Sophie, my 2016 Volvo XC60 R-Design car - bought nearly a year ago from Caffyns Volvo Eastbourne - was a Volvo Selekt car, meaning that she was among the pick of vehicles traded-in for something newer, and was not only a good-looking, cared-for, low-mileage example, but was running particularly well and reliably, all settings correct and everything working properly.
That made her a good bet if buying second-hand. However, it also meant a buyer would be paying more than the ordinary price for having such a car. I reckoned some £1,000 more. But I was in a hurry to buy a replacement for Fiona, my previous Volvo XC60, who was old and ailing, and I'd decided that if I could quickly find another XC60 with the right engine (that is, the biggest diesel option, suitable for hauling the caravan) I'd go for that. The price was secondary, although the financing had to be affordable. I was lucky. Caffyns had exactly what I wanted, and I secured Sophie as soon as I'd had the test drive.
Part of the Volvo Selekt package was a one-year used car warranty. I didn't give it a lot of thought at the time of buying, but after six months of ownership, I was glad that I had that warranty. A rear wheel sensor that monitored ABS and all sorts of related things packed in while I was away on holiday in April. Once home again, I had Caffyns look at it. The part was simple to replace, but its cost, and the technician's time to fit it, would come to about £300. Ah, I said, that might be covered by the one-year used car warranty! And so it was. It was all done while I waited, after Volvo HQ had authorised the work, and cost me not a penny.
So for once I'd invoked a warranty and had had a satisfying outcome. The warranty hadn't been needed since. But the good experience last April had stayed in my mind.
Now, in October, it was time to consider extending that warranty for another year. I was getting reminders from Volvo to do so. I had to act before 24th October.
Clearly it could be very useful. The warranty was basically for original factory-fitted parts that failed unexpectedly or prematurely for reasons other than customer misuse or ordinary wear and tear. The sensor that failed was a very good example. It was unlikely to break so early in the car's lifetime; and there was no way a customer could deliberately or carelessly induce failure. So no quibbling about covering its replacement. Mind you, the position for other parts might not be so clear-cut. And there were a lot of specific exclusions.
So was it worth buying an extension to the warranty? After all, mine was a quality car made with tough components by a car company famous for its long-lasting products. Sophie had enjoyed a careful first owner, and was now being driven just as carefully by someone who tended to cherish her cars. Driver abuse could be ruled out.
But chance mishaps and failures can happen. So it seemed to me that the answer was yes - that is, buy a warranty extension - if the cost were reasonable. Say £300 for another twelve months. But to pay no more than that.
This decided, I responded to the reminders and filled in an online quotation form. Surprisingly, they asked me what Sophie's current value was. (Didn't they have data on that?) Sophie was first registered in April 2016, and her cash price then, when seven and a half years old, had been £19,500. Now she was a year older still. A quick glance at some same-age XC60s for sale on the Internet suggested that her current value might be £14,500. I put that in.
The form completed, I asked for my quote.
£899.
What? £899 to extend the warranty for twelve months? It was far too much. Maybe a business executive, or a high-flying smart young professional on £90,000 a year, would pay that kind of money without hesitation, at least on a newer car, but it was beyond my income bracket. Yes, I did actually have the money in my savings account, but £899 would deplete those slender savings too much.
If the money would cover the next three years, that would be different. But no, it was only for a year.
Why so much? Well, I had of course already made a previous claim. That would bump up the premium a bit. And as Sophie aged, the likelihood of other qualifying component failures would increase. Yes, I could see why the cost might be high. And get higher.
The latest service and MOT - just done - indicated all was good, with nothing likely to fail. So I might easily spend £899 for nothing - and then similar amounts year after year. Rather than feeling warm and happy from insuring myself against unexpected part failures, I'd in fact feel robbed and a little resentful. It made more sense to build up my savings account instead. Then if nothing went wrong, I'd still have the money.
Episodes like this always make you feel you are exposing yourself to the whims of fate if you don't pay up. But nothing is ever entirely risk-free, whatever you do. I felt that Sophie had already proved herself to be a good reliable car, and not one of those unlucky cars that always need fixing. So it was rational to forego the umbrella of an extended warranty, and instead to accept a small amount of risk.
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