Extended Warranty

[torquemada]

Hello all, I have just purchased a 2006 S40 T5 AWD (automatic) with 70,000 kms (45,000 miles) and have a few days to decide whether to purchase an extended warranty for it. A full 3 year, 50,000 km warranty will cost me around $2000. Any thoughts on whether the warranty is worth it? I'm having a bit of trouble finding good reliability ratings on the car.

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[S70driver]

FYI an extended warranty is never worth it on anything you purchase... This is how they make their bucks.

Now if that warranty was like $100 I may think about saying yes to it, but it would never be that cheap.

[torquemada]

Thanks. Your point is valid for electronics because most defects will occur in the first 6 months of use and are covered by the manufacturer's warranty. However, I'm not sure whether the same logic applies to cars? Any thoughts on what the most common problems with this model are and how expensive they are to fix?

Also, I've never owned a European car before so I'm a bit spooked by the prospect of huge repair bills.

[AutoNaut]

In general, extended warranties are not worth buying. That consumer magazine CR says not to buy them. However, my first two Volvos had extended warranties. The '98 V70 ext warranty just about paid for itself. The '02 S40 ext warranty way more than paid for itself. My '05 V50 has a CPO warranty and it has already saved me money.

On my '04 Toyota Sienna, the ext warranty was a complete waste of money. I guess that is a good thing.

Stan

[Tango]

It's like life insurance. A gamble. You hope you never need it. I buy extended warranties on all my vehicles. Use it once on a big repair, tranny, turbo, engine, it pays for itself. They cost more for used cars. Tom