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]

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"?

All plans begin on the PLAN PURCHASE DATE and the CURRENT ODOMETER READING. In clearer terms, the years shown will begin TODAY and the mileage shown will be ADDED to the current odometer reading.

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[DayTripping]

I went with an extended warranty on mine. Pretty much just because or the suspension failing scenario. I went with Xcare as they've been good with Tesla. I did the 10 year / 175k plan with $0 deductible. One suspension repair will pay for the plain for sure.

 

[Iatros786]

Anyone have any connections or experience with dealers selling policies in Florida?

Thanks

 

[MidnightRivian]

Anyone have any connections or experience with dealers selling policies in Florida?

Thanks

Highline Autos is one of the few Fidelity retailers, able to administer coverage to California and Florida residents, you can reach them at the email already shared in this thread, [email protected].

 

[JeromePowell]

I am thinking of purchasing an extended warranty plan and Fidelity warranty services comes highly recommended by the Porsche owners forum Rennlist.

What are your thoughts on purchasing a bumper to bumper extended warranty plan for the Rivian.

I can see the warranty would include the battery and drive motors / inverter. We can go as high as 11 years total coverage and 150,000 miles.

I've attached their online quote for reference and you can add a $200 code "RIVIAN" to help bring the price down slightly.

I am most interested in a 10 year / 100,000 mile Platinum warranty with $250 deductible for $3,836 OTD.

All plans begin on the PLAN PURCHASE DATE and the CURRENT ODOMETER READING. In clearer terms, the years shown will begin TODAY and the mileage shown will be ADDED to the current odometer reading.

What are your thoughts?

Picture for attention

Steingold Factory Protect Fidelity Extended Warranty Link - Rivian

Use code RIVIAN to knock $200 off the price.


Note for California and Florida residents. They like to have special laws about selling extended warranty. Hellooooo, we've been trying to reach you regarding your extended warranty...


-Highline Autos is one of the few Fidelity retailers, able to administer coverage to California and Florida residents, you can reach them at the email already shared in this thread, [email protected].

Put that $3,836 in VOO (Vanguard S&P 500 Index ETF) and maybe add $250 at least every year; simulating a deductible being paid for a potential extended warranty service at least annually.

If you are more risk-averse, do the same in a high-yield (4%+ APY) saving account. Use those funds to pay for your off-Rivian Warranty repairs.

Extended Warranties are NOT a good deal IMHO. It is gambling at worst or a statistical hedge at best.

Think about how difficult it can be to simply get factory (OEM) warranty service from a given manufacturer (Rivian) or dealership. Now consider the same process only more convoluted with a third party warranty which receives zero benefit from paying for your claim(s).

If a deal appears too good to be true, it almost certainly is too good to be true.

 

[JeromePowell]

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.

No way The Oracle of Omaha buys a third-party extended warranty. The patience Warren Buffet is referring to relates to compounding interest, dividend yields, and rolling them back in to well diversified investments; different asset classes. The guy recommends multiple passive revenue streams (mailbox money) NOT expenditures in depreciating assets.

This thread is kinda one big advertisement for third-party extended warranties. I even started thinking about, then I remembered which party stands to gain the most; it is not the consumer.

OP seemed to have their mind made-up pretty early. How much money per year do you guys think Fidelity, X-Care, etc spend on advertising/marketing versus paid claims per year?

 

[JeromePowell]

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.

Careful, confirmation bias is real af.

 

[JeromePowell]

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.

Makes sense as the reason you would not purchase a third-party extended warranty is due to Toyota (Lexus) stellar reliability reputation. Unfortunately, it is not very logical. I am a big fan of Land Cruisers have owned and operated several over the years. There is nothing magical about Toyota/Lexus reliability in general or Land Cruisers in specific.

Toyota, until very recently de-tuned engines for duty cycle versus performance. Even the venerated 3URFE 5.7 port injected V8 is NOT bulletproof; it consumes oil, gets warped engine block and heads (Yup, all aluminum block with steel head gaskets; guess which warps when temps rise? Not the steel head gasket).

Not trying to beat-up on Toyota, 200-series Land Cruisers or third-party warranties, however, they all make sales and maintain value based on branding, advertising, marketing NOT performance.

