I agree with the others.
While I agree that pizza delivery is hard on a car, consider the following:
If any of you know who Dave Ramsey is (a pretty savvy radio talk show host on financial advice and on getting out of debt, also appears as a guest on Neil Cavuto and other shows on Fox News), he talks (borderline rants) about extended warranties (whether on cars or on a drill you buy at Lowes, or on a computer you buy at Best Buy) probably at least once a week. He points out that statistically, of every $100 you pay on such a contract, something like $18 gets paid out in claims. Most of it goes to commisions to the dealer, and the rest is marketing and overhead. He does not make up the numbers - he states them as facts (somehow he knows the real numbers - if he were guessing at them, he would say so - he would not just make them up).
Also - when I see prices that people post about what a dealer or extended warranty company documents that a repair costs, they are usually 2 to 4 times what you can get it done for reliably with some common sense approaches (i.e., using a good local indepent shop, using trusted sources for salvage parts like engines and transmissions, some DIY'ing, etc., etc., etc.).
Also no. 2 - I get the distinct feeling that people buy such warranties to get a sense of comfort about serious and expensive problems that could occur - *BUT*, when such a problem does occur, the warranty company often finds ways to weasel out of paying (some exclusion in the contract). Also, with the inflated costs they claim to pay (see previous paragraph) when they do cover the repair, the total cost is so high, that when the customer hears the numbers and only has to pay a fraction of it on "incidentals", or "deductables", or "things not covered" that actually probably should have been, they are relieved to pay that smaller amount - *YET* for that smaller part that they do end up paying and feel good about, they could have gotten the job done using the common sense approaches that I mentioned at the end of the previous parpagraph *AND* could have saved the huge amount that they had paid out in the cost of the contract, which would have paid that repair several times over.
IOW - statistically, for the overwhelming number of car owners, if you were to put the money you would have paid into the contract into an emergency fund for car repairs, you would be way ahead. Another way to put it is that over your lifetime of owning several cars, comparing buying an extended warranty to investing or setting aside the same money for each of those cars, it would be almost impossible *not* to come out ahead putting the same money into an emergency car repair fund and handling any repairs that come up in a wise manner.
'98 Concorde LXi - Candy Apple Red | Black chrome ring gages | Black Diamond headlights | Clear turns
'99 Concorde LX - Candy Apple Red | 16" Mille Miglia Cello Wheels | Raybestos PHP cryo-treated rotors | LHS electroluminescent gages