Thursday, March 19, 2009

I think purchasing a car is hard enough, but adding an Extended Warranty? Please "Just Say No"

Amy Asked:
I want to know if anyone ever has felt generally good after they purchase a car? What is the best way to go about this? And More importantly- what about the stupid warranty? Can I make myself feel better and think that maybe it could be useful down the line that I paid for this extended warranty? I just don't know. Lost some sleep over this one.

Buying a car is one of those dual feelings type of purchases. You get all excited you have a new car and that feels really good. But you cannot help but feel like you got screwed in the process. I personally have never walked out of a dealership feeling like I got a good deal, even when I went in knowing what I wanted, and left with the deal I imagined before going in. I still get a nagging feeling that I got taken some how. I don't know if I am alone in that thought, but I imagine I am not. Anyone that tells you they got the better of the dealer, is either lying, or they are a fool. The best thing to do is just enjoy your new car. If the salesman snookered you, ultimately that is his problem, not yours.

Now, let's talk about the "EXTENDED WARRANTY" ! You know how I feel about it. It's like insurance. and I hate the idea of having to have insurance. This is, in my opinion, the biggest rip off in retail. Granted some people may have a story about a time when something went wrong right after the manufacturers warranty ran out, (which if something is going to go wrong that is when it will happen,) and they saved money on repairs because they had the extended warranty, but I would bet they are few and far between.

Selling you an additional warranty is a method for dealers to make more money and it is often a big deal for them. The salesmen make a nice commission off of the extras they sell. Often more than what they make off the car itself. Ultimately I think you need to run the numbers and usually you will see that it is not really worth it to buy the extended warranty, especially if you roll it into the price of the car, and pay interest on it.

Now I don't want you to feel bad about your decision. Enjoy your car, and rest comfortably knowing that you are protected if something does come up down the road.

This is what Mack thinks!


  1. Ok so i just did alot of research- this is good for people to know. I found that in any extended warranty purchase you have the right AT ANY TIME to cancel it. Depending on the specific warranty- you have either 30-60 days to receive 100% refund. After this you are prorated for a certain percent that you will receive back. SO the good news is that we can get all our money back- however- I wont find out until tomorrow if we can change back to the 5 year and lower percentage rate payment- it looks like we might just get a check sent to us. Either way I feel better knowing I have the right to back out of it. I will NEVER get an extended warranty again. You live and learn I guess and now I can just feel excited to have a really nice new car :)- Amy

  2. well, there's a guy i know of, but i'm sure he's closer to my location.
    maybe he could hook you up and point you in the right direction! there was a story about him in yesterday's province newspaper here in bc.

  3. I think generally handing over such large amounts of cash for a product will leave you feeling slightly dissatisfied but the happyness of having the car you always wanted should win over! Interesting stuff on warranty's! Sorry I havn't been to your blog in a while! Thanks for commenting!

    Come by again soon