I just got an extended warranty on my car but can cancel in thirty days. Is an extended warranty on an automobile worth the expense?
An extended warranty is essentially a bet. By purchasing the extended warranty, you are betting that you will have AT LEAST TWO very expensive repairs during the warranty period (if you have only one, you would do just as well to stick the money for the warranty in the bank). Of course, the warranty company is betting that you won’t. Given that extended warranty companies make money on these policies, the statistics are on their side. I personally don’t think such warranties are worth the expense. However, I am quite mechanically minded and can do most of my own repairs.
