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.
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. should you buy a new car extended warranty
You do not have to buy the warranty the day you buy the car. You can usually add a manufacturer-backed extended plan anytime before the original factory warranty expires. If you plan to trade the car in
Ensure the warranty is backed by the automaker , not a third-party company, as third-party claims can be difficult to process. If you have "rainy day" savings, you are
A useful tool for this decision would evaluate the following key factors to provide a personalized recommendation:
Deciding on an —often called a vehicle service contract —depends largely on your risk tolerance and the reliability of the car you are purchasing. The Feature: "Warranty Worth Calculator"