USAA Ratings and Reviews

Customer reviews for Are Extended Car Warranties Worth It?

Are Extended Car Warranties Worth It?

Overall rating:
3.546 / 5
3.5
 / 
5
(33 reviews) 33
Open Ratings Snapshot
Rating breakdown 33 reviews
5 Stars
7
4 Stars
13
3 Stars
8
2 Stars
1
1 Star
4
28 out of 3385%customers recommend this product.
Customer reviews for Are Extended Car Warranties Worth It?
Review 1 for Are Extended Car Warranties Worth It?
Overall rating 
3.0 / 5
3.0 / 5

Warranty Company Went Bankrupt!

Written on9/29/12
Customer avatar
Ratboy859
fromLowell, NC
Military Affiliation:Retired
Military Branch:Army
I bought a used Ford Ranger and expected to put some miles on it. I got the 'after market extended warranty' from the Ford dealership. About 14 months into owning the used Ranger, I needed warranty work. The dealership repaired the problem, but really didn't honor the warranty. They never told me why - but it was fixed. About a year later, another problem came about and I was told that the Warranty Company had gone bankrupt! Yes, I was left holding the bag for the cost of repairs. I read the fine print and told the dealership to a small claims court and won. I paid for their warranty policy (sort of like insurance) and they now had to honor the contract (at their loss).
NEVER AGAIN! Put money away in the bank for the rainy day fund. If you can't get it repaired - don't buy it. I have walked out of a dealership that tried to force a warranty on me - "I hope you never have a problem and need a warranty", they said. I said, "Sounds like an unreliable, new car-not buying!"
I recommend this product.
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Review 2 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Buyer Beware

Written on9/18/12
Customer avatar
1 of a Kind
Please carefully consider the warranty sold at Ford dealerships pushed at the time of purchasing a vehicle; especially if you will be paying interest when it is included along with the vehicle. While I was attending college I work at a Ford dealership (for this reason alone I will never buy a Ford product); the profit on extended warranties will astound you! If you believe the necessity of an extended warranty, which most studies clearly demonstrate the probability of benefit is doubtful – just not worth it. Then buy from a reputable program like USAA. Even then know what is covered so you are prepared. Ford’s related extended warranties’ statistically will not benefit the purchaser - personally involved in study. Use of the service is extremely difficult and virtually all service owners were/are in the red. They would have been better without the Ford related extended warranty – FACT.
I recommend this product.
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Review 3 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

DO NOT BUY EXTENDED WARRANTIES FROM THE DEALER

Written on6/22/12
Customer avatar
DIRTRAKR
fromSO. CENTRAL OHIO
Military Affiliation:Widowed
Military Branch:Army
Any time the dealer sells you a third party product, i.e., Extended Warranty Insurance, that dealer is getting a HEALTHY Commissiom for selling it to you. That Commission is built into YOUR COST to purchase it. Give yourself some extra time after purchasing the car and you will find comparable (or quite possibly better) coverage available at half the cost or even less.
I know. I learned by my MISTAKE !
I recommend this product.
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Review 4 for Are Extended Car Warranties Worth It?
Overall rating 
1.0 / 5
1.0 / 5

Not worth it

Written on6/6/12
Customer avatar
DJMNAVY
Military Affiliation:Active
Military Branch:Navy
Do your research, this warranty is not a good product
No, I do not recommend this product.
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Review 5 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

The Old Man is Right

Written on6/2/12
Customer avatar
pgc03
My father has always had a good rule of thumb: Parts or Payments, never both.
You do not want to pay for car repairs and have a car payment at the same time. For example if you have a 5 year car loan and the standard warranty is only 3 years you should get an extended warranty out to the life of the loan. Once the car is paid in full - save the money you were paying for any/probable problems down the road. If the repair cost more than the value of the car - start looking at a new one.
I recommend this product.
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Review 6 for Are Extended Car Warranties Worth It?
Overall rating 
1.0 / 5
1.0 / 5

Extended warranty purchase

Written on10/21/11
Customer avatar
DE Harrison
fromArizona
Military Affiliation:Family
I was led to believe when the salesperson offered this program to me that it was as good as the dealership's warranty and less expensive. Don't waste your money they have too many exclusions in the fine print. It's not the quality I've always depended on with USAA.
No, I do not recommend this product.
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Review 7 for Are Extended Car Warranties Worth It?
Overall rating 
1.0 / 5
1.0 / 5

Warranties

Written on10/20/11
Customer avatar
dragonman
fromOhio
Military Affiliation:Separated
Military Branch:Air Force
I lease..I know that I am always making car payments,but my car is always under warranty and I drive a new car every 3 years..Also lease payments are lower than buying..Good for me,maybe not for you..
I recommend this product.
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Review 8 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

