I was reading a borrowed copy of the CR car issue. One of the short
articles had to do with buying extended warranties. One of the things
they looked at was the cost of the warranty versus the cost of repairs
it covered. So if the warranty cost $1000 and you had $500 dollars
worth of repairs done they actual cost of the warranty was $500.
I may be off a little on the details, I don't have the mag in front of
me but the thing that struck me was this....
The "cost" of the warranty for Toyota was $300. The "Cost" of the
warranty for Ford was $600. Assuming more or less the same initial
cost for the warranties on each, that means that over the life of the
warranties, typically 6 years, the Ford needed $100 a year in repairs
and the Toyota $50 a year. Is that really a significant "quality"
difference to justify paying $1000's more for a Toyota???
