Greetings Everyone,

I signed on a new 2008 XC70 this morning. I still have a couple of days to decide on the extended warranty options. Here is what the dealer is offering:

72M 60k: $1,812
72M 72k: $1,920
84M 60k: $2,106
84M 72k: $2,358

As you may know, the extended warranty is a true extension of the manufacturer's 4 year warranty, except that there is a $100 deductible.

I would normally never consider an extended warranty, but this is my first Volvo and I am not familiar with the reliability and repair costs for these vehicles. My general perception from reading about Volvo's on the internet is that they are generally reliable but that the repair costs are high. In addition, the 2008 XC70 is the first year of the redesign, and would therefore be expected to have more problems than subsequent years.

Here are some of the car's details:

Climate Package
Premium Package
Convenience Package
Personal Car Communicator
BLIS

I have to admit that I am very tempted to go for the 82 month, 72k mile extended warranty. Looking for your opinions.

Cheers,
TMQ

 

Depends on how may miles you expect to drive. I would definitely get some form of an extended warranty. These cars are expensive to fix. Check it if covers things like the transmission,bearings,tie rods,ball joints,AWD,etc. These are the things that normally go.

Jim

 

I also agree with jpd6000, depends on how many miles you expect to drive and if this is your primary vehicle. If it's trully an extension of your Volvo warranty, then it should cover all the above that jpd6000 mention. My question to you is how often do you drive your Volvo in a week, how far do u do, is this your primary vehicle (secondary) in order to properly asses that.

 

Thanks for the responses so far!

For clarification purposes, this will be my primary vehicle. If the last 5 years on my current vehicle are representative, I expect to put ~$10k per year on the XC70.

Here is what the Volvo warranty does NOT cover, according to the documentation that I received from Volvo this morning:

• Normal maintenance items and wear surfaces, e.g. brake pads and rotors (calipers and other brake components ARE covered), tires, oil filter, air filter, windshield wipers, etc.

• Squeaks, rattles, water leaks or wind noise.
• Non-factory installed electronics.
• Exterior metal (although Volvo has a 12 year corrosion warranty)
• Upholstery
• Trim

If you are asking if I plan to keep this car for 7 years, I really cannot say for certain, but my best guess is yes.

I am particularly concerned about the plethora of electronics in this car, and the cost for repairs of these components.

So, I am still leaning towards the extended warranty. Your experience in this matter is greatly appreciated.

Cheers,
TMQ

 

So essentially it doesn't cover general maintenance items. Yes, because of all the electronic items that can go out, 2 grand is a small amount for a warrant that might cover bigger items and if you are keeping the vehicle for that long, then it's not that bad for peace of mind of 5-7 years! That is, as long as you keep it for that long. look at it this way... 2k for a warranty for 72 months is about 27 bucks a month! Not bad for peace of mind, but that's my oppinion.

 

There is a big mark up in the extended warranties. I have one on both of my Volvo's. The 06 AWD T5 bought in 08 has a $100 deductible 72M 100K warranty for $1900. My 08 C30 has the same warranty for $1700. Both are Honda extended warranties. Yes, Honda. My dealer is a Volvo, Honda, Mazda dealer. He also has a Ford and Lincoln Mercury as well as Suzuki dealerships. Honda has the best prices on any of the warranties he sells. And Yes, the warranty is good anywhere. Extended warranties are like life insurance. You just hope you don't need either one. Tp,

 

Hehe, sounds about right. On the other hand, you could just take the $2K and put it in a savings account for a rainy day. The car is virtually brand new anyway so should have a good amount of original manufacturer's warranty left which will cover you if the thing is a lemon. Otherwise, as long as you maintain it well you'd be really unlucky to need more than $2K of repairs before 72K miles. Which is the dealer's point right, he makes money out of your extended warranty because most cars don't need $2K worth of repairs in the next 72K miles. If you really, absolutely couldn't cover the cost of a major repair in the unlikely event of one arising then the insurance might be for you.

Oh notice, the other thing about the insurance is that it will absolutely require that you get all your servicing, oil changes blady blady blah done by the dealer. Ha! They'll have you over a barrel mate!

 

Thanks to everyone for the great responses to my warranty question.

I have to admit that caved in and purchased the 82 month, 72k mile extended warranty. The primary reason for this decision was that the vehicle is a 2008, which is the first year of a major redesign. Quite frankly there just is not a lot of reliability data out there on the 2008+ XC70. Also, found the cost of the warranty to be 10-25% higher than what Volvo has offered on past XC70s, and I thought that this is intriguing. It is almost as if Volvo is expecting more service/maintenence problems with this vehicle, so they increased the extended warranty cost. Of course, this is simply speculation on my part.

I hated to drop +$2300 on the extended warranty, especially since I had planned to spend that money on a second set of rims/tires so that I could have dedicated summer and winter sets.

Thanks again for your responses.

Cheers,
TMQ