04-12-2012, 09:11 AM
Join Date: Feb 2012
Location: Tampa, FL
What I Drive: '14 Ruby Ti w/ Handling Pkg
FF Reputation: 16
Buy-Sell-Trade Rating: (0
Originally Posted by BlueFocusSE5
Spend $2,800 on a 1 in 1,000 chance of getting back more than $2,800? Those are very, very poor odds. So we spend $2,800 to save $2,500. We're still out $300. It would have been wiser to save that $2,800, pay for the $2,500 repair in cash and be $300 ahead of the game. Again, extended warranties are usually not a financially wise idea.
Any automotive technician/neighborhood mechanic isn't going to repair a vehicle to the absolute cut to the bone cost, as this greatly increases the likelihood of the vehicle coming back for corrective/warranty repairs. In the automotive maintenance and repair industry, these are referred to as comebacks and are an absolute nightmare.
So now we spend $2,800 in the 1 in 10,000 chance that we'll get more than $2,800 back? That's even worse.
I said it cost me $1,200. GM MajorGuard - Pretty much bumper to bumper and $0 deductible. And I got $3,000 out of it and counting. I only got it because I knew that the '06 Explorer was the first year of a significant update - new engine and tranny (for the Ex), I had read new or heavily updated chassis, etc. Now I'm glad I did.
Oh, and that $3,000 was what was negotiated between the dealer and the warranty company - I would have had to pay significantly more out of pocket had I not had the extended warranty. $1,200 to cover $4,000+ sounds like a great deal to me.
Since based on my research I felt that this particular Ex was priced roughly $2,000 below others on the market, it seemed like a no brainer. Paying an extra $1,200 added about 6% to the purchase price.
Paying $2,800 for an extended warranty would be a much more jagged pill to swallow and I probably wouldn't do it. If anything I'll get an extended powertrain warranty for the Focus after the 5/60 is up.
Last edited by kam327; 04-12-2012 at 09:17 AM.
Reason: Added line.