What are your thoughts on a 10 yr or 11 yr / 100,000 miles - 150,000 miles bumper to bumper extended warranty by Fidelity Warranty Services

[MidnightRivian]

I am pushing closer to 15,000 miles a year. Glad I got the warranty as I plan to travel more now that I have an adapter for the Tesla network. I just don't want to worry about a bill for repair after the warranty expires especially because I don't expect deflation to happen or inflation to go away.

Thanks @SteingoldVolvoCars for mailing out the official warranty binder / receipts.

I have all my documents and receipts saved in case I need to do any repairs with Rivian and get reimbursed.

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[True Grit]

The NPV of paying $4-$5k in a 5perc risk free rate for a few years of “oh sugar” warranty insurance is pretty high - why wouldn’t you self insure. I don’t the break even is anywhere close to what you think it is.

 

[MidnightRivian]

Every vehicle I’ve purchased an extended warranty has been worthwhile for me.

I’ll continue to hedge my risk and keep my cars for 10+ years while continuing to drive them hard and launch it regularly with no worry in mind for 10 years / 100,000 miles.

I don’t have to worry about using kneel mode, some function/benefit or trying to baby it after the bumper to bumper warranty has expired.

5% rates are nice but market has already priced a rate cut this September. I rather lock in my warranty contract today and then sell options on a high IV stock like Rivian to pay for it over the next 5 years. $16 puts are paying out $123 a month for tying up $1600. That’s a 92% return a year from collecting premiums. You can run the wheel after that to collect even more premiums.

 

[ukyank]

The NPV of paying $4-$5k in a 5perc risk free rate for a few years of “oh sugar” warranty insurance is pretty high - why wouldn’t you self insure. I don’t the break even is anywhere close to what you think it is.

Agree; these are almost always silly & the data on extended warranties backs this up. Anecdotally, I’ve also never had any issue that would have remotely come close to being worth the costs being quoted on here on any vehicle I’ve owned. Stack these warranty costs over those multiple vehicles & it’s even worse.

 

[KW_88_SS]

5% rates are nice but market has already priced a rate cut this September. I rather lock in my warranty contract today and then sell options on a high IV stock like Rivian to pay for it over the next 5 years. $16 puts are paying out $123 a month for tying up $1600. That’s a 92% return a year from collecting premiums. You can run the wheel after that to collect even more premiums.

Nothing says risk management like risking 30k to make 2.5k.

 

[MidnightRivian]

I sell 1 or 2 options per month on Rivian to collect $100-$200 premium and dollar cost average.

I’ll gladly lock up $3,000 per month to collect $200 premiums and load up on a stock I was planning to buy anyways.

No idea where you figure this strategy needs $30,000. I got plenty of time for theta decay while own this vehicle and plan to be invested in the company. I’m totally ok with $200 Per month on $3,000.

it’s nice to get paid to buy stocks especially when it pays more than 5% per year.

Locking in my warranty was well worth it for me. Inflation has continued to go up and warranty prices are now higher than when I locked in my contract.

 

[MidnightRivian]

One driver side damper and couple additional parts are going to cost $2,986.

I have 15,000 miles and have to replace one damper.

I don’t want to worry about $3,000 repairs once my warranty has expired.

For now Rivian will cover the cost since I am still under my bumper to bumper warranty

The air suspension was a big reason why I picked R1S and also decided to add an extended warranty on.

Now I can go back to sleeping with no worries at night especially after selling 2x $18 calls on RIVN for $168 in premium for the month.

 

[MidnightRivian]

Here is a perfect example of what I was worried about and why I picked up the extended warranty before the first price hike that occurs after you cross 10,000 miles / calendar year.

One single Damper suspension repair on one shock for my vehicle runs $2,900 and this Facebook member just sold their vehicle right before warranty is expiring after Rivian covered $6,400 for a suspension repair.

 

[Supratachophobia]

Just to add my two cents here. My Tesla extended warranty through Tesla to cover 100k miles was $4k and a $250 deductable per visit (not per issue, so you could stack multiple issues into one visit). It paid for itself easily with 3 door handles, a frunk latch, and a rear hatch actuator.

Now to be fair, knowing what I know now about the door handles, I can do the work myself and turn $800 into $100 with an after market permanent fix. But I can't do anything with air suspension and everyone knows air suspension is a matter of when not if. I intentionally got coils on both Teslas, AND I converted over my Lexus from air to coils for less than the cost of one axle of air repair.

That just leaves the million dollar question of what to do about air suspension after 100k miles? I'm a quarter million mile kind a guy with detachment issues.

 

[AuntRivian]

Just started looking into this subject since I'm looking to go from lease to buy with my next Rivian...

Very stupid question... when these warranty's say 8yrs/100,000 miles, does that mileage and time start "from new" or "from expiration of original warranty"?

 

[WhidbeyIsland]

when these warranty's say 8yrs/100,000 miles, does that mileage and time start "from new" or "from expiration of original warranty"?

...From new / sales date.

 

[Tarkus]

FWIW, I went with Car Shield "EV Platinum w/Battery" plan @ $159.99 per month, no down payment/pre-pay for your 1st couple of claims & can cancel anytime, no penalty & rate will never go up. Guess I'll find out when I have my 1st major issue with Tarkus if this was a good decision or not.

Tarkus in front of Tarkus Two (My mobile Wireless E911 Testing Command Center) & next door is my 2006 Lincoln Mark LT my R1S replaced Aug. '23).

Rivian did call me last month with a request: "Since your 60k Warranty is about to end" (I'm at 58k & headed to NJ from TX 1st of Jan. '25 for another 18 month "Tour" working/Testing Wireless E911 in the Greater 9 New England States, towing my Wireless E911 Testing Command Center), "we need you to come in mid Dec & we will replace your 12v Battery (I've never had a problem with), Torque the wheel hubs, If I got that right & (I've never had a problem with wheel hubs) & do something to a plug on the HVAC system (I've never had an issue with the HVAC system)".

I'm making a "SWAG" (Scientific Wild Ass Guess) & guessing they want to see a '23 R1S that's had no issues in 58,000 miles/15 months, So.... Keep Ya Posted...

 

[squarecmb]

Has anyone that bought one of these policies had to use it yet? I've had warranties from Toyota and Honda, but they were through the manufacturer so there was never any issues with them. I am curious if it will be the same with these policies.

 

[mabowden]

Here is a perfect example of what I was worried about and why I picked up the extended warranty before the first price hike that occurs after you cross 10,000 miles / calendar year.

One single Damper suspension repair on one shock for my vehicle runs $2,900 and this Facebook member just sold their vehicle right before warranty is expiring after Rivian covered $6,400 for a suspension repair.

I'm 100% buying the warranty if I can get the same quote you did. 50k miles at that cost is a no brainer. Everyone is fooling themselves if they think they can get 100k out of the stock suspension. We haven't seen a ton of replacements yet but they seem to be going at 70k. The more years that go on it the lower that mileage rate will go.

 

[orttauq]

I buy these warranties on complex vehicles for obvious reasons. Would I buy one on a Toyota Land Cruiser 200? probably not but for sure on the new hybrid Land Cruiser, Rivian or just about any German car.
Years ago I had a claim with Fidelity on my V10 TDI Touareg. I paid right around $3500 for the warranty from the dealer. At ~55k miles one of the turbos blew up and that claim was over $5,000.
The next claim was when the second owner had to file for the transmission at over $10K (she used it to tow her race car )
I'd say it was worth it.

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