About 4 years ago a family member bought a used Lexus, along with an extended warranty contract that covered the car for 5 years and an additional 60,000 miles.
The contract cost about $1,200 and was quickly forgotten once the paperwork was completed.
Meanwhile, my brother purchased a 2007 GMC Acadia, and an extended warranty. Before the ink even dried, his transmission failed, and the warranty more than paid for itself by covering the repairs. Other issues on the Acadia have come up since, and the warranty covered them all.
With my brother’s warranty set to expire, he’s preparing to sell the car rather than risk more repairs.
The Lexus has been flawless for many years, until this month, when it began running hot and experiencing other problems. The car was in the dealer’s shop before the warranty was remembered. With just a few thousand miles left on its coverage, it paid for a new radiator.
There’s lots of advice out there that says to skip extended warranties, but experience says they’re worth it—when done right.