Is an automobile extended warranty worth the money?

Answer 1

no........because you do not have enough brains to give details /

Answer 2

Totally depends on the car, age, what is covered, what is covered under factory warranty, etc.

Yrs ago I got a used Saturn coupe. Bought the extra warranty due to all the power options I had on the car. Never touched the extra warranty so it was a total waste of money. Car was too new.

My current work truck, I bought the extended warranty on her. And that paid off like I could never dream. From new 4x4 system to so much more....$9800 worth of repairs...and for me...a bill of $200 (deductible). So this time it paid off.

Each situation is its own, have to add up the facts in front of you and see if it is best or not. (as in....say warranty covers just transmission type stuff and costs you say $2200 for the life of the loan, price out what a transmission is for that car and if its more than $2200, then its pretty wise to get it. if the trans price is lower, then it would be best to just hope it doesn't break and if it does, then spend the lesser of the amounts)

Answer 3

It depends on the vehicle and on the warranty coverage. Also, the cost of the warranty has to be considered.
Once my brother-in-law bought a used BMW. He paid over $2,000 for an extended warranty. Within a year, the radiator failed. The cost would have been $1,2000 to repair. Within two years, the transmission failed. He did not have to pay the $2,200 it would have cost to repair. After three or four other repairs, the dealer asked him to buy another vehicle.

If you buy a new car, you get a full coverage warranty for two or three years. You get a drive train warranty for as long as 10 years and 100,000 miles. In those cases you do not need an extended warranty.

I bought a used Dodge Caravan over one year ago. I did not buy the extended warranty. So far, nothing has broken.

Bottom line: there are pros and cons and only you can decide.

Answer 4

Well, I bought a car used at the dealership, no warranty. It had 35,000 miles. I bought a warranty, but there was a mix-up in the paperwork, the guy put down that the car was new instead of used, voided the warranty. I didn't know it wasn't straightened out, took it in for some expensive work, dealership had to eat it.
So at 42,000, bought another one, and soon after had to basically have the transmission rebuilt, all covered. Just had another $1800 in work done for leaks, all covered. (That's how much the warranty cost to take me to 90,000). Had some other work done that was also covered.
So yes, they can be worth the money!

Answer 5

All experts tend to agree that extended warranties are a bad deal. Way overpriced, most of the price is commission to the seller and very small amounts end up paying for claims because they find any and every reason to deny them and their contracts are written to protect them, not you. Best bet is to set aside & invest the money and use it as a repair fund. I used to do this with everything that I bought where an extended warranty was offered. I would set aside 50% of the cost and with multiple items, I never had a claim. Even years later.

Answer 6

No, extended warranty is not worth the money because many of the parts are already covered under a warranty. So please do not become "swindled" into the gimmick that the retailers give out, they are only in the business to make money and a profit off of the customer...I hope this helped! Good Luck!

Answer 7

It depends on the reliability of the purchased car.

Most of the time extended warranty plans only make money for the insurance company that sells the policy and referring dealer. They are both hoping your car cost less to repair than the policy will ever pay out.

If it helps you sleep at night, by all means buy it. If you buy a Ford by it. If you follow Consumer Reports auto reliability ratings and the car has a worse than average rating you might want to consider buying it too. And last but not least, if you are buying a new or redesigned car in its first year of introduction, it might be money well spent.

Answer 8

Most always its not, its like insurance if you need it its there but if you don't then you jest spend your money A have bought 2 new vehicles the first one I spent the 1800.00 dollars and 150 miles after the warranty ran out I had problems that sucked, my last vehicle I saved the money and 9 years and 70,000 miles later no problems so it would have been $ down the drain

Answer 9

Only if you need it. The price of the warranty will cover a repair or two, but if something major happens then you are paying more than if you had the warranty.

You are gambling that your car will have a problem. Myself, I don't buy them. They have a good profit margin for the dealers and they try to push them.

Answer 10

no there not we paid $1200 for our warranty on my expedtion and it sucks they tell you that they cover alot but we they get you is if its caused by the pollution system then its not coverded we paid for the dealer to check it out there was 2 thing wrong with it but one of them was a egr valve witch they said made the icav go bad so they would not fix it rip off for the price that I paid for the warranty I could have bought the parts and still saved $1000.

Answer 11

apparently not because it just means you're buying rights, most of which you have under the law anyway.