Are Extended Services Warranties worth the cost for cars? I'm overwhelmed with conflicting information regarding coverage, limitations, and fees. The more research I do, the more wary I become. What do you think?
I purchased the extended service plan on my used van (we had heard that there were transmission problems). The transmission started leaking and they fixed it. Then the air conditioning went out and that got fixed. It's been a really good van except for those two problems, but for me to pay for them to be fixed would have been over $2000. I only paid $1400 for the plan. So it saved me money in the long run. On the other hand you could be out money if your car never breaks down. I agree with the person who said not to bother on the new cars.
I hope you're going to be taking a guy with you when you buy your car, even if he's a co-worker, a neighbor, your brother, just someone to be with you to point out and ask questions that you might not think of asking. Those car salesmen are well known to sell a female a car much higher than they'd do to a man and worse. I recently talked with a lady who bought a used car from a dealership & the troubles she's had with it in the last few months. It was probably the worst car on the sales lot!! As she said she's put in $12,000. into it's repair and that wasn't even counting the price she paid for it!!!! So she's got a 1998 Camaro, costing the same as a brand new one!! Beware, Ladies, of going car shopping alone, take a man with you!! She sure wished she had!!
We've never needed the extended warranty, after purchasing it. My hubby thinks it's a waste of good hard earned money. But I think if we'd ever really had trouble with the vehicle we'd have been glad we'd gotten it. This is one question that I think the answer would be truly up to you.
Do you read the Dollar Stretcher newsletter? Gary is a pretty smart guy. Here's a link to some of the replies to a similar query to yours but if you do a search on the Dollar Stretcher site you will get a lot more info. http://stretcher.com/stories/01/010430a.html
If the car is brand new, I wouldn't buy the extended warranty. Ask the salesman selling the warranty, "If your car is such a great product, why do I need to purchase the extended warranty?" They don't usually have a good answer.
A new car shouldn't break down and you're covered by the manufacturer for the first 36,000 miles anyway. So if the extended warranty covers up to 60,000 miles, then you're really only receiving coverage for 24,000 miles.
If however you are physically unable to walk should you break down and can afford the warranty, the peace of mind it brings may be worth the price paid.
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