-----Original Message-----
Recently purchased a used 2003 auto still under factory warranty, I am
considering getting an extended warranty
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They are financially not quite as good a proposition as insurance.
Basically, the cost is the issuer's best guess on what constitutes a win
for them. No problem there - just good business. The converse,
however, is that it likely constitutes a losing wager for you. I
personally have bought one and found that it was very nearly a winning
decision for me, but not quite. Most policies - notably the "inclusive"
type - simply do not cover the items that are most likely to need
repair. They offer some peace of mind - but at a high cost. The
"exclusive" variety may cover more and so be more useful, but still are
going to exclude the most likely expenses. Don't forget that extended
warranties are only applicable for the period between the end of the
factory warranty and the end of the extension. Your best guess at
repair costs should be for that range only - not for the total mileage.
If you decide to go for a dealer's plan, remember that whatever the
first quote is, knock several hundred dollars off and figure that as the
actual best price you can get. My wife recently bought a 2003 vehicle
and the final offering price of the warranty was $1,200.00 less than the
first deal presented! These warrantees represent a huge profit for the
dealerships and the salesperson will get a hefty commission, so the
pressure is high and the BS is deep. ;-)
Dean
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