Here's another idea I came up with a few years ago-- I'm still thinking of writing an article on it and submitting it to a consumer magazine.
Think of all the stuff you buy in life that the salez kid behind the counter "offers" you an extended warranty on. Would you like the extended warranty with that pair of headphones, sir? For $10, we'll replace it free if it fails two years after the manufacturers warranty. For $85, we offer the extended warranty on the iPod. For $120 we offer an extended warranty for this video cam... for $240 you can purchase our extended warranty on this flat-screen tv.
Speaking for myself, had I purchased every extended warranty ever offered to me, I'd be down somewhere around $8,000-$10,000.
# of times I would have ever benefited from an extended warranty: maybe once. Maybe. I'm being generous.
Imagine everytime you're offered an extended warranty, you ask how much it is, say "no thank you" and go home and transfer the amount of that extended warranty into a special savings account. After ten or fifteen years, you'd probably have a few grand in that account (assuming a few high-dollar items like cars). That money NEVER expires, NEVER disappears when you pass a certain mileage mark. It's a win-win-win.
Always remember, manufacturers offer extended warranties because they don't expect you to use them. Extended warranties are money makers for the seller. That's why they push them so hard.
jnaut...that is an interesting thought on warrenties and I agree with you 100%. Personally, I never buy them on anything even vehicles. I just take the factory warrenty and that is it. My 3/36 is long gone and all I have left now is the 7/70 powertrain.
However, when it comes to vehicles, a lot of people do buy the extra extended warrenty. Probably because of the complexity and cost of vehicle repairs. Then it is a crap shoot as to weather or not it was worth it because you won't ever know until the warrenty period is over. It's like buying some "peace of mind".
Anyway, how about this. The GF's daughter's husband buys vehicles and as soon as the factory warrenty is over he trades it in and gets another new one.......geeeezz.... He is so afraid that he will have a big repair that will not be covered under warrenty. He won't really discuss it but I get the impression he was raked over the coals real good a couple of times on repairs. I wish I had just the money he blows away on depreciation.
People will do whatever feels comphy to them.
Dave