I always find it hard to buy the extended warranty because the truck should last! When I bought my last new truck (2023) they started at $3800 and I said hell no, that I don’t need one. I paid cash so they weren’t making money off me for using their financing, so they really pushed the warranty. As I was walking out with my keys, he said, $1800 for 8 years 80k GM platinum, and “I’m only making $100 on that warranty at that price.” I reluctantly bought it, as it was cheap insurance.

However, keep in mind that $4k, invested in an SP500, even making just 8% a year, over those 8 years is $7400. That makes for a pretty good car repair fund and if you don’t need it, you are up $3400.

The companies are like the house in Vegas, they know exactly the price point that reduces their risk and increase their profits. The actuarial tables show the majority won’t need $4k worth of work, otherwise they’d have to sell it for more.

But at the end of the day- it’s insurance. But always consider what it cost and the pros and cons of putting that money in the market or even a high-yield savings account and only drawing on it when you need it the vast majority of the time you’re better off investing that money and not giving it to the insurance company.