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Extended Warrenty for Cars


Jax Snacks

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What is your opinion of extended "warrenties" for cars? Any one have such a contract? If so, are you happy with it? Or should they be avoided like the plague? Just want some more opinions, but I think I know the answer!

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That is true but you need to do your research on the company and how good they are with paying claims. I've bought the warranty a couple of times. Once I never needed it and the other had a major engine failure. I spent 3 months fighting them and was left with the decision to either sue or walk away. I choose the latter. They insisted that I prove all maintenance was performed to manufacturer specifications. Seeing as how I do most of my own maintenance I only had receipts without mileage records so their stand was that routine maintenance was not performed properly.

So my .02 is that unless you are willing to pay a third party to perform all maintenance and you make sure that you don't go one mile over recommended intervals then by all means go ahead, if not then don't.

I have not bought another plan since and don't plan to ever again.

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If you are buying a new car I would not even consider it until the factory warranty expires. No reason to prepay for something that you will not even need for a year or two. I personally think they are a very poor deal, yet I have friends that have used them and are very happy they had it. It is a gamble like anything. A lot depends on the vehicle and cost of repairs too. Is it a ford focus or a BMW? As you know one will be much less costly to repair.

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I hate buying extended warranties on anything. The failure rate of anything is based on a bathtub curve. Meaning failure is probable immediately and then ramps off very quickly and then ramps back up quickly at the end of life. The extended plans usually cover the bottom of the bathtub curve.

It was explained to me years ago like this: If you buy the extended warranty, you are betting that the unit will fail. The underwriter is betting it won't. So if the person selling it to you feels like it won't fail why should you?

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  • 2 weeks later...

used to work for a sales office for these...depending on the company

they can be a great deal on an old used car, they will cover

about 3 minor repairs or one major one and then they will fight you / wont pay

as someone pointed out research the company who underwrites it

(not the sales agent) first.

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I haven't researched extended car warranties, but I know with electronics the cost is often equal to the cost of the average repair, so most of the people who use it don't save a cent, and most people don't use it. And to add to the issue is that if there is a problem that is covered, it will more often then not come up during the original warranty.

Again this is about electronics, not cars, but Best Buy and other electronic companies make more money from selling extended warranties then they do selling the electronics in the first place.

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What is your opinion of extended "warrenties" for cars? Any one have such a contract? If so, are you happy with it? Or should they be avoided like the plague? Just want some more opinions, but I think I know the answer!

Instead of buying the extended warranty, take $20 a month and put it away as a breakdown fund. I avoid them. Most cars have a pretty good standard warranty anyway.

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For me it depends on the car. First if it is new I never buy. If it is used it depend on the make. The last used car was a Honda, no warranty. The before this was a chevy SUV for one of my girls, warranty purchase and used 3 times. This paid for itself many times over.

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Instead of buying the extended warranty, take $20 a month and put it away as a breakdown fund. I avoid them. Most cars have a pretty good standard warranty anyway.

a good aftermarket warranty is not that expensive for a used car, they can be a solid buy. it can take a lot of $20 bills to add up to a new transmission. if your computer goes out that can be almost a grand

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a good aftermarket warranty is not that expensive for a used car, they can be a solid buy. it can take a lot of $20 bills to add up to a new transmission. if your computer goes out that can be almost a grand

I have never had one, But one thing that no one has mentioned here is " How big of a motorhead are you"?

I am a motorhead from way back. I do over 90% of my own work on all of our vehicles, I have put a transmission from a salvage yard in my sons saturn and it lasted two more years $125.00 plus my time. I had my computer called an ECM in my G3500 1 ton vending truck go out recently and bought a preprogramed one online and installed it myself for $300.00. you can find step by step how to info on just about anything on the web. Parts are cheap if you buy them yourself, its the mark up on parts and the labor rate that kills you. So I think you have to ask yourself, Do I really mind popping the hood jacking it up and getting my hands greasey and have the tools, or do I want to pay someone to do it. Thats the real question in my mind.

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