Interesting concept except what if your engine goes tits up or your tranny goes out $20 per month at 5 years is only $1200 even with interest nowhere near enough to cover the repair. Not to mention the lack of saving discipline most of us have, many people reading this do not even fund any type of retirement plan let alone a healthy savings plan. For some you method would work but for the masses the extra $20 per month added to your loan payment is truly inexpensive peace of mind.
Originally Posted by ZYAL8R
After reading this thread so far, I've come up with a different way of thinking for some who may be pondering buying the extended warranty. If it worries you, take the $20-30 a month and put into a savings account that earns YOU interest. If you ever experience a couple of bad window motors or leaking heater core after your original warranty expires, then BOOYAH, there you have the money to help pay for it. Your money is saved by "you", interest is earned for "you" and used by "you" for repairs or a later down payment on a new car (Camaro hopefully
Hard facts for unforseen repairs would be impossible to come by, but it would be very interesting to know how many people that bought an extended warranty actually needed it after all was said and done. Maybe we need a poll:seesaw: