ARE EXTENDED AUTO WARRANTIES WORTH THE PRICE?

Question

Needless to say, with people like myself hanging onto my car longer than normal, in fact, on average, I researched that people are now keeping their vehicles for average of 9.2 years, which is my profile. Looking at the new car market dropping like a rock, I can see this to be true.

My question is, how many people who have purchased an extended warranty have benefited from having done so? I have been researching the industry, and I can see that online warranty companies are more cost effective than shopping at car dealers, so given the fact I am now educated enough to have defined which extended auto warranty would suit my driving needs, now I would like a little feedback from others who have benefited from their extended warranties.

Knowing there is a huge profit in extended warranties purchased retail at the auto dealers, never mind AAA which I am a member of, I starting reseaching online warranty companies and got quotes for what I was looking for. What I found was a company which allowed you to become a free distributor and access to discount wholesale extended warranties for less than all the others, even my AAA quote.

Sadly, most don't trust the car dealers, so I asked myself, who can you trust in the auto industry? Well, I figured it out, I only trust myself, so I became a free distributor with Warranties-For-Less and will purchase my warranty from myself. But I wanted some feedback first on how others benefited from their decision. Peace of mind and protection from unexpected repair bills which can break anyone's budget these days are my primary reasons for wanting a warranty, what was your reasons?

Thanks, Mike

Answer 1

I get bored after a year or two on the same car so getting a long term warranty makes me feel like I must keep the car forever.

I am afraid I'd rather buy a nearly new vehicle, offer to pay it in full in cash so I get a deal then use it one year or two then sell it on and get another  fresh vehicle.

Those warranties cost as much as a vehicl/e and you (with all respect) are sounding like a salesman to me with this question.

You aren't selling me a warranty that's for sure!

Answer 2

no they are not.  Consumer Reports says that is one of the biggest places that people waste money when they buy a car, new or used.  most people don't use them or don't use them enough to recoup their losses... however, there are three exceptions to that rule.

1.  live in Alaska, northern Minnesota or Maine.  the extreme cold weather here wears cars more quickly than regular, often the warranty will pay for itself and save you money as a result.

2.  live in teh South West.  the extreme heat here has the same net affect as the cold in number 1.

3.  own certain brands of cars.  most of your european brands break down at a higher rate than american or asian brands and cost significantly more to repair to boot.  many times warranties on them will pay for themselves as a result.  especially mercedes, VW, audi and land rover.

Answer 3

just answered a question on yahoo.  The guy had an extended warranty to 70K.  The tranny crapped out at 65K.  He really felt good about his extended warranty.

Answer 4

I only trust myself too so I learned to BUILD my own car, and home, and job. I am superman.