Thoughts on extended warranties

[BourbonNcigars]

Depends.

IMHO, the only one I would consider is a manufacturer backed ESC

Same. Only one I've ever gotten. Third party warranties, from what I've been told, are not exactly going to act in your best interest.

And though I like the advice of saving for possible repairs, with modern vehicles you're approaching an amount that is high enough to actually cost you in the long run by not investing that same amount in even a moderate annual yield option. If you do save for repairs, make sure it's in something that is liquid and drawing interest (preferably over inflation rates).

Newer vehicles are often replace rather than repair. Replacing is expensive. Money can often be saved by taking a higher deductible on your manufacture based warranty (if offered). Yes, some things don't cost much but....**** that...it's all expensive now. On my next vehicle I'll certainly factor in the ability to get a manufacturer backed extended warranty (mostly a "certified" vehicle).

But, to be honest, I don't know who offers them. My only experience is with my current Hyundai which was bought as a certified used and made me eligible for a 100K mile warranty through them. And repair costs on vehicles don't usually go down with time. So an expensive car 6 years old will still be stupid expensive to repair later.

 

[Rdr854]

The current GM plan is administered by AMT Warranty Corp out of Texas. This plan is not able to be sold in California, Florida or Iowa. That is the plan that I have on my 2019 Suburban since the old GMPP plan was no longer available as the GM backed plan. So far, I am still under the new car warranty.

 

[petethepug]

I saw that some VSC companies were being allowed to put the manufactures name on their contracts. Sketchy move.

If AMT is not allowed in CA, it’s not what’s referred to on the industry as “the gold standard”. One big thing CA requires is to mandate the VSC be Underwritten in case they go BK or fly by night. That underwriter or master insurance policy will continue your contract just like the first owner.

The contract I purchased in the 90’s was passed on to two different underwriters. Sketchy!


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[Rygrego]

Lots of threads about this question and in each of them I have always said and always will say NO!. You should have savings set back for auto repairs and maintenance. The extended warranties are always odds favorites for the warranty company. Sure, every now and then the vehicle owner does use the warranty and it pays for itself but the whole idea for these companies is to keep money and the odds are in their favor every time. Your call though. I ran auto repair shops and worked as a tech for a total of 35+ years. I dealt with these companies and hate them.

I so agree. These "warranty" companies are for suckers. If these companies weren't making a ton of money from the ignorant they would be gone. With the exclusion of extended manufacturer backed warranties, the rest are for fools.

 

[OR VietVet]

Welcome to the forum from Oregon after all that lurking.