I'm a dolt -- explanation/recommendation sought for Extended Warranty and Prepaid Maintenance Plans
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    1. #1
      Junior Member peterw2's Avatar
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      Question I'm a dolt -- explanation/recommendation sought for Extended Warranty and Prepaid Maintenance Plans

      Hi all,

      sorry to be so dense, but have a few questions (i've searched and read other posts here but none seem to fully answer).

      a little context first -- i will be taking delivery on a 2020 CPO XC90 with a little over 11k miles in a few days and am thrilled...it is my understanding that a CPO warranty is 5 years/unlimited miles. so with the first sale reported in November of 2019, the warranty should expire in November 2024? I plan to keep the car 5-8 years and drive on average 5k per year. so by the time I sell it, it would have about 40-50k max on it.

      now the questions:

      1. Volvo states that the CPO warranty "covers every part of the vehicle that is not excluded.." where can i find the list of exclusions?
      2. For what reasons would you recommend(or not) the purchase of an extended warranty (Gold or Platinum)? Might it be because the payback will be worth it due to the the extent/expense of problems likely to occur over the 5-8 years of my ownership. i understand that this needs to be purchased within 30 days of buying the car (preferably from Steingold, I gather from the discussions here).
      3. I'm confused about the pre-paid maintenance -- is this just prepaying the cost for the 40k through 100k standard factory recommended service operations? (I think 10k-30k service operations are complimentary).
      4. How does the purchase of an extended warranty complement or overlap or not with that of pre-paid maintenance?

      much thanks to all in advance for your help and wisdom.

      I would have probably asked these questions of the salesman at the dealer where I am purchasing from, were it not that he seems intent on speaking as little as possible, appearing lackadaisical and barely interested in such a rote and mundane transaction. Granted he's been selling Volvo's since '94 so maybe he's just so tiiirrreeeedd.

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    3. #2
      Member Gary-16-Xc90's Avatar
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      I'm a dolt -- explanation/recommendation sought for Extended Warranty and Prepaid Maintenance Plans

      You may wish to talk or PM with Mike from @SteingoldVolvo who has a wealth of info on Extended warranties, basic and extended CPOs, and prepaid maintenance. Of course, GrecianVolvo does as well.

      If your dealer is not working for you, you could be much better informed and save money on these service contracts going through Steingold. Best to have the chat before your sale.
      Last edited by Gary-16-Xc90; 09-10-2020 at 09:50 PM.
      2016 XC90 T8 Inscription | US 10/2015 Build| Crystal White | Blonde | Blonde | B&W | Air | HUD | Convenience Vision Climate | PAII + Mitigation Upgrades | Xpel + Gtechniq Ceramic | 3M Crystalline 50% Tint, 97% UV Rejection, 60% Solar Heat Rejection | 20" A/S & 22" Summer | Tow | Last TSU installed 10 Sept. 2020 | 47K miles | MPG 31.8 Lifetime including transcontinental trips, regional trips and towing

    4. #3
      Member Gary-16-Xc90's Avatar
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      Now, that I have some time here is a more specific follow-up. Disclaimer: I have an extended VIP Platinum warranty as a new owner and I do not have direct experience with CPOs.
      Quote Originally Posted by peterw2 View Post
      ...a little context first -- i will be taking delivery on a 2020 CPO XC90 with a little over 11k miles in a few days and am thrilled...it is my understanding that a CPO warranty is 5 years/unlimited miles. so with the first sale reported in November of 2019, the warranty should expire in November 2024?

      I plan to keep the car 5-8 years and drive on average 5k per year. so by the time I sell it, it would have about 40-50k max on it.
      If the 2020 CPO XC90 was put in service on November [1], 2019, the 4-year factory warranty (in the US) ends on Oct. 31, 2023, and the basic 5-year unlimited miles CPO warranty ends on Oct. 31, 2024. You may wish to explore the extended 10-year CPO/unlimited which would extend coverage to Oct. 31, 2029 particularly if you wish to keep it beyond Oct. [31], 2025.
      Quote Originally Posted by peterw2 View Post
      now the questions:
      1. Volvo states that the CPO warranty "covers every part of the vehicle that is not excluded.." where can i find the list of exclusions?
      As with most warranties, there is a separate section that says what is not covered or excluded. The exclusions can be broad bullet points and will not be as specific as you might hope.

      2. For what reasons would you recommend(or not) the purchase of an extended warranty (Gold or Platinum)? Might it be because the payback will be worth it due to the the extent/expense of problems likely to occur over the 5-8 years of my ownership. i understand that this needs to be purchased within 30 days of buying the car (preferably from Steingold, I gather from the discussions here).
      The CPO warranty that you would purchase from Steingold or your dealer is the extended warranty. I would recommend getting the $0 deductible and the extended term of 10 years/unlimited miles based on you potentially keeping it for up to 8 years. Platinum offers a $0 or $100 deductible and an extended 10-year/unlimited option. Others should comment on that.

