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My brother in law swore the dealership warranty was a ripoff, so I skipped it and paid $2,100 out of pocket
My brother in law has been a mechanic for 15 years and he always says extended warranties are a waste of money. When I bought a used 2019 Civic in Denver last spring, he talked me out of the $1,800 plan and said just put that money in a savings account instead. Fast forward 6 months and my transmission started slipping at 62,000 miles, which was past the factory powertrain coverage. The repair came to $2,100 and of course the savings account never actually got funded. I'm not saying he was totally wrong about dealership markups, but the peace of mind might have been worth it in my case. Has anyone here actually used an extended warranty and come out ahead, or did it end up being a hassle when you filed a claim?
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avery36612h ago
That savings account advice sounds good on paper but almost nobody actually funds it, and that's the part your brother in law left out. When my wife got her CRV the finance guy wanted $2,400 for the warranty and we passed, then the AC compressor died at 58k and cost us $1,300. My neighbor did buy the plan on his truck though and got a new radiator plus a water pump covered around 70k, so he came out ahead with maybe $500 in his pocket. The catch is you have to actually read what's covered and keep your receipts, because the people who get denied are usually the ones who skipped oil changes or used the wrong shop. So the warranty isn't a scam, it's just a bet, and it only pays off if you're the type who keeps records and doesn't ignore weird noises.
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