Extended Warranty

[LTC8K6]

If it fails early, the factory warranty covers it.

If it lasts past 100,000 miles, few extended warranties cover it after that.

 

[rh71]

Originally posted by: Naustica

Originally posted by: rh71
in my glimpse of this thread, it seems people who commented "my warranty paid for itself" because of early failures in just american cars... coincidence? Get the warranty.

BTW, my Isuzu's GM transmission got busted recently too - 13 years old but only 110k mi.

No. The Consumer Reports which some people follow like the bible states that extended warranty only makes sense for European cars and not for Japanese or American cars.

They were arguing value correct? A factor may be that European cars cost more to fix out of pocket. I'm half-jokingly arguing necessity & coincidence here. I think that if a warranty on some common 4-banger is less than $1k, you should just go for it rather than get stuck with a bill at an inopportune time.

 

[jagec]

Originally posted by: funboy6942
Your car however is something that can make or break you if you lose it due to a loss of job, heath, injury, or breakage, and a warranty is a MUST, IMHO, and to think I can save that $50 a month now and in 5 years will have XXXX amount in the bank is pretty impressive, especially since your able to see where you will be at that far in the future to know that money may be there still at your disposal at that time when it breaks

Go with the warranty, you will kick yourself if you dont, and be saying "I should of listened to funboy", but again if you can predict the future 100% then by all means dont go for it. BTW also most extended warranties are transferable, so if you decided to sell your car, you will make up your money, pretty much all back, and sell it faster when the people who want to buy it find out they will be protected buying yours, over buying the one off LTC8K6

More food for thought, there really isnt anything bad about getting a auto warranty, only if you never use it, but then again, if you dont, you bought a great car.

Your claim is that you might not be able to save $50 a month in a couple years, like if you lose your job or something?

Well, guess what: If you had bought the warranty you would be out $1500 and STILL not have a job. You don't have to see the future to know that any scenario which busts the $50 budget will also bust the $1500 budget.

The warranty is from 60k to 100k miles. If the car doesn't have any problems in 60k, than it is unlikely to develop major problems by 100k. Or, at least, you should be able to see it coming...if the car has been a lemon, sell it quick before the warranty runs out.

Nothing bad? Either you use the warranty a lot, which means that you have a car which is always in the shop and thus cannot be driven, AND which is pretty much junk by 100k because you no longer have a warranty...or you just wasted $1500 for nothing. It's bad both ways! Contrast this to no warranty, where a reliable car instantly saves you $1500, and an unreliable car still has to rack up $1500 worth of repairs between 60k and 100k, WITHOUT tipping you off by being unreliable before 60k.

Warranties hold value even worse than cars do. Even if the OP sold the car at 60k with the full warranty, he'd only be able to charge a couple hundred dollars' premium because of the warranty. $200 for $1500 is a pretty poor investment, even if you DON'T take the future value of money into account. It's even worse if he sell the car with more miles, because the warranty is worth even less.