EXTENDED WARRANTIES: An EXPENSIVE GAMBLE FOR CAR BUYERS? (Consumer Reports) The Homework Guy

Consumer Reports calls extended Warranties an Expensive Gamble for Car Buyers. Statistics show that 70% of the people who buy one would never do it again! So why do dealers and other fraudsters constantly push them? Greed, pure and simple. It's not protection they are selling. It's Profits they are after!
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[bobboyd]

I watched your videos and followed you advice when I bought my wife a new car. I paid just over$4, 700 below MSRP. One tactic I used was that I would buy an extended warranty if they would discount the price of the car equal to the price of the warranty. They agreed. The next week I called the extended warranty company and asked to discontinue my warranty and they sent me a check equal to the amount I paid. They stated that if I cancel my warranty in thirty days, I would receive the full amount paid. Any time after thirty days, the refund would be prorated until the warranty period expired. I saved $1, 100!! Thx for all you do for us!!!

[douglaswilliams]

We bought an extended warranty for a dodge caravan. It covered the replacement of a rack and pinion steering assembly three times. The cost of repairs was triple the warranty cost. We got lucky on that dodge piece of junk.

[lc]

extended warranty for toyota, call midwest toyota kansas and ask for the warranty manager. his price was much lower than the dealership i purchased the car from.

[bryansipes]

Only twice have I ever purchased an extended warranty. First time was on a 2003 GMC Suv. I never had to use the warranty. Second time was on a 2018 Silverado. After five years of ownership, I had to use the warranty this week. The repair was $700. At first the service advisor said my warranty did not cover it. I pushed the issue with the warranty person in the sales office. She did some legwork with Assurant, and discovered that my warranty did in fact cover the full cost. I purchased this warranty for over $2, 500. As Kevin says in the video, "net loss" - $2, 500 for a $700 repair. You are better off taking that chuck of money, and putting it into savings for future probable repairs. Also, do regular and proper maintenance on your vehicles. Another issue I had with the warranty was the limited list of authorized repair shops. My regular mon-and-pop repair shop, that I trust, was not approved by Assurant. My preferred Chevy service shop, that is close to me, was not on the approved list.

[jerrypauling]

If the auto I'm buying needs an extended warranty I don'ts need to buy the auto!

[ddm]

Purchased a 2016 Ford Fusion 3 yrs old pre certified. In 2021 car ran rough and it was a crack in cylinder wall. They replaced the engine ! NO charge ! Got a new house air $5000 10 yr. parts and labor contract. The condenser needed replacing year and a half later. Saved $1300 +. The price of contract. I used to hate contract's. Not so much anymore.

[VaDude]

Nothing like a dealer bragging about how well-built their cars are and how great the quality the first thing they do is to push you to buy an extended warranty in case something breaks.

[GregVT]

When you're in the finance office and they pitch their extended warranty, ask them why their salesman just spent 15 minutes telling you how reliable their cars are. They'll get uncomfortable.

[samfish]

A lot of dealers refuse warranty repairs or try to charge them
Avoid general motors cars
My kia has run nearly 6 years no problem

[TheFish]

I am in the middle of the extended warranty, reason being is I have an 08 Honda CR-V which has been extremely reliable and I have only needed Two major repairs on it. ( i consider major). The first was the struts and if My dad would have listened to me then we would not have missed the warranty coverage by a year and would not have had to pay out of pocket.

Now why I am against it is because when my air conditioner went out my car was at around 99, 980 miles, we called and told them the issue and they said bring it in. the drive there brought it to around 100, 002 miles and they were like oh your over the 100, 000 mile limit. and no matter what we said and no matter what proof we had showing the miles from our house to the shop they told us to screw off. So I would say use your judgment on your past experience and remember that most cars are not as reliable as in the past.

[hans]

You guys are God sent. I have never felt so thankful for a YouTube channel

[senseofstile]

I haven't bought an extended warranty. I think the way it works is the salesman collects the money from the buyer. Then the salesman pockets "all" the money and does not file the warranty. In a lot of cases the buyer does not file a claim so, the salesman keeps the money. If the buyer does

file a claim, the warranty outfit says, "don't know what you are talking about, there is no record of you." Hmm, then the buyer calls the dealer. The dealer says; "don't know what you are talking about, that salesman doesn't work here anymore."

[allancobb]

I respectfully disagree, but with a caveat. In the last 15 years, from Carmax, I have purchased: (1) a Jaguar XJR; (2) a Saab turbo convertible; (3) a BMW M; and (4) Jaguar AWD wagon. I bought a five or six year extended warranty on each one of these vehicles. Each and every vehicle had warranty covered repairs of at least three times the warranty purchase price, with the XJR going five times. And the Carmax warranty transferred once (for a small fee), to a new owner. So, literally, your mileage may vary.

[whiskers]

Buy a reliable brand (Toyota Honda etc.) and/or a brand that's cheaper to fix and skip the extended warranty altogether.

[stevehoge]

A warranty is a form of insurance - to pay you in the event of a financial loss from an unforseen circumstance. Claiming that an extended vehicle warranty isn't worth the cost if your car doesn't break down is akin to saying fire insurance isn't worth the cost if your house doesn't burn down. Sure, you could have "saved" the cost - but are you feeling THAT lucky?

[garyfoote]

Every new car I have bought I have always got the extended warranty at no cost. You must be ready to deal with the dealership and be willing to leave if you don’t get what you want.

[d-vision]

I actually may be purchasing a car this afternoon. Glad you posted this.

[craigm]

Always remember, if they were such a benefit for consumers, not the seller….. they would not sell them!! The sellers of them, not just for autos but for every little electronical do-dad, try to tack theses on at the checkout counter, typically add as much as 15-20% to the purchase price. IMO, these plans are almost never worth the cost. Most stuff either is DOA or dies quickly, falling under the manufacturers warranty or store return period. Do you really want to pay for the hassle of submitting a claim and wait for someone to tell you your problem is excluded under the warranty terms. Save your money, use THAT money to pay for repairs to car or replacement of electronical stuff.

[littleopie]

I just love those tv commercials you see tv stars hauking how car shield saved them thousands of dollars, we all know those tv stars are paid actors, when I ever see these commercials all I see is, bla bla bla. I bought an extended warranty once and got ripped off when it was time to get something fixed, so here's my thoughts on those commercials, Bla Bla Bla

[LuiLeger]

I'm confused. First of all
most cars don't start having issues until they reach 100k plus, and secondly, at least 50-60% of people I've read about have been fortunate to have the extended warranty because they paid for those repairs. Extended warranties are for cars with higher mileage and after the dealer/manufacturers warranty runs out.