Are extended car warranties worth it? | Consumer Reports
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- Опубликовано: 5 окт 2024
- Extended car warranties are good for carmakers. But Consumer Reports' survey shows most people never use their extended warranty and those who do spend more on the warranty than they save on repairs. Check out bit.ly/1qypFKG for additional reviews, tips, and recommendations. Subscribe to our RUclips Channel: bit.ly/1Nlb1Ez
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I've only bought one of these in the past. It was on a German luxury brand SUV. The best money ever spent, as the repairs were 3 or 4 times the cost of the warranty. The advice here is kind of obvious. Buy a reliable car, maintain it properly and you won't need the extended warranty. But if you do buy it, recognize that like any insurance, you are paying for the risk mitigation not pre-paying for repairs.
OK, and when they surveyed Chrysler and Jaguar owners about their extended warranty experience, they said what? I'll BET it's a different story!
So people are upset that their car didn't break?
symawd LMFAO
Who the hell thinks you buy these things to save money? You do it to protect yourself from a repair costing more than extended warranty in the time you have the warranty, not to save money. Do people also believe that auto or health insurance saves you money? No, we pay for these things to help handle extraordinary bills.
And we also shouldn't be calling them warranties, they're best described as service contracts that you purchase. If something breaks, they're in an agreement to take care of it. That's all there is to it. Don't delude yourselves.
nice 1
ollmj
But people expect that their claims are paid, and many warrenty companies weasel out if paying way too often.
Well if the cost of repairs is greater then the warranty then your saving momeys if not then your losing money. Kinda simple.
Everyone buys insurance to save money In some way.
Around 12% of the cost of the warranty is set aside for future repairs by these companies, the rest goes on commissions, profit and running costs of the companies, etc. They know EXACTLY what they are doing, they have well paid experts telling them the statistical chances of each part failing and at what time in the vehicles life. For every person that you hear about that ‘made’ on their warranty, statistically, in the same time period, you have less of a chance of making on yours. Some companies want you to service your vehicle at a main dealer then tell you that you need items replaced at inflated prices for parts and Labour,( wear and tear items not covered by warranty). This makes them more money again and prevents you going to a good independent garage that, in some cases, would correctly tell you the work doesn’t need done. As others have said, it’s a gamble......
Fully Disagree! I did spent $2400 on a 3YR/36K warranty with Infiniti when I hit 72,000mi... at 77,000 the transmission went out. Infiniti doesn't replace with rebuilds, you get a brand NEW transmission! Cost? $12,500 including a new sub-frame and other parts needed as well. Last month, my radiator went out... $1400... but I have a $100 deductible... the extended warranty is great! I'm covered up to 108K and loving the savings!
You should have bought a more reliable brand without an ESC. It would have been less expensive and you wouldn’t have had the hassle.
Are you going to look under the car and see if they put in a new transmission talk is cheap that’s why they don’t want you or anybody see them working on it
12,500 that’s more than the car is worth
I just got a extended warranty ain’t taking no chances
Extended warranty protected my 1994 Dakota when the 4wd system went and my mom’s Oldsmobile Aurora when the engine went. Expensive repairs worth the added price of the warranty.
What company actually paid your clesms?
I always buy them, but ONLY directly from the manufacturer (like GM, Ford, Dodge, etc). Don't buy from others, you'll get scammed. Don't fall for non-manufacturer warranties either. I believe people do buy and use them. Think about repairs and simple things can be hundreds of dollars and you can go through a few of those in 5-6 years to make the warranty worth it.
oh how dare car companies like honda and toyota etc build reliable well made vehicles that last a long time and claim they do yet offer OPTIONAL extended warranties for customers god forbid they feel they need it. its a consumer decision... if you know what you are getting into than you should trust your car purchase without pouring an extra 1200 bucks into it.
I purchased a pre-owned 2011 Honda Insight yesterday at a very popular local auto dealer where I almost got ripped off big. When things finally got to signing paperwork, I was taken to a small room where I was suddenly presented an option of an extended warranty that they sell. They scared me by telling a possible horror story of a hybrid vehicle whose electric components failing miserably, costing an owner $6,500 to repair without THEIR extended warranty. So what was the offer? 5 yr/60,000 mi coverage for $2,500. INSANE. They showed me financing APR of 3.9% initially, then they offered a steep discount to 2.0% if I opted for the extended warranty. I was stupid enough to say yes under pressure; they said the extended warranty was available only at the time I purchase the vehicle. They used every possible psychological tactics to presume me into buying the warranty.
After failing to say no and signing paperwork, I expressed my strong displeasure about the fact that they never mentioned such a costly option until the last minute and didn't give me time to think. They continued persuading me into believing that buying THEIR warranty was absolutely beneficial, but I was not convinced and looked extremely upset (I indeed was for good reasons). They finally gave up their attempt and allowed me to drop the option by redoing paperwork. My upfront payment dropped from $10,000 to $7,500.
So at the end of the day, I could barely avoid the rip-off. However, the fact that they tried to take advantage of me remains and it really pisses me off. I will never come back to this dealer again. If you are an auto dealer practicing the same SCAM, you better understand that you are actually losing business at the expense of easy money. This dealer just lost their possible future business with me and potential others as well.
