A friend of mine has had her car for six years. She paid for a service warranty to go along with it, and has had any work done for her car by the dealer. She’s only had to pay an extra two to three hundred out of pocket in repairs over the last few years.
Her original note was for seven years, and she just found out yesterday that the service warranty only lasted for six years. So she was trying to get the service warranty extended. She found it would be $1700 for a one year service warranty, but only $2000 for two years. So she decided to go for it. She had to make a down payment of $500 and pay the entire $2000 in the first year.
Then she decided to see if she could get a better deal through the dealer.
She wasn’t sure what to do. She said the guy gave her an amazing deal on a NEW car. They will take her six year old car with less than 50,000 miles on it and wipe out the remainder of the contract. They will write a new contract, with 5% interest for the term of the loan, five years (she was paying 7% on a seven year loan), and she’ll get a brand new car with zero down, and no payments until February.
She was pretty giddy at the thought. She knows how I feel about buying new cars. She tried to rationalize, saying that she just couldn’t be in a car that was going to start breaking down (she is going to be 67 next month). I told her I could understand her concern, I really can. After all, I don’t have to do the worrying about my vehicle, Mr. A pretty much takes care of that. And he’s often able to fix our vehicles so we don’t incur huge repair bills.
I’m laying odds that she’ll buy the new car. Sweet Christmas present, for her. 🙂