2007 Other Land Rover Models V8 Four Wheel Drive Automatic 45000 miles
I just bought a 2007 Land Rover LR3 with 45K miles on it. It has 5000 miles left under the mfg warranty. Land Rovers do not have the best reputation for reliability. As a matter of fact. Soon after purchasing, I started hear a metal on metal grinding sound. I brought it to the dealer and they found a problem with the rear differential. THEY REPLACED IT! Thankfully, this was covered under the manufacturer's warranty.
Now, I am very concerned that I should try to buy an extended warranty. I am not a fan of third party extended warranties at all. Too much fine print and nothing is ever covered.
While shops will deal with them, many wil not. They are sometimes beneficial but usually benenficial for the plan provider. No different than going to a casino, these policies are a gamble. Casinos make money for the same reason the providers usually do. I have seen some go under and leave the owner out of luck as well.
Most policies have many exclusions. They may not pay the going rate for auto repair leaving you with the balance. I dealt with Gaurdian warranty company yesterday and they will only pay up to $65.00/hr. I then bill the customer for the balance. Some companies will only pay a certain amount towards a part leaving you with either an inferior part or addiitional charges.
There may be a deductible for each problem.
You may get coverage only up to a certain dollar amount. Once reached the warranty is void.
Not all warranty companies are to be painted with the same broad brush. I have found hertiage to be pretty good to work with.
I wouldn't touch one myself.
October, 1, 2009 AT 10:41 AM
I agree totally with all you have said and I would not worry myself with an extended warranty for a car that is very reliable. But this Land Rover that I own doesn't have a good reputation. I don't know the stats but I do know that repairs that I have had done under the manufactures warranty have amounted to considerably more than I would spend on an extended warranty. Albeit, these repairs may or may not have been covered with that extended warranty. On the other hand, maybe I have already replaced all the failure prone parts?
So, my question, I guess, is more 2007 Land Rover LR3 specific.
October, 1, 2009 AT 3:09 PM
This is a numbers game and I think I can shed more light. Let's look at the costs:
The third year is where you are at conservatively,
I want to take this to a mathimatical level.
Mechanically you may be at the fourth year.
(4 years x 12000 mile per year). For arguments sake we will take the more expensive projection, besides they offer a calculated number and will give a higher cost for you to own. I want to err on the conservative side in the event the numbers are close. So, let's focus on the cost of repairs and maintenence.
This part is important. I need to know what the amount of miles you drive are annually, because the costs are directly related in this formula.
Also what is the cost of the contract?, how many miles? and for how long?
I know that repairs and maintenence run typically $.13/miles on average conservatively. True, you do get some fliers in this that are three cents a mile and others that are twenty-five cents per mile. But .13 is conservative in a poor economical location that we see some expensive repairs. Your location may vary. You could use a cost of living percentage difference between Niagara Falls and your location to give a adjusted number.
I keep tabs on the cost per mile for my customer's cars to better help them decide what to do when a large repair comes along.
Let's say you drive an average of 12,000 miles per year. I would estimate $1560 for maintenence and repairs including sales tax. ( CPM = .13/mile) This site says about ten cents per mile (903+362 divded by 12,000 miles) or 1265 the 4th year. The fifth year they jump to $1377.00/year. Since maintenence is not covered, we need to cut this number in half. Maintenence keeps the machine working properly and lowers the cost of repairs in the long run. USing my higher figure half would be $780 you will be saving per year....asuming they cover the needed repairs.
So, what are the amount of miles you drive annually?
Also what is the cost of the contract?,
IS there a maximum that they will pay out?
How many miles do they cover for?
and until what date?
Actually, what area are you in? I can probably locate the cost of living differences.
October, 1, 2009 AT 4:24 PM
On a side note, look at the depreciation the very first year!
Good greif, I shake my head at the arguement that "I deserve a new car" mentality. It is saying I can afford to throw away $8000 in exchange for driving out of the dealership in a new car. I might just go test drive some now just to see if it really feels so good.