Extended Warranty

["John Nevius" <john_nevius@xxxxxxxxxxx>]

     All,
     
     I'm considering an extended warranty for my '95 E36.  For a 7 year / 
     70,000 mile bumper-bumper warranty (3 more years), I was quoted about 
     $2,150 from my dealer.  Extending the mileage to 100K would increase 
     the cost to about $2,600.
     
     The plan he offered is called "Automotive Preferred Care" and is 
     offered by Western National Warranty Corporation.  
     
     The plan covers labor and parts for mechanical failures, it does not 
     cover diagnostic costs, and a deductable applies.  Disposables are not 
     included, nor are clutches, shocks, glass, upholstery, heated seats). 
     By my rough and ready calculations, $2200 this is about equal to 
     spending $850 each year for the next three years (at 8%).  If I factor 
     in the deductable, I'm guessing I'll need to rack up $1,100 - $1,200 
     in broken stuff each year for the next three years to make this work 
     out.
     
     Thoughts?
     
     
     Is this a reasonable price?
     
     
     
     Thanks!!
     
     
     John Nevius
     '95 E36
     

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