MY opinion of "extended warranties"

[OilPatch197]

If your vehicle is built to LAST, you don't need to purchase no extended warranty, THEY should just GIVE you the extended warranty for free, that is if they know they are building a good product.

 

[Legend]

Extended warranties are a form of insurance. They are designed to make money for the companies that sell them. The average premiums cost more than the average repairs covered. The only reason to purchase insurance is if the loss would be catastrophic. If the transmission in your truck were to fail and you don't have enough money to repair it, you wouldn't be able to get to work, would lose your job and income, your house, truck, etc., would be repossessed and you lose all the equity you have in them.

Living on the edge, beyond their means, forces people to buy insurance. It would be wiser to buy a cheap clunker that you can pay for without financing and save the interest and insurance (extended warranty). Very soon you will have enough money to pay for repairs if needed. And eventually a nice vehicle without financing.

Of course the government decided all drivers must show proof of financial responsibility (typically by buying insurance). Who's idea do you suppose that was? Surely not insurance companies? And how could an insurance company get your senator or representative to vote for such a thing? We have the best elected officials that money can buy!

And since requiring car insurance has worked so well, let's try applying that to health insurance, eh?

 

[Tdbo]

The best kind of extended warranty is to be "self-insured." Last new car I bought, they wanted to sell me an "extended warranty" for $1600. I do not believe in the concept and refuse to purchase them because 1) they usually refuse to pay and 2) the companies that sell them (unless you go with a manufacturer's warranty) usually go out of business regularly (that was an experience a family member had.) Therefore, I took $1600 and put it in the bank. If I have a major repair, I have $1600 + interest to help offset the cost and if I don't, I have an additional $1600 in savings.

 

[Doofy]

No new vehicles for me, either. I bought my 98 Ranger "used" with 94,000 miles. Cost me $7,000. I maintain good liability insurance and if I wreck my truck, oh well, I'll go find another. No car payments, and no overpriced comprehensive/collision insurance. I maintain my vehicles, myself and can do everything, other than front end alignments. Where I live, you need to be self- sufficient. Shop rates are $100+ per hour and you get gouged for every little thing, including paper towels and hand cleaner.

Extended warranties and all the crap the car dealers try to add on are for suckers. I tried the sucker route for about 13 years until I came to my senses. Now I keep most of my money in my own pockets.

 

[Hopman]

I buy used because I don't have the money for new. I got my '94 2.3 4x4 about two years ago. The only major stuff I've had to do was replacing the timing belt and slapping a new set of rubber on it. I'm chalking those up to normal wear & tear.

Besides not ALL mechanics gouge you. I have one who charges a reasonable rate, knows his stuff cold, AND will find a way to do the job, that if possible, saves money. He uses what parts he KNOWS will last the longest, which he's gained from 30+ years of wrenching.

 

[trail B2]

When they asked me to buy the extended warranty for my focus they told me if I lost the transmission the warranty would pay for itself and I said then I have the money to fix it instead of coming here and asking for my money back.In all fairness I did hint that I might get a warranty so they'll narrow the bottom line and get it back on the extended warranty.

 

[Mark_88]

I bought a 5 year extended warranty on my Tempo...and it was the best thing I ever bought...

I went through 4 fuel pumps, three after the first warranty would have expired...had the front end replaced (they are notorious for shaking themselves silly) three times...all out of the first warranty period...and the front struts were done on the last front end job...
Ford covered

I agree that extended warranties shouldn't be needed...but that was the first and only one I bought...and it actually paid for itself...

Now I go with the clunkers and prayers...