When I bought my MY02 from dealer last week, they recommended I paid for the extended warranty NOW, rather than wait until the regular warranty expires, because the prices are about to go up.

As its quite high mileage, it made sense to extend just the one year else by year 5 I would easily exceed the 60k miles limit. (And I didn't wanna pay for the unlimited mileage option).

The reason for the increase is that (in the case of my dealer) the "burn rate" is too high i.e. cost of warranty repairs is exceeding the revenue paid by owners extending.

They also said that should you decide to cancel the extended warranty before the regular one expires, you can!

Wilster.