Ok, so I have seen a lot of these around and was thinking maybe we could mash all the threads together that pertain to extended warranty questions and concerns here, with the possibility of making this a sticky thread.
So here is my view on this after some pretty extensive research. An extended warranty is just another way for the dealership to squeeze some profit from you, as the dealer makes money from selling you some other company's warranty services. Also an extended warranty is all about statistics, if buying an extended warranty was statistically in your favor then the company trying to sell you the warranty would not be in business. Extended warranties rarely pay for themselves. Now, don't get me wrong, if you are the kind of person that likes to have that extra insurance policy to make them feel better about something possibly going wrong then these are perfect for you. But otherwise, extended warranties are just a waste of money. I wish I would have been more informed about these going into buying my car and I would not have asked for one as that would have made my payments a bit less than what they are now. Even a worse point, for those who purchased an extended warranty and put it on their finance plan like I did, you are technically paying interest on your extended warranty...
This becomes a highly debated topic especially for those wishing to mod their cars. Extended warranties are just as detailed, if not more detailed, than the factory warranties when it comes to fine print and what can and cannot be covered under certain circumstances. I talked with the company that does mine and the lady wasn't very specific to me without me giving her my policy number (I didn't want them to have record of me asking about mods). Anyway, she said if any signs of modified parts are reported anywhere on the car they can and will deny claims that are sent to them whether or not the part had anything to do with the portion or the car that failed. And I looked into it and that is specifically stated in the fine print of my contract details.
So after all of that and all of my research, I have decided I am going to call my insurance company this week and cancel my policy as well as get a prorated refund of my money back. Because, especially since I am going to be modding my car, I feel it is not worth the money I spent.
I figured I would help people to learn from my mistake. In that, purchasing an extended warranty is a waste of money. As long as you have enough money saved in the bank, for the unlikely event something goes wrong, all will be well. Because 9 times out of 10 an extended warranty will not pay for itself. Now this is just my opinion and I encourage everyone to post their own thoughts and reasoning behind those thoughts.