When is it worth purchasing an extended warranty on a used vehicle?

It should be very easy to sell privately without the insurance
(warranty). Plus, if the van is wrecked or stolen, the insurance is
useless. And, if you put the money in the stock market at 8% return,
you'd have about $1600 at the end of 7 years.

 

They wouldn't sell extended warranties if they didn't make money on
them. Use that one fact and decide for yourself if they are worth it.

Jack

 

Hey Art, I am "sort of" thinking of it also - we've an 05 Avalon (21k) and
08 Highlander (10k) - extended Toyota Platinum from Keith at Midwestmotors
(7/75) is 619 for Avalon and 559 for the Highlander, under 1200 for both.
Either Toys are better or Honda after your shorthairs.
My reasoning on even considering it is that I am damned near 70 and just
don't want to worry and 300/year is pretty cheap for minimal worries. I
hope Ray agrees at these prices! By the way, thanks to Fed, CD's and money
markets are maybe 3.6 here in Ca. So the 1200 would earn me maybe 200 bucks
for the 4 years extension (well maybe 50 more for the Highlander 2 years)!
Ron in Ca.

 

yeah, exactly; if you can see you're absolutely going to use it.

from the experience of others who have bought one (even on a new car)
when it came time to make a claim, they will argue you to death.

 

Make sure it is a factory warranty in any case. 3rd parties could be out of
business when you need them.

 

They wouldn't sell cars if they didn't make money on them........

 

I generally don't buy extended warranty but I bought a 4 year old 4 door
civic (2002) that had been returned from a 4 year lease. Dealer offered an
extra 1 year warranty making a total 6 years covered. I paid $500 for the
warranty. In the End, Honda changed the automatic transmission twice, and 3
suspension components parts that were worth around $300 excluding labour. In
my case, $500 was definitely worth it as everything happened to me around
3-4 months after the standard 5 year warranty was over.

 

With Hondas, you did the wise thing.