Consumer Reports: Extended car warranties never used by the majority of buyers

Looking for an easy way to save hundreds on your next new car and simplify the buying process at the same time? Skip the extended warranty. The dealer will probably try hard to sell you one, telling horror stories about the thousands of dollars it can cost to replace an engine or transmission. But the odds are you’ll never need the coverage, and even if you do, the money you’ll save in repairs won’t come close to what you paid for the added warranty.

A recent Consumer Reports survey found that 55 percent of owners who purchased an extended warranty hadn’t used it for repairs during the lifetime of the policy, even though the median price paid for the coverage was just over $1,200. And, on average, those who did use it spent hundreds more for the coverage than they saved in repair costs.

NBC Exposes Car Dealer Fuzzy Math

Many car salesman will be nice and friendly. They do this to catch you off your guard. When this happens — when they gain your trust — they may throw fuzzy math at you. Watch in this Dateline NBC hidden camera exposé.

The ex-car salesman recommends to always take your time. Especially when you enter the car financing room. Do not be afraid to take a pen and pencil and map out your repayment options. Focus on interest rates and the estimated cost of the loan. When you do this you slow the pace down and you can decide if it is a good deal for you or not.