I have a 2000 9-5 Wagon. At the end of December the factory warranty will end. Is it advisable to get the extended warranty?. I was quoted a price of $2000 for six years additional coverage. Is it worth spending this money? or are the cars so reliable that I don't need to worry.
Any advice would be helpful.
Thanks, Paul C.
NO
If it is a factory warranty, then I think 6 years for $2000 US is a good price. It all depends on if like to be comfortable knowing any major repairs are covered. Tranny goes? Easy $2,000 US repair.
Except that on these extended warranties you don't typically get 100% coverage. There is usually a co-payment or deductible of $50 to $500, depending on the warranty.
If there is a way to weasel out of paying, they will (although this doesn't happen as much with factory warranties, so I agree with your recommendation there). Aftermarket warranty companies are particularly bad for this. If they don't go bankrupt and make your warranty worthless, they often try to claim your warranty is invalid because you didn't maintain the car properly. In the transmission example, they might say that you didn't maintain the fluid level properly and it is your fault that it broke.
My opinion is that you should put the $2000 aside and use it to pay for any repairs you might need in the future. For every car I have purchased so far, the money for the warranty was still there even after the warranty would have ended. Your mileage and driving habits may vary from my experiences.
Walt Kienzle
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