Pull the trigger. That's a pretty good deal.
Well said. To add to your last point, if the budget is so tight that any unexpected cost is going to break the bank, I'd even question how financial prudent it is to buy a $20K car.Remember, extended service plans are for-profit. Don't use anecdotal evidence to make a decision to buy a service plan.
Though there are a few (very few) exceptions, it is generally recommended not to buy insurance for affordable risks. The cost to you for administration and profits from insurance and warranty programs will result in the average person spending more to purchase the warranty (extended service plan) than he or she will ever receive in payouts or repairs.
A suggestion. Unless the budget is so tight that any unexpected cost is going to break the bank, take the money that would have be spent on the extended warranty and put it in a bank account. Use it if a repair is required that would have been paid by service plan.
A big no. More than likely you would never use. Instead, set up a separate bank fund/account and put away some monthly money for Car repairs.My wife are purchasing a brand new Honda hrv. They have offered us to purchase the 7 year extended warranty. This is our first Honda ever and we are questioning if it is worth doing?
Appreciate all responses.