Quote:
Originally Posted by bendandthrow
Shiner - I agree with your logic re the higher depreciation with a newer car, which is exactly why I got this older car, and understand the risk of self insuring. However, I will probably only do around 6k miles per year which, being about half the average, makes me hope I am half as likely to have problems. So I am going to rely on the 3rd party warranty in the first year and then reassess. By then I will have 1800 pounds in the kitty. But thanks for the advice.
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You are welcome. We individually have to make this assessment of whether it is worth it or not based upon our own financial circumstances.
The fact is that these extended warranties are simply insurance policies and as such they must be making money out of these warranties or else they would not provide them. So the total cost of claims must be less than the money they are pulling in from the warranties. This would imply the cars are generally reliable. All good stuff of course. But the fact that the cars are "generally reliable" is, of course, no consolation whatsoever to you if your cylinder head blows up and you need a £7000 repair.
I did not need to claim on my extended warranty last year but I still renewed it. Was this a "waste" that I did not use it last year???? Of course not. I was covered in the case of a catastrophic repair bill came in.
You could build up your repair kitty and never need it and then you have a windfall if you sell the car. But then, the number of repairs could overwhelm you. Probably not, but it's not impossible.
My personal view, and others will disagree, is that these top end cars are too sophisticated not to be under the umbrella of the manufacturer.