Why You Should NOT Buy an Extended Car Warranty

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In today's video I am going over why it may not be the best idea to buy an extended car warranty when you purchase a new or used car. What are your thoughts? Leave them in the comments down below and don't forget to HIT THAT LIKE BUTTON!

Thanks for watching!

DISCLOSURE: Some of the links on this page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. The ideas presented in this video are personal opinions and for entertainment purposes only. NOT FINANCIAL ADVICE!

[JSonder]

My extended warranty was $1500 and covers everything that doesn’t wear out normally such as brake pads, rotors.. it’s saved me on the transmission and climate control issues. 100% worth the money.

[NoNo-usti]

I spent 1500 on the extended warranty. Gave me 35, 000 miles...15, 000 miles in turbo went out...100$ deductible for a 5, 000$ repair....sometimes it's worth it

[Cubanogar]

My mopar warranty just cover a new motor, on my 2012 challenger srt8.

[andressilva]

i got a warranty and got over 6k in work done. Thank god i had it.

[DanielIles]

I have a friend who worked in auto "finance" and his job was essentially JUST selling warranties. That is literally how he made all of his income. Get decent insurance and you will be just fine. Warranties are just a tax on people that can't front a single big expense.

[LostLegacyNY_]

Twice, I’ve been saved by having extended warranty with two different vehicles. One repair would have been $5400 the other $3400. Covered by the extended warranty. I think it’s worth it.

[wassimSaleh]

My extended warranty costed 1500$, removing the rust and painting casts at least 600 Canadian $. The door actuator cost 400$ installed, the stow and go cost 800$ to replace the mechanism mostly labor. Also I had already changed one rear shock. I am pretty sure I got my money back.

[rb]

How do you know someone does CrossFit ? Don’t worry, they’ll tell you.

[Dr.SalvatoreVinciguerra]

Awesome! Thanks for sharing your knowledge with us!

[oleradiodudea.m.]

I had a buddy who was a fellow cop. It was the 1970's. He complained about a life insurance guy who tried to sell him insurance. My buddy cop said he was already insurance poor. But, he had money for drinking and snowmobiling. His was one of the saddest funerals I ever attended. A widow and three little kids under ten walked behind the casket. No life insurance. The rest is too difficult to recall. If every wife knows what every widow knows everyone would have life insurance. Same with car warranties.

[ashtonjcmay]

Yes, and No, you have some excellent points overall; however, when you're considering the purchase of a service contract, you should really do the research. I'd recommend finding out whether or not the service contract is from the manufacturer, I say this because the manufacture coverage is more reliable when it comes to parts, basically saying the parts will be from the manufacturer unless they stop making them. In that case, they will ask you if you would prefer a third party alternative or look for something in a junkyard. Now, I'm not saying all third parties are wrong, but once again, do your due diligence and read the coverage options. Another thing to consider is pre-owned, look for a CPO (certified pre-owned) once again that all goes back to the manufacturer coverage. Note that most service contracts will cover everything, except "wear and tear" Items IE belts hoses brake pads, etc. Now let's talk about cost. You had mentioned financing it in and paying interest. Most manufacturers have an alternative to this, you can make monthly payments with no interest, I've even seen some out there up to 36 months, but even then, rates are low..really really low.. If you're subprime or near-prime, reference the previous alternative. I'll end it with this, yes, they can be expensive, but everything is negotiable, the dealer is going to have profit in everything they sell, that's just how business works. You have to be honest with yourself and decide if it's right for you, are you like most Americans that have less than a $1, 000 in your bank? Either way, if you have the money or don't have the funds, crunch the numbers and see if it works. I liked the video, keep up the excellent work.

[multidimensionaltraveler]

Man.... i spent 2500 on the best extended warranty option. I got jerked :-( it came through for me already though. My factory warranty went out because I finally had hit the mileage and the extended warranty covered a new steering column

[bobbymoore]

I bought my extended warranty thru geico for 9 bucks a month added to my car insurance on my 19 tundra

[kirinnguyen]

I don't buy any type of warranties like phone, car, etc. I like to live life on the edge! 😅

[FTFreedom]

They do expect to see all your maintenance receipts to document all required maintenance according to the manufacturer checklist. If you don't have receipts they will decline you.

[mikeculbers]

Great video...i purchased an extended warranty last month on my truck. if i drop the coverage how do i get the money back? it was part of the purchase.

[HiddenCreekHomestead]

Everyone that has ever had a catastrophic repair knows that it always comes at a time when you are broke

[BLohr]

Compelled to leave a comment vs just a thumbs up! I’m researching this topic now because my factory one is almost up. Great info thank you!

[sector]

The dealer says the used car I'm about to purchase comes with a 4000 mile powertrain warranty, but it's not mentioned in the contract. What's up with that?

[billusmc]

Wrong about salespeople profit percentage being almost 50%. Salespeople typically make 15% to 20% while the dealership makes 75% which goes to coverage of repairs, salary for other administrative personnel and profit. You are correct in that buying an extended warranty is not a good idea.