Marriage Dispute - Should we buy the extended warranty?

[MrsIMDoc]

My husband and I just purchased a new Subaru Forester. We wanted a safe car for the snow so we went with a Subaru. We chose new because they were similar in price to the newer pre-owned versions.  We purchased in cash without financing the car. So far we followed most WCI rules...

However, when it came time to sign on the dotted line the dealer tried to sell "Subaru Added Security - Gold Plus" for $1800.   Basically the "Subaru Added Security" is in addition to the Subaru's limited factory 3-year, 36k mile bumper-to-bumper and 5-year, 60k mile powertrain warranty by paying for most repairs no longer covered by the warranty for 7-years or 100,000 miles. He assured us it is not an extended warranty but it sounds alot like it.

My husband said no way but I thought it sounded great.  We have 30 days to cancel this for a full refund, so we went ahead and purchased it.   I like the idea of the added security for unexpected expenses with a new car with many computer systems, etc.  However, my husband thinks it is better to just "self insure" with our current robust emergency fund ($50,000)?

Because WCI has been very helpful to us getting on the same financial page, we wanted to know what other WCI readers think of this?

[Kennyt7]

ABSOLUTELY NOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!! !!!!

[VagabondMD]

It's an extended warranty. Pass!

[jfoxcpacfp]

Nada. Nyet. Nein. Non. No. Almost always a bad idea to pay for something because you can afford it and it makes you feel good. Unless it's a massage.

[LBKCLU]

The first rule of insurance is don't insure the small stuff (risks you can afford to pay out of your own pocket). I would take a pass.

 

[asmallchild]

Another vote for no.

Both my dad and my wife got snookered by BMW on something similar

Even in the rare event something does go wrong, they will cite exception clauses so the repair isn't covered

I think what you guys are doing by keeping a robust emergency fund is the best way to approach it

[Osiris]

My vote is also for not buying an extended warranty.

[Joseph]

What part of $1800 "sounded great" to you?

You already went against the solid advice of your husband.  I am not sure what your objective in the decision was.

[VagabondMD]

An extended warranty, by any other name, is an extended warranty.

[MrsIMDoc]

What sounded great was the security that if "anything happened" that my car was covered. We went ahead and purchased it because we have 30 days to return what I now know is an extended warrantee with a 100% refund.  While my husband's gut level response was correct, this gave me time to research the decision.  Now after reading more about it and learning that Consumer Reports says that Subaru in particular is known for people NOT needing the extended warrantee we decided last night to return the warrantee.  Thanks for your advice!

[Traveldoc]

Good decision! Now go ahead and put the $1,800 refund from the garage in a separate "car" savings account towards a "new" car to your liking for when the Subaru is ready for replacement after 200,000+ miles.

[uptoolate]

Agree with the No side! Buy insurance against catastrophe not inconvenience. They 'sell' extended warranties for a reason.

[The White Coat Investor]

You guys are going to do awesome. His gut served him well. You were smart enough to do some additional research within the return period. Great combination. Enjoy the Subaru.