I have a AWD 2004 V70 wagon, with the 2.5 turbo engine, with 46,500 miles. I have about a month before I need to decide on whether to get the extended warranty for another 3 years/50,000 miles. We've had no problems with the car to date; however, Consumer Reports noted some problems with the AWD model and a not so scientific survey of Volvo owners in the waiting room last month seemed to suggest that getting the extended warranty is a good idea.

At $2,500, is this worth it? I'd like to hear about other '04 AWD owners and/or AWD owners in general and their experience with the transmission and any comments on the extended warranty.

Just purchased a 4 yr unlimited mileage warranty for a 2001 V70 with 71K.

Price 1,399

Think of the situation from the side of the company that issues the policy. They know that car owners are approximately divided into maintenance people and non-maintenance people. Leaving unexpected bad luck events aside, non-maintenance people usually suffer more car repairs. I expect that the extended warranties are priced to accommodate the non-maintenance situation and still provide a reasonable (or maybe a generous!) profit to the issuing company. If you are a frugal driver who takes care of his car, you probably will not get a return from the extended warranty anywhere near the cost. But, if you get peace or mind from the coverage, then you need to consider that of some value. Read the fine print carefully and see what the policy really will repair.

I would definitely get an extended warranty with any Volvo. I have a maintenace folder at least an inch thick. Shop around for the warranty. We have looked around for an extended warranty for our Subaru and found price differeces up to $700 between dealers.
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1998 Volvo S70

Hi, I have a 1998 Volvo V70....AWD cross country. I bought this model the first year it came out. I opted for the extended warranty and how thankful I am for that. It was a 7 year warranty. I took a gamble when I decided to buy the extended warranty...what did I know if it would be worth it, no one ever does. But over the years I have had a lot of service trips and my Volvo file is thick to prove it. Fortunately the extended warranty paid for the major troubles like the A/C evaporator Core, and the Engine cooling System heater core and the transmission.
I have always taken my car to the dealer, did all the right things...oil changes, scheduled maintainences. Here's a sampling of my repairs: The 2nd year and a wiper valve was replaced. The 3rd year a couple window switches were replaced. The 4th year the gear shift lever and the air pump was replaced. The 5th year the radio, the A/C evaporator Core, and the Engine cooling System heater core were replaced. The 6th year the gearshift knob was replaced. The 7th year 2 engine mounts, the left drive axel and (at 70,000 miles)the transmission were replaced.
Now I am out of my warranty and the services continue. I love my car..it's solid and I feel very safe in it however, I wonder what's next to go wrong. I guess I learned to never buy a new model the first year it is out or always buy the extended warranty. :0)

It's a lot like buying life insurance :) If you put your money in a money market earning 4-5%, you might be ahead of the game at 100K miles. Most of the components covered by the warranty are designed to last until 104K miles. Like KSG said, it is up to you and how you maintain the car.
These insurance companies are not in the business to pay out money.

Klaus
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1975 164 w/174,800mi (Sold) 1995 850T w/91,000mi, 1998 V70R w/129,000mi

I've got V70 T5'01 and being in the same boat two years ago I decided to go for it (mostly due to the dreaded ETM issue with $1200+ fix) and took 7yrs/84Kmiles VIP. Have not had and issues (that would've been covered under VIP) since then and guess what - a year ago Volvo announced coverage for that ETM for 10yrs.

In short - so far it was complete waste of money to me.

I think the likelihood of any modern car requiring $2500 of unscheduled maintenance before it goes 100K miles is fairly low, if not abused seriously. The costs start to build up when you are around 140-150K. I would put the $2500 in the bank then in 5 years when you haven't used it go out and do something you enjoy with the money.