So would you buy an extended warranty?

We just bought a new Forester X (2004). Of course the dealer wants to sell us an extended warranty on the thing, as well as a maintenance contract. We've pretty much decided against the maint contract, but any advice on either or both would be welcome.

Thanks,

Reply to
Andrew Perrin (CLists
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I don't buy them and Subaru will keep pressuring you to get one because extended warranties are high profit items. Frank

Reply to
Frank Logullo
  1. Find out the price of the warranty and contract.
  2. Put that amount of money (lump sum or monthly installment over the period of coverage) into some kind of interest-bearing account or instrument.
  3. If you need post-warranty service, pay for it from that account.
  4. Whatever you don't use, apply toward purchase of your next car, or whatever you want.

HW

Reply to
H. Whelply

I look at extended warrenties this way:

"If they are willing to take the gamble - so am I." Meaning -they expect to make a profit because the data shows that on a $1500 service contract they will likely only use X dollars less. Believe me they figure that stuff out very carefully. Don't believe that they are being your friends by selling you a better warrenty. They are strictly in for the profit. Bottom line for me... I don't buy them - ever.

YMMV,

DJay

Reply to
Djay

I would have to agree.. pass on the extended warranty. chances are, if you get it, you wont need it. I would have to go with H. Whelpy's idea.. i never thought of that, but im gonna start that account on my next purchase.

By the way, i am planning on buying a new car. my current car is old and more a family gift.. any suggestions on a good first bought and owned car???

Reply to
JohnnieBlue

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