Extended warranty good idea or not?
My 2006 Volvo 2.5T has been a gem as long as I've had it - no repairs needed. Just a wonderful car in my experience. Should I expect it to fall apart like the one-horse shay after its 4-year warranty is up next month?
I read advice NOT to buy extended warranties but know too that if and when the Volvo needs anything, that anything is likely to be expensive. It has 44K miles now; the dealer offers a "7 year -
84K mile warranty," which is actually a 3-year 40K warranty since the other 4 years and 44K miles are already in the past. The warranty is on sale through Saturday for 25% off, for a total of only $2500.
The language alone made me feel less than good about buying this product. I can support one $1200 repair and two $600 repairs in the next three years and come out even -- with the chance that I won't need so many repairs, in which case 'I win'. Conversely, if the car falls apart, I lose. I don't like buying 'peace of mind,' suppporting our cultural bias toward cowardice, with a major effort always being made by someone with an interest in having us so, trying to frighten us about EVERY thing.
Oh, yes, and there is a $50 deductible for every repair. I guess I've talked myself out of the extended warranty, but will still be interested in anything the Gurus think.
$2500 for 3 years seems a bit steep, is this a bumper to bumper warranty or just powertrain? If its just a powertrain warranty I dont think the price is worth it.. Just keep the car maintained by the book and make sure to keep the timing belt, timing belt tensioner, timing belt idler, and water pump replaced at the recommended intervals. I also recommend having the transmission fluid changed at least every 60k miles.