Modern cars are computers on wheels. If a massive infotainment screen or a complex driver-assist sensor fails, the repair cost can easily exceed the price of the warranty.
Instead of giving the dealership $2,000, put that same money into a high-yield savings account. If the car breaks, use the fund; if it doesn't, you keep the cash. Pro-Tips for Buying
What specific of car are you looking at right now?
Buying an extended warranty (technically a ) on a new car is a bit like buying "peace of mind" insurance. Whether it’s actually worth the cash depends on your lifestyle and the car you’re driving. The "Yes" Case (When it’s worth it)
The price of a warranty is heavily marked up. You can often talk the dealer down by hundreds of dollars, or even buy one from a different dealership online for less.
If a surprise $2,000 repair bill would ruin your month, rolling the cost of a warranty into your monthly payment provides a "fixed" cost for car ownership. The "No" Case (When to skip it)
If you plan to drive the car for 7–10 years, an extended warranty kicks in right as the factory warranty expires and things start to wear out.
Always try to get a warranty backed by the car manufacturer (e.g., Ford Protect or HondaCare). Third-party warranties are notorious for denying claims or going out of business.
Modern cars are computers on wheels. If a massive infotainment screen or a complex driver-assist sensor fails, the repair cost can easily exceed the price of the warranty.
Instead of giving the dealership $2,000, put that same money into a high-yield savings account. If the car breaks, use the fund; if it doesn't, you keep the cash. Pro-Tips for Buying
What specific of car are you looking at right now? is it worth buying extended warranty on a new car
Buying an extended warranty (technically a ) on a new car is a bit like buying "peace of mind" insurance. Whether it’s actually worth the cash depends on your lifestyle and the car you’re driving. The "Yes" Case (When it’s worth it)
The price of a warranty is heavily marked up. You can often talk the dealer down by hundreds of dollars, or even buy one from a different dealership online for less. Modern cars are computers on wheels
If a surprise $2,000 repair bill would ruin your month, rolling the cost of a warranty into your monthly payment provides a "fixed" cost for car ownership. The "No" Case (When to skip it)
If you plan to drive the car for 7–10 years, an extended warranty kicks in right as the factory warranty expires and things start to wear out. If the car breaks, use the fund; if
Always try to get a warranty backed by the car manufacturer (e.g., Ford Protect or HondaCare). Third-party warranties are notorious for denying claims or going out of business.