I just got a 2003 Protege 5 with 38,000 miles. I bought it from a Toyota dealership and they are offering a additional 5year/50,000 mile warranty, bumper to bumper, $50 deductible for $1,600. What I'm wondering is, what kind of repair costs should I expect and is this worth it? Thanks for your help.

 

Its kind of a gamble when it comes to warranties. It depends how good condition the car is in and does it have maintenance records? It also depends if you can do repairs yourself saving money. That sounds like a pretty standard cost for these warranties. Can you have repairs done anywhere or at specific shops? Dealers LOVE selling these due a good comission for the salesman. Just ask them one thing........"If you have absolutely no faith in this product you are selling, I will buy it!"

 

You'd have to have something major go bad within 85,000 miles for that to make sense (not likely in my opinion.) The vehicles I drive (and I put a ton of miles on cars/trucks) rarely need any major work done on them before 100,000 miles.

In fact, only 1 vehicle I owned cost me more than the $1600 you are looking to spend

84 Cavalier 153,000 miles
93 S-10 146,000 miles
96 GMC Jimmy 78,000 miles
98 Blazer 48,000 miles
01 F150 108,000 miles (tranny blew @ 98,000 miles, big repair $2500 for new Trans)
04 Mazda6 42,000+ miles
05 Mazda3 36,000 trouble free and counting

 

that seems very $$$...when i bought my mazda3 (in canada!!!) for an additional 4 years/80000 km (for a total of 7 years 140000km warrenty) they charged something like 1200 and we haggled them down to 950. I'd try to negotiate down if your thinking of buy it.

Another option is to just take the cash and put it an a savings accout (ING or some high interest one) and then let it grow. If you have a problem with your car, pay for it out of that. IF theres no problems, then youll have close to 1500-1700 at the end of the line.

Just my 2 and a half cents.