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Extended warranty musings.

June 25th, 2009 at 06:21 pm

I took a test today to be a library technician. Most of it wasn't too hard but some questions made my brain explode! I want this job soooo bad! It would be just the hugest upgrade from the job I have now.
Anyway this blog is basically what I've been thinking about my car notes lately. When I bought the car two years ago it was used certified for 13,400. With ttl it went up approx. a thousand I believe. I did the smart thing (for once) and financed it through a credit union who amazingly financed that large of a loan to a student with a low income. I got a great percentage for a four year loan for 6%. However, I also did something somewhat dumb IMO. After reading all this stuff about not buying extended warranties and reading Suze Orman's books which specifically said to NOT BUY AN EXTENDED WARRANTY, when the Credit Union asked if I would like to add it on I said "Sure!" Why? At first I was like, no way, I know how those work. But the loan officer just happened to be a customer who came into my work very frequently for photos (when I worked in the photo lab.) So I guess I trusted her a little more and she's very nice. She took out a graph and showed me how much it cost to maintain the car and how much it would cost if the car broke down, etc., etc. And I broke down. Also I had a choice of an 80,000 mile warranty or a 100,000 mile warranty and I took the former which cost around $950. The other cost 1100 or 1200 (I don't exactly remember.) And guess what? The warranty has just expired a few weeks ago. How many times did I use it? 0. Awesome. I feel pretty stupid for it. But I've learned a very valuable lesson, and at least I have that. But I keep thinking of how much closer I would be to paying it off it I had stuck to my gut and not bought that warranty! Not to mention it is a Honda Civic and yeah they do break down eventually, but with good maintenance it isn't usually something serious. The only thing that's happened is that the battery wore out, and that wasn't even covered by the warranty. So I know many of you already know better, but do not get tricked by the banks selling products or the dealer for that matter! Be strong, and never buy the extended warranty!!!

3 Responses to “Extended warranty musings.”

  1. gamecock43 Says:

    thank you. i will never extend a warranty on a car. coming from experience though....,do buy extended warranties on hearing aids. I will when i get them.

  2. CouponAddict Says:

    If/when I get another new car I would definately get the extend warrenty. I bought a bumper to bumper 100,000 or 6 year warrenty with my current car (ten years old).

    It is about piece of mind. I always freak out about car repairs no matter how small. There is something about car repairs and how much my lively hood requires a car that it is a major point of stress in my life. I actually had a few small repairs on the car which I think over the life of the warrenty paid for the policy. Basically I look at it as prepaying the repairs.

    I would take out another policy in a heart beat because I believe it is so worth not worrying if something is going to go wrong with the car. Also if I buy the policy and not use it then I have a GREAT car which will last for a long time, if I get my money out of the policy then it was worth buying it (either way win - win).

  3. Jerry Says:

    I guess the only thing that can lead to a good decision about a car's extended warranty is how well you know your local mechanic! If you have a great mechanic you can trust, then you have the best insurance policy for your car once its original warranty has passed. If not? Maybe spring for the extra... =)

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