Should I get an extended auto warranty through Costco?

[dennis thompson]

I have a 2008 Ford Explorer & a 2009 Honda Odyssey with 35,000 & 40,000 miles respectively on them. I plan to keep them for several years. Costco is currently offering an extended warranty program through Century Warranty. I know many of these programs ,while they might not be scams, certainly leave much to be desired. However I have always trusted Costco & been very satisfied with their products & services. Do any of you have any extended warranty programs? Are you happy with them? What are the key components I should look at?
Thanks
Dennis

[Myk Rian]

I prefer dealer/company warranties. You can take the vehicle to ANY Ford or Honda dealer for repairs, instead of where the insurer directs you.

[Charles Wiggins]

Consumer Reports generally advises against extended warranties (http://news.consumerreports.org/cars/2008/03/ex-car-warranty.html). They usually don't pay off in the long run. You may end up with a significant problem where the warranty pays for itself, but statistically your chances of that are low (1 in 5 by most studies). The companies that offer these products are well aware of the stats. That's why they offer the warranty - because they know they can make money. They wouldn't offer it if there was much of a chance that they would have to pay out more than they take in on most claims. Financially, you're better off putting your money into maintaining the vehicles, and having some money set aside to cover unexpected repairs. Same thing goes for major appliances (http://news.consumerreports.org/home/2011/02/our-colleagues-at-the-consumerist-reported-this-week-on-the-nine-most-common-extended-warranty-sales-pitches-as-reveled-to-t.html), in most cases.

[Matt Meiser]

The advise I got when the bumper to bumper warranty on my F150 was up was to forgo the extended warranty. I've still got powertrain warranty coverage. Even a major electronic failure would cost less than the warranty. Odds of that are relatively low and the odds of 2 are even lower.

And anyway I'd take it to the local repair shop for repairs since the closest Ford dealer to me closed after being run out of town by the people angry that he tried to *gasp* sell some of his property to Walmart. The second-closest one has tried to rip me off on a repairs more than once--they did a repair without authorization when I had it in for an unrelated recall and then put on the hard sell that it was a safety issue and shouldn't be driven without the repair (loose sway bar links.) They were very upset I refused. Another time they told me the fuel filter was "very rusty" which is really odd since I'd changed it the week before, and they marked down that our tires were "yellow" again odd since they were a week old.

[jared herbert]

I have never been a believer in extended warranties from third partys, not the manufacturers warranties. They are big money makers for the people that sell them. My banker and every one else in the know advise against them. Put the money aside that you would spend on it and save it towards a fund for vehicle replacement or repairs. I think you will be money ahead in the long run Jared

[Don Morris]

The above advice is what I've heard too, and from the large repair shop I take my vehicles to. They sometimes tell me I don't need something done, "go a few more thousand"... That shop is run by the sons of my neighbor across the street, and they are like extended family. Been to their weddings, christenings, moms burial, etc. Doubt they would advise me wrongly.