My last entry outlined both pros and cons of extended warranties and hopefully left the buyer with enough information to make an informed decision on their own.

Last week my friend Dave (a former dealership customer of mine) called and asked me for help. I had sold him his current vehicle back in 2005 and his lease has about 9 months remaining.   Unfortunately his ‘bumper to bumper’ factory had ended and he needed to spend over $900 to get his car back on the road. He mumbled under his breath that he wished he had purchased an extended warranty.

Being a great fan of rationalization, I reminded him that the extended warranty was approximately double the cost of the repair work, so he was still well ahead of the game. Unfortunately, Dave had just blown the budget taking his family to Cuba for the holidays, and had to max out his credit card in order to do the repair.

The moral of the story…an ounce of prevention is worth a pound of cure! Dave’s life probably wouldn’t have been any different if he had spent the extra $25 per month for the extended warranty. Hopefully he had enough fun in Cuba to make up for the fact that he won’t be doing anything extravagant for a while.

Can you afford to pay for a large out of pocket repair? I certainly know that I wouldn’t want to!

Have you ever regretted not purchasing an extended warranty like my friend Dave? Have you purchased an extended warranty that saved you a bundle of cash? If so, feel free to send your stories and I will have them published for the benefit our customers and visitors.