It's a bit different on cars... Lifetime warrantees cover anything mechanical that breaks.. exception being things that wear out like break pads or windshield wipers.. they also give free oil changes for 4-5 years.. and if you use synthetic oil.. that's a huge savings.. as well as ding and dent repair for up to 5 years.. Road side assistance and other goodies.. Expensive yes...so you really are paying for the oil changes and such.. but a bumper to bumper lifetime is comforting especially if you tend to keep your cars a long time like I do.. and I figure that I may not be in a position 10 years down the line to pay for a costly repair. So how much is peace of mind worth?
I'd be interested in why someone would think this a bad deal?
Even with extended warranties, we need to be careful; reason being, so many of these companies have come and gone under bankruptcy. It is not as bad of a problem as it once was, but still, the problem does exist. There are a few very quality extended warranty companies in the business. However, even some dealers get duped by the bad ones. It is a good idea for those that buy extended warranties to check at least once a quarter to make certain that they are still in business. I bought an EW when I bought my 2008 GMC Envoy SLT. I bought it for coverage to 100,000. GMC warrantied the drivetrain at that time to 100,000 miles, so I was actually paying for a warranty that covered items that really weren't all that expensive. Typical wear items like brakes, tires, tune up items and so forth are also not covered. But, at 68,000 miles four of the fuel injectors went bad and needed replaced. The entire spider (that's what they call the full injector assembly) was replaced. The cost to replace was $1400.00 This was exactly the amount that I paid for the EW, plus I also needed a $450.00 water pump installed. So, in my case, it worked out. (No, mine did not cover oil changes and normal maintenance. Here in PA, we also have two inspections done once per year, (one mechanical and one emissions), which it also does not cover, except if parts are needed like, ball joints, struts, catalytic converter, etc.)
Remember, extended warranties have a 100% profit margin (mark-up) by the dealer, so they are always negotiable. You do not have to buy your EW from the dealer you buy the car from. You can buy one off of the internet with one of the favored companies. My other advice is to be careful; do your homework and buy from a reliable top-rated company. I bought mine from Delta Auto and I believe they are located in Philadelphia. You pay a little more, buy like QS has already stated, "what's peace of mine worth?"
