Extended warranty SUCKS!

[MNBoxster]

Hi,

Money magazine did a study and subsequent article about Aftermarket Warranties. Their conclusion was that you'd be better off establishing your own Repair Fund.

This was based upon setting aside 1% of the purchase price of the car monthly and putting it in a Fund or Online Banking account of 4% or greater. According to their study, in the end, on average, you'll come out a few thousand ahead vs the Price and the Duration of an Aftermarket Warranty.

But, and this is a big BUT - you have to make the payments to the Repair Fund religiously, come Hell or High Water. And, that you don't use the Fund for Consumables such as Brakes, Tires, Tune-ups, Clutches, and especially Mods. Discipline is the key.

I did this many years ago and accumulated enough to equal about 1½ New cars at which point I ceased funding it. I even withdrew half of it and invested it elsewhere. I would never get an Extended Warranty - they're a rip-off. But, they play to people's sense of vulnerability - everyone's heard horror stories of people having issues with cars. But, how many of you have faced a really major repair - one that Broke the Bank and was not merely inconvenient? And, if so, how likely was it that you bought the wrong car to begin with? With careful, objective, shopping and a PPI you really limit the likelyhood that this will happen to you. You're paying an awful lot for supposed peace of mind...

Happy Motoring!... Jim'99