Quote:
Originally Posted by Lotusmotion
Why?
I will likely stand out as the peckerhead in this thread, but here goes anyway:
An extended warranty program is a for-profit endeavor on part of the issuing party. There are tons of exclusions, such as wear and tear parts and abuse, to name a couple.
Odds are not in your favor that you will collect more from the policy than you spend on it.
The car has a Toyota powertrain...doesn't get any more reliable than that.
I understand that many people perceive value in extended warranties, but I just don't get it (actually, I do...  ). |
100% agree. They are betting you will cost them less than you pay them. The only way it might make sense if you think it will cost you more than your premiums.
IMO... this is a kind of insurance and it makes sense when you can't afford the potential liability. Most of us should be able to afford the service on the car. And if you can't, then set aside the cost of the extended warranty and there you go... now you can.
The other downside of the extended warranty is less flexibility should you need to use it.