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Hi all, I just bought a Sport, and I am really enjoying the car. However, I cannot decide if extending the original warranty is a good idea for me, or not. See, I drive about 22K+ a year, so the warranty will run out quickly. This is the first brand new I have ever bought and I do intend to keep it a very long time, so the "lifetime" warranty sounds the most appealing. Curiously the brochure does not list the exclusions, only the inclusions so of course it is hard to assess really, how good it would be. Has anyone actually seen the contract and if so, what did you think? I know I can talk to the sales guy but it would be so helpful to hear a more impartial point of view. Thanks!
 

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The thing about extended warranties is they make a profit by selling it to you when their own stats tell them you'll either never need it, or at least never get your money's worth in repairs. If only 1% of their customers need a new engine or something, that means 99% paid for nothing and they've got a wad of dough.

What I do is set aside a "slush fund" of a couple of grand. If something goes wrong, I've got the cash set aside. If nothing goes wrong - I've got the cash set aside. Bear in mind that I'm insane - I took the $500 service rebate when I bought mine, which the dealer said was a first.
 
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Gina, where I purchased my car, before I even opened my mouth, they dropped the 3G down to 2,700, fianances over a year interest free.

Keep in mind, you have something like 48 months to buy it and you don't have to buy it from the same dealer where you bought the car.
 

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Ginabee,

There may be another, older thread about the extended warranty. As has been pointed out, the dealers do, on average, make money on extended warranties (or whomever is underwriting the coverage). My sense is that all cars sold today are very reliable. Remember that all car companies buy starters and batteries and brake discs and alternators and A/C compressors and fuel injectors (etc.) from third party manufacturers. So, the odds are that you will not get more in coverage than you pay.

You will, however, pay retail rates for parts and labor; an insurer likely will not. They will pay much less for every hour and every part. The other very important thing is to look very carefully at the exclusions- this is absolutely critical, and it will vary from policy to policy. Look for 'wear and tear'. or 'not covered if the vehicle has been in an accident'. Finally, since you drive a long way every year, you may end up replacing the 'wear items' at your own expense in any event, as these parts tend not to be covered under warranty. If the coverage is really thorough, it may well be to your advantage to have it.

A lot of words for my two cents.
 
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