Land Cruiser last forever is the perception. The reality is various Land Cruiser models can and do last a very long time if properly maintained (just like a much cheaper Nissan Patrol). All older vehicles have failures: alternators, starters, hoses, wiring looms, etc). None really "last forever," this is a false perception propped-up and defended by Toyota/Lexus.

Look at the recent failures of the Twin Turbo V6 used in many Toyota and Lexus models. People who experienced these failures know as do the technicians and statisticians. Average global customer still thinks Toyotas are somehow magical; that is branding on par with our current U.S. president.

Consider analyzing the data available regarding third-party warranties with as little bias as possible. It is really tough, you will stumble on lots of discreet advertising, "so and so forum said" and so on.

If one totally discounts data analysis, consider tuning your intuition a bit. What entity stands to gain the most from selling third-party extended warranties? Do they sell themselves because they are all so great and reputable? Are there lots of name changes and dba's? Lots of unvetted reviews.

The consumer generally loses in the end with these warranty products. People use words like "peace of mind," "money well spent," and will justify their expensive purchases even if the factory Rivian warranty must be exhausted before they can make claims. Gen 1 owners with 8-years/175,000-miles good luck getting anything that comes close to or touches powertrain claims taken care of smoothly.

 

[MidnightRivian]

I like to hedge my bets, push my vehicle to the limits daily and keep it for 10+ years of stress-free ownership.

 

[RivAW]

I am thinking of purchasing an extended warranty plan and Fidelity warranty services comes highly recommended by the Porsche owners forum Rennlist.

What are your thoughts on purchasing a bumper to bumper extended warranty plan for the Rivian.

I can see the warranty would include the battery and drive motors / inverter. We can go as high as 11 years total coverage and 150,000 miles.

I've attached their online quote for reference and you can add a $200 code "RIVIAN" to help bring the price down slightly.

I am most interested in a 10 year / 100,000 mile Platinum warranty with $250 deductible for $3,836 OTD.

All plans begin on the PLAN PURCHASE DATE and the CURRENT ODOMETER READING. In clearer terms, the years shown will begin TODAY and the mileage shown will be ADDED to the current odometer reading.

What are your thoughts?

Picture for attention

Steingold Factory Protect Fidelity Extended Warranty Link - Rivian

Use code RIVIAN to knock $200 off the price.


Note for California and Florida residents. They like to have special laws about selling extended warranty. Hellooooo, we've been trying to reach you regarding your extended warranty...


-Highline Autos is one of the few Fidelity retailers, able to administer coverage to California and Florida residents, you can reach them at the email already shared in this thread, [email protected].

It seems reasonable so long as they have a good reputation for paying out on claims. That said, it depends on how long one generally keeps their vehicle and their risk-tolerance with regard to self-insuring against these types of things.
Very generally, extended warranties are a waste of money ….but do work out in the buyer’s favor occasionally. That said, insurance companies are pretty wealthy, and not because they are giving away money. They trade on fear …

 

[RivAW]

Makes sense as the reason you would not purchase a third-party extended warranty is due to Toyota (Lexus) stellar reliability reputation. Unfortunately, it is not very logical. I am a big fan of Land Cruisers have owned and operated several over the years. There is nothing magical about Toyota/Lexus reliability in general or Land Cruisers in specific.

Toyota, until very recently de-tuned engines for duty cycle versus performance. Even the venerated 3URFE 5.7 port injected V8 is NOT bulletproof; it consumes oil, gets warped engine block and heads (Yup, all aluminum block with steel head gaskets; guess which warps when temps rise? Not the steel head gasket).

Not trying to beat-up on Toyota, 200-series Land Cruisers or third-party warranties, however, they all make sales and maintain value based on branding, advertising, marketing NOT performance.

Land Cruiser last forever is the perception. The reality is various Land Cruiser models can and do last a very long time if properly maintained (just like a much cheaper Nissan Patrol). All older vehicles have failures: alternators, starters, hoses, wiring looms, etc). None really "last forever," this is a false perception propped-up and defended by Toyota/Lexus.

Look at the recent failures of the Twin Turbo V6 used in many Toyota and Lexus models. People who experienced these failures know as do the technicians and statisticians. Average global customer still thinks Toyotas are somehow magical; that is branding on par with our current U.S. president.