Go for a lifetime extended warranty if you do opt to buy one, and be sure to shop around for the best coverage/price, sure it's a gamble if you'll use it or not, however if you think about it you gamble on car insurance, health insurance etc.. I mean do you plan to get sick or have surgeries?
Good point
Buying a lexus, sales person tried to sell me life time rust proofing. Declined, final step to making the payment and the billing person tried to sell me an extended warrenty before I sign the form to decline it.
An even more expensive “gamble” is car insurance. The fact that you might not need it would apply to any type of insurance. You may even outlive your life insurance coverage.
They still make sense.
I instead bought coverage through my insurance company that had the same deductible as the warranty they offered. I had a broken timing chain on my honda accord and geico fixed it for $200 flat. If you do want coverage for a car you'll own for more than five years its worth it. Cars tend to start breaking eventually and the cars driving history is never thought about thoroughly with inconsistent maintenance. Just two oil changes being off by ten days each forced me into a check engine light.my car still.drove but poorly and lost alot of mpgs. The cheaper alternative to buying from the dealer is first seeing if good insurance company has any form of gap coverage. It was way cheaper and I didnt need receipts they still fixed it. Even with the extended warranty from the dealer it still needed maintenance receipts even though my car was maintained at the dealership, and they dont keep your shit on file on purpose.
If the warranty is $1000 or so its a good deal. Anything more is a bad deal unless your buying a unreliable car like an american car etc
consumer reports- how long were these extended warranties for?? mine covers 8 yrs/125k miles, bumper to bumper, $0 deductible and cost $1,100 thru honda (i got a 2013 civic) . i would think with all the technology cars have today, some of those repairs can be pretty expensive. ok, so it cost me about $200/yr for my 5 yr loan (0.9% for 60 months) but i'm covered for an extra 3 yrs and a bunch more miles than the standard warranty.
I thought I would have to only have to pay $300 for the contract and $30 every month for a 4 year old car with not even 27k miles on it. When I got the confirmation paperwork, it was $230. I called right back and demanded my money back. Don't buy, save the money because you know they'll try to get you disqualified when you finally try to use those plans.
I bought a 2014 Mustang GT in 2016 and skip the warranties and start saving 100 dollars a month with the car payments and I did not have any problems but I did do oil change regularly and check all fluids regularly payed It off in 2020 and saved about 4,800 dollars and no car note and ready to buy another mustang GT
You only made the right choice if your engine or transmission don't fail though. If you are good with money you can put that aside but if you're buying during tax season and don't always have 5k laying around Warranties are smart to get. They are a blessing if engine, transmission, transfer case etc.. fail.. which does happen more often than people know.
I would rather err on the side of caution and have an extebded warranty available than not. i jeep my vehicles in great condition buy enjoy the potential mechanical safety net. Spending 30/40K on a decent vehicle these warrants that added bit of protection that the extended warranty provides.
My previous car was a 2006 Toyota Corolla & I also bought an extended warranty for it & never needed it. I agree that it's a waist of money if you buy a car with a great reliability history. Planning to buy a Toyota Camry in the next few years & won't buy the extended warranty if I buy the car new.
I have to say no to them as well. I bought an extended bumper to bumper warranty one car back for $1927 that gave me coverage for 7 years or 84,000 km. I traded the car after five years having never used it even once.
This video feels like it was filmed and produced in 1995 but it was in only 2015.
Warranty companies make money or they are no longer in business...
But CR chickened out on recommending ANY companies as trustworthy or having some integrity.
Be smart, and never buy warranty.
I paid $2200 for warranty on my 2008 suburban in march, last week my AC was not working and warranty did not pay for the fix. Bill from the dealer was almost $500.
So buy a merc and get extended warranty is a better deal than buy one for Honda?
Unless you're willing to pay up thousands of dollars for like an 8 year 200k warranty around the time when a car has a major break down then it's usually worth it, especially if it's a german car or a chrysler lol
I have an extended warranty for my 09 CTS which expires at 140k and I don't think it's a waste of money
Some manufactures offer refundable extended warranties. Win win for the buyer if you have the money.
Also, remember you can always get a refund on your extended warranties including Gap insurance. I found out if you have sold your car or if it was totaled, you can get a prorated refund. I checked my refund status for free at www.mywarrantyrefund.com and they canceled everything for me. Don't forget to cancel it like I did because the longer you wait, the less you get.
Of course warranties will appear to be a waste in hingsight, if they are even remotely reasonably priced. It's a measure of risk mitigation, and you pay for it, most people of course won't get a benefit commensurate with the cost, but some smaller number of people will be protected from expensive repairs... Which is why you buy the warranty, in case you might be that guy with the expensive repair you can't afford.
This piece doesn't illuminate the warranty question in a meaningful way, it is the standard risk-ignorant argument that surfaces around every type of insurance.
Is this supposed to be consumer information (which for warranties might include how responsive they are to claims and how much hassle it is to use them, and yes even their loss ratio as this piece alludes to), or is this call and response navel gazing to make people feel smug in their agreement with the prevailing opinion?
