Should we purchase an extended warranty for 2005 Forester??
ask the salesperson why they are selling such a horrible car if it needs an extended warranty.
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 $500 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.
Good Luck
According to Edmund’s the manufacturer’s warranty is Basic: 3 yr. / 36,000 mi., Drivetrain: 5 yr. / 60,000 mi., Roadside: 3 yr. / 36,000 mi., Rust: 5 yr. / Unlimited mi. Also The Exhaust Emission Warranty covers corrosion-related parts for 2 years/24,000 miles, plus 8 years/80,000 miles on the catalytic converter and any on-board diagnostic device. The Passenger Restraint Warranty covers seat belts and airbags for 5 years/50,000 miles. So have a dealer go into the Subaru computer and get the date in service, which will give you the date when the time limited warrantys expire.
NO! Extended warranties are nothing but ADP, or Additional Dealer Profit. Most extended warranties are not worth the paper they’re printed on. Save your money.
Financially the odds are you never get all your money back on it.
However if backed by Subaru AND you service the car per manual AND it gives you peace of mind go for it. Some people it lets them hold onto a vehicle longer as they get comfortable under warranty. The longer you hold onto a vehicle the better you financially are over a lifetime even with the added cost of a warranty. I will reiterate though over a lifetime you will be financially ahead if you never purchase a warranty.