If you plan to trade the car in within 3–4 years, you are likely already covered by the factory bumper-to-bumper warranty . An extended plan is only useful if you intend to keep the car for 6+ years.
The tool should flag whether the contract is "Exclusionary" (covers everything except a few listed items) or "Named Component" (only covers what is listed). Exclusionary plans are generally the only ones worth the investment. Quick Checklist for Now should you buy a new car extended warranty
Ensure the warranty is backed by the automaker , not a third-party company, as third-party claims can be difficult to process. If you plan to trade the car in
Most new cars come with a 3-year/36,000-mile limited warranty and a 5-year/60,000-mile powertrain warranty. Exclusionary plans are generally the only ones worth
Compare the cost of the warranty (e.g., $2,000–$4,000) against your ability to pay for a surprise $1,500 repair. If you have "rainy day" savings, you are often better off self-insuring by saving that premium money in a high-yield account.
If you plan to trade the car in within 3–4 years, you are likely already covered by the factory bumper-to-bumper warranty . An extended plan is only useful if you intend to keep the car for 6+ years.
The tool should flag whether the contract is "Exclusionary" (covers everything except a few listed items) or "Named Component" (only covers what is listed). Exclusionary plans are generally the only ones worth the investment. Quick Checklist for Now
Ensure the warranty is backed by the automaker , not a third-party company, as third-party claims can be difficult to process.
Most new cars come with a 3-year/36,000-mile limited warranty and a 5-year/60,000-mile powertrain warranty.
Compare the cost of the warranty (e.g., $2,000–$4,000) against your ability to pay for a surprise $1,500 repair. If you have "rainy day" savings, you are often better off self-insuring by saving that premium money in a high-yield account.