Did I make a good deal? 2008 Toyota Yaris

[Revsson]

Originally Posted by tetzyamis

Just wondering... Didn't he pay more than $900 for the extended warranty?

I will have to ask him again, but I think he paid about $1000 for the Honda
warranty at the time.

[tetzyamis]

Originally Posted by Revsson

I will have to ask him again, but I think he paid about $1000 for the Honda
warranty at the time.

Let's say he paid $1000.
By the time extended warranty expires, it's 7 years.
Let's say the average inflation is 4%.
He would need to spend $1315 in repair under extended warranty to make par with what he had paid.

For me, for example.
I had Japanese cars until 5 years old, 6 years old, 8 years old, and 9 years old.
None of those 4 needed any repair.
If I bought extended warranty for $1000 for each of those car, then I'd be regretting now.

My theory is.
If they don't make money out of doing extended warranty, then they wouldn't do it.
They are doing it so that they can make money.
If they're making money, then people who buy extended warranty are losing money.