Re: new used jag owner - The Jaguar XK8/XKR Forum

As another replied, I do not believe in extended warranties. These are nothing more than insurance policies issued by insruance companies.

Insurance companies are profit centers, thus they are very good at understanding what to insure for what premiums so they can make a profit (a handsome profit). They also are very good at discluding what typically costs money base on the failure rates of certain parts. Over and over, it has been proven these EWs make so much profits that they can beat the margins in the products they cover. So much so, that in the case of cars, the sales person is given a cut for every EW they sell on the spot.

Paying out thousands of dollars for extended warranties is nothing more than pre-paying for repairs that you might never need.
In fact, the statistics are against you at about the same odds as winning in Las Vegas that you'll never recover the cost of the warranty. Now I guarantee someone will reply with the $12K engine that was replaced under his extended warranty...just like we'll hear about the guy who cleaned out the casino with a quarter.

One alternative approach is to get an EW quote (usually in the range of $2K to $3K), take that much money and put it in a high yield money market and use it for repairs if you need it. If you never use it, at the end of the car ownership take a nice vacation, to Las Vegas maybe.

BTW - Read all the posts on this and other chats about the guys that had large claims like engine failures for example, and all the tests they had to pay for (and months of time), at their cost, to prove the engine failure was covered.

I know this is not for everyone, but I cover my own repairs if/when they are needed.