Hoe do you value an Extended Warranty for resale??

[modestobulldog]

I am considsering purchasing a used vehicle from a co-worker. I know how to look up the range of values on KBB. How would you value an 100K extended factory warranty (good for several more years)?

[Zembonez]

I would not consider the warranty in the price unless you are buying an Audi, Range Rover, Jaguar (or some other car that is likely to bite it). At this point it is just a perk that comes with the vehicle.

I'd go to KBB and NADA (plus anybody else that lists prices) and work up a private party value.

[08SalsaMax]

Originally Posted by modestobulldog

I am considsering purchasing a used vehicle from a co-worker. I know how to look up the range of values on KBB. How would you value an 100K extended factory warranty (good for several more years)?

Start negotiations without it.

[Munpot42]

I would try to find out how much he paid for the warranty, and if it is a factory warranty. If it is a factory warranty, I would prorate it and then discount it as much as you think fair (Do this in your head before the negotiations start). If it is not a factory warranty I would value it at 0. IMHO.

[Donald E. George]

Zero. That was the seller's mistake. If the vehicle is in very good condition and you want it badly,I would find out what the wholesale price of that car is and start from there. And get a copy of Car Fax. Have a trusted mechanic look the car over and check the Required Maintenance log to see if the owner has had it serviced. And remember,that is bare minimum maintenance. I wouldn't even consider a car that didn't have the maintenance log filled out. Owners who take care of their cars do more than just the minimum maintenance.Look in the Consumer Union April issue to see the problem areas for that car.Regards

[08SalsaMax]

Negotiate towards the lesser of these...

1. Zero.

2. (Age of vehicle/warranty term) x (dealer cost of warranty)

3. (Miles on vehicle/100,000) x (dealer cost of warranty)


Good Luck...

[modestobulldog]

Thanks, the car was a 2008 Acura TL, but the guy was way overpriced. But the downfall where I lost interest was it was a tan leather interior with a silver exterior paint. Did't work for me so I never investigated further. Good insight on the warranty. My thinking all along on extended warranties from Honda and Toyota is if you pay a dollar for one, you over-paid by a dollar as you have a near-zero chance of collecting on hyour bet.

[Donald E. George]

Originally Posted by modestobulldog

Thanks, the car was a 2008 Acura TL, but the guy was way overpriced. But the downfall where I lost interest was it was a tan leather interior with a silver exterior paint. Did't work for me so I never investigated further. Good insight on the warranty. My thinking all along on extended warranties from Honda and Toyota is if you pay a dollar for one, you over-paid by a dollar as you have a near-zero chance of collecting on hyour bet.

Right you are. Those "extended warranties" are nothing but an insurance policy sold by fly-by-night companies who have no intention of paying out anything on a claim. Value? 00.00. Regards