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%reviewers recommend this product.
Customer reviews for Are Extended Car Warranties Worth It?
Review 1 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
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
12of 16voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 2 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

Chevrolet Coverage

Written on6/18/11
Customer avatar
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
3of 4voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 3 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
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
3of 4voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 4 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

The Good, The Bad, and The Fugly

Written on4/28/11
Customer avatar
fromInland Empire, CA
Military Affiliation:National Guard
Military Branch:Air Force
Being a new vehicle, I purchased the $300.00 "Extended Warranty" which covered paint defects, hail, etc. Prior to our next duty station move, I observed a (clear coat) paint chip on the hood.
From my years of experience working in aircraft maintenance (to include painting aircraft), there must have been a defect on the surface prior to the factory top coat application. I ASSUMED once I got to the new duty station, I could handle it then.
I WAS WRONG! Contacting the warranty company was a game of phone tag. Scheduling an appointment to meet with an appraiser was inconvenient and he said it was "hail". The company informed me that they only cover paint defects. Long story short, this caused me stress!
Don't be a fool and buy extended warranty. If the warranty is expired, bring it to a dealership OR bring it to a mom and pop shop. I'm sure those smaller businesses are struggling for money. Check your vehicle insurance coverage... do you have enough for paint defects?
I recommend this product.
-3points
6of 15voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 5 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

Regret my extended warranty purchase

Written on4/26/11
Customer avatar
fromDublin, Ca.
Military Branch:Coast Guard
I purchased a 2006 Diesel truck that had 100K on the odometer. Not a lot for a good diesel engine. But I was worried about everything attached to the engine so I ponied-up $1500 for an extended warranty that seemed to have extensive coverage. I maintain my vehicles very well and always keep receipts. Every 5K the oil was changed and I even used OEM filters just to be safe. When the air conditioning went out (the compressor) I figured I had an opportunity to use the warranty. Turns out, the fine print said all my maintenance had to be done by a dealership or certified shop. Careful documentation, perfectly organized receipt trail (for oil, filters, tires, belts, brakes, etc) they refused my claim because "I" changed the oil and not a shop. They would not even look into the record keeping I did. All for nothing and so was the $1500. Lesson learned: Fine print.......-Read it!
I recommend this product.
+24points
25of 26voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 6 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

Car Repairs are costly

Written on4/26/11
Customer avatar
fromMaryland
Military Affiliation:Active
Military Branch:Army
I was a dealer mechanic years ago and generally keep cars past 5yrs before buying a new car. I do most of my own work on cars. Since many Americans buy used cars, it only makes sense to protect yourself from the crazy per hour costs of labor that can range upwards of 100 dollars an hour or more. Jobs on car repairs are usually a set rate. The cost of a transmission rebuild and labor more than exceeds the 2000 dollars I paid for an extended warranty for 7 years and 100000 miles of coverage. For those that like used European cars, a warranty is a must when just services alone can cost 150 - 200 dollars. Car repairs are getting like healthcare. Without insurance you either cannot pay for the repair or you will be in debt paying it off.
I recommend this product.
-3points
4of 11voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 7 for Are Extended Car Warranties Worth It?
Overall rating 
5.0 / 5
5.0 / 5

Don't use Advantage!

Written on4/23/11
Customer avatar
fromSasebo, Japan
Military Affiliation:Active
Military Branch:Navy
Great article overall. I wanted to add the comment, don't purchase an Advantage warranty. I did this (not cheap) and when things went wrong that were supposed to be covered, nobody would accept the warranty company's payment. They said things like "they don't pay on time" among other things. I'd stick with an extended manufacturers warranty if you want to buy one... but now I think they're pretty much worthless.
I recommend this product.
+12points
12of 12voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 8 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Buyer Beware

Written on9/18/12
Customer avatar
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.
+1point
1of 1voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 9 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
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.
+2points
2of 2voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 10 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
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.
+3points
3of 3voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 11 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
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
8of 14voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 12 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Do your Homework

Written on5/24/11
Customer avatar
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.
0points
0of 0voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 13 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
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.
0points
0of 0voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 14 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Ext Warranty Used

Written on5/19/11
Customer avatar
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.
0points
0of 0voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 15 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
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.
0points
1of 2voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 16 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
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.
0points
3of 6voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 17 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

You don't need extended warranties

Written on4/27/11
Customer avatar
You don't need extended warranties! Why do all the smart financial planners like Dave Ramsey, Suze Orman, Clark Howard, and others say they are a waste of money?! Do they know something we don't? Obviously since people keep buying them. They are nothing more than free money to the people that sell them (pure profit) and all your doing is financing future repair work you'll probably never need. Even if you do need major repair work, you should a little money put away (rainy day fund) to cover the repair bill. That way if you never need that car repaired, you can use the money for something else and you didn't throw the money down the toilet on an extended warranty policy that never got used.
I recommend this product.
+1point
5of 9voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 18 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Going Overseas

Written on4/27/11
Customer avatar
I had an extended warranty and needed to use it while I was in Germany. I called to see if they wanted me to bring it to a dealership or to the shop on post. I come to find out they would only cover work done in the States. The cost of the repair was about the cost of the warranty. Read the fine print.
I recommend this product.
+1point
2of 3voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 19 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

The Truth About Cars and Extended Warranties

Written on4/23/11
Customer avatar
fromOKC, OK
Military Affiliation:Active
Military Branch:Air Force
Good article. Here are a few more truths about cars & extended warranties.
1. It is a fact that if you take care of your car, it will take care of you. This means that you get your oil change when recommended, rotate your tires and change them when necessary etc... Be sure to meet ALL of your scheduled servicing intervals.
2. Fix those dings and hanging fenders most don't care to fix. People don't realize that your car will meet its maximum performance and life expectancy when you drive it the way was when it came off the manufacturing line. Imperfections cause defects and wear which usually beget material failure and corrosion.
3. If you're paying $2000+ for an extended warranty, a better option would be to put that cash into a savings account where it earns you money over time and add to it when possible. Few repairs cost more than $500 and most cars don't repeat malfunctions if fixed the right way the first time.
4. Use garages with excellent reputations.
Hope this helps! TMW
I recommend this product.
+17points
23of 29voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
Review 20 for Are Extended Car Warranties Worth It?
Overall rating 
4.0 / 5
4.0 / 5

Yep

Written on4/23/11
Customer avatar
fromDirty Jersey
Military Affiliation:Active
Military Branch:Air Force
Extended warranties are contracts and financial decisions that need as much attention as the car you buy, probably more. Most extended warranties aren't worth the money, but for the ones that are, the price of getting your engine or powertrain fixed that one time wil often cover the cost of the warranty alone. If the BBB doesn't rate it an 'A', don't buy it.
Brandon
I recommend this product.
+1point
4of 7voted this as helpful.
Thank you! You have successfully submitted a comment for this review.
1 2 Next Page>>