I have a 2000 Toyota Echo with 67398 miles on it. I have been approached by Extended Warranty Companies, and I cannot decide whether to purchase further coverage. Current Extended Warranty coverage ends August 1. Please advise.
No, No and No. The echo is a bare bones car with little high cost repairs. Proper maint will take this car to the 100K range problem free. If you do encounter a problem it cost less than a warranty. Warranty companies are sometimes difficult to collect from, or they just drop the earth. Do not buy a warranty.
Agree! The Echo does not have any new or difficult technology, and repairs will be affordable. You are being offered a very expensive repair INSURANCE plan with a lot of exclusions. Items covered are usually those that normally don’t break; that’s how the company makes its money.
Just say NO.
Well any car can have major expensive repairs. The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some peop;le will get nothing back and some will get a lot more than they pay. Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can. Remember that the seller is out to make money and they get to write the rules and set the price. They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out. Would you gamble with a car dealer who gets to set all the rules and knows all the odds? Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money.
Don’t buy and put the premium money in an account for your future repairs and you will be fine. Keep up the maintenance recommended in the owner’s manual, no exceptions!
Extended warranties are PROFIT for the people who sell them, and nearly worthless (except for a few cases) for the people who buy them. Save your money. Forget these extended warranties. They don’t cover anything that’s likely to fail anyway.
And after the hypothetical extended warranty runs out, take a nice vacation with the money left over in the repair fund.