Extended car warranties. Thoughts. Pro and Con

[flows-with-water]

My vehicle has close to 91,000 miles on it. Just had some non voluntary service performed that was covered by the platinum service package which was included when I purchased. So I can extend the platinum for 36 no 36,000 miles. for 3600$. Essentially bumper to bumper for all but true wearable. That’s some steep coin. There are lesser packages. I drive alot. Thoughts opinions.

[Jacuzzme]

Don’t do it. An army of statisticians and bean-counters worked long and hard to make sure the warranty company comes out ahead. Find a good independent mechanic and make him your friend.

Edit: A lot depends on the car too. If it’s a Honda (Acura) or Toyota (Lexus) 91k is just getting broken in if it’s maintained right. If it’s a GM or Korean car I’d use the 3600 towards a new one. I just got rid of my daily beater with 425k (2006 CR-V), never once needing internal engine or tranny repairs. That thing went in the snow like a half-track, was sad to see it go.

[yinzerpgh]

it's a risk vs reward. Like any insurance, it's the insurance company offering to take care of an issue in the hopes that the item doesn't break. You are hoping that it breaks! I guess it also depends on how old the car is. 90K miles isn't a lot for most cars but I certainly wouldn't extend the warranty on a cheap KIA.

$3600 is barely a downpayment on a new car these days and fixing cars is increasingly more expensive than ever. I personally lease my vehicles for 3 years. The worst case is that I have to put new tires on it when I return it, and I'll find the cheapest tires possible. Basically all I do is put gas in it and put tires on it at the end of 3 years. Sure I have a car payment but it all washes out in the end.

[chizzy]

When I've bought an extended warranty, I never used it...... when I didn't, I ended up replacing a transmission lol
In the end I would say it's not worth it

[Charley3]

I went to a financial advisors seminar many years ago and what he said made sense. Anyone who offers extended warranties does so at a profit. If you never buy an extended warranty for anything your entire life you will save money. It’s just simple math probability.

[Devo]

It depends on the situation, I bought a lease return with under 20K, and to add a full 4 year warranty was only about 1400 bucks, and, it covered everything, including replacing gaskets on an aftermarket high flow cat, that ate them about once a year, and, I intended on driving it hard, it was a Grand Prix, and supercharged, that I modded, but, the engine was bullet proof, and while the warranty came close to paying for itself, it was just peace of mind.

Also, due to the low mileage, the warranty was half the cost of the car being over 20K, so, situations may vary.

[EBPEM1]

Take the $3600 and set it aside. If the vehicle needs a surprise repair, use it for that. If it doesn't, you'll have the $3600 to add to the down payment when you're ready to trade it for another vehicle.

[AmishGangster]

Originally Posted by Charley3

Anyone who offers extended warranties does so at a profit. If you never buy an extended warranty for anything your entire life you will save money. It’s just simple math probability.

This. Exactly this.

The house always wins.