Comments on: Why Extended Warranties for New Tires Are A Waste of Money

By: Len Penzo

Len Penzo — Tue, 21 Jun 2011 02:13:07 +0000

I appreciate you sharing your story with my readers, Dan. You definitely got screwed. Sorry to hear about that. If I were you I would look for another tire dealer who is honest enough to tell you to pass on those warranties.

By: Dan

Dan — Mon, 20 Jun 2011 21:56:24 +0000

I just got back from my tire dealer and I’m pretty pissed. I have an 80k prorated tire warrenty. I have yokohama avid trz’s and had the tires on my car about a year and a half and put about 25-30k on them. When I originally bought them I paid about $100 each. That wasn’t with a deal or anything. So, I had an air bubble in the sidewall of my tire( the second sidewall problem I have had with these tires) and figured they would be mostly covered.

Well, when I get the bill I was shocked that they were charging me $92. I said something to the guy and he told me the tires were about 50% worn, so the tire was $61. Then the new insurance on the tire was $13 and new valves were $12, plus tax. I was pissed, I told him I paid $100 for these tires when they were brand new and it’s ridiculous that I have to pay $92 for half the same tire. I told him if I knew that, I would have just paid the extra $20 for the new tire. He said that these tires have gone up over 20% sense the time I had bought them. I feel like I was just kicked in the nuts. I will never purchase the warrenties on tires again and it’s the last time I go to this tire dealer. I have a friend that works there that I am going to talk to about it this week. I just can’t believe it was so much.

By: ctreit

ctreit — Wed, 20 Apr 2011 20:48:56 +0000

This great “deal” reminds me of getting comprehensive and collision insurance on your car. The premium for this type of insurance stays the same but if something happens to the car, you only get coverage for the current value of the car which is considerably lower after owning the car for, say, three years.

By: 20smoney

20smoney — Wed, 20 Apr 2011 20:48:56 +0000

The king of personal finance, Dave Ramsey, recommends against all extended warranties.

By: Len Penzo

Len Penzo — Wed, 20 Apr 2011 20:48:56 +0000

@20s: I disagree with Ramsey in that regard. I can think of instances where extended warranties actually make a lot of sense. For example, parents who give their younger kids expensive electronic devices like XBoxes and hand-held devices like iPods may want to consider extended warranties. I’ve bought them for precisely that reason and they easily pay for themselves because my son is very hard on them. I’ve made multiple claims on several electronic devices that he has ruined or broken.

By: Mr Credit Card

Mr Credit Card — Wed, 20 Apr 2011 20:48:56 +0000

Len

I’ve always paid the warranties on the tyres. There were a couple of time when they hit a nail and I had them replaced. Because I had them on “warranty”, the cost to replace them was a fraction of a new tire cos they prorate it based on “can’t remember what”.

Then before I went for my recent vacation, my tire in my Lexus 350 went flat. When I came back I tried to change it (I did not have any warranties on this one). But I could not get the spare out!

So I called triple A. Guy came out and I thought he was going to change the tire for me. But instead, he repaired it. I saw him insert a thick rubbery stuff in the hole, “cemented” it and said it was good to go. He said that was the way an auto shop would repair it, but they would have charged me $40 for labor. He charged me only $7. He then said that if I brought it to the dealer, they might change it! Or had I had a warranty and brought it to the person who sold me the tires on warranty on my other car, he would have replaced it and “charge me only a prorated rate because I had a warranty!”..

Moral of the story is : warranty for tires are useless. Get a AAA membership and call them whenever you have a flat. They’ll send someone to fix it for $7!

By: Little House

Little House — Wed, 20 Apr 2011 20:48:56 +0000

This gives me something to think about. However, I want to add that when I purchased my car 4 years ago, we also purchased tire insurance. It was a nominal monthly fee. We’ve actually used it a couple times, like 1.) when the Honda dealership stuck glass in our tire. Yes, you heard me correctly (it’s a scam they have going and we no longer go there!), our tire insurance refunded us the cost of our tire, $125. 2.) I recently ran over a nail (I don’t know how this happened!) and the air was oozing out, enough for another motorized to point this out to me. I took it in to our tire shop and they fixed it for free (I don’t know if they would have done this for anyone, but our tires are less than 2 years old.

In the end, maybe I paid, and am still paying, way more for this convenience than the actual amount I’m getting out of it. However, I do have the piece of mind because I don’t have to worry if I run over another nail. It will be fixed free of charge!
.-= Little House´s last blog ..Wonderful Passive Income =-.

By: Daddy Paul

Daddy Paul — Wed, 20 Apr 2011 20:48:56 +0000

Not only do I turn down extended warranties I also turn down new valve stems. They put on new stems anyway and I save 3 bucks a tire. .-= Daddy Paul´s last blog ..The best mid cap funds =-.

By: Lillie

Lillie — Wed, 20 Apr 2011 20:48:56 +0000

I just purchased a set of tires and also purchased the warranty even though my friend pointed out the same valid reasons not to. I did so “just in case.” It has finally dawned on me, I do have a roadside assistance plan with my car which would have someone come out and repair the tire, if necessary.
.-= Lillie´s last blog ..How Focus Can Change Your Life – Part 2 =-.

By: Len Penzo

Len Penzo — Wed, 20 Apr 2011 20:48:56 +0000

@Mr. CC: Great advice! I know that most any gas station will plug a flat for between $5 and $10. As for me, I use AAA too. I swear by their service – it is absolutely terrific.
@LittleHouse: It’s tough to put a price on peace of mind – so if the money you spends makes you more comfortable, then good for you! I am slightly concerned about the Honda dealer sticking glass in your tire. Although I have to say, I have the world’s best Honda dealer! They are very reputable and, when it comes to repairs and maintenance, they are usually the ones telling me that a service I’ve requested is not necessary.
@DaddyPaul: I always wondered about the tire valve stems! Thanks for teaching me something new. Looks like I wasted $12 anyway this time around…
@Lillie: Don’t be too hard on yourself. I ended up buying $12 worth of valve stems I probably didn’t need. LOL