I'm about to buy a 2006 Corolla with 86,000 miles for my son.
I'm about to buy a 2006 Corolla with 86,000 miles for my son. The car comes with a powertrain warranty for 2 years or 100,000 miles on the odometer. The dealer is also offering extended warranties for about $1300 to cover at least to some extent brakes, steering, seals and gaskets, electrical and air conditioning. I normally decline extended warranties on the theory that the dealers, or manufacturers, make money on them which means customers on average lose money on them. But the mileage on this car is causing me to rethink that. Any advice? Thanks.
Best Answer
-
MarkHolthoff
Member Posts: 101
I think your general reasoning about extended warranties is spot on. My suggestion would be to take the $1300, put it in the bank and then, after the included warranty runs out, use it to pay for any necessary repairs. That money should keep the car running well for a very long time, especially if you find a good independent Toyota mechanic for any needed work.
For more about this topic, check out Five Questions to Ask Before You Say Yes to an Extended Warranty.
6
Answers
86,000 miles is nothing for a Corolla!
Of course dealers make money on extended warranties. You are basically buying insurance.
Some people like the peace of mind.