Is the extended warranty a rip off?
Ok, you’re ready to buy that vehicle of your dreams, and you have done all of your homework. You decided on the model, compared prices, picked a dealership and budgeted the money. The salesman is helpful and hopefully a well-researched fair price is reached. Then you are lead off to the little office in the back where the final purchase process will be completed. Straight forward so far, right? Well now let the squeeze begin. Do you want clear coat added, custom floor mats or the dreaded extended warranty? Personally, I have only purchased the extended warranty on two vehicles, and never even used it. At roughly $1,900 to cover several years bumper to bumper, it seemed like I was buying an unneeded life insurance policy. My philosophy on it now is that if the car is brand new, or even a couple of years old it should be covered by the manufacturer or the dealership if they are reputable. With even older vehicles, it’s a crap shoot. So before you pull the trigger on an older vehicle, do some investigations on your own. Google your vehicle by model and age, with key words like “problems, issues or recalls” before you step into the dealership with your hard earned money. This will give you intelligent questions to ask, and in some cases get in writing coverage concerns. Unfortunately the final price sometimes doesn’t end with the salesperson, it ends in that small office in the back room.
Enjoy the ride!