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Generated 4:00:41 on Jan 24, 2018
Should I buy the extended warranty from the car dealer?
Question: I'm going to buy a brand-new car. Should I get the extended warranty that the dealer offers for $2000?
Answer: An extended warranty e.g. 5 years/ 100000 miles makes sense if you plan to drive that many miles in 5 years, if the car is a first year model with a new design where reliability is unpredictable or if the manufacturer (or model) doesn't have the best track record for reliability. Not naming names here, but you probably won't need extended warranty for a Honda Civic, Accord or Toyota Camry.
The problem with the warranty offered by the dealer is that you often pay double for less coverage, no wear and tear or overheating. Some car dealers will falsely tell you that you must buy their car warranty to qualify for the loan. Go to a different dealer then. Or get the financing from your credit union instead.
Note, if you just bought such a warranty:
In the USA, all extended car warranties can be refunded 100% in 30 days if no claims have been made.
So the answer to the question is: 'No'.
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