July 21, 2024

Are Extended Warranties a Scam?

Most people want to protect the cars they buy, and they might think an extended warranty is a good idea but is it really? The Youtube video “Why Not to Buy an Extended Car Warranty (Scam)” explains why you should not waste your money. Let’s find out more!

Many salespeople will push buyers to get the extended warranty, but it’s much better for buyers to just keep the initial warranty a new vehicle comes with. If you’re wondering why sellers insist on the extended version, here’s the answer.

Video Source

It’s all about the money. It seems that when sellers get customers to buy the extended warranty, they get almost 50% commission on the entire insurance policy.

So, half of the money you’re paying when buying one of these offers goes to the seller directly, which also means that your insurance policy on the car is worth 50% less. Naturally, a salesperson has to push that because it’s a huge benefit for them. However, it’s not great for the buyer. Additionally, there are tons of things that are not covered under the warranty, so you also have to read the fine print.

You can watch the rest of the video for more details about extended warranty scams.

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