Volvo Extended Warranty?

[Anonymous]

Over the weekend I purchased a 2017 Volvo XC90 with about 30k miles on it. I was offered the extended warranty, with the claim that the dealership does not receive commission, but they are obligated to tell me about the warranty. This came from their financial person, who I signed all the paper work with. He said it can come in handy for expensive electronic/tech repairs (this car has a fair bit of technology), but would only be worth the money if I planned to keep the car for a long time.

It would provide an 8-year/100k warranty, and the cost is about 5k.

I'm assuming this is usually a rip off, but wanted to throw it out there for conversation.

[Anonymous]

Anonymous wrote:Over the weekend I purchased a 2017 Volvo XC90 with about 30k miles on it. I was offered the extended warranty, with the claim that the dealership does not receive commission, but they are obligated to tell me about the warranty. This came from their financial person, who I signed all the paper work with. He said it can come in handy for expensive electronic/tech repairs (this car has a fair bit of technology), but would only be worth the money if I planned to keep the car for a long time.

It would provide an 8-year/100k warranty, and the cost is about 5k.

I'm assuming this is usually a rip off, but wanted to throw it out there for conversation.

Hard to say for sure without reading the fine print, but it's probably not worth it. From my experience with Volvos, they're generally pretty rock solid for the first 10 years/150k miles before the expensive bits start to have real issues. So you may not have any real major problems until right around the end of the warranty period, which will be accelerated if you put on more than 100k miles in 8 years, which really isn't hard to do, especially on a car like an XC90 which is a magnificent car for road trips. Plus, a warranty covers material defects in the car's design, construction and worksmanship. Not brakes, wheel alignments, tie rods from hitting too many potholes, etc... You'd be better off taking the $5k and putting it into a separate bank account, to hold onto just in case you need it to fix faulty electronics. There will probably still be plenty of cash in the account when it comes time to sell the car.

[Anonymous]

We got the extra warranty on our xc90. Thank goodness! At 99,960 miles it leaked oil plus the low oil indicator wasn’t working. We might need a new engine. Not impressed with Volvo.

[Anonymous]

Volvos are junk, and someone got rid of a two year old car. I think you'd be prudent to get the extended warranty if you plan to keep the car more than 2 years.