, etc... For these if you have a claim it will be thousands times your premium. And for these types of insurance, the commissions and margins are not as large.. So buying insurance makes sense as you can't self insurer a catastrophic claim. But for extended warranties, what's the worst case scenario? maybe a claim of 4x to 5x the premium at the worst (very rare). these things, it makes sense to self insure and keep funds aside to pay for repairs. The other consideration is if a car model has some really major issues, manufacturers may extend the base warranty to address complaints.
Also you're buying a Mazda, a brand with very high reliability scores. Buy reliable brands, have money set aside, and self-insure.
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- 2021 CX-9 Sig
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- 2021 CX-5 GT
Yeah, I think I was similar. My current dealership was really good at not playing around. I had told them that for my CX-5, I got it for ~$700 (they were asking for ~$2000). This was at another dealership in another state (part of the country). So they just asked if I wanted it for $X and I said yes. Like you the thinking was that it was good piece of mind with the 2.5T.
