sduford

Let's face it guys, Subarus are not fuel efficient, they never have been, and never will be. I don't think it has anything to do with aerodynamics or AWD. I've been evaluating Subarus against others for a few years and they are always the worst on fuel eceonomy. The boxer engines just seem to need a lot of fuel. Here's a couple of examples: (EPA Ratings from MSN Autos) Forester XT, 19/23 (auto) Highlander V6 AWD, 18/24 (230HP 3.3L V6, Auto, much larger vehicle) Imprezza 2.5 RS, 22/28(wagon, auto) Highlander 4Cyl AWD, 21/25 (similar engine size and power to Imprezza's) So the much larger and taller Highlander with a V6 230HP engine gets the same gas mileage as a Forester XT (or an Outback XT for that matter). The same hunking Highlander with a 2.4L 160HP/165ft-lbs engine gets only slightly less gas mileage than the tiny Imprezza with a similar sized engine. The Highlander has full-time AWD and it is a tall/wide no so aerodynamic car. So those excuses do not apply here.

Sounding more and more like I should stay away from Subarus then.

Well, once again, simple common sense dictates that if dealers make lots of money from these warranties, then most customers never recoup their investment. Period. There is no way around that. Now, with interest over 5 years, that $1700 will end up costing closer to $2000, and you only gain 2 years of warranty on the powertrain. There is probably (I'm guessing here, but it makes statistical sense) a 80-90% chance that you will not recover your investment. In other words, there is an 80-90% chance that you wil LOSE $2000, and a 10-20% chance that you will actually recoup some of your money and even less of a chance that you will save money... When I was a student, I worked as a TV & Stereo saleman, and I absolutely loved those extended warranties. I made 40-50% comission on the warranty, which was often more than I made on the equipment, and 99% of people never benefitted from it. Recently, I went with a friend to a major electronics chain that would match any advertised price plus 10% of the difference. They happily discounted on the heavily discounted price he got somewhere else, but then they worked on him for 30 minutes trying to sell him the warranty (they were desperate to salvage their profit margin). They tried to make him feel stupid and guilty by not taking it. Good thing I was there to keep him from caving in. Salesmen are pushy with extended warranties, and I know why, so I never ever buy them. So far I have never regretted it. They are a scam! Sure, you might get unlucky some of the times, but you'll still be ahead of the game. Some of the comments here are making me think though. If I can really expect a high probability of needing a new tranny on a 5-7 year old Subaru, then perhaps it is not the car for me. I find that totally unacceptable. I have never changed a tranny in my life.

But if you add the Extended Warranty cost to your financing, figure out how much more you are paying (especially over 5 years), and you'll be surprised. Factor in the deductible on most such warranties, and you are much better off keeping that money and investing it or even better, put it down on price of the car itself. Then chances are you will not need it, but if you ever do, you should be prepared. Over the life of several cars, you are almost certain to come out on top. Even better yet, do like me: lease it for 4 years and then get rid of it. This way you are never out of warranty, and you never have to pay for an extended warranty or major repairs. Subarus get very expensive to maintain after 5 years anyway. Dependability is very important to me, I need to be able to trust my car, so I do not like to keep a car beyond 4-5 years in the first place.As a bonus, I'm always driving a current model. The only drawback is that Subaru Canada's lease rates suck!

Here is a short article from SmartMoney on the subject of Extended Warranties: http://www.smartmoney.com/consumer/index.cfm?story=20030319

There is a very good reason why salespeople push hard for extended warranty, and it is not for your benefit. They make a lot of money off these warranties. And think about it, if they can make lots of money off the warranty, that is because the majority of people never use it! I bought a 6 year 160,000Km warranty for my 93 Volvo 850 and I never recovered a cent of it. After 8 years and 180,000Kms I never had one repair above $250 except for brakes, which were not covered... I'm with the previous poster, stay away from extended warranties they are a sham, and that goes for electronics and appliances too, not just for cars. BTW: if something very serious goes wrong at 36,001 miles, they darn better fix it for free. If not, then you need to find another car company and/or dealer. VW is notorious for that, and they will never get my business again!