I've posted this before, but extended warranties are often (not always) a bad deal. They are basically insurance policies by 3rd party insurance companies. They make a profit based on probability that you won't need it or you will forget you have it after a year or two, or they can find a loophole to avoid paying on a claim. Since the insurance company AND the dealer both make a profit on an extended warranty (you can bet neither of them will lose on the deal in the long run with many buyers) you know the warranty isn't worth what you pay for it unless you get unlucky and have a claim. In addition, many of the people who buy those warranties figure they'll need them so only the bad drivers buy them which contributes to the adverse selection and higher costs for the coverage. Think about it......
If it's a bumper to bumper warranty, read ALL of the fine print. The warranties my dealership sold back in the '80's were a joke. The main exclusion was for seals and gaskets. But if you stop and think about it, almost every failure is due to a blown gasket (water pump, transmission output shaft seal, differential seal, head gasket, CV joint boot seal, etc.) If you can afford your own repairs, you are way better off self-insuring and just being more careful. I never buy them and I've saved thousands of dollars over the years.
