Your attempts to answer the question is disingenuous.
Your telling people to start a savings account instead of buying GMPP warranty.
Your telling people that extended warranty companies are crooks and that you have first hand experience with the crookery. Again this seems misplaced when it comes to GMPP.
You also fail to realize the reason you can only add the additional warranty when you have some bumper to bumper left.
With that said I think it's important for the individual to make the decision on whether its right for them or not. Utilizing real, relevant and factual information is a good start.
I think you guys are basically saying the same thing, in a different way.
If you buy your service contract the same day you buy the vehicle, and it runs until 8 years from date is of purchae or 96k on the odometer, the seller of the contract gives a
discount (the price is lower) because the seller knows that the items in the mfgr warranty are covered by the manufacturer, so they have no risk during the warranty periods.
If you buy it at the end of the manufacturer’s warranty period, they don’t offer a discount because they now have risk beginning day 1.
So @OR VietVet’s “instead of” warranty really isn’t instead of, it’s just that the contract is discounted because for the initial period the seller has no risk. And the seller is holding your $$ for that period, risk free.
His point is that tying up cash for 3 years may not be the best financial move (or the buyer should at least understand what they are doing; which is all spelled out in the contract). His thought is make some cash on your money and buy it at the end.
@DuraYuk makes the valid point is that the service contract without the discount (buying at the end of mfgr warranty) is more expensive. But it’s not an “instead of” warranty, as the buyer has the MFGR warranty in place, and is discounting the service contract because of this.
The unknowns are what the cost of the service contract is in 3 years to take the buyer to the same coverage as well as what the investment return can be; and so it’s tough to evaluate precisely…
But, as I posted earlier, any service contract buyer should weigh the pros/cons of tying up capital vs not and adjust for your own situation.
Regardless, even the GMEPP is not a warranty, it’s a service contract…you pay consideration for the promise that the administrator makes covered repairs.