So far so good

Written on6/19/11
Customer avatar
DeeP1
fromAustin, TX
Military Affiliation:Family
Military Branch:Army
So far the extended warranty purchases have worked out from me. I also learned on my own (the dealerships wont tell you) when I traded in my vehicle I could request cancellation for both my extended warranty and GAP insurance. I received a nice chunk of change back for both. So if ever you are dissatisfied or change your mind about that extended warranty. You can request cancellation (you may have to go back to the dealership and request) and get a prorated amount of it back at any time....hope this helps some of the dissatisfied clients out there.
I recommend this product.
+8points
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Review 9 for Are Extended Car Warranties Worth It?
Overall rating 
3.0 / 5
3.0 / 5

Extended Car Warranties

Written on6/18/11
Customer avatar
Tech2022
fromSan Antonio
when buying a new car the time to buy an extended warranty is one month before the new car warranty is due to run out,not at time of purchasing the new car. you have absolutely on idea what will happen with your new car in the next 3 years or 36 K miles. As long as your new car warranty is still in effect they will sell you a extended warranty.
No, I do not recommend this product.
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Review 10 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

Chevrolet Coverage

Written on6/18/11
Customer avatar
DODAR
fromFort White, Fl
Military Affiliation:Retired
Military Branch:Navy
My last three cars (Corisca, Monte Carlo, and Corvette) have all had the extra coverage of 6 years or 72,000 miles. All three have needed some major work which more than covered the extra cost of the extended warranty. Not too sure what this says about the quality of Chevrolet vehicles, but it says alot about their warranties. The peace of mind was priceless.
I recommend this product.
+2points
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Review 11 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

Is it new or used?

Written on6/18/11
Customer avatar
MAtkins
fromQuantico
Military Affiliation:Active
Military Branch:Marine Corps
When I buy a used car, especially with a little bit more miles on it, I always buy a warranty. I had my Aurora for 6 months and I had to replace the Power Steering pump. $650. 3 Months later the Sun Roof broke in the open position... $850. My warranty was $1100... Glad I had a warranty. I bought a brand new Camry though, and the warranty I put on it was a waste of money. It all depends on what you're buying.
I recommend this product.
+2points
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Review 12 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Voice from the inside

Written on6/18/11
Customer avatar
commonsense1
I sell Extended Service Contracts for a living. Any person who tells you that it is a good thing or a bad thing before asking what is covered, who is selling it and how much does it cost, should not be listened to. If you purchase an exclusionary coverage from a reputable dealer for the right price(dictated by the cost of the vehicle) it is a smart move. Those "experts" who make blanket statements that they are not necessary will not be around to help you when you run into that $1800 repair bill. Career car professionals typically do not drive $25K plus cars out of warranty. Do you think those financial experts know more about the cost of car repairs than these folks? I haven't seen any service departments being foreclosed recently.
I recommend this product.
+2points
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Review 13 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Do your Homework

Written on5/24/11
Customer avatar
hay0306
Military Affiliation:Active
Military Branch:Marine Corps
I agree with this article, and stress that you should do the research on the vehicle.....specifically what the maintenance and part costs will be. A 1500.00 extended warranty that offers good coverage and is not filled with catch alls can be well worth it. Front transfer case leak, faulty navigation HD, power window actuators, lumbar seat motor, and a front suspension......3500.00. Read what your warranty covers and who is actually covering it.
If your vehicle has a solid maintenance history you may not need the extra coverage.
I recommend this product.
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Review 14 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

GMC Envoy Goods News Warranty Story

Written on5/23/11
Customer avatar
usaa fan 2
fromDestin,Fl
Military Affiliation:Spouse
Military Branch:Air Force
I never buy a new car, but I did this time and the $1200 extended warranty. Sure enought the minute my car was past the 36k dealer warranty the car started having problems. Took it to the dealer a total of 5 times during the extended warranty period and would have racked up over $1200 in repairs.
No out of pocket expense handled great by warranty co.
In addition to the extended warranty period, the repairs done were warranted for another year from date of repair. Just a pain with the car in shop every month.
Am I glad I had the extended warranty YOU BETCHA!!
Sold that car though after all the hassles, lol.
I recommend this product.
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Review 15 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Ext Warranty Used

Written on5/19/11
Customer avatar
Luke D
I had used an extended warranty once. Our normal warranty ran out a few months prior to the dealership finding a leak in my A/C compressor. They replaced my compressor for about the same price I paid for my extended warranty. I thought I was lucky. A week later we shipped our car overseas for a duty assignment in Italy and we found when we got there in a very hot month that the compressor they put in was installed incorrectly and the services they had over in Italy could not help us. When we returned to the States the warranty was of course over on this item and so was my extended warranty. I have owned several vehicles over the years and this was the only time I actually used an extended warranty. They always sound good, but I have yet to really need one. The manufacturer's normal warranty is usually good enough.
I recommend this product.
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Review 16 for Are Extended Car Warranties Worth It?
Overall rating 
2.0 / 5
2.0 / 5

These are a bad idea......

