Miata Mailing List: May 1993, Message #124
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   From: (none)
Subject: re:extended warranties
   Date: (none)

If a dealer ever tells you that they are selling you an extended warranty 
because it helps protect you in the future, look them in the eye and call them
liars!  The only motivation for a dealership to sell the warranty is to make 
more money.

As a lender underwriting dealer loans, I see gross mark-ups on warranties only
to make the finance person and the dealership more money.  Figure on as much 
as 80% mark-up!

Read the paperwork!  You pay for the warranty from day one on your loan but it
does not go into effect until your factory warranty is up!  The way cars are 
made these days, especially Mazdas, it will go over 100k with no problems if 
you just maintain the car as called for or better.  ie: oil every 3k and 
change the timing belt @ 50k, check the brakes, rotate and balance the tires 
and just be generally responsible.  Figure the warranty costing you as much as
$700 to $1500 up front, if on a loan with interest of 10% for 5 years the 
$1500 becomes $1912.

If you feel better with a warranty, by all means get it, but negotiate!  Most 
of us know what invoice on the car is now but few ask what the true cost of 
the add-ons are.  Don't finance it if you can afford it.  Better yet, take the
money you would spend on it and invest it some where for future repairs.

Eric Fancher
Tejas Miatas
Austin, Texas