I realize that most service contracts do not pay, but here are some specifics. I drive 20-30,000 highway miles a year. The car is a complicated Subaru WRX, which has a turbo and lots of expensive electronics.
I can buy a 100,000 mile 5 year extended warrantee from the manufacturer for $1300. It does not cover service, or clutch or brakes.
In this specific instance, would it make sense?
The company offering the warranty is also aware that the car has a turbo and lots of expensive electronics. Do you not think they set the price accordingly?
Is It A Subaru Corporation Contract Or Brand-X?
I have read the fine print on some brand-x contracts before. They list all the components that they cover. It looks really good. It’s what they didn’t list and cover that’s the problem. A $27 gasket that isn’t covered can result in hundreds or thousands of dollars of repairs that aren’t covered. Be sure you read and understand what is covered. They will not pay for what is not specifically covered and they put a lot of thought and creativity into this. If you are not well-versed, get help.
Even legitimate factory contracts don’t work for me. We operate multiple cars. The car without the contract is the one that will break. It ties my money up in one car. Contracts for each car is a waste based on past repair frequency.
You’ll only get 5 years of coverage if you limit your mileage to 20K per year. At 30K you’ll run out of coverage before the car is 4 years old.
All cars have expensive electronics. The only thing special about the WRX is the turbo, and they’ve been around for decades. Highway miles are easy miles. The engine will not be working hard, and the turbo will be loafing along, hardly providing any boost at all. At least during the highway driving.
How long is the Subaru warranty? Personally, I’d put the $1,300 in the bank and let it earn interest. If you need it for something beyond normal maintenance, it wil be there.
The WRX has a good reputation for reliability, so unless you’re buying the STI model (which can be a maintenance nightmare) you probably have nothing to worry about. I would not expect a major repair on this car before 100K miles.
I say, no, it doesn’t make sense to buy an extended warranty on a WRX.
What makes sense is to put the $1300 in a seperate bank account in your name and call it your “extended service warranty” account. That way of you need it you have it and if you don’t you have it anyway.
A Subaru WRX actually is a really simple vehicle. The electronics are few and far between. The AWD is a pure mechanical affair lacking any electronics controlling it. The turbo system is tried and true. Consmer Reports has it at a similar reliability level to Honda and Toyota.
I have a 2004 WRX and it has been flawless. Put your $1300 into a savings account and likely tap into it with interest after 100k miles.