Value of a new car warranty is over-rated...here is why:
Suppose you want to buy a new car that costs $20k rather than used one at $10K. If you buy the new one you have an additional debt of $10,000. Suppose you pay 7% interest on that debt...that costs you $700 per year in interest.
Do you think that the non warranty repairs on the $10,000 vehicle are going to cost you an extra $700 per year?
If you still are not convinced remember that in addition to saving $700 per year in interest cost you also get to keep that extra $10K. If you figure the car is going to last you 10 years thats like another $1000 per year you are saving with the $10K vehicle. So your repair bills would have to be over $1700 per year before the new car is going to come out ahead.
Nothing wrong with buying a new car just because you want to though.
