Nick,
Great to hear about your new “precious”. I’m sure you are very relieved. Knowing how bad that ‘rust bucket’ was getting on your nerves I’m happy for you indeed.
I think I’ve had one extended warranty in my life. That one was actually a Ford factory warranty that they GAVE to me trying to keep me from walking away. On their price sheet it was a $2495 sale, just not one that I paid a dime for. (I didn’t even buy the truck from that dealership, Ford gave me the warranty. Photos in a thread I started a while back “worst vehicle you ever owned”.)
Something tells me if your AC goes out more than ONCE in 3 years you're going to have a fit, can't see 8 times in 8 years. FYI, the Lemon Law lets them fix ONE thing a total of 3 times and that's it. Anything more than that and they have to buy the car back.
The problem I have with an extended warranty is that it’s a lot of money to throw onto a loan. Same thing with road hazard damage warranties. By and large they are nothing more than pure profit for the finance guy sitting there on the other side of the desk!
We went to school with a guy that ended up at one of the local Honda dealerships as their finance guy way back when. We went in knowing what we would pay, what our trade (a 12 month old Jetta) was worth and were not falling for their games. They kept saying they’d have to ‘wholesale’ our car and it had like 4400 miles on it and was in perfect shape. They called several buyers (supposedly) saying they were trying to get us the most they could, blah blah blah. I opened both the NADA book and the Black book and put it on the Sales Manager’s desk and said, “THIS, this is what you are going to give me!” Then they get to Scotchguard, paint sealant, ad nauseam. Again, I told them what the number was, take it or leave it. Finally it got around that we knew Billy (the finance guy…. Which btw we hadn’t seen in 10 years) and I acted like we cooked out every weekend together! :laughing: By that time they just wanted us to sign the check and get out of there. We sat down with Billy and he started looking at all the stuff they NORMALLY sell for a lot of money that I got for ‘free’ and he just shook his head and laughed. He finally looked up and said “JESUS do you know you just cut a $241 deal?”, to which I replied “Well I told your boss he could make $500 on me but that is ALL HE IS GONNA’ GET.” :laughing:
While this might not help you right now I thought I’d add it just because;
The thing about extended warranties being sold when the car is new that bothers me is this. Most vehicles don’t start having problems till after the factory warranty has expired. If it does have problems along the way, they generally all get worked out LONG before the bumper-to-bumper is over. Which these days with 7/70 and even 7/100 warranties that is some 6 or even 7 years down the road (on average).
By taking the money that a typical dealer warranty costs and making yourself a “fix it fund” at your bank you would likely come out ahead. Open an interest bearing savings account (or purchase CD’s) and each and every month stick $50 in it (remember it’s added in your payments so you have the money for it otherwise). For the duration of the payments, say 60 months keep adding and you’ll have over $3000 sitting there when your car is paid off! Once the payments are over its time to bump that payment up, hit it at $100 a month (which is a lot less than the payments and insurance you have been making for the last 5 years). Remember, most costly problems don’t happen till the car is over 6 or 7 years old and by then you’ll end up with over $5,000 in your “fix it fund” and no worries about warranty deductibles, coverage limitations and such.
If you need it for a repair it’s there, if not it’s a great down payment on the next car.
If of course you want to purchase a warranty either right after the payments are over, (or just before) that is possible as well. By that time you’ll be able to pay cash for it from your “fix it fund” and not have to make any payments.
Remember, you do not need to purchase your extended warranty from the dealership! If your dealer tells you that you cannot obtain financing without buying an extended warranty or that you can only buy an extended warranty when you purchase the car, it's time to find a new dealer!!! Whatever you do, DO NOT base your purchase decision on a sales brochure -- make sure you see the actual contract. If the dealership or aftermarket company you are dealing with will not supply a copy of the contract, do not buy their warranty!
The truth is that you can buy an extended warranty at any time, even after the factory warranty has expired. Another truth is it’s not a warranty at all, it’s an Insurance Policy. Aftermarket warranties are often as good as, or better than “factory backed” ones. Dealerships often sell a number of products, not just “factory” warranties and this is where if you're going to buy an extended warranty, take the time to shop around and find the best coverage and the best price.
Yes, dealerships offer the convenience of rolling the price of the warranty into your car payment, but what you are buying can almost always be bought at a fraction of the price the dealership sells it for. Unless it is a “factory backed” contract which of course would ONLY be sold AND SERVICED at brand name (insert the name of your manufacturer here) dealerships. The advantage of these is acceptance at MOST of their dealerships MOST of the time. They also have added incentive to provide good customer service on products that are factory backed (but not on aftermarket paper). However, factory warranties tend to be much more expensive, and prices can vary wildly from dealership to dealership. Shop around and let them know you’ll take your business elsewhere.
This part is VERY important: Dealerships DO NOT under any circumstance have to honor a factory warranty, bumper-to-bumper, extended or otherwise. Caveat Emptor there and I assure you, if your dealership decided tomorrow they didn’t want to work on your car, they won’t.

I had TWO different Ford dealerships stop accepting the FACTORY 36/36 warranty on a brand new truck because it cost them to much money to try and maintain. (Which is why Ford gave me the warranty I mentioned earlier, but what good is it when nobody will work on the darned thing!)
Dollar for dollar it is much better to shop outside a dealership for this type of policy! Prices, for the same or better coverage are always less and can be underwritten by the very same company to begin with.
Before you buy any extended warranty...
An extended warranty should not be a rush purchase! As I mentioned earlier read the contract carefully before you sign anything. Be sure you understand what is and what is not covered, where you can have your car repaired, and any deductibles or limits on your coverage. If at all possible, go over any exclusion list with someone you trust to work on your car.
There are literally dozens of third-party warranty companies selling online, but it's important to do your research… some companies are more reputable than others. Some are CROOKS as well! Homework, homework, homework! Look for companies that offer low per-visit (as opposed to per-repair) deductibles, (NOT per repair) money-back guarantees, and also that allow you to read the entire contract before you purchase. By doing some digging first it’s possible to save thousands on the best coverage offered and not having to even purchase it till the factory warranty is either about to, or already has expired.
OK, enough of that.
Send us some pics of that new ride! :dblthumb2: