The option of putting the money in savings misses the point. That works if repairs turn out to cost only slightly more than the warranty premium. Then great. But, if you buy a $3,000 warranty and repairs turn out to be $15,000, the "put the money in savings" alternative falls apart. Sure, if you can afford to put (another) $15k+ in savings and let it sit there dedicated to repairs, just in case, that's an option. But, if you can do that, you likely could afford (or use that money for a down payment on) a new LR and keep it as long as it's under factory warranty and probably would be better off doing so.

The reality is, "put the money in savings" sufficiently to cover any potential major repairs is not a viable option for many used LR buyers.

Instead, reading the coverage carefully and getting any unclear or omitted coverage in writing (and generally, not buying the warranty from the dealer) may be the more realistic option. All of life is a risk and is a trade off between risk and reward. Each must decide for themselves where and how to draw the line.

 

Not necessarily. You'd have to be seriously neglecting routine maintenance to find yourself in a situation where you'd be needing $15,000 in repairs outside of catastrophic engine failure over the lifetime of the contract. At that point the extended warranty would weasel their way out of any coverage due to neglect in the fine print (longer than normal oil change intervals, etc.). Every dealership sells them because the vast majority of the time they make money on the product, not because it's a convenience to the consumer.

It can be a viable reality for many used LR buyers if people do their homework and find a trusted independent mechanic, not the dealer. Stuff that $3,000 in the bank and the deductible payment each month, using $150.00 as an example, and you'd have $19,209.82 by the end of the service contract (84 months).

Personally, I'd take my chances or cut my losses if something catastrophic were to occur. My truck isn't even worth $15,000 based on KBB (2017 HSE TD6) and the current used car market. If you are to go the extended warranty route, save and pay cash for it. You'd be paying between 5-8% interest based on current rates if you financed it into your monthly payment, and at that point it doesn't even make financial sense.

It is definitely a personal decision, you can't deny the peace of mind, and if that works best for your situation go for it! I'd take the risk and maybe come out with some money at the end of it.

 

To each his own fellas.

As long as both strategies result in letting us enjoy LR ownership, without catastrophic regrets

 

Absolutely! Couldn't agree more. Probably just set myself up for something catastrophic, haha!

 

of course, ALL insurance and warranty plans are priced on the bet the payout will be less than the premiums. That's how tgey make money. That doesn't make them rip-offs.
And, as you hopefully won't find out, it doesn't take neglect or major failure for LR repairs to add up quickly.

 

Definitely! I appreciate the conversation @Elzot .

 

Hi- I just picked up my first Defender today, a 2024 130 S. My dealer quoted me over $6800 for the 7y/100k option JLR factory extended warranty, which I turned down. Does anyone know if there are dealers that will sell the extended warranty cheaper? I also have a Ram1500 and there are several dealers online where you can buy the factory warranty directly from them online a lot cheaper than local dealers. Are there any Land Rover dealers like that?
Thank you in advance for any help