New Survey Reveals Customer Opinion on Extended Warranties
October 16, 2007
A new survey taken by BuyingAdvice.com, a consumer advice website for car buyers, uncovers customer opinion on whether extended warranties are a valuable purchase.
Over 2000 new car buyers answered questions related to extended warranties. The new survey results collected by BuyingAdvice.com show that buyers who strongly endorse extended warranties are in the minority.
Only 56% of the respondents had ever purchased an extended warranty. And over half of those who had purchased one admitted to never filing a claim. When buyers were asked if they would recommend an extended warranty to family or friends, only 28% of those surveyed said they would.
Like the majority of people polled, many experts also question the value of extended warranties. Rod Davis from the Council of Better Business Bureaus mentions, “If you’re someone who is turning around a vehicle every four years, buying an extended warranty doesn’t make any sense.” And Robert Gentile, a spokesman from Consumer Reports, recommends buying a vehicle with a history of high reliability; which could ultimately save buyers thousands of dollars.
Some experts disagree, advising customers who like to keep a vehicle for a long time or who want extra security against major component failures to invest in an extended warranty.
Despite differing opinions on the overall value of an extended warranty, experts do agree that buyers interested in one should read the fine print and work to negotiate the price of the warranty down. But based on the new survey conducted online, many buyers may pass on an extended warranty altogether.
BuyingAdvice.com is a consumer advice and Internet price quote site that features tips and advice for car buyers, new car reviews and the latest news and information from the automotive world.
