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2018 2.5 Outback Limited and 2010 Forester Premium
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I’ve never purchased an extended warranty so I’d like opinions on this quote. My 2018 OB 2.5 Limited is at 25K miles.

5yr/100K miles
100 deductible per visit to a shop
Rental car provided for overnight repairs
Roadside assistance included

For that they want 18 payments of $195 or $3525.

What do we think? Except for a squeaky seat the OB has been fine.
 

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2017 Outback 2.5i Limited
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31 Posts
I’ve never purchased an extended warranty so I’d like opinions on this quote. My 2018 OB 2.5 Limited is at 25K miles.

5yr/100K miles
100 deductible per visit to a shop
Rental car provided for overnight repairs
Roadside assistance included

For that they want 18 payments of $195 or $3525.

What do we think? Except for a squeaky seat the OB has been fine.
I think: put $195 @ month in an interest bearing account and you will be money ahead.

$195 placed in a savings account bearing .9% interest that compounds monthly equals an Effective Annual Rate of 11.35%.

Year One: Deposits - $2340. Total Interest - $141.51, Balance $2,483.51
Year Two: Deposits - $2340. Total Interest - $564.70, Balance $5,224.70
Year Three: Deposits - $2340. Total Interest - $1,301.53, Balance $8,321.53
Year Four: Deposits - $2340. Total Interest - $2,387.62, Balance $11,747.62
Year Five: Deposits - $2340. Total Interest - $3962.60, Balance $15,532.60
 

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05 Xt beatin' to an inch of its life
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559 Posts
Its a gamble and not in your favor. I’d pass on any extended warranty from a third party or factory even.
 

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Way too high. Need to get quotes on the genuine Subaru factory warranty.
 

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2017 Subaru Outback Limited
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26 Posts
Agreed, way too high. I would only get a plan backed by Subaru, the same folks that build your car and warrant your new car. Subaru Added Security Gold Plus, either $100 or zero deductible plan. You can negotiate their MSRP. Pick the plan that works best for you, based on how long you plan to keep the car and your budget. I have a '17 Outback CPO with a wrap around Gold Plus plan that covers me up to 7 years,100,000 miles from the original in service date, with a $100 deductible.
 

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2008 OB Limited 2.5i, Portland OR USA
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4,989 Posts
You can make a decision to purchase a genuine Subaru extended warranty any time through the end of your 3 year / 36k miles factory warranty, BTW. After that, it would only be possible to get an extended warranty through these other companies, and they are typically overpriced and often underregulated (i.e. to assure they are financially stable and can meet their future warranty obligations).

Shop around if you are motivated to pursue the Subaru warranty; most places (but not California) you can purchase it anywhere. And there are some dealers who offer better pricing; you just have to find them.
 

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Looking to get an extended warranty soon as well. Curious why dealers have subjective pricing vs fixed from Subaru.

Can you get the extension from any dealer or does it need to be from the State you live?

Sent from my SM-N960U using Tapatalk
 

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I’ve never purchased an extended warranty so I’d like opinions on this quote. My 2018 OB 2.5 Limited is at 25K miles.

5yr/100K miles
100 deductible per visit to a shop
Rental car provided for overnight repairs
Roadside assistance included

For that they want 18 payments of $195 or $3525.

What do we think? Except for a squeaky seat the OB has been fine.
Major ripoff!!!!
 

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I think: put $195 @ month in an interest bearing account and you will be money ahead.

$195 placed in a savings account bearing .9% interest that compounds monthly equals an Effective Annual Rate of 11.35%.

Year One: Deposits - $2340. Total Interest - $141.51, Balance $2,483.51
Year Two: Deposits - $2340. Total Interest - $564.70, Balance $5,224.70
Year Three: Deposits - $2340. Total Interest - $1,301.53, Balance $8,321.53
Year Four: Deposits - $2340. Total Interest - $2,387.62, Balance $11,747.62
Year Five: Deposits - $2340. Total Interest - $3962.60, Balance $15,532.60
HUH???? I want what you’re smoking!!!! NOBODY is offering an effective yield of 11 % on a savings account..... if that were the case EVERYONE would flock to low risk savings!
 

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Looking to get an extended warranty soon as well. Curious why dealers have subjective pricing vs fixed from Subaru.

Can you get the extension from any dealer or does it need to be from the State you live?

Sent from my SM-N960U using Tapatalk
It depends on what state you live in. Some states treat it like an insurance policy and their silly rules on who can sell the Subaru extended warranty's kick in.

Even if you must buy it in the state where you live, you can buy it from any dealer in the state.
 

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2017 Outback, 2.5i Premium
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60 Posts
I’ve never purchased an extended warranty so I’d like opinions on this quote. My 2018 OB 2.5 Limited is at 25K miles.

5yr/100K miles
100 deductible per visit to a shop
Rental car provided for overnight repairs
Roadside assistance included

For that they want 18 payments of $195 or $3525.

What do we think? Except for a squeaky seat the OB has been fine.
If you shop around, I believe that you should be able to get a 10 year/100k mile $0 deductible Subaru Gold warranty for about $1,500 less than this price (or around $2k) which includes roadside assistance. Note that the 10 year is measured from when the car was first sold new, not from when you buy the warranty (so in effect, you are buying 7 years of coverage after your original 3 year warranty runds out). I've never dealt with a 3rd party warranty such as Zurich, but in any case this price seems extremely high. The only advantage over the Subaru that I could see is that you could take your car to an independent mechanic rather than being tied to a Subaru dealer, but at this price my advice would be to run quickly in the opposite direction.
 

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2017 Outback 2.5i Limited
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HUH???? I want what you’re smoking!!!! NOBODY is offering an effective yield of 11 % on a savings account..... if that were the case EVERYONE would flock to low risk savings!
OK, you run the same numbers on a compound interest calculator using these factors:
. $195.00 deposited each month
. .9% interest compounded monthly

Then what do you come up with each year out to 5 years?

I certainly may have screwed the pooch on the numbers but I don't smoke.
 

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'03 outback limited, '01 Outback Limited, '01 Legacy L wagon, '96 Legacy Brighton wagon
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HUH???? I want what you’re smoking!!!! NOBODY is offering an effective yield of 11 % on a savings account..... if that were the case EVERYONE would flock to low risk savings!
Yup - .9% interest compounded monthly yields only .90372% annually, not 11.35% annually.

 

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2017 Outback, 2.5i Premium
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. .9% interest compounded monthly
Federal law requires banks to post interest rates as APY (Annual Percentage Yield). The key word in this case is "Annual." An APY of 0.9% on a high yield savings account or a CD is common these days (as pitifully low as it is) and interest earned is commonly compounded monthly but at the end of the year your yield will only be 0.9%.

Small mistake with big implications. Back to our regularly-scheduled car discussions.
 
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