What Percentage of People Are Interested in Extended Auto Warranties?

Around 66 percent of American drivers purchase an extended car warranty, according to a study by Forbes.com.
That’s a pretty high percentage, so it’s worth taking a closer look at whether or not getting an extended warranty is the right decision for you.

In this article, we’ll take a look at some of the key factors involved in making your choice.
On the plus side, an extended warranty can give you peace of mind knowing that your car is covered for repairs beyond the manufacturer’s warranty.

This can be a valuable benefit, especially if you’re worried about expensive repairs down the road.
And, in some cases, extended warranties may even cover things like routine maintenance or roadside assistance.

The Percentage of People That Want an Extended Car Warranty
The percentage of people that buy an extended car warranty is surprisingly high, nearly 40% of people surveyed said they would buy an extended warranty for their car.
The main reason people cited for wanting an extended warranty was peace of mind.
People want to know that they won’t have to pay out of pocket for expensive repairs down the road.

And, in some cases, extended warranties may even cover things like routine maintenance or roadside assistance.
An extended car warranty provides peace of mind by giving drivers protection against expensive, unforeseen repairs.
Many people feel that it is worth the extra cost to have this protection, especially if their car is still relatively new or they do not have a lot of savings set aside to cover unexpected repairs.
An extended vehicle warranty, while it may appear to be a waste of money to some people, can actually save customers a lot of money in the long run.

Unforeseen repairs might be quite pricey, and having an extra coverage can help offset these expenses.
An extended guarantee may even cover fixes that aren’t covered by a standard manufacturer’s warranty in certain circumstances.
An interesting contrast to the majority of overall drivers who report that they don’t, half of automobile owners aged 16-24 are covered by an extended warranty.

The Reasons Cited for Wanting An Extended Warranty
The main reason that people in this age group cited for having an extended warranty was peace of mind.
This suggests that young drivers may be more worried about expensive, unforeseen repairs than older drivers.
It is also possible that young drivers are more likely to be driving newer cars, which are more likely to need repairs than older vehicles.

Even though nearly two-thirds of customers (62 percent) felt that warranties offered value, and even though over half of consumers (57 percent) said their warranty assisted them in the past year, only 47% of consumers purchase extended warranties.

According to car owners, the most common reasons for not buying a warranty are the cost (35 percent) and a lack of necessity for the product (32 percent). When consumers purchased their automobile, 29% of them said no extended warranty was available.
How Reliability Plays a Part in Your Extended Car Warranty
The most pleased buyers of inexpensive vehicle extended warranties are those who purchase them.
Those that purchased less dependable brands such as BMW, Chrysler, Dodge, and Mercedes-Benz were more dissatisfied with their automobiles.

Surprisingly, some of the most costly extended warranties were found to belong to owners of vehicles from these companies, with Mercedes-Benz customers paying an average of $2,200, BMW owners spending $2,007 on average, and Chrysler drivers paying $1,525 on average.

Owners of vehicles from well-known brands that have a long history of reliability, on the other hand, may have been less satisfied for a number of reasons.
These car owners may feel that their vehicles are less likely to need repairs and, as a result, may not feel that an extended warranty is necessary.

Or, they may simply be aware that the price of repairs for their particular vehicle is not as high as it is for other brands.
Overall, Hondas, Subarus, and Toyotas are historically top-performing brands for dependability, with owners of these vehicles being among the least happy about their lengthy warranties.

Over half of Honda owners (56 percent) said they would buy an extended warranty again, compared to less than half of Subaru and Toyota drivers (47 percent).
Owners of different makes of vehicles were also significantly less inclined to have used them than owners of other brands’ models.

Only 39% of Honda and Toyota drivers, for example, said they had utilized their coverage, whereas just 36% of Subaru drivers did the same.

When Do Extended Car Warranties Make Sense?
For many people, an extended car warranty will never make sense.
If you’re the type of person who religiously keeps up with your car’s maintenance, or if you’re willing and able to pay for repairs out-of-pocket, then you probably don’t need an extended warranty.

On the other hand, if you’re not mechanically inclined and would rather not deal with the hassle of finding a reputable repair shop and getting a fair price for repairs, an extended warranty might be worth considering.
An extended car warranty can also make sense if you’re worried about expensive repairs down the road.
If you’re driving an older car, or one that isn’t known for its reliability, an extended warranty can give you peace of mind.
Similarly, if you’re leasing a car, you may be required to purchase an extended warranty in order to satisfy the terms of your lease agreement.

Ultimately, whether or not an extended car warranty makes sense for you is a personal decision.
There’s no right or wrong answer, and there’s no one-size-fits-all solution.
You’ll need to weigh the cost of the warranty against the likelihood that you’ll need to use it, and decide what makes the most sense for your individual situation.
If you do decide to purchase an extended car warranty, be sure to do your research and shop around before making a decision.

There are a lot of different companies out there offering extended warranties, and they’re not all created equal.
Be sure to read the fine print and understand exactly what’s covered (and what’s not) before making a purchase.
The bottom line is that extended car warranties are a personal decision.
There’s no right or wrong answer, and there’s no one-size-fits-all solution.