My source would be the popularity of the auto leasing program. Do the math.

 

I came across an item http://www.autoserviceworld.com/mark...%20p6,8,10.pdf that indicates that as of 2004, the average length of ownership in Canada is about 4 years. Even if it's less than that by now, in Canada or the U.S., it's still just an average. There are obviously people out there that plan on keeping their vehicles a lot longer than that. I agree with JimboK on that point. I personally am planning on keeping my TCH a long time - minimum 10 years, hopefully a lot longer. That definitely is playing a big factor in making me lean toward an extended warrenty.

 

Yes there are many that keep vehicles longer but, most do not.

 

By "source" I mean a citation, linked or otherwise, to the original primary data source (i.e., the entity that conducted the research) upon which your assertion is based. I'll assume from your response you don't have one. Besides, we aren't (at least I'm not) talking leased vehicles.

Anyway, this horse is about dead, and I'm finished with my flogging. The OP and others should be better educated (and maybe a little amused) after reading the dialog.

 

Well since a big reason many people lease vehicles is because they don't keep them long, that is a pretty good source of how long many people keep vehicles.

I am one that does keep vehicles a long time though. I tend to get my monies worth. But rarely have I ever bought an extended warranty. I have always just invested the funds I would have spent on one and when I needed it the money was there. But 9 times out of 10, I never needed it and made out in the interest I earned on the investment.

I would think if you keeps vehicles a long time and the vehicle is one that has a poor repair history, then get an extended warranty. But do this near the end of the factory warranty period. This way you have some idea of how the vehicle will hold out later on.

 

Agreed. This is why I haven't purchased one - yet.

 

Amen. Google "extended warranty profit" and you'll find out how profitable these policies are for manufacturers.

The manufacturer has component and fleet testing-to-failure data, as well as reams of warranty data. They know what the odds are of paying out. You are betting against the house and they have all the data.

 

I am considering getting an extended warranty if I can find a good price for one.
I keep my cars as long as they are drivable and have never bought one before BUT my other cars, a Sienna and older Camry have had electrical issues (power doors and locks) which have needed tending to and once the warranty was over, they are pricey to fix!

I am a bit concerned that the TCH smart button will need some work once the warranty period is over from all that pushing on and off over time.
Hopefully not, but I am concerned about issues like that.