Probably not
In response to a reader comment, we thought that we would address this topic, as there are many different approaches to the thought process. Keep in mind, these are just our thoughts. Others may disagree for various reasons.
As a rule, I am against extended warranties of any kind – home electronics, appliances, automobiles, you name it. Keep in mind that an extended warranty (as opposed to an original warranty) is essentially an insurance policy. (Have you seen the headquarters offices of insurance companies?) Recently I have rethought this position in one area – mobile phones. My wife and I have together gone through replacing four mobile phones over the past four years due to accidental damage. Because of their constant use and exposure to accidental damage, this is probably the only area that I would recommend anything beyond the manufacturer’s warranty. I do recall that many years ago I did buy an extended warranty on a vehicle (only because I could get it at cost), and it did not pay off, even at its reduced price.
In the case of the LEAF, I believe it is even less necessary due to the design of the vehicle. An AC synchronous electric motor (such as that used in the LEAF) essentially just has two moving parts – the stator and the rotor. Throw in a couple bearings, and that’s about it. I don’t even want to try counting how many moving parts are in a contemporary internal combustion engine (ICE). In addition, brakes will get less wear and tear due to the regeneration offered by the electric drivetrain, and that is another source of reduced potential cost.
The flip side is the infamous “first year” reputation. “Never buy the first year production of anything!” we often hear from well meaning friends. Why not? Our current back-up vehicle is the first year production of the previous generation Nissan Quest – 2004. It currently has over 90,000 miles on it and has had no out of warranty repair work done. There were some early recalls, which Nissan took care of quickly and without undue distress to our household. “Aha…” say the naysayers. “We told you so!”
A quick look at the Federal Government’s recall website shows that as of today, just this month there have been 28 motor vehicle recalls for vehicles of all types – cars, trucks and motorcycles. Only one that we saw – the 2012 Honda Civic – happened to be the first year of production of a significant model change, or an all new model. Manufacturer’s experience recalls all the time, for all sorts of reasons. Many of these vehicles have been in production for many years. Suppliers change. Real world demands are more rigorous than the carefully calibrated computer simulations. The reasons are endless. Stuff happens.
So, in a nutshell, would we buy an extended warranty on the LEAF? No. We did buy the car, we did not lease it. And we did not buy the extended warranty, for all of the reasons stated above. But with a decision like this, your peace of mind is what matters most. If you do choose to purchase an extended warranty, carefully read the terms. It is highly unlikely that you will find any battery warranty coverage, and as we all have learned by now, that is the biggest question mark.
{ 6 comments… read them below or add one }
Dear Ernie,
Thank you sooo much for your thoughts! I feel better about not purchasing the warranty especially considering the possibility of recalls covering many issues that could possibly come up with the vehicle but probably will not. My deale,r Mossy will only sell platinum plans so the cost would be more expensive that the silver or gold plans. Thanks again for your wisdom and expierence in this area.
Frank, I’m glad that I could be of help.
Ernie,
When I picked up my LEAF at the end of April, the finance guy tried a full court press to convince me to buy the extended warranty. He said he always felt the warranty was a waste of money, but in the case of the LEAF (being new technology and you never know what can go wrong) it would be in MY best interested to buy it. The warranty also provides a refund at the end of the term minus any fees and other expenses (never got to ask him what that meant).
Like you, I purchased the LEAF. I have always maintained my previous vehicles and got a lot of years/ miles out of them before getting a new car. I do plan on charging the LEAF at 80% and following the maintenance schedule. I find the $2,600 warranty ridiculous and a real turn off in what was otherwise an enjoyable purchasing experience.
John
John – thanks for your comments. As I never even considered the extended warranty, I didn’t know how much it would be. Careful maintenance (and with the LEAF, even regular required maintenance is reduced), I truly expect the LEAF to do well. Good luck!
I also got the sales pitch for the extended warranty, and turned it down.
Now, a month later, I am having second thoughts. Here is why:
I plan to keep the Leaf for a long time (I usually keep cars for 12+ years)
It is not the electric motor that I worry about, it’s everything else.
1. The navigation system – Example: It is a stretch to expect a touch screen/LCD to last 8+ years
in an automotive environment. Nobody knows how these will hold up.
I suspect that replacement of this will cost most of the warranty price.
2. The cooling system – water pump seals will probably not last.
3. air conditioner, electric steering, and other power accessories
4. electrical systems – e.g.: keyless entry system, wipers.
However, the BIG risk, the batteries. The Nissan warranty spelled out in the warranty manual
is very limited. Talks about defects in workmanship. I did not see anything about maintaining
capacity. We know that they will degrade over time, (thus limiting the driving range), but
how much degradation is acceptable? When I see a warranty that covers battery capacity,
then I will be interested.
(BTW, battery prices are likely to fall, but probably not much for the batteries in the current model of the Leaf, newer models will likely have improved batteries and different controllers, and not likely be upgradeable.)
joel – welcome to Living LEAF.
As you mention, the big risk is the battery pack. But the battery is modular, and module level replacement is possible for individual bad cells that might arise. Also, I would venture that there is no battery degradation warranty to be offered by any carmaker for a very long time (if ever). They will need to get a data benchmark prior to considering such an offering.
Nissan (and others) have used touch screen navigation systems for quite some time now. In fact, many portable systems have been touch screen as well. We haven’t seen high failure rates on these systems (assuming reasonable care in use). You could probably look to some of the high-line manufacturers to evaluate repair statistics. The only other item of significant cost on your list would be the air conditioning system. While that would be expensive, you need to determine for yourself if the potential failure is worth the current outlay for an extended warranty.