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Old 08-10-2011, 11:21 PM   #32
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Originally Posted by keelhaul View Post
No. Extended warranties of any kind pay off so rarely that it's almost always a bad deal.
A little devil's advocate ...

Sure, the above is true in a purely statistical manner. Extended warranties, like insurance, are offered because they make money on it. However it doesn't take into consideration the ramifications of if things go wrong.

One has to determine whether moderate to serious failure is something they can financially cope with and what the odds are. Is such a failure expected? Statistically no ... but it also isn't like hitting the lotto in the case of a car.

I certainly agree with the premise on a general basis. You can get extended warranties on anything - either after market, but even at the point-of-sale. Basically any gizmo you purchase at Best Buy. If you buy everyone you'll be out so much money it's ridiculous ... and there's no reason to. Is a $10 warranty worth it on a $90 HDD? Of course not. It's not all that likely to fail within the warranty period ... and the replacement cost is minimal. Same thing with a tablet, an MP3 player, whatever.

However, consider something like your health. Sure, if you're in reasonably good condition and at a moderate age or less, the odds of getting injured or seriously sick are low. But do most people prefer to not have insurance? No. Why? Because the costs of an incident can be life-altering. While a car isn't to the same level, for many people the cost of a serious incident could be more than they can cope with. If you're rich, of course you don't need medical insurance. You can cope with the potential repercussions of betting on the odds. It's more likely you'll come out ahead, but even if you lose, you're fine. Not the case for everyone.

With that in mind. I think a reasonable argument can be made for an extended warranty on a car ... assuming the price is reasonable.

Actually in specific reference to the article you quoted ... they mention that a smart move is to choose something with a known reliability record. The problem here is the 3rd gen Focus is an unknown commodity being that it's a new design. Similarly, with people that have purchased a number of the high-end options, there is a pretty low sample size. Not enough published empirical data to see any sort of trends.

Originally Posted by feta_mgp View Post
Keelhaul, that's a very true statistic however in terms of our Foci with MFT or SYNC... all it takes is one of the modules or the APIM to lose it after our bumper to bumper is up, and then that $1500 is probably going to be worth it.

This car is so tech heavy that I can't see a reason not to... I wouldn't be going for 7 years just 5 for me, but even still.
And to play the flip side ...

Regarding the heavy tech, the reality is most non-mechanical electronics are not something that see a serious upswing in failure rates over moderate time. Basically if there is a fault, it will likely show up well before the bumper-to-bumper is over. If it makes it past that, it's pretty unlikely to fail with the time-lines of an extended warranty unless there is a design issue (example - excessive heat causing degeneration that eventually destroys it).
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