- In this report
- Overview
- Highlights
- How they work
- Costly contracts
- What you can do
2008 Annual Auto Issue
Featured Reports
April 2008
Highlights
- Sixty-five percent of those surveyed said they spent significantly more for the contract than they got back in repair-cost
savings. Respondents said their extended warranty cost them $1,000 on average while providing an average benefit of $700.
That means the average loss was $300. A big reason: 42 percent of extended warranties in our survey were not used, in most
cases because the vehicle didn't need repairs or the standard manufacturer's warranty sufficed.
- About one in five respondents said they had a net savings. In general, extended warranties were a better deal for those who
bought more troublesome cars, scoring lower in our reliability Ratings. When we looked at net costs by car make, only owners
of Pontiacs and Jeeps broke even because on average they had covered repairs that equaled the warranty cost.
- Only 38 percent of buyers said they were highly satisfied with their purchase, which puts extended warranties near the bottom
of dozens of services rated by Consumer Reports, including home, auto and health insurance.
- Twelve percent of buyers reported trouble getting repairs when they used their extended warranty, because of contract terms that excluded coverage for the needed repair or parts, or because of disputes with the claims administrator.
