Extended warranties through the dealer are a total rip off - here's when I figured it out

Bought a 2019 Civic last year and the finance guy pushed hard on the 7 year bumper to bumper for $2,400. I almost signed but decided to wait... good thing. My alternator went out at 38k miles and the dealer wanted $900 to fix it. I called three independent shops and got quotes around $500. Then I looked at the contract again - the deductible was $200 per visit. So I would have paid $2,400 plus $200 to save maybe $700 on that one repair? Math don't work out. Has anyone else actually run the numbers on their warranty and found it was a bad deal?

2 comments

2 Comments

abby_robinson581mo ago

i mean idk if i'd call it a total rip off, it really depends on the car and your luck. some people get way more than their money's worth out of them if they have a lemon or something. but yeah the math on yours is pretty rough, that deductible kills the whole point. honestly dealerships are just trying to make a quick buck off fear, they know most people wont use it.

aaron7081mo ago

Yeah you got a point there. Honestly it really is a game of luck more than anything. Some people definitely get their money's worth, but that's the exception not the rule. That deductible thing is a killer though, like what's even the point of paying all that extra cash if you still gotta fork over a couple hundred bucks when something actually breaks. Gut feeling tells me most dealerships just bank on people never using it either. Sucks because it preys on people who just want some peace of mind with their car.