Car buyers: Are extended warranties worth the cost?

According to a Consumer Reports survey, reliability is a top concern among almost every car shopper, regardless of if they're buying new or used. But are extended warranties worth the cost?

Some shoppers want the extra protection an extended warranty offers but worry they will be taken advantage of by aggressive salespeople who know they can make a lot of money by selling them.

While an extended warranty gives shoppers peace of mind, Consumer Reports found that buyers aren't always going to see a return on their investment. The Better Business Bureau recently issued a warning to consumers after receiving hundreds of complaints about companies selling extended auto service contracts. As a result, the BBB suggests using extreme caution when considering one.

A better plan, experts say, is to take whatever money you would spend on an extended warranty and put it in an emergency fund. You'll have that money available if you need a repair, or you can put it toward your next car.

For those who still find comfort in an extended warranty, Consumer Reports urges they read the fine print and consider things like the length of the plan, the coverage limitations and, of course, the price.

If you choose to buy a warranty, know its price can be negotiated just like the price of the car.

Instead of putting so much focus into an extended warranty, Consumer Reports suggests buying a car with a better-than-average predicted reliability rating and then properly maintaining it.