Are They Right About Auto-Extended-Warranties?

In their 2011 “New Car Ratings and Reviews”, Consumer Reports offers us this bit of financial advice; “Don’t purchase an extended warranty on a car with a good reliability record”.

With a nationwide circulation and a devout audience willing to take their recommendations as truth, I sometimes wonder how many people are stung by unsuspected repair bills after following this “expert” counsel. Will Consumer Reports be there to pay your repair bill if something breaks?

And what does a “good reliability record” mean? What if you purchase a car with a “good reliability record” and still suffer costly repairs? It’s too late to buy the extended warranty then! Every automaker, no matter how reliable their vehicles, have fully staffed service departments working full time. Have you seen how busy your Honda and Toyota service departments are lately?

Later the article goes on to say that in a 2008 survey, 65% of those polled said they paid more than they received in return from their extended warranty purchase. Maybe Consumer Reports could have interviewed a few owners who received claims compensation far exceeding their plan purchase price. How do you think these folks feel about their extended warranty purchase?

My recommendation has always been the same when considering an extended warranty at time of vehicle purchase.

Instead of taking Consumer Report‘s two cent’s worth, answer for yourself the following questions;

1. Do unexpected auto expenses cause me great anxiety?
2. Could the cost of replacing an air conditioner or transmission strain my monthly budget?
3. Would I sleep better at night knowing major vehicle repairs are covered under warranty?
4. Can I afford the increase in my monthly auto loan payment?

Learn the two best ways to determine the strength of your auto warranty company.

Are you a candidate for an auto extended warranty? Ask yourself these auto warranty questions.

About the authors: As an 11 billion dollar U.S. business per year, the auto extended warranty is an integral part of the vehicle ownership experience for millions of Americans.

Written by a group of industry professionals with a combined 30 years experience, WarrantyWatchman.com is a consumer protection site and premier source for information regarding auto-extended-warranties.