extended warranty, yes or no?

[Time2]

Most of us here can afford a large cost car repair without any financial burden. We know that the extended warranties have a large markup and the odds of a costly repair are low. Since any repair is affordable and the odds are low that you will need a costly repair, don't waste the money paying for an extended warranty, send it t me.



tl;dr
No!

 

[pjigar]

I never buy extended warranties.

 

[ivinsfan]

Riddle me this.. what's a better deal leasing a new car every 3 years so you never go out of warranty or buying a new car at a good price and price shopping an extended warranty to lock in your repair costs for the life of the car...

 

[Jerry1]

Riddle me this.. what's a better deal leasing a new car every 3 years so you never go out of warranty or buying a new car at a good price and price shopping an extended warranty to lock in your repair costs for the life of the car...

My guess would be to buy the car and the extended warranty. The lease will have financing cost and the bulk of the depreciation included in the payment. Buying will allow for the depreciation to be spread over more years and you will recapture the residual value when you sell it.

Of course it would depend on other things like how many miles driven per year and how long you would keep the purchased car. Extended warranties don’t go as far as a typical car will last if you’re talking about running it past 100K miles. I think extended warranties cap out around 6-8 years and under 100K miles.

 

[OldShooter]

Riddle me this.. what's a better deal leasing a new car every 3 years so you never go out of warranty or buying a new car at a good price and price shopping an extended warranty to lock in your repair costs for the life of the car...

If "better" means most economical, then the answer is "neither."

 

[Car-Guy]

Riddle me this.. what's a better deal leasing a new car every 3 years so you never go out of warranty or buying a new car at a good price and price shopping an extended warranty to lock in your repair costs for the life of the car...

My answer, buy new and trade-in for another new one before the warranty expires.

 

[ivinsfan]

My answer, buy new and trade-in for another new one before the warranty expires.

That's one way to do it....

 

[ivinsfan]

If "better" means most economical, then the answer is "neither."

Just comparing the 2 here so there ya go.

 

[ncbill]

I ordered a 2023 rav4 xle hybrid. it comes with a 36 month, 36000 mi; bumper to bumper warranty. it has a separate factory warranty of 50k miles on the drivetrain and 10 yrs or 150000 miles on the hybrid system. I asked about extending the original bumper to bumper, they told me 1700. to extend the bumper to bumper to 10 yrs or 125k miles. does that sound like something that would be a good investment?

Kid bought a used Subaru still under the 3/36 warranty.

Subaru has had problems in the past with its CVTs & the 12" touch screen alone costs over $1,000 to replace.

So the kid bought the cheaper (not bumper-to-bumper) Subaru OEM warranty which covers the electronics & powertrain for up to 7 years/100,000 miles.

Which is good since it's transferable with no fee & we plan to buy it from him in a few years when he deploys overseas.