Okay, so you’ve