A number of years ago, Jim bought a new Lexus RX. The Salesperson kept telling him what a reliable vehicle it was, and Jim agreed because Lexus is highly rated. As soon as he handed over the check, the Finance & Insurance (F&I) person told them about all the things that could break, and therefore he needed the extended warranty.
We see a lot of TV and radio ads for automobile extended warranty products. Car Shield, American Auto Shield, Endurance, and Route 66 are some of them. A question that comes up is, “Are they worth it?” and the answer is, “It depends on a number of factors.”