waveman1500 wrote:I don't understand why anyone would care about new-car warranty. Modern cars are extremely reliable, so a major failure is very rare.
If you do have a major failure, you just write the car off and you have lost all of your money.
Not only that, but most manufacturers will refuse to pay up on a surprising variety of warranty claims!
Not all of them.
For example, a former colleague of mine had a Jeep Wrangler Ultimate turbo-diesel, which he bought used with an extended warranty. The rubber intercooler hose cracked so he took it to the dealer to have it replaced. The hose cost over $700 just for the part, and because it's a hose (consumable) it wasn't covered under warranty! The same is true of most parts you are likely to have replaced. Brakes, bushings, hoses, belts, tyres, filters, any part which is classed as 'consumable' will not be covered under warranty. Those parts cover a very large number of the car's potential failure modes.
That was extended warranty.
Buy something 5 years old and just out of warranty. That way, you've saved so much money on depreciation that even if it does blow up, you're still in front! Not only that, but a used car dealership will still give you at least a one-year warranty anyway, for whatever that's worth.
You don't save that much and who do you get to work on it if something goes wrong?
I was talking to a used car dealer about a nice Jeep that he had sold for $30k. It had engine problems so he ended up buying it back from the customer as this was cheaper than fixing it.