Originally Posted by Revlis
I would be extremely wary of any NON-Factory "extended warranty". From experience, the fine print will exclude just about every part that can go wrong. Mostly the extended warranties make money for the dealership.
Example would be most nationwide warranties will not cover things like the ECU, etc...
I would probably just suck it up, make sure you've got some cash handy for any needed repairs and move on.
On paper an extended warranty is not a good idea. The fact is the warrantor must pay less in claims then they take in... a lot less. They must cover their overhead and profit. Typically they do this in several ways. 1. Make it very difficult for you file a claim. 2. Make it very easy for them to deny a claim. 3. Go out of business before you have a claim. 4. Expect you to have an accident or sell the car. 5. Hope you forget you have the warranty. This is the business model. If you are okay with that and you know that you can afford exactly $200 per month and no more and you know that you will have a failure that is covered, then go for it.
Here is another alternative and one that I think is much better, but it requires some self disciple. 1. Save $200 per month. 2. Keep your credit score up.
If you can do those two things then you are in excellent shape and here is why.
1. If you have no failures, you will have all that money for other purposes.
2. If you have a failure, but it is less than what you have already saved, you get to pocket the difference and you do not have to go through any hair pulling claims process. You are the claims department.
3. If you have a big failure, you can go to the bank and get a personal loan for the repair and pay the bank back at a low interest rate. You will be able to negociate terms based on your current circumstances.