Extended warranties are a bunch of crap. I had issues with my car while covered by the extended warranty and I was given a very hard time to resolve my issue. They tried everything under the sun to not resolve it until I got a lawyer involved. What this video I believe is trying to state is that good quality cars don't require extended warranties because of their quality; their standard warranty and routine maintenance should be enough to cover the life of the vehicle or exceed the extended warranty coverage. Major damages nowadays are due to neglect or design flaws that appear during the manufacturer warranty time frame.
a useful piece of consumer info would be to name the warranty company in question.
as to a high quality car, well, that could also just drive down the cost of the warranty. If memory serves, edmunds chiefly uses reliability data from 3rd party warranty providers, and the expected reliability of a vehicle plays a role in the cost of that warranty (and edmunds projections for repairs in their TCO).
(edit : this was written in response to a comment that has since disappeared, it contained a story of warranty difficulties and an assertion that a high quality car shouldn't need a warranty)
The risk is that some sleazy companies weasel out of paying on legit claims. This is mainly why CR didn't recommend ANY companies, especially on those with gazillion TV ads. .
Good thing that i have an extented car warranty on my 2012 nissan rouge
You need a extended warranty if you have a German car. I spent $1700 on the certified used extended warranty for my Mercedes Benz SLK350 and there was about $5500 of work done on the car in the warranty period.
+AChopra I MEAN IF YOU HAVE AN EXPENSIVE CAR, THEN IF MAKE SENSE SINCE EXTENDED WARRANTY ARE EXPENSIVE ,BUT THE AVERAGE CONSUMER ONLY DRIVERS BETWEEN MID 10-20 THOUSAND CAR , NO BECAUSE IS DOESN'T COST TO MUCH TO MAINTENANCE THE CAR,
These are NOT warranties. They are issued by the auto manufacturers ONLY on the vehicles they produce. These are third party insurance contracts. Nowhere are they comparable!!!
Isn’t this kind of like buying health insurance and then getting mad that you didn’t get sick enough to use it?
This totally depends on the car. If it is not reliable then you might want to get it. I would not touch a Land Rover/Range Rover without one.
So CR doesn't recommend ANY company if people who want yo purchase extended warrenty on their Ford, Dodge, Chrevy,Nissan, Kia etc. This was not about getting a Toyota, Subaru, or H onda car, it was about what warrenty company is reputable according to CR. Apparently, none are trustworthy, and many are insurance companies.
Only reason I bought mine was because my car was as is without it
Yeah but if something did happen to his Honda he was covered.
Like an insurance policy.
We pay and hopefully don’t have to use it.
I spend $2k for that and never use it.
Lol. Insurance and warranty are for incase something unexpected happened. Stupid report
You missed the point. The video stated that most warranty buyers spend more on the warranty than they would have spent on repairs, meaning there is no purpose for the warranty.
I just bought my car used(2016 Honda Civic touring). Since it's used I bought a warranty for it. a month later my ac condenser went out. if I didn't have the warranty I would've had to pay 1,000 dollars outta pocket instead I paid a hundred for the deductible. I guess I got lucky cuz I've heard the horror stories about warranties.
That happened on my 2000 Ford Contour. If it wasn't under warranty I probably would never have fixed it and gone without AC.
its just piece of mind
No such thing as an “extended” warranty. The original warranty is issued by the auto manufacturer. No manufacturer extends its warranty. This is just slick marketing by third parties for insurance coverage if something goes wrong mechanically with the vehicle.
Better to get a prepurchase inspection
I've had people get pre purchase inspections done and while it's always a smart move , a lot of the engine failures I've seen didn't show any signs or warnings. Same with transmissions. Once you realize something is wrong it's too late.
NO!!!....many are scams...GWC warranty is 100% a scam and i know from personal experience. What ever you do...DO NOT GIVE THEM YOUR MONEY.
We are gambling that our car will break. The warranty company is gambling that it won’t break. 😳
im getting a 2017 Ford Fusion SE AWD 2 liter ecoboost.
Should I ?
I bought a $1000 extended maintenance plan and used $240 , net loss $760 so I contacted my states Attorney General to complain. I recovered $500 and still lost
$260. I will never again buy extended warranties.
how did you manage to get money back via the attorney general?? i'm surprised to hear that. no one made you buy the extended warranty, so why would you get money back because you didn't need to use much of it?
I'm confused....you voluntarily paid money for an extended warranty and then complained when you didn't need it and the state attorney's office actually helped you get a $500 refund! Please tell me there is more to the story because if I did that I would have blamed myself for being an idiot.
lol
I agree. My 04 acura just past it's extended warranty milage. Never used it and carmax charge me up in the ass for it. However, my dad and cousin have Chevy n ford, brand new; multiple visits to the dealer. Lol poor bastards
Very good to know even Carmax practices the same SCAM! Very important.
Unless you buy a ford, it would make sense to buy it.
You can fiance it u can't fiance repair
Credit card
Can someone YELL at Eileen please.
Wait, people who bought Hondas and Toyotas were particularly dissatisfied that they bought extended warranties? You mean they were pissed their cars were reliable? Wow. Talk about an IQ test.