extended warranties -- do you buy them?

"hey, if you want me to take a dump in a box and mark it 'Guaranteed', I will"

 

Back in my retail days I sold a ton of them - and 80% of them are a scam.

Think about it - on the most basic level, those things are a gamble. Either the customer is going to win (something breaks and it costs more to repair than the warranty cost) or the store wins (nothing ever happens and they kep your money). Why would stores be pushing them so hard (and paying about 3 times the commission rate to the salesman) if they weren't "winning" almost all the time.

That being said, there are some of them that arent that bad if you read the fine print. The "replacement" ones are typically better than the "repair" ones because by the time you need your replacement, there's usually a better modle out and they'll have to give you that one.

 

Exactly, it has to average out in favor of the seller of warantees or he would not sell them.

 

i actually had an arguement with the check out lady today. i said no instantly, no halfway through the schpeal and then no at the end of the 360 second lecture. she looked at me like i was stupid.

 

Thats my thoughts on the extended warranty, $1,800 or higher is what I have seen them for, maybe a little cheaper for a cheaper auto.

But anyways most people always seem to have a car payment for the most part if you are a new car type buyer, so every 2-5 years you are buying a new car, getting a warranty and paying for it with interest on top of that $1,800 or whatever amount. I just don't think in the long term it's a good deal.

Just say over the next 30 years, you have 6 cars x 5 years each to equal the 30 years, you are paying probably $20k for those warranties. Is that really worth it for the big items that could go wrong with a car? I have had about 15 cars over 23 years and never had an engine blow, trans give out or anything major like that. If you are worried that you can't come up with the money for a repair like that if it happens, then you are probably in a car you can't afford to begin with.

 

as far as extended warranties for cars go, it depends on the car. i have an audi and had the standard 50k warranty...boy do i wish i had the extended. no problems up to 50k. have had all types of issues starting at 55k...a window stopped going up and had to change regulator, power locks vacuum pump broke, blew 3 speakers, 2 torn cv boots, airbag malfunction, O2 sensor failed. if i had a toyota or honda, extended warranty would be out of the question. bmw, audi, benz, etc., i think it is a must have. but a lot of times they aren't transferable so you have to look at your plans...if you plan on selling a car at 50k and the extended warranty isn't transferable, what's the point? i bought my car from the original owner who had purchased the extended warranty that didn't transfer, so obviously it was a bad purchase for him...

 

IMHMFO, if it's a challenge to scribble a check for a $3k repair, I have no business owning a European luxury car.

Selling a warranty is just another way that car dealers can profit from the fact that consumers really can't afford their product. 'You might not want to be hit with a $3-$5k repair bill, so just finance this $2k insurance product.'

Bad idea.

 

only warranty I've ever purchased is for my tv. Have two replacement bulbs sitting in my closet. Paid for the cost of the warranty twice.