Consider analyzing the data available regarding third-party warranties with as little bias as possible. It is really tough, you will stumble on lots of discreet advertising, "so and so forum said" and so on.

If one totally discounts data analysis, consider tuning your intuition a bit. What entity stands to gain the most from selling third-party extended warranties? Do they sell themselves because they are all so great and reputable? Are there lots of name changes and dba's? Lots of unvetted reviews.

The consumer generally loses in the end with these warranty products. People use words like "peace of mind," "money well spent," and will justify their expensive purchases even if the factory Rivian warranty must be exhausted before they can make claims. Gen 1 owners with 8-years/175,000-miles good luck getting anything that comes close to or touches powertrain claims taken care of smoothly.

Agree with your analysis of extended warranty products but have to disagree with your refusal to accept Toyota reliability as magical ?. Never a single issue (that wasn’t self caused) with any Toyota I’ve owned which includes cars, trucks and SUVs.

 

[DayTripping]

I think we can all agree that typically extended warranties don't make a lot of sense. Here are the main reasons I purchased one in order of priority. For me it was a simple decision to do it based on my analysis.

New vehicle brand and model - The Rivian is a brand new model without a long established history, where I could judge the long-term reliability. The sheer number of computerized and complex systems it has could make out-of-warranty repairs pretty expensive. My one shop visit so far, while in warranty, would have been several thousand dollars out of pocket with all the things they repaired. Factor in the issues some people have reported with the suspension which have turned out to be quite expensive. My quad has a 5/60k bumper-to-bumper and 8/175k powertrain and battery warranties, and the suspension, HVAC, computers, etc. won't be covered except under the bumper-to-bumper one. A single replacement of the dampers alone would almost totally pay for the extended warranty.

Long term ownership - I plan to keep my R1T long term. So I would face significant exposure to these costs. I can afford them, but I think the risk is greater that they will occur.

Price - Another point was, I think, the warranty was priced very fairly for the coverage I got. I think they rated it like they would a Tesla, so the pricing was similar to that of a Tesla Model S of the same year. The Tesla is a much more mature platform, yet they priced the risk premium similarly. I think this was a mistake on their part. I've had more things repaired on my Rivian than my last 5 Teslas put together with about 40 times the miles. Another part of pricing is that the warranty is a deductible expense since it is my business truck. Given my marginal tax rate, it will save me quite a bit in taxes in the tax year I really needed it.

Coverage Term - When I bought mine, I think there was a glitch in the system as I couldn't replicate how I got there later for someone else. Basically my truck is covered for 10 years and 175k miles. Which, at the time I purchased it, I think I had about 9k miles on it, so my coverage extends another 9k miles past the factory's powertrain and battery warranty.

Resale value - If Rivians turn out to be less reliable than we all hope, having an extended warranty will help sell the truck as it will de-risk the purchase for the buyer. I always ask list my vehicle priced with and without the warranty. If they don't want it, I'll cash out my policy and get a prorata refund.

Every person's situation is different and many like to lease. For me, it was a no-brainer. In my situation, the real out of pocket cost was under 4k for 10 years and 175k miles of additional coverage. I think there is a better than even chance I will get all my money back in warranty claims if I keep the truck long enough. I also went with a $0 deductible.

 

[MidnightRivian]

I just had more work done on my suspension all covered under the warranty to resolve my tick/tock, clunk and ting noises from the suspension.

It finally rides nice and quiet over potholes, speed bumps, manhole covers and when making low speed maneuvers.

This is the 2nd time I got 2 new front dampeners for my vehicle under warranty. I believe they have upgraded the parts and also replaced additional parts to help with the front-end clunk noise.

I have had in this most recent trip the following parts replaced which took around 8 hours of labor.

Right and Left Halfshafts

Right and Left Hubs

Front Dampeners both sides

Jounce lines on both sides.

I would imagine the cost of all this is between $6000 - $8000 without a warranty.

No way I want to pay for that once my stock warranty expires.

I was looking at both Fidelity and XCare plans to make sure It's feasible for me to own a Rivian outside of warranty and to keep it 10+ years.

I ended up with 10 years / 100,000 miles with Fidelity based on the reviews I have seen online from forums from different vehicle manufacturers.

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