2-4-1 Extended Warranty

[BoutTime]

Good morning All. The current dealership Extended Warranty is due to expire on my CT at the end of September. I will taking out a new 2-4-1 policy but just wondered what everyone's thoughts were on the 12 months interest free credit. At first glance it's a no-brainer but I'm wondering if there are any benefits to paying the entire amount up-front.

If I take out the direct debit option and sell the car in 12 months, the warranty is paid for in full and I can transfer the remaining 12 months warranty (as far as I know) for a £25 fee. But in all likelihood I'll trade the CT in to a Lexus dealership for another Lexus such as a UX or an RX. I rarely pass up interest free credit for anything but just wanted to make sure I wasn't missing anything.

Many thanks in advance.

[PCM]

Is it interest free in total, or interest free for the 12 months, then interest begins?

I'd pay up front if it were me.

Personal choice?

[wharfhouse]

I have Extended Warranty on my IS 300h and pay monthly. I'm on my second 2-4-1 Extended Warranty now and have done each the same way - 12x monthly payments (1/12 of the total 2-4-1 policy cost each month) in the first year and then no payments for the second year. It is definitely interest free using 12x monthly payments - no additional costs - a no-brainer to pay by instalments for me.

[BoutTime]

1 hour ago, PCM said:

Is it interest free in total, or interest free for the 12 months, then interest begins?

I'd pay up front if it were me.

Personal choice?

You pay the entire balance over 12 months interest free. The warranty lasts for 24 months.