Extended Auto Warranties, pro or con?

Years ago, these did not exist. You just took a chance when you bought a used car. But times have changed. People in the Ford Plant, are you seriously putting out a substandard product to keep these cling ons in business? Let's add another middle man!

Define years ago.

Pros: 15 years ago I bought a used 1992 Mercedes Benz E500, the limited edition E class built by partly built by Porsche. Along with it, I bought an extended Starmmark Warranty which is the Mercedes Benz manufacturer in house warranty company. Within the first 8 months of my ownership of that particular vehicle, the $1700.00 warranty paid for itself 3 times over.

Cons: In 2002 I bought a new Audi S4. I had the option to buy an extended warranty towards the end of the cars natural warranty expiration. The car up to that point had been utterly reliable, but reading too much nonsense on the internet, I got spooked and bought the extended warranty for $2200 (I think). The extended would cover the car from 50,000 miles which I was approaching, to 100,000. I loved the car and knew I was keeping it. However, NOTHING went wrong with the car. 60K came and went, then 70K, finally at 80K I cancelled the extended warranty and got the balance of my money back. I never ended up needing it. I drove that car to 184,000 miles before selling it.

So, those are my pros and cons.

I've dealt with extended car warranties ever since 1970 when I was an apprentice mechanic for a VW dealer. How many years ago are you talking? I'll wager you were not even born back then. I wouldn't buy an extended warranty unless it was for a European vehicle!

"Extended Auto Warranties, pro or con?"

Such are gambling that:
1) they won't make a loophole that you didn't catch, that they can avoid paying, and/or
2) the car is a lemon, and it will actually save you money in the long run.

Remember, these companies have extensive histories on vehciles, and they set the odds so they can make money, from you, when you buy the plans.

"Years ago, these did not exist"

Maybe 50 years ago, but they have been around a long time. And more and more companies sell them, and NOT the car manufacturer.

"You just took a chance when you bought a used car. But times have changed."

Recently, the lifespan of a US made / assembled car has increase from the life of the car loan, to 10 or more years.

"People in the Ford Plant, are you seriously putting out a substandard product to keep these cling ons in business? Let's add another middle man!"

It is usually NOT the auto manufacturer, but some barely associated (or completely unassociated) company that offers additional limited warranties.

Pros are small: as long as you can find the paperwork, are close to approved repair shops, and only break things that are covered, it is a good value.

Cons: those are almost never completely aligned.

Most aren't worth the paper there printed on. Most will cover only drivetrain meaning engine and transmission only. So if you have a electrical or computer problem its all on you. We run into a few companies when we have to get the O.K for them to pay for repairs there's a deductible (you pay usually 100 bucks) then the company tells us they won't pay for fluids or electrical parts meaning you could end up paying anywhere from another 100-500 or more. Don't bother with the warranty put aside several bucks a week for needed repairs if one comes up. And keep up on regular maintenance