Extended warranty

Are there any reasonable, reliable extended warraty programs around

my car is clse to 36,000 miles

The factory one are the best. They’re more expensive, however they will probably be in business when you need it.

If you drive a reliable and well maintained car, they are usually a waste of money. Put the money in the bank and keep it as a repair fund. The things covered ususally DO NOT BREAK DOWN during the period covered.

is the AAA warrranty a bit iffy ?

AAA will stay in business and if the warranty is THEIRS, not a subcontract, you will basically be buying very expensive insurance. Remember, many things will NOT BE COVERED, and it’s usually a struggle to collect from any of these programs.

If you do decide to buy it, carefully read what is covered and the conditions.

 Well any car can have major expensive repairs.  

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some peop;le will get nothing back and some will get a lot more than they pay.  Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price.  They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.  

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?   

Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money. 

Good Luck

Find out what the extended warranty costs and put the money in the bank. The warranty seller gets half of what you pay and then the guarantor gets paid. That means that less than half of what you pay goes to paying off the average extended warranty claims. If you bank it for unanticipated repairs, you have twice as much money to pay for them. After the warranty period expires, take most (maybe all?) the money you banked, plus interest, and have a really nice vacation.

George Penn:
You got some very valuable replies to your question.

If you must buy an extended warranty for your peace of mind (so you can sleep at night), then so be it. Because the odds of the warranty saving you money are very much against you.

It’s an oxymoron. By definition a extended warranty is a pure scam. Never has been one…never will be one. They are nothing more then a very very very expensive unneeded insurance policy. If I ever bought a car that needed MAJOR work in it’s first 100k miles…I’d NEVER buy from that manufacturer again.