Is It Worth Buying Extended Warranty On A New | Car

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

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. is it worth buying extended warranty on a new car

If you are buying a complex European luxury car or a brand-new model with untested tech, get the warranty. If you’re buying a reliable commuter and have some savings, you’re likely better off betting on yourself. Instead of giving the dealership $2,000, put that

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) You can often talk the dealer down by

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’re buying a brand known for extreme reliability (like a base-model Toyota or Honda), you might spend $2,500 on a warranty and only ever use $400 in repairs.

Most warranties aren't "bumper-to-bumper." They rarely cover "wear items" like tires, brakes, or lightbulbs.