Does anyone know of an extended warranty company that is good? I have seen the commercials for the US Fidelis, but just not sure about them, and wondering if anybody has any information on them or others.
According to Clark Howard none of them are worth purchasing. He gives a small window of conditions when they are worth the cost. But if you have high milage it's a lost investment. You pay $30 a month, and 2 months later someone else pays for your $3000 transmission replacement. Sound too good to be true??? You're better off putting the money in a savings account like we use too before the AIG age, save it then spend it. Go to Clark Howards web site, I'm sure he'll have a link to that topic. It comes up on his show quite often.
I agree with ddrdan. Put the money in a savings account just in case something happens. What will happen with an extended warranty is that the dealer will tell you that even that you have an extended warranty the certain part on the transmission is not covered under that warranty (just an example).
You betcha. I used to be the person who would try to make you buy one with your car. (not proud of that) I would never do it!
I may be the lone voice of dissent............but what the heck, I'm used to it! We've gotten two of them at the time we purchased the vehicles. Once on a used car purchased from Hertz. It more than paid for itself when some sort of electronic module went out on the anitlock brake system and cost an arm and leg to fix. We had no hassles about whether it was covered at all and were pleased. We got the extended on the truck we have now through Dodge. I did feel a bit strong-armed into that one, as they lowered our interest rate if we got the warranty, but it evened out $$ wise. Don't know if that one was worth it yet or not, I'll let you know in a couple years. Neither of them cost all that much at the time of purchase, and we did look at the fine print, because I generally do not purchase extended warranties. On the truck, I'm kinda glad because we don't drive it much. It's an 04 and only has 29,000 miles on it. The standard manufacturer warranty ran out a long time ago, but it's still covered for 2 more years. That was when the Hemi first came out and I was unsure about it's dependability. I knew from past experience that some engines cost a whole lot more to work on than others. :? For me personally, it's worked out fine, but I have heard the horror stories as well. Plus, I wouldn't buy one from those advertising on TV, they do sound too good to be true. I guess the old adage of "your mileage may vary" applies to this situation as well.
I recommend checking with your auto insurance company to see if they offer any type of warranty as part of your policy. My dad did this (I think with Geico) and it was only like $5 a month extra. When he needed some major repairs to the vehicle, they took care of it without any problem. I know that not all company's offer it, and that it is not available for all vehicles (I believe they told him when he got it that the car had to be under a certain number of years old and they he had to take it to an autobody for a (free) inspection of the vehicle before they would start the coverage).
Used to teach classes on "Reliability and Maintainability" and when discussing the "Bathtub Curve" I used to show how extended warranties are always a suckers bet. The only time I would purchase one is if it was a portable device with an LCD screen.
Having been in dealership service depts for over 20 years-I have alot of exp with my customers asking me if they should buy one. I always told them it's like rolling the dice-they usually cover everything except whats wrong! On the other hand-if you buy a reputable one it can be very worthwhile i.e trans or engine replacement. A couple things I'd suggest-be sure to ask the company before you buy if it pays the repair facility with a credit card. Some companies will only reimburse the customer AFTER repairs are made-and if you had that much money to begin with you wouldnt need an extended warranty!Another item-be sure to keep up with maintenance! They will send an inspector out for major damage (again,i.e engine or tranny replacement) and the first thing they ask for is service records and condition/level of fluid.Doesnt matter who services it-just be sure to get it done. And ask what companies can repair your car-doesnt do you any good if you have to carry your car to someone you dont know/trust or isnt local!! Lastly-if you are buying a new vehicle-act hesitant. tell them you really want the vehicle,but you are going to think about it. Alot of dealers will throw in an ext warranty to "seal the deal".Most of all-read fine print on what is covered and whats not!! Sorry about the long post-love talking about this subject!
