Coincidentally tonight I helped an ex girlfriend via telephone buy a used Altima, a 2007 with 38,000 miles. She needs the bigger car, so MINI was out, in case you were wondering.

Anyway, the salesman during an e-mail mentioned an extended warranty and I told him what I thought about "extended warranties."

He corrected me and said that Nissan offers an extended warranty, he said it was considered a "wrap" warranty since it is bumper to bumper. I looked it over and told her to tell the salesman "no thanks" because it was $2000.

So when she told the dealer to forget it, he said how about $1700, she called, and I said forget that too.

So then he said how about $1400. I told her to tell him make it $1200 and it's a deal.

In these hard time for car dealers, he caved. So she got 84 months [from the cars in-service date of January 2007] or 100,000 miles, bumper to bumper coverage.

Similar to MINI's certified pre-owned, her 2007 Nissan Certified Pre Owned includes a power-train 84 month, 100,000 mile warranty, but the additional warranty covers items other than the power-train. This additional coverage is what cost the $1200. [The car had 38,000 miles so the original 36,000 Nissan warranty had expired.]

Not bad on a car that was rated #1 family sedan in Consumer Reports [it ain't no MINI though. ] Wish MINI had extended warranties, but 4 years, 50,000 miles is nice.

Compare Nissan's language [below] with what some of those bogus after-market service contracts say:

Once the manufacturer's warranty expires, you have nothing to protect you from expensive vehicle repairs. Most vehicles come with a 3 year or 36,000 mile (whichever comes first) bumper-to-bumper warranty. Once that expires, you have no protection against breakdowns or failures.

Nissan's extended warranty assures that for a specified amount of time and/or mileage, both parts, labor and sales tax (if applicable) required for replacement or repair of your vehicle will be paid.

Nissan of North America backs every warranty with their financial stability. Unlike aftermarket warranty providers, Nissan does not have third party insurance providers backing their assets. Rest assured your warranty will be supported throughout the lifetime of its term and coverage.

 

I did a lot of research before buying a Warranty Direct extended warranty on a Volvo. They were great. They emailed me actual contracts to read, gave me all the info I needed. Important to me was that I could use any shop and they paid them by credit card the day of service. All was clearly spelled out in the contract. The Warranty Direct sales person was great - and I just spoke with her last month as mine expired. How about that, she is still there four years later.

My shop was impressed with them. They have lots of flavors of warranty, so choose carefully. (Their main business, operated under a different name, is providing warranties for dealers to sell. They also have another co selling warranties once cars go over the 100k limit).

I paid $2500 for a no deductible warranty with the optional emissions coverage. I had $3000 in claims in the first 18 months, and another $1000 near the end. Never a problem.

You are right to be careful about extended warranties - this was my first. In this case I felt the risk/reward justified the warranty. In fact, I had no major repairs, just seven or so small but expensive repairs.