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Extended Warranty (Auto)

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Old 01-12-2007, 03:13 PM   #1
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Extended Warranty (Auto)

What exactly is the point of it? What does it typically cover? Is it just a scam?
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Old 01-12-2007, 03:59 PM   #2
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Re: Extended Warranty (Auto)

Well it reals is not as long as they say. If you buy a new car with a 40k mile warrenty then on top of that you got a 100k mile extended warrenty, you are really only paying for additional 60k miles. Usually they run 1500 to 2k. You won't really make out espically if your car is a Honda or Toyato. What are the chances of something breaking that is over 1500 in the 40k to 100k mile window. Very little. Most likely you will have some small accesory go that could set you back a couple hundred. Unless you are buying a ford I would not waste the money.
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Old 01-12-2007, 04:24 PM   #3
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Re: Extended Warranty (Auto)

Some auto loans give you a lower rate if you get an extended warranty.
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Old 01-12-2007, 04:39 PM   #4
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Re: Extended Warranty (Auto)

What I really want to know is has anyone used their coverage and what for?
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Old 01-12-2007, 04:56 PM   #5
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Re: Extended Warranty (Auto)

Also, these warranties the dealer tries to sell you in 'the room' are also negotiable. They'll sell them to you for as little as 1/3 the asking price. Finance rates are negotiable too.
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Old 01-12-2007, 07:31 PM   #6
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Re: Extended Warranty (Auto)

I have used my extended warranty coverage for a BLOWN ENGINE on my 1994 Pontiac Grand Am back in the day. It was in the 4th year and would have cost me about $4k to fix it...in lieu of $0 with the warranty. I will never buy a NEW car without the extended warranty because I have had to use it before and I would recommend the same.
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