Re: warranty, I think you're leaving out the value of loss of economic productivity of using the car in the case of an out-of-warranty breakdown. If this warran

Re: warranty, I think you're leaving out the value of loss of economic productivity of using the car in the case of an out-of-warranty breakdown. If this warranty is priced incorrectly, then you should be able to buy a used car along with a bumper to bumper insurance add on for less than the price of a new car. The only exploit I see is that this is probably priced under near-100% utilization scenarios a la rental cars fleets, and your personal economic value on the car is lower, i.e. you have other means of transport, or you drive occasionally. My point is, uninformed individuals may misprice this, but transport industry purchasers won't, and I don't see them doing what I'm suggesting. Instead, they buy new cars and offload at three years.