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Re: To warranty or not to warranty?
Thanks - I guess I'm interested in the odds here.
Way I see it, you either pay £2,500 on a £5k car for 3 yrs cover, or pocket the £2,500 and cross fingers. Worst-case is it blows up and you write it off.
Assume we can afford to pay the extra £2,500 over the warranty cost to replace the car if it blows up every 3 years. Should you go into owning an Espace with the mindset that there's a 'Espace tax' that you might have to pay, but that's the price for getting a luxury, high-spec, very versatile MPV for a low price? (We think £5k for a car like an Espace with 50k on the clock is very cheap. The alternative was an XC90 at twice the price with less versatility).
On a £5k car, if there's a 50% of an engine going and effectively writing the car off within 3 yrs, then it makes sense to pay half its value to protect against the loss.
But I just can't believe that these engines fail so often though - that would be catastrophic for Renault.
Like in the OP, I can justify a warranty that costs 10% of the car's value, but 50%? Really?
Is there a realistic chance (like 1 in 10 or 1 in 5) that it will blow up? If you pick 5 Espace owners, how likely is it that one of them had to replace an engine/gearbox at a cost of over £2,500?
Currently in MikeStead's garage:
'56 Grand Espace Initiale 3.0 dCi
Last edited by MikeStead; 20th March 2011 at 12:44 PM.
Reason: more thinking.