CarShield Extended Warranty

Anyone have any experience with Car Shield or any aftermarket extended warranty, I know there are a few? Shopping for a used vehicle that will most likely be out of warranty and was considering one until the loan is paid off but the only person I know who bought one never had to use it. 

They are almost all worthless.  Read the fine print carefully.  

DanDietrich said:

They are almost all worthless.  Read the fine print carefully.  

This is what I figured but they've been in business so long and I dont trust the anonymous positive reviews online. Any recs on one that isn't worthless?

Could be a scam.  Investigate carefully and read the fine print before purchasing one.

They are not scams.  They don't misrepresent or lie. They are legal.  They just don't actually cover anything and are full of loopholes.  

I can't name one company that has a good reputation.

DanDietrich,

Would you share the reason(s) for your dissatisfaction with such warranties?

I had one on a new car lease in the mid 80's. The shop a block from my home replaced the tranny without  begging, pleading, screaming or crying - twice. The warranty was a few hundred dollars at signing.

My only objection to the current offerings, is the cost. Seems less expensive to self insure.

TomR

Research from consumer reports and other sources claims that they are not good deals.   I agree about self insuring.  

https://www.consumerreports.org/cars/car-repair/get-an-extended-warranty-for-your-car-a1570471227/

Somebody recently called to try to reach me about this very thing.

Another scam is when you buy a new car.... "Gap Insurance." This pays if you total your car and the loan is under water and you need to come up with $$$ in order to get the title to see lit for salvage. 

The dealer "finance guy" will try to sell you a gap policy for a few hundred. The same coverage is usually available at your insurance company for about 1/2 the dealer's price. 

I don't know about this one specifically, but when I looked into getting one, the plan required a minimum 2 year contract at $100/month.  so you would be paying minimum $2400 for the warranty......say you get the warranty for a total of 5 years after the new car warranty expired...you have now paid $6000 for this warranty...often it will cost you less to pay out of pocket.  I  think I  have paid an average of $500/year for repairs on my nearly 20 year old car.....as opposed to the warranty costing $1200/year

If you are worried about paying for repairs, you could research those firms and find out how much they cost monthly or annually or whatever and then put that amount of money in a savings account that you can draw on when needed. It is almost certain that you will come out ahead on that deal.