Quote:
Originally Posted by rellascout
It makes sense to self finance the insurance if you are going to pay cash for the extended warranty. If you don't have the cash to pay for the warranty and have to finance it you might be better off financing it. The other alternative is that if you have good credit and something happens you can get a 0% credit card for 12-18 months and pay off a repair that way.
To me if you have the cash to pay the extended warranty it make more sense to put it into a savings account making .50% and like you said kick $100 a month into it to cover repairs. If you have an issue you have money to pay for it of not you have cash.
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Depends on how long you plan to keep the car. No car is immune from repairs over the long term. Spent $2,500 on a 7-year extended warranty for my wife’s Audi and had more than $10K in claims. Glad I got the warranty.
Doesn’t have to be mechanical. Even something like an a/c problem is costly to fix in a German car.