Are extended car warranties a waste of your time and money? Extended warranties on items like televisions and home stereos (are they even called that anymore?) usually are, because nothing usually goes wrong with these. That's not how it is with a car full of moving parts and burning heated fuel though. Look at it this way - would you buy a car that came with no warranty? If the thought makes you uncomfortable, there is your answer to why a warranty is a good idea. Just as medical insurance protects you in the event something happens, there always is something possible with a car. People buying on eBay Motors know that - buyers will always pay more for a car that's under warranty. The warranty makes people comfortable for a very good reason - a car is an insanely complex mechanical machine and there are any number of things that can go wrong with it from time to time.
Some people do have a legitimate point when they complain that extended car warranties are not useful. These are usually people who have bought their warranties without researching their options - from junk mail usually. Your extended warranty is only as good as the company that provides it. If you are buying from a company that just might go under really quickly, you'll have nothing to show for your money. People without a car that's reliable don't get an interview, and don't get a job. Just think about it - if the transmission drops out, it can easily set you back more than a couple thousand dollars. All accounted for, there are far more reasons to get extended car warranties than there are not to.
But there are things you need to keep in mind. Your first point here is that your extended warranty needs to come from a reputable company. If one company seems far more affordable than another, if you wish to go with the cut-rate price, try to look at your options in financing the better more expensive warranty. Typically, you should get 0% financing. If you bought an extended warranty from a car dealer, they would usually add it to the price of your car and finance it with your 14% APR car loan.If you feel that there is nothing you can do about your car now because you car's pretty old, think again. Companies like WarrantyDirect have products for cars that are well over 100,000 miles. They cover big-ticket items like transmission and engine, and also give you 24x7 emergency roadside assistance. That should make you feel like you're driving a Mercedes, now shouldn't it?