Is the Nissan Security + Plus extended warranty vehicle protection plan worth it? - Nissan Murano Forum
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#1 Old 07-30-2012, 01:11 PM
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Is the Nissan Security + Plus extended warranty vehicle protection plan worth it?

Reading the brochure, they sure make it compelling to buy the warranty. From what I read, it seems like a bumper to bumper warranty.

http://www.nissanusa...e-plan/Gold.pdf

Lets say the owner will drive the vehicle it can no longer run and purchases the extended 7 year plan.

If my niece pays $1,000 for the warranty, the question is will she have $1,000 worth of repairs from year 3 (when the included warranty ends) to year 10.

My guess is, she might have $1K of repairs.
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#2 Old 07-30-2012, 09:52 PM
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I've been wondering the same thing.
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#3 Old 07-31-2012, 06:56 AM
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There are a couple ways of looking at these warranties. If you are nervous about future repairs, they can give you peace of mind going forward. Are you going to need them, and are the repairs you need covered by the warranty? That's the $1000 question in this case.

If these warranties are such a great idea, and save you the cost of repairs, how come car manufacturers (and after market companies) continue to sell them. A couple reasons. One is the Future Value of Money. Taking your example above, you pay $1000 up front. You are taking a gamble that you will have to use the warranty, and the seller is gambling you won't.

However, the seller also has something called Future Value of Money. If they take your $1000 and invest it at 5% compound interest over the 7 years, it's then worth $1407.10 at the end of that period. And that is a conservative investment. So the warranty seller is not going to lose money on these deals.

To me, I'd rather have that $1000 in my pocket, bank account, or 401K rather than give it to the warranty seller. You, on the other hand, may feel that the peace of mind you get from purchasing the warranty is well worth $1000. Each of us is different.

I'd probably be more apt to buy a warranty if I was purchasing a vehicle that had a lot of problems, like a Yugo. But then, again, I wouldn't purchase a vehicle like that in the first place.

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#4 Old 07-31-2012, 02:23 PM
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Problem with newer cars is that most are "drive by wire" and utilize lots of electronics. Parts probably don't fail as often but when they do they can be expensive. So Halwg makes real good points here. If you want peace of mind, then get it.

Keep in mind that not all extended warranties are created equal. Make sure you read not only what they cover, but also what they don't cover. Also, you need to decide how long you want the warranty for. The more you drive, the shorter you want it to be because you will hit the mileage limit before reaching the time limit.

Extended warranties normally start at zero miles. So a 5 year extended warranty really gives you only 2 additional years over factory bumper to bumper and virtually no warranty past the factories power train warranty.

One last point. You can normally purchase the extended warranties any time as long as the original factory warranty is valid. However, some outfits might require an inspection of the car to assess its condition.

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#5 Old 08-07-2012, 01:47 PM
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Keep in mind a new car has a bumper-to-bumper warranty for 3yrs/36k miles and the powertrain (the expensive bits) are covered for 5yrs/60k miles (pre-2011 models have CVT coverage to 10yrs/120k miles.) So you're not actually getting 7 years of coverage, 2-4 years depending on how you look at it. I doubt it would cost $1k too, my dealer quoted me $1500 when I bought my car (I declined.) If you do buy one it's best to wait until the factory bumper-to-bumper warranty is about to expire. You never know if the car will be totalled or if you end up selling it for some reason before the extended warranty will even go into effect.

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#6 Old 08-08-2012, 04:55 AM
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Originally Posted by Dunbar View Post
If you do buy one it's best to wait until the factory bumper-to-bumper warranty is about to expire. You never know if the car will be totalled or if you end up selling it for some reason before the extended warranty will even go into effect.
Most factory extended warranties are refundable if you sell or total the car before you use it. Check with your dealer.

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#7 Old 08-14-2012, 05:56 PM
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Last time I checked, dealers only sold things they could make profits on. And most of them make as much or more money on extended warranties than they make on the cars.

The only way that can happen, is because the AVERAGE car owner will never need to spend that much on repairs. Nowhere even close to it.

If your niece is unlucky, if she's nervous, if she's the kind who just has appliances die on her all the time, by all means by it. But remember, all it is is INSURANCE and while that's a great deal for some folks, for the average customer it is just money thrown away.

Try this line on the dealer: "Oh, I see. This car is unreliable and the factory warranty doesn't cover the important stuff, so I need another warranty?"

If he's been trained he won't get too upset by that, he'll just explain to tyou that the factory warranty covers things like the powertrain but the optional one covers the doorknobs, the dome light...the real expensive stuff.

How hard is it to keep up with that stuff? Remember, they make BIG profits from it.
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#8 Old 08-22-2012, 08:21 PM
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I've written lots on this subject here....

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Originally Posted by jwblue View Post
Reading the brochure, they sure make it compelling to buy the warranty. From what I read, it seems like a bumper to bumper warranty.

http://www.nissanusa...e-plan/Gold.pdf

Lets say the owner will drive the vehicle it can no longer run and purchases the extended 7 year plan.

