Are they worth it?

Please help a greek brotha out!

Nomarchy

I've had them on the last few cars I've owned. In each case something broke that made the price worth it at the time (more of a cash flow issue than not). Overall, I've probably broken even in that the initial cost of the insurance policy (which is what these things are) was saved in the repairs covered over that time. If you fold the initial cost into the overall loan deal - it's pennies every month. Then again if you get one of those autos that runs forever and never breaks (harder to find with all the technical marvels now de riguer on most cars these days - we do like our options) it's money not well spent. I know Consumer Reports hates them for that very reason - but then again - CR isn't faced with having a body computer or a water pump fail and still having to make the mortgage and feed the family at the same time. Then again, CR has absolutely abhorred some cars that were in my experience the most reliable autos I ever owned - ya take your chances when ya pays your money.

Just my 2 drachma.

I think it's more a mental thing than a money thing. They don't sell insurance because it's profitable to you. (they do work on actuarial tables after all) Then again if you feel better having long term protection, why not?

I won't get extended warranties on electronics, since they usually break right away or not at all, but mechanical stuff does have wear and tear issues.

Whenever somebody asks me if I want an extended warranty I ask if the product is bad enough I need one.

I've never bought the mechanical insurance since I've bought used cars mostly, on which I assumed the premiums would be prohibitive. OTOH, I wished I had bought the insurance for the two new cars I purchased. Both were new models, and had serious issues not long after the standard warranty period ran out.

My buddy bought a Dodge Ram truck with 12,000 mile warranty. Driving to Phoenix it started knocking at 11,960 miles, he kept driving and it blew a rod at 11,990 miles. Got a whole new engine.

Still, I think the best bet is buy a reliable brand and model and skip the extended warranty. Of course TANSTAAFL still applies. I've had great luck with Toyota, but it ain't cheap. (or fancy)

If you plan to keep the car past the standard warranty period, then get the extended warranty. You have to be careful though. Buy the warranty from the dealer and buy the one offered by the brand, the mfgr and make sure it's good anywhere and not just at the selling dealer. I agree, it's like insurance but the cost of one not so major repair can justify the cost of the extended plan.

CR is pretty much full of crap exept for their frequency of repair records. Those are helpful. They aren't car people. They'll complain that a compact car has no room, a soft riding car doesn't handle well, or a sports car has a rough ride.

I think it comes down to (a) Are you planning to keep the car and drive it till it drops? and ( How will you cash flow situation be when the regular warranty runs out?

As has already been pointed out, like casinos, the odds are stacked to favor the house. On the other hand, if you're in an economic position when the reg warranty runs out where you have to put a major repair on an 18% credit card, you're probably better off getting the extended warranty.

So, dunno. If your plans 3-5 years out are to be newly married or buying a house, you probably need it for the cash flow stability. If not, it would be a waste of money.

Comes down to a peace of mind issue, and how much you'll need it a few years out.

There ya go. I have a friend that overinsures EVERYTHING. Most of it is a waste. Things are prorated, you have to pay some service charges, there are handling costs, the insurance/warranty comes money comes out up front, so they get to play with your money even if they end up having to fox/replace later.

BUT, she did overinsure on ONE thing that ended up making all of the other wastes of money pale in comparison. So you just don't know for sure.

The warranty period for the Cobalt SS Supercharged is 3 years, and yes, I do intend on keeping the car more than three years (alas, that's why I purchased and did not lease; otoh, it was 0% financing, so . . .).

I've been told that the dealer who sells you the car is very eager to sell you the brand-offered extended warranty 'in the room' and to fold its cost into the loan, because it's one way for them to make a profit after having taken a beating on the car, itself.

Since mine's a GM car, I figure it won't be a problem if the ext. warranty is good at any GM dealer. Autoland's offering two MBPs (Premier and Elite) that supposedly work literally anywhere in North America (not just dealerships). I have a feeling (though not actual reliable knowledge) that one may have to pay up front and THEN get reimbursed with that. I asked the autoland.com guy I had been working with (ended up not needing his services, since I bought directly) to compare/contrast what he was offering to GM's offerings and tell me the pros and cons of what he was offering. He has responded yet.

I may be able to purchase the GM offering from another GM dealer at a reduced price through a 'connection'. I think this is the first time that I've actually benefited from a 'connection' like that.

At least, I've always had my 'honor'.

Cool. I hope you take a bit of time off driving to pop by now and then.

Will do.

I'm with Bart. Buy the policy from a dealer, and sleep well at night for an extra few years.

Yo, it's the only way to roll bro. Bling the shizzle fo the nizzle.

I'm just curious as to what our pal Noma needs with a supercharger.

I slipped up and bought a Premier policy when I purchased my Mustang years back. And broke even when my torque converter gave up the ghost.

Breaking even is as good as it gets. I'd say you should be happy.

It's about "piece of mind".

I don't "need" a supercharged vehicle. I made do, as you know, without it.

I've been 'dreaming' of getting into a Golf GTI, or another pocket-rocket ever since I was a lad, back in Greece.

The 2006 Golf GTI, which I test-drove and loved, ended up being just too damn pricey for me. No incentives, really, either.

The Chevy Cobalt SS Supercharged was one of three alternatives. I test-drove it, I liked it, it was less pricey than the Dodge Neon SR-T or Caliber SR-T but a better long-term deal than the Saturn Ion Red Line.

I think I am going to be getting the GM extended warranty. Hopefully, at a good price.

I'll keep you all posted. I know you'll be waiting with baited breath.