• Ken Spratford


Updated: Feb 13, 2020

Your Car has less than 100,000 miles. + The manufacturers’ warranty is about to expire. = You have received countless solicitations…

in the form of automated phone calls, direct mail, and TV commercials that got your attention…

Is it worth it to buy a 3rd Party Extended Car Warranty?

Not every Third-Party Extended Warranty is a scam but you must understand what you are getting into in order to make the best decision. A 3rd Party Extended Car Warranty is not a warranty for your car it’s simply a vehicle service contract. The Extended Warranty companies have no direct business relationship with the product it covers, i.e. your car. Typically, 3rd Party Extended Warranties pay for auto repair up to 100,000 miles. Costs range between $750 to $5000+ depending on duration, your car’s year/make/model, and the package you buy…

  • SILVER – powertrain only

  • GOLD – more extensive

  • PLATINUM – bumper-to-bumper coverage with the exception of convertible tops

Understand that warranties are not insurance. Your car parts will be covered due to ordinary use, not accidental damage. Pre-existing issues and/or not keeping historical service records may void the contract. Some Third Party Extended Warranty companies will look to get out of the agreement, thus have bad reputations. Checking accreditation with the Better Business Bureau is always a good idea.

3 reasons to buy a 3rd Party Car Warranty:

  1. If you own a luxury vehicle such as a Mercedes, BMW, Bentley, VW, Audi, Porsche, Jaguar or Rolls Royce auto repairs can be very costly! Purchasing a Third Party Extended Warranty can substantially reduce your out-of-pocket costs.

  2. You get added bonuses like complimentary towing services, roadside assistance, and rental reimbursement.

  3. Peace of mind. We all purchase auto insurance to protect ourselves, vehicles, and wallets if we get into a collision. Extended Warranties protect you against mechanical failure due to ordinary use.

If you do decide on purchasing a 3rd Party Extended Warranty, we can’t stress enough, it is essential to read the terms and know what’s covered and what’s not. You have to read the policy, not the marketing prospectus. If you have any trouble feel free to contact Ken for his expert (40+ years) automotive mechanic opinion. They can be confusing. We have attorney customers that send these policies for review.

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