I keep a rolling $3,500 to $4,000 in a money market account that serves as the maintenance fund for all four of our vehicles. I also DIY all maintenance and most repairs. This has been my "self-warranty" approach for nearly 40 years, and this strategy has cost me far less than any post-factory warranties ever would. Aftermarket warranties often cover very little so if you decide to go that route, read the fine print and have a full understanding of what to expect before signing any document....

You would be better off to set money aside on a regular basis and build up a maintenance fund for use if and when you need it. Purchasing an aftermarket warranty is a sunk cost, and that is why they rarely pay off....

And I hope you did not actually pay $20,000 for your car. It is worth substantially less than that....

 

It is impossible to advise you without knowing the details of the warranty. Can you post a link to them?

 

I expect this is just going to be a weekend toy like most of them, correct? If you were going to attempt to daily drive a 15 year old super car as your only car and run it up from 38,000 to 100,000 miles in the next three years, then it might make some sense. But if its just going to be driven on the weekends in fair weather, then statistically, you'll have a few minor repairs, yes, but what are the chances that you're going to incur well over $5,300 in covered repairs? Probably much more likely to incur your maximum out of pocket for medical care than face a major car repair so just do like Jon89 says, keep $10,000 in the bank for emergencies and if you need an appendectomy and can't recover your emergency fund fast enough, sell the car.

 

I bought a very comprehensive two year protection plan for my 2003 XKR. It included 'wear and tear' coverage, and electronics, everything. NOTHING occured in the first two years that qualified as a repairable incident; it was a total and complete waste of funds. Better off to put that amount in an account and forget about it until you need it.

 

 

 

I would go for it if we were talking about a Bumper-to-Bumper warranty that covers everything for about ~50,000 miles or more. Something like the ones Doug Demuro obtains, and even then only if this were a daily driver and I had zero mechanical inclinations.

Otherwise, I would save the money.

 

It's a fifteen year old vehicle and things will wear out over time (particularly rubber suspension components) regardless of low mileage. Also, lightly used Jaguars are generally not as reliable as daily drivers.

The warranty decision mainly depends on whether you can/wish to do your own repairs.

1. If you are 'hands off' and all maintenance and repairs will be done by a dealer or an independent then you need a very healthy bank balance and a comprehensive warranty.

2. If you are 'hands on' and will be doing all your own maintenance and repairs then a warranty package like that is a costly addition to an already expensive purchase.

I'm a 'hands on' owner. To my mind the worst case scenario is a blown engine or a failed transmission. If either happened (and it has in the past), I'd be sourcing a good used replacement and fitting it myself. The cost of a warranty doesn't add up for me because neither of these principal powertrain items are going to cost as much as a comprehensive warranty.

It may be different in the US but here in the UK all the warranty contracts I've seen require dealer or recognised independent specialist scheduled maintenance which is a further option limiter.

These are the core considerations but your personal circumstances (can you absorb the hit of a major mechanical issue), personality (are you comfortable with risk) and how long you intend to keep the vehicle all impact on the decision.

Graham

 

Remember, it is easy to buy an extended warranty, but it may be a lot harder to have a shop accept it as a form of payment for a repair. Some place will have you pay with your own money first, and have you deal with getting reimbursed, in whole or in part. They are also typically skimpy on rates/hours (shops generally hate them), and will take EVERY opportunity to deny any type of item not covered, e.g. pay for a basic part but not any gasket. Separately, these extended warranties are typically a high margin proposition for the seller, so these can be negotiated down, sometimes significantly.

Best of luck, keep us posted.