If my niece pays $1,000 for the warranty, the question is will she have $1,000 worth of repairs from year 3 (when the included warranty ends) to year 10.

My guess is, she might have $1K of repairs.

I have written a lot on this subject in other postings on this forum. (If you'd like to check out my other postings, just search for them under my name). In an effort to be helpful, and in case it still matters to you, I will offer these quick comments/facts:

1- You are buying insurance in the form of a service contract, not a warranty. There are limitations on the contract. Read it carefully. It is not a bumper-to-bumper warranty. Not even close. Read the contract.

2- While you can buy versions of the Nissan contract after the sale (and for years thereafter), the best coverage is offered if you buy it from the dealer at the time of sale. That clause in the contract sealed the deal for me, so to speak, because most of the expensive electronics are not covered if you buy the contract after the sale. That's their hook to help the dealers make a bit more profit and it's a good one.

3- There is a dealer in California that will sell these contracts to anyone almost at cost (that is, if you are not buying/did not buy it at the time of sale). A simple web search will reveal the dealer (Santa Rosa). This is a totally legal, legitimate way to buy the contract from Nissan. It is a contract with Nissan, not the dealer. The dealer makes a bit of money by selling it to you, that's all.

4- Sorry, but no one can tell you whether or not you will "get your money back" on any type of insurance contract, including an automobile contract. (Well, unless someone tells you he has a time machine in his basement!) Buying insurance is a personal decision that requires careful analysis of one's situation, finances, and expectations. There are many folks on this forum who think service contracts are a waste of money and that anyone who buys one for a modern Nissan is simply "wasting" their money. Of course, the same people may whine and fuss in the same breath about whether their car will be "trouble free" for many years and 1000s of miles. Those are their opinions about their situations and their ideas of what is reasonable to them; you may well have different ideas. (Read my other posts for a long discussion of this point if you care to read it.)

5- The "expensive" stuff in a modern automobile involves much more than the powertrain. If you have any of the electronic/power options (i.e., navigation/Bose radio/power steering wheel adjustment/power lift gate, etc.) you might have a shocking bill if something goes wrong after the 3/36 basic warranty. That's when a service contract can offer you the most reasonable "insurance" against future costs. Yes, you can save the money you might spend on a contract against the possibility of future need. That's not a bad idea. But, most people don't/won't do so. The idea of having a convenient monthly $10 added to their car payment may be a good one. You have to decide. No one here can tell you what's best for you in terms of handling your money.

6- If you do decide to buy a service contract, only buy Nissan's. Any third-party contract is a waste of money, clear and simple. Nissan backs their contracts (while a third-party may well go out of business). The Nissan prices are reasonable (in my opinion) for what is being offered. But remember that the dealers are free to sell any contract they want, even their own contracts and for whatever price they can get. Don't buy anything but the genuine Nissan Security + Plus contract.

7- Nissan does offer a free 60-day look at the contract (i.e., you can sign a paper and give it back to the dealer to have the contract cancelled and the price refunded). After the 60 days, there is a prorating of the refund value or you can simply leave the contract on the car (it applies to the car, not to you) which may be a selling point for whomever you are selling the car to.

8- You probably want to know what price to pay for a contract and/or how long of a contract you should buy. Well, obviously you will need to carefully estimate your expected ownership period and your yearly mileage. As for the price to pay, I think you should make it clear to the dealer that you will only consider buying the contract at a reasonable markup ($100 - $200 over their cost). The dealer price for a new '12 Nissan for a 7/70 contract sold at new-car delivery time is about $1200. The top contracts (in time period and mileage) cost the dealer about $1800.

Finally, here are some of my pure opinions. If you really expect to own a car as long as the maximum contract time period/mileage, I personally think that buying this insurance should turn out to be a wise investment not only in peace of mind, but also financially. Remember, buying a contract with today's dollars establishes its present cost but not its future value. Here's what I mean: if we consider the ratio of inflation vs. average investment returns over the past five years, buying a service contract now may well be a smart move. Why? Because if you need an expensive repair, you will have spent fewer of today's dollars to have complete coverage for tomorrow's inflated expenses. I hope this last comment makes sense! If not, let me know.

Oh, and if is sounds like I sell insurance, I don't. I do, however, have a long and close relationship to the businesses of selling and leasing automobiles.

I hope this info is helpful to you. Good luck.

Peace.

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#9 Old 08-22-2012, 08:40 PM
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It makes a lot of sense. I like the detail of your post and I purchased this Nissan security +. It came up huge when I had my 05 SL meaning I didn't kick out any costs for repairs, power steering hose, Lower control arms, axle seals. All after 3/36 factory warranty. I purchased same coverage from Nissan for my 09 LE. I like how you broke it down in your post. Thanks
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#10 Old 10-03-2012, 06:47 PM
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This has been my experience. I bought the preowned preferred warranty and have used probably close to 10K in repairs from it. I usually ask for the amount they charged the insurance company to see what the repairs cost.

