Canadian Personal Finance Blog

Archive for May 30th, 2005

I can’t really comment too well about car warranties (although, if your car comes with a long warranty, I like it, because if you are paying off the car, you won’t have to say, replace your engine as well). Again, I would look at web sites like the Lemon-Aid web site and check out the yearly books as well (very useful if you are buying a used car as well (take them out of your library?)).

I bought an extended warranty on my ‘95 Plymouth Voyager (it was 2 years old when I got it in 1997) and the warranty cost $900. I had a head gasket job, repaired the Air Conditioner and 1 other big jobs, so in that case the warranty did pay for itself (a few times over). This was not the manufacturers warranty it was a third party warranty. If you trust your mechanic (and I trust mine) ask him whether you should pay for extended warranties on your used car (or maybe your mechanic will selll you one himself). Ask people who you trust whether they think it is a good idea, and make your decision in an informed fashion (as you should with all decision on anything monetarily over $10). Ask yourself, am I buying VALUE here? (as you should with all major purchases).

Tomorrow, Electronic Component Warranties — C8j

Normally, I view buying extended warranties as a “mug’s game”, and are not worth the money you pay, but when my mechanic said, “You should get the extended warranty” after he put my snow tires on, I took his advice. I have stated before if you can find the following professionals and trust them, you are doing well:

1. Mechanic
2. Dentist
3. Doctor
4. Lawyer
5. Financial Planner
6. General Home Contractor/Plumber

Now the financial planner one, remember, as with all professionals get recommendations from people you know and TRUST! They should not be insulted if you ask for referrals, and if you don’t know the person doing the referral, then find someone you do know. You are giving this person free reign with your finances, so you had better trust them!

More on Warranties tomorrow