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Old 02-02-2015, 02:54 PM   #4
Perfectlap
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Join Date: Nov 2004
Location: New Jersey
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Make every effort to extend the warranty with the factory/dealer.

The fine print on the third party warranties typically requires that all maintenance and service be STRICTLY followed on time, by a 'certified' shop. No DIY anything like oil changes, air filters, etc. If you do not follow the service guidelines strictly, and should there be a major engine repair needed, their lawyers will read you the riot act.
From what I understand, dealerships are often eager to extend the warranty on low mileage cars as they see it as money in the bank. In the first 70k miles of my car's ownership, I had exactly one unexpected repair costing more than $300 and that was at the dealer rate (an indy would have done it for half). I had a third party warranty (something affiliated with CarFax) and after only a few months they denied my first claim of $100 for parking brake switch diagnosis and repair. Big mistake on their end because I was paying them in low monthly installments so I simply stopped paying and they canceled the contract which saved my about $4K if memory serves. NEVER pay for the warranty in one lump sum. $4K that went towards the new clutch/ flywheel/ Shocks/ Starter/ Alternator/ MAF/ AOS/ Water pump/ coolant tank/ O2s/ cats/ new headers and exhaust/ wheel bearings/ you know.... "major maintenance" a.k.a. wear items often not covered but can easily exceed the car's resale value.

p.s.
"non-OEM" parts in an expensive car? What's that? Control arms from Ebay that last 2k miles?
p.p.s.
my suggestion, invest whatever you were going to spend on that warranty in an index fund for Energy (OIH ) now that oil prices are low and probably going lower. By the time your 3rd party warranty expires, I'm guessing oil prices will be twice what they are now (at least). Maybe split it 50/50 with an IT index fund (VGT) from Vanguard too. Or stick the money under the mattress. That's what I think about the value of a non-factory warranty.
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Last edited by Perfectlap; 02-02-2015 at 03:08 PM.
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