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I posted this recently on another forum. Here is my view on the subject.
OK, let's say you are going to fall for the extended warranty scam. Here is something to think through.
You are financing your rig for 15 years. The extended warranty is let's say 5 years. The sales pitch will be "you can have this warranty for only a $50 a month increase in your payment". Then they'll go on about the cost of refrigeration, air conditioners, generators, power trains etc. and how inexpensive the warranty becomes if you encounter these repairs.
Yea, but you will be paying $50 a month for the entire term of your loan, long after the warranty has expired. Basically you are financing the cost of the 5 year extended warranty for the 15 years. If you sell the rig after the warranty has expired you still owe the amount of the warranty and it will be included in your payoff amount.
So, do the math, find out the true cost of the warranty for each of the 5 years as if you are being billed separately for it. Add it up. Now add it up with finance charges on top. Still want an extended warranty, then by all means go for it, but read the full disclosure of the offer, who can service it and under what conditions. Don't let slick willy interpret it for you. Don't be in a hurry, you have plenty of time until the manufacturers warranty expires and you will get a ton of junk mail offering you an extended warranty from just about everyone in the business.
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