Join Date: Aug 2009
Location: Washington, the state
What we all call an extended warranty is legally not a warranty. It is a prepaid service contract. It does not extend the factory warranty. The buyer of the extended service plan does not have the protection in federal law that a real warranty is required to give. The extended service plan covers only what is listed in the fine print if, and only if, the buyer (you) does everything that fine print requires you to do.
All that said, the so-called extended warranty is actually peace of mind insurance. Financially it is a bad deal just about every time. A few people win, just like a few win the lottery. Most people lose money. The service plan is priced so the salesman makes a commission, the dealership makes a profit, the underwriters make a profit, and something is left over to pay claims. If you really want to buy this peace of mind insurance, find a dealership on line that sells the factory plan for much less than the local stealership.
"Older people who are reasonable, good-tempered, and gracious will bear aging well. Those who are mean-spirited and irritable will be unhappy at every period of their lives.
"Let each of use properly whatever strengths he has and strive to use them well. If he does this, he will never find himself lacking."
Marcus Tullius Cicero