FINANCIALLY - Is an Extended warranty on a car a good idea?

DesBhakt · Post by **DesBhakt** » Fri Sep 07, 2018 3:26 am

Question: Financially Is buying an extended manufacturers warranty on a car a good idea?
[EDITED BY ADMIN]
Thanks and all opinions welcome.

techynt · Post by **techynt** » Fri Sep 07, 2018 3:39 am

Seems like this forum maybe full of Desis having mid life crisis...

I too bought a German convertible to deal with my mid life crisis...:)

I denied the extended warranty thingy since I am not planning on keeping this car for more than 4 years.......because I have no clue where I will be and what I will be doing after 4 years..

Plus, was not interested in paying another 4k on top of the already exorbitant price for that damn car which does not seem to be helping much to cure the boredom :)

DesBhakt;680373Question: Financially Is buying an extended manufacturers warranty on a car a good idea?

Background:
[LIST=1]
I love sporty driving cars.
I generally keep my cars for 10 years +. 1st car sold after 13 years, 2nd car ongoing 12 years plus. These 2 were non luxury Japanese cars, maintenance costs were normal.
I bought a "luxury" german sporty car recently(approaching midlife crisis :) ) . I love the car in the way it drives(in my wife's words:"I'm excited to drive to get grocery again") and want to keep my car for 10 years.
Current lowest quoted price for the extended "platinum" warranty from the manufacturer is in the range of $3500-$4000 with $100-$250 deductible(depending on which plan I choose). This adds on 6 years 70K to the original warranty.
[/LIST]

I understand that any insurance I might or might not use it. But if I consider the cost of getting german cars repaired out of warranty(high price on parts), is it a good idea to pay for an extended warranty?

Thanks and all opinions welcome.

kingeleven · Post by **kingeleven** » Fri Sep 07, 2018 3:43 am

Yeah bunch of midlife crisis guys in here... I need one too in November..

Try ally

https://www.ally.com/auto/vehicle-protection/

DesBhakt · Post by **DesBhakt** » Fri Sep 07, 2018 3:44 am

techynt;680376Seems like this forum maybe full of Desis having mid life crisis...

I too bought a German convertible to deal with my mid life crisis...:)

Congrats!...

[QUOTE]
I denied the extended warranty thingy since I am not planning on keeping this car for more than 4 years.......because I have no clue where I will be and what I will be doing after 4 years..

Isn't that a big depreciation?? I sold my 3 year old Acura to buy the german and lost @40% in depreciation.

[QUOTE]Plus, was not interested in paying another 4k on top of the already exorbitant price for that damn car
:thup:
I denied it when I bought the car but now thinking about it long term.

[QUOTE]which does not seem to be helping much to cure the boredom :)
I smile everytime I go driving & sulk anytime my wife says let me drive this car to work for today :)

You need to start going to Desi Potluck parties, life will be more spicy than Ekta Kapoor's serials :)

Old-Spice2 · Post by **Old-Spice2** » Fri Sep 07, 2018 3:48 am

German cars are designed to last 70K miles, 4 years or up to warranty period. Serious - read somewhere the German engineers design various parts and put it through stress test to ensure it breaks at 60-70k miles. They want consumer to replace cars every 6-8 years. Unless you are a car guy and can do your own repairs, it is a money pit.

Extended warranty does not cover most of the parts that will fail or contract will be such that you will end up paying for repairs anyway. Just ignore, find an European mechanic and take it there when it breaks down.

crazyforger · Post by **crazyforger** » Fri Sep 07, 2018 3:56 am

Books are the best way to deal with midlife crisis.
Try it. You won't be disappointed :))

techynt · Post by **techynt** » Fri Sep 07, 2018 3:59 am

If I am still in the rat race after 3.5 years, I better be making enough moolah to trade this car for something which I find fancy at that time :)

But if my mid life crisis at that time cannot be solved with a fancy car then I intend to keep this car and hope for the best.....but seriously I am expecting electric self driving cars to be the norm in 5 years....which is what I will be buying...hopefully.

BTW, I dont think you are yet in mid-life crisis mode since you are calculating for 10 years out :)

My mid life crisis was not strong enough that I could spend 50k for a certified, 2 year old Porsche :)

DesBhakt;680379Congrats!...

Isn't that a big depreciation?? I sold my 3 year old Acura to buy the german and lost @40% in depreciation.

:thup:
I denied it when I bought the car but now thinking about it long term.

I smile everytime I go driving & sulk anytime my wife says let me drive this car to work for today :)

You need to start going to Desi Potluck parties, life will be more spicy than Ekta Kapoor's serials :)

techynt · Post by **techynt** » Fri Sep 07, 2018 4:05 am

books bore me, they are frozen in time like last year stuff.... I prefer blogs and forums....as current as possible info...

Even though I am planning to read this book to see if I can get some new insight
[h=1]12 Rules for Life: An Antidote to Chaos[/h]https://www.amazon.com/dp/B01FPGY5T0/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1

crazyforger;680382Books are the best way to deal with midlife crisis.
Try it. You won't be disappointed :))

dixit · Post by **dixit** » Fri Sep 07, 2018 4:38 am

My last few cars have been leased. Primarily because they all were/are electric. As a family we are now on our 4th EV in little over 6 years. But even if I were to get a non-EV ICE car, I will probably lease. Lower monthly payments and get a new car with better tech in 3 years. No need to worry about extended warranties!!

DesBhakt · Post by **DesBhakt** » Fri Sep 07, 2018 4:58 am

Paging @GutsyGibbon.... since he is one of the car boss/gurus on this forum.