2016 TC XLT Passenger with 47k miles - Should I buy a three year extended warranty?

[princevillian]

It's pretty much all in the title. I am in Hawaii so everything is expensive but they want +/- $2500 for a 3 year comprehensive warranty. My heart says no but my brain says to consider it. Looking for input.

[sKiZo]

I got a two year extension on my 2011 with 70k miles from the dealership for $1200. I also got a discount price out the door going that route. No claims, but full coverage peace of mind if nothing else.  Renewing that when it expired pretty much doubled the price, so I passed. 

[G B L]

I would put the 2500.00 away and see what happens. My 2014 has 114000+ on it.

[Don Ridley]

$2500 buys a lot of parts and normal service. My unscientific and not-statistically proven requirement is insurance needs to pay at least 5 times what I can afford. 

[MLB]

My 2.5 16 has 65k on it and has never needed a thing.  You can fix 2 big problems for 2500 and you aren't likely to have more than 1 in 3 years. 
Pass

[Fifty150]

There is a pricing matrix for selling extended warranties.  They don't set the price to lose money.  Whatever you pay, or whatever they quote, is based on the fact that they will make money selling those "warranties".  It's like an insurance policy.  They collect a lot of money, from a lot of people.  Someone may need a repair.  They find a way to deny it.  Then if they do pay, you still may have to pay a deductible.  Their money is made off the float, between collecting the money, and holding onto it as long as possible, before paying out the least.  

 

You may also want to read all of the fine print.  What does that warranty actually cover?  What does it not cover?  Are there limits?  An "extended warranty" may not cover things like wear items, and you may need to have all of your service records before they honor it. 

 

Also consider the cost of the warranty, versus any anticipated repair.  Think about the big ticket items.  Engine.  Transmission.  What are the chances of a failure covered under warranty?  

 

 

 

 

On 5/10/2021 at 9:28 PM, sKiZo said:

full coverage peace of mind

 

 

I get it.  It's like buying insurance, an auto club membership, et cetera.  For some people, it's worth every penny.  And we all view economics from a different perspective.  

 

Insurance, I have to buy, by law.  

 

An auto club membership, I just don't buy.  I might change a tire.  I might jump start the car.  I might replace the battery.  I can do all of those things.  I haven't locked my keys in the car since you needed to have the remote in your hand to lock and unlock the car.  The only thing that I can't do, is tow the car myself.  So I take the chance that I may need to pay $$$ for a tow.  As opposed to paying $$ every year, for who knows how many years.  But everyone has a different stroke of luck.   We never know when a car may break down and need a tow.  

 

And we never know when a car may break down, and need a repair.  So if you feel good about spending a few thousand dollars every few years, just in case, then it makes sense to you.