If you're financially disciplined, you're usually better off taking what you would have spent on the warranty and putting it into a savings account. Remember that warranty companies have good actuaries working for them; they don't offer a warranty for less money than the average car will cost them in repairs.
Bottom line is that these "extended warranties" are insurance. The companies that offer them aren't charities and they do make a decent profit on offering those warranties. That means you're not likely to ever get more value from the warranty than what you paid for it.
ZV
This is extremely true, and I will add that 'aftermarket' warranty companies aren't just covering themselves...they are making HEALTHY profit. Of all the people I've seen come into shops with aftermarket warranties (even those purchased through the dealer), it seems like at least half the repairs they need are not in 'covered' areas (or are declined, anyway).
'Non-essential' electronics...pretty much everything except your engine computer (which has a long factory warranty as an 'emissions device,' iirc) is often not covered. A/C, even if it's a mechanical failure (compressor)...probably not covered.
They basically make all their money by showing you ALL this good stuff that they DO cover...and it's all the things that they know are statistically unlikely to break.
That said, factory extended warranties (bought with the car when new) can be a decent deal. Or at least much more solid 'insurance.'
I paid cost for a factory warranty to 100k, but iirc it's only five years. Hindsight, probably a waste, since anything that doesn't break in the first three years is fairly unlikely in the ensuing two. But I was impressed with how comprehensive it was (I and another mechanic buddy scrutinized their covered parts/exemptions list pretty well), and, well,
fuck working on my own car.
edit: although on that last part, I've since changed my attitude. I've seen so many bad techs...hard to let anyone else touch my car. I've done stuff like minor trim fixes myself, because not only do I not trust the competency of others; most dealer techs get MAD when they get stuff like squeak/rattle or trim/weatherstripping complaints. I don't want that dude working on my car. Now, if the shop actually treats them well, and spreads the good/miserable tickets around evenly, it's not so bad...but that doesn't happen anymore. Not that I've seen.