      3. I'm confused about the pre-paid maintenance -- is this just prepaying the cost for the 40k through 100k standard factory recommended service operations? (I think 10k-30k service operations are complimentary).
      The pre-paid maintenance is paying for each 10K scheduled factory maintenance service. It specifically excludes normal "wear and tear" items (e.g., brake pads, rotors, wipers). There is a separate "add-on" to the cost if you wish to have "wear and tear" items added. You must make absolutely sure that the dealer is selling you the Volvo factory pre-paid maintenance plan. Some dealer plans are limited to the selling dealer and will never appear in Volvo's system. If you deal with Steingold, you will not have to worry about these issues.

      4. How does the purchase of an extended warranty complement or overlap or not with that of pre-paid maintenance?
      There is no overlap between a CPO warranty and pre-paid maintenance. The CPO warranty covers repairs - not scheduled service items.

      I would have probably asked these questions of the salesman at the dealer where I am purchasing from, were it not that he seems intent on speaking as little as possible, appearing lackadaisical and barely interested in such a rote and mundane transaction. Granted he's been selling Volvo's since '94 so maybe he's just so tiiirrreeeedd.

      It is likely the salesperson is deferring those details to the "Finance guy". In other words, these "add-ons" are not in the salesperson's area of responsibility. He/She does not want to make any representations so as to contradict what the Finance guy might or might not say. FWIW and personally speaking, on my next purchase, I will request that that the Finance guy "pull up a chair" with my salesperson and answer questions. I will not buy add-ons from the Finance guy without everything having been pre-negotiated and agreed at the same time as the car sale with the salesperson. Otherwise, I would politely say "No, thanks" and contact Mike at Steingold.
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      Last edited by Gary-16-Xc90; 09-11-2020 at 07:29 AM.
      2016 XC90 T8 Inscription | US 10/2015 Build| Crystal White | Blonde | Blonde | B&W | Air | HUD | Convenience Vision Climate | PAII + Mitigation Upgrades | Xpel + Gtechniq Ceramic | 3M Crystalline 50% Tint, 97% UV Rejection, 60% Solar Heat Rejection | 20" A/S & 22" Summer | Tow | Last TSU installed 10 Sept. 2020 | 47K miles | MPG 31.8 Lifetime including transcontinental trips, regional trips and towing

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    6. #4
      Junior Member peterw2's Avatar
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      Gary,

      Very helpful indeed. Thank you.

    7. #5
      Member Gary-16-Xc90's Avatar
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      Added update on hybrid battery

      BTW, I did not completely give my perspective on your #2. My 4-year factory warranty expired January 31, 2020 on my MY16 XC90 T8. The Platinum extended warranty just more than paid for itself literally today based on two issues these past two months. I picked up my car today from service on the hybrid system and telematics. My dealer said that the repairs would have been in the $4000 neighborhood if not for my extended warranty. I paid less than the $4000 expense for my no deductible, 8-year/100K warranty. I still have 3 1/2 years of coverage.

      The new T8 technology was my primary motivation for the extended warranty. Also, mechanical-type issues tend to arise after the factory warranty and are not unique to a Volvo. One month and 500 miles before my extended warranty expired on my MY07 Toyota 4Runner Sport, the extended warranty paid out for a new engine short block and rebuild which was in the $10K+ range.

      Stuff happens - no matter what brand and the decision to buy an upfront/extended warranty is all about risk/financial mitigation if you intend or want to own beyond the factory warranty. I do not think in terms of payback - just break even. I am two for four on my last four vehicles in terms of coming out ahead. The other two cars - a previous 4Runner was totaled based on me being T-boned by an inattentive driver and I sold the other one early after two years since my family refused to ride in a pick-up truck.

      If one is financially comfortable, chooses to self-insure, a DIY-er, and/or wishes to roll-the-dice, going without an extended warranty is an option.

      Update: I forgot to mention that the T8 comes with a factory 8-year/100K hybrid warranty in the US for most states (except CA and CARB states which is longer). I assume some, but maybe not all, repairs were covered under the hybrid warranty. With the extended Platinum warranty, I did not need to find out.
      Last edited by Gary-16-Xc90; 09-12-2020 at 06:46 AM. Reason: Added a DIY-er
      2016 XC90 T8 Inscription | US 10/2015 Build| Crystal White | Blonde | Blonde | B&W | Air | HUD | Convenience Vision Climate | PAII + Mitigation Upgrades | Xpel + Gtechniq Ceramic | 3M Crystalline 50% Tint, 97% UV Rejection, 60% Solar Heat Rejection | 20" A/S & 22" Summer | Tow | Last TSU installed 10 Sept. 2020 | 47K miles | MPG 31.8 Lifetime including transcontinental trips, regional trips and towing

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