My car was in the shop last week, it got a second seat track, last year that was replaced, the first generation Mo's had seat issues. Also had issues with noises coming from the steering wheel, so they replaced items in the front suspension.

Now i am not able to fill up gas as the sensor is failing, so on an empty tank the sensor shows it as full and im not able to pump additional gas in without the nozzle snapping back. Not sure how much that will cost.

Again this is from my experience others have had no issues whatsoever in their cars

Goodluck
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#11 Old 11-18-2012, 12:02 PM
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Originally Posted by amindu View Post
This has been my experience. I bought the preowned preferred warranty and have used probably close to 10K in repairs from it. I usually ask for the amount they charged the insurance company to see what the repairs cost.

My car was in the shop last week, it got a second seat track, last year that was replaced, the first generation Mo's had seat issues. Also had issues with noises coming from the steering wheel, so they replaced items in the front suspension.

Goodluck
The seat track was covered? I am having the rocking seat problem on my Maxima again. The track was replaced at about 25000 miles due to the rocking problem. It started doing it again but I looked up the track on the parts covered by the Gold Preferred + and it was not listed. I guess I will go in and get with my dealer and scope it out. They have treated me great so far so lets see what happens this time.
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#12 Old 11-18-2012, 05:07 PM
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2young, seats and seat mounts have been the subject of a lot of federal attention. And some DOT requirements, because they are supposed to hold the passenger securely in the event of an impact.

Before I'd pay anyone for a seat repair, I'd gently remind the service manager about that, and ask him to check with the district office and the national office to see if they didn't want to just cover that as a courtesy, without you needing to contact the NHTSA. That's the kind of thing where there are often "secret programs" to cover any problems.

Of course you might want to contact the NHTSA anyway,seats are the kind of basic thing that just don't go wrong these days unless someone made a mistake.
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#13 Old 01-16-2013, 03:41 AM
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Very interesting article from Wallybear. I am scheduled to pick up my new 2012 Murano tomorrow and was quoted a price of $1,980 for a 10/Yr 120,000/Mi warranty from the dealer. I checked out Santa Rosa and the coverage period only went to an 8/Yr 120,000/Mi warranty at a cost of $1,500+. Would you say I have received a fair quote? The peace of mind, being a single, female, is worth it to me. This will likely be my last truly nice car and I want to be protected. I would like your input.
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#14 Old 01-16-2013, 11:38 AM
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Quote:
Originally Posted by Bailey01 View Post
Very interesting article from Wallybear. I am scheduled to pick up my new 2012 Murano tomorrow and was quoted a price of $1,980 for a 10/Yr 120,000/Mi warranty from the dealer. I checked out Santa Rosa and the coverage period only went to an 8/Yr 120,000/Mi warranty at a cost of $1,500+. Would you say I have received a fair quote? The peace of mind, being a single, female, is worth it to me. This will likely be my last truly nice car and I want to be protected. I would like your input.

That seems like a good price...if your are going to keep it for that long, then its worth getting it. At times one major repair and the warranty pays for itself.
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#15 Old 01-16-2013, 04:42 PM
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Well, it depends....

Quote:
Originally Posted by Bailey01 View Post
Very interesting article from Wallybear. I am scheduled to pick up my new 2012 Murano tomorrow and was quoted a price of $1,980 for a 10/Yr 120,000/Mi warranty from the dealer. I checked out Santa Rosa and the coverage period only went to an 8/Yr 120,000/Mi warranty at a cost of $1,500+. Would you say I have received a fair quote? The peace of mind, being a single, female, is worth it to me. This will likely be my last truly nice car and I want to be protected. I would like your input.

Thanks for commenting on my posting. I'm glad it was helpful.

I don't think you understand what you are being offered. I think you are being offered a contract that IS NOT BACKED BY NISSAN. I don't advise buying that kind of a contract. The longest period offered by Nissan for the Murano AWD is 8 years, 120,000 miles (that's 96 months). If you have being offered a 120 month contract, it's not from Nissan.

Remember, the dealer can sell you anything you will buy. My advice was to be careful what you buy, particularly if you are a single female. You are a prime mark (target) for unscrupulous sales tactics. Sorry to say so, but it's true.

Here's what I suggest now: clarify if it's a Nissan contract (it won't be); so say you will buy the Nissan contract (96 month/120K miles) for exactly the price offered by the Santa Rosa dealership. At the most, offer them $200 over the Santa Rosa cost. If they still balk, walk away from the deal. By the time you get out the door, they will give you want you want. I promise.

Be firm on this point. If you buy a non-Nissan contract, I'm certain you will be disappointed in the future. (Not to mention you were overcharged.)

Oh, and one more thing. Do the regular servicing of the car faithfully. That should keep your Murano running well for years to come. Remember that most costly failures are what the contract is meant to cover.....but you have to keep the car maintained and have a record to prove it.

Good luck. If you want more advice or can offer more details, you can write a private message to me. I'll see it and respond ASAP.

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