Extended warranty policy

ford
mustang

#1

can you recommend a good extended warranty policy


#2

If by ‘good’, you mean ‘worth the money’, then no, none will save you money on average. If you’re willing to pay $2 for $1 worth of average repair cost for peace of mind, then the only one I would consider would be a factory-backed one (Ford, in this case). Do NOT buy it at closing, that’s when they ge the highest price. After you buy the car, check around with a number of Ford dealers.


#3

I agree with texases. IF you desire an extended warranty, only consider the manufacturer’s. Do not use these warranties advertised on TV. They make their money by denying claims.


#4

Take the $ you would spend on the warranty and put it in the bank.


#5

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. 

Good Luck


#6
  1. a new savings account in your name earmarked for car repairs. Put the cost of a warranty into it. Odds are you will likely have most of money left in it at end of a warranty period. That is what the warranty company bets and wins majority of the time.

  2. if you must go for one. The one backed by your car maker (not dealer).


#7

Put the money in the bank and wait for a problem. I don’t buy extended warranties even for a toaster.


#8

No, we can’t.