***Story originally aired on March 20, 2014***
Extended warranties promise peace of mind, but a recent Consumer Reports survey of 12,000 subscribers found those warranties are an “expensive gamble.”
The survey found more than half the people who bought an extended warranty never used the coverage. Those who did ended up spending far more on the warranty than they saved in repairs.
The cost of an extended car warranty averaged $1,214. Those who used it saved an average of $837,which amounted to a loss of more than $375.
When Consumer Reports surveyed subscribers, extended warranties rated down at the bottom of satisfaction. Owners of Hondas, Subarus and Toyotas were especially disappointed with their extended warranties. Less than a quarter of them said they would buy another extended warranty.
Consumer Reports says the best bet is to buy a reliable car and keep it in top shape.
Another thing to keep in mind is the fact that the Better Business Bureau has received thousands of complaints about extended warranty scams. So if someone tries to sell you one, and you are considering it, check with your dealer to make sure the offer is legit.
