I am new owner. Asked dealer for extended warranty from Volvo. Offered Fidelity Guarantee Service Inc.

Dealer claims it is Volvo’s contract but appears to be clearly a third party.

Thoughts?

 

extended warranties are an insurance policy - just about all I've ever seen are underwritten by a third party, but they may have a corporate relationship with Volvo. Jury is out on whether extended warranties are really worth the money - you are betting that the cost to repair your car once the factory warranty expires will be more than the cost of the policy. (and the insurance company prices the policy based on the projected costs to repair then marks it up to make money). The peace of mind you get is if you can't afford a big ticket repair should it ever come up (which says to me you'd be better of buying a CPO car or a well maintained used one. Personally I think CPO is the safe middle ground. The car has already gone through its initial depreciation, comes with an extended warranty, was likely to have been dealer maintained and are priced competitive to market.

 

More food for thought: A LOT of CPO's come off leases. Leases are often dealer maintained as well like mt6127 mentioned. I bought my car as a CPO, we leased by a company and 1 person before it came into my ownership. Driven less than 10k a year full service at the dealer for less than half the cost of a brand new car. I got the extended (10 year from original purchase date) warranty for $3000 which ended up being a 6 year warranty for me. I bought it for the peace of mind. I know electronics are expensive. I also know, that there is a great chance a replacement will be expensive AND will need to be programmed to my car which the dealer will need to do for me anyways.

I can check who my warranty is through when I get home in about an hour or so.