New car extended warrenty and protective services

[CarSh0pper]

Hi,

I am about to purchase a 2006 Toyota Matrix and as always the dealer is trying to sell me more "stuff".

The two these items that may be of interest me are:
1) (approx $1200) extended warrenty (extends from 3-5 years to a full 7 years) and,
2) (approx $900) extra protective coating (seat, paint, undercoating, and some other sealant).

Does anyone have any experience with thiese types of services?

It is a new car ...
- Will this be of value to me?
- What is the likelyhood of a new car having significant issues over the first 7 years?
- We have a 16 year old toyota corrola (that we are selling), that is in great shape and requires minimal maintenance (outside regular oil, tune-ups, etc); therefore, would a new car not require even less maintenance? Maybe even none?

Other considerations:
- We may keep the Matrix for 5-10 years (at most)

Any thoughts, or ideas would be helpful.

Thanks in advance.

Anwar

[Brian R.]

New car warranties are sold by a company that intends to make a profit. Since they, on the average, will profit significantly by selling these warranties, you (on the average) will loose money significantly by buying them.

If you are unlucky and get a car with an unusually high rate of failures, then you will be in good standing if you purchase the warranty. However, the company selling these warranties will take your money on the average.

Don't buy it. Save the money you would pay for the extended warranty in a CD or something with a decent rate of return and you will be better off financially. You may never need to touch it with a Toyota.

As far as the additional coatings and such, it is up to you, but I have never thought them worth the money charged. If you really want these coatings, go to a quality aftermarket shop and have them apply these coatings. They will do at least as good a job as the dealer and charge you much less.

JMHO