I bought a service contract on a Dodge Stratus that I purchased used with 50 or 60K. Cost about $1200 on a $5800 car. seems dumb, but I knew I couldn"t afford a 3,000 engine or tranny rebuild and I am a Ford guy and didn"t really trust the dodge. The plan was a Chrysler plan and I don"t think I would buy one that wasn"t from a major manufacturer. On one hand, the plan more than paid for itself. I hit a raccoon tore the bottom of the radiator and condenser loose and they covered it, they put a timing belt in, a head gasket and various miscellaneous items 3 grand or so. But the other side is: I was having my oil changed at the dealer and I think they were pretty adept at finding something wrong at every oilchange. it was always covered under the warranty; I only had to pay the $50 deductible.
All that to say: I would only buy extended warranty if I absolutely couldn"t handle a surprise blown engine or some such major failure. Even then, I would only buy from a very reputable source.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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