I have been leasing an 05 Subaru Legacy GT Turbo which I love. I am now going to purchase it and re-finanace it. They are offering me an extended lease which will cost $2,000 over the 4 year refinancing. I have heard for the most part they are not worth having. Any opinions out there?
Your headline says “Extended warranty,” but your post says “extended lease.”
I’m assuming you’re asking about extended warranties, which are basically worthless. They are profit for the seller, which is why all car dealers push them, but the don’t really cover much for the buyer.
All you’re doing is adding another $2,000 to your payments. Put the $2,000 in the bank and earn interest instead. You’ll be much better off.
I suggest you get a copy of the extended warranty you are thinking about purchasing and read it VERY carefully. You’ll see. The big stuff is not covered.
How many miles on this vehicle now? The answer might make a difference.
I did mean extended warranty. There is 65,000 miles on the car. I have had since it is new and take good care of it with all the maintenance requirements. I am loyal about all changes. I also don’t think it is worth the expense. Thanks.
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.
The likely case is your warranty (extended) is only going to last 35k miles. $2000 is pretty steep. There is a small chance you may have a pricey repair, however one that far exceeds $2000 is unlikely. If your have a $2500 repair(s) you still are only $500 ahead and it really is not worth it.
My wife has the very same car and absolutely LOVES it. She has the 05 Legacy GT wagon with manual transmission(apparently rare). Change your oil every 3750 miles/4 months. They state you can go as far as 8 months/7500 miles in the manual(normal conditions) but they reverted on all 2008 newer turbo cars and recommend 4months/3750 miles on turbo cars.