So would you buy an extended warranty?

[Andrew Perrin]

We just bought a new Forester X (2004). Of course the dealer wants to
sell us an extended warranty on the thing, as well as a maintenance
contract. We've pretty much decided against the maint contract, but
any advice on either or both would be welcome.

Thanks,

 

[Frank Logullo]

We just bought a new Forester X (2004). Of course the dealer wants to
sell us an extended warranty on the thing, as well as a maintenance
contract. We've pretty much decided against the maint contract, but
any advice on either or both would be welcome.

I don't buy them and Subaru will keep pressuring you to get one because
extended warranties are high profit items.
Frank

 

[H. Whelply]

1. Find out the price of the warranty and contract.
2. Put that amount of money (lump sum or monthly installment over the period
of coverage) into some kind of interest-bearing account or instrument.
3. If you need post-warranty service, pay for it from that account.
4. Whatever you don't use, apply toward purchase of your next car, or
whatever you want.

HW

 

[Djay]

I look at extended warrenties this way:

"If they are willing to take the gamble - so am I."
Meaning -they expect to make a profit because the data shows that on a $1500
service contract they will likely only use X dollars less. Believe me they
figure that stuff out very carefully. Don't believe that they are being
your friends by selling you a better warrenty. They are strictly in for the
profit.
Bottom line for me...
I don't buy them - ever.

YMMV,

DJay

 

[JohnnieBlue]

I would have to agree.. pass on the extended warranty. chances are, if you
get it, you wont need it. I would have to go with H. Whelpy's idea.. i never
thought of that, but im gonna start that account on my next purchase.

By the way, i am planning on buying a new car. my current car is old and
more a family gift.. any suggestions on a good first bought and owned car???