Join Date: May 2008
Location: Seattle, WA
Vehicle: 2005 SLK-350, Black on two-tone biege/black
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I think the extended warranties are always worth it. You can finance the money for the warranty, and then you have peace of mind for the entire finance period. Trust me, you drive a used SLK home and then find out it has problems with the hardtop, the tranny, or pretty much anything else, and you are going to be out just as much, if not more, money than you would have been had you bought the warranty.
Will the cost of a warranty always be justified by potential problems? Of course not. Those warranty companies are a business, and they have to make some money to exist. But, if something DOES happen, you will be extremely happy you have that warranty, as well as the additional value it adds to the car when you sell it.
I paid $2500 for my warranty, which was for 4 years or 100k miles. It is a bumper-to-bumper warranty with a $50 deductible. The important thing is that the $50 deductible is only paid once per incident - rather than once per item. Many cheaper warranties charge the deductible for every item in the repair bill, and hide that in the fine print.