Written on5/14/11
Customer avatar
Soloelder
fromWestern Colorado
The biggest problem with after market warranties is that many repair shops refuse to deal with them. Imagine yourself 500 miles from home with a major breakdown ...and the shop says "Our policy is not to accept any after market warranties because they try to chip away at the bill to reduce their costs, and we don't want the hassle or the paperwork. So, pay cash or credit card, or have it towed home." The dealer who sold the policy may later accept it. There is no guarantee that anyone else will.
No, I do not recommend this product.
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Review 17 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Glad I had one on my 2003 Honda - piece of junk!

Written on4/30/11
Customer avatar
Chris in Texas
fromHouston, TX
Military Affiliation:Separated
Military Branch:Air Force
After owning a 1990 Honda Civic SI for 13+ years & 204K with no major trouble other than the AC, I stupidly traded it in for a 2003 Honda Civic EX sedan. The 2003 was a piece of junk - squeaks and rattles almost from the start. The culprit? A broken weld in the middle of the I-beam that ran behind the rear seat & connected the left & right side of the car; the dealer's repair? Crimping the ends together! They refused to do a proper repair job & weld the break. Less than 2 years & 13k miles later I threw in the towel on the car & bought a 2005 Mazda 3s which has been bullet-proof from day one. I bought an extended warranty for the Honda but didn't own the car long enough to use it; I bought an extended warranty on the Mazda but never needed it. Extended warranties give you piece of mind; like insurance, you hope to never need it but it's good to know it's there if you do. As complicated with electronics as new cars are, my next car will be bought with an extended warranty, just in case.
I recommend this product.
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Review 18 for Are Extended Car Warranties Worth It?
Overall rating 
3.0 / 5
3.0 / 5

Extended Warranties are another insurance!

Written on4/30/11
Customer avatar
dee1211
fromHouston
Military Affiliation:Family
Military Branch:Air Force
I have worked in the service department, in a dealership since 1993 (not the same one of course). I have to say, I daily see people use there warranty and I see if pay off for them.
Not every vehicle is going to break and not everyone is going to "get there monies worth" out of a waranty. What you have to remember is extened warranties are like another insurance policy.
Beware and be careful of warranties that are NOT made by the vehicle manufacturer. I see these daily also and they tend to not pay off. Alot of them are scams!
What most people don't realize-even on a used vehicle you can call a dealership & purchase a warranty on that vehicle. Yes that means you usually have to take it back to the dealer for repairs to be covered, but you always get OEM parts and trained people working on your vehicle.
Again its like insurance you buy it and have it but hope you don't have to use it. Who wants to be stranded just to use a warranty? Be mindful of the coverage levels of the policy.
I recommend this product.
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Review 19 for Are Extended Car Warranties Worth It?
Overall rating 
3.0 / 5
3.0 / 5

Always worked for me...

Written on4/28/11
Customer avatar
ymustthisbeunique
As the article says how long you keep a car is a major factor. I bought a 100k mile warranty for each of my last 3 cars (<$600 negotiated on each occasion) and in each case these extended warranties covered a minimum of 4 to 5x the purchase cost. After manufacturer warranty ends even a minor electronics fix can cost >$1000 and seemingly simple gasket or minor part changes can cost a lot in labor now that cars require a considerable amount of tear down to get to many parts.
I recommend this product.
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Review 20 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Warranties are no longer relevant

Written on4/28/11
Customer avatar
Kevin707
fromSF Bay Area, CA
Military Affiliation:Separated
Military Branch:Navy
Cars these days don't break down as often as they used to. Major repairs are always expensive but a rainy day fund, or just a normal thing called savings will cover it. In the end, when you have a huge rainy day fund leftover and are ready to get a new car, you just get the downpayment from the rainy day fund, or as I like to call it, your car maintenance fund. Then build it up again while you have a new car that the dealer will fix if it breaks. So basically,they are all a scam, but if you like the security of knowing large, low probability, expenses are going to pop up, but be covered because you forked over a couple grand upfront, then the warranty is for you.
I recommend this product.
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