So would you buy an extended warranty?

Discussion in 'General Motoring' started by Andrew Perrin, Dec 9, 2003.

  1. 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,
     
    Andrew Perrin, Dec 9, 2003
    #1
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  2. I don't buy them and Subaru will keep pressuring you to get one because
    extended warranties are high profit items.
    Frank
     
    Frank Logullo, Dec 9, 2003
    #2
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  3. Andrew Perrin

    H. Whelply Guest

    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
     
    H. Whelply, Dec 10, 2003
    #3
  4. Andrew Perrin

    Djay Guest

    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
     
    Djay, Dec 10, 2003
    #4
  5. Andrew Perrin

    JohnnieBlue Guest

    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???
     
    JohnnieBlue, Dec 10, 2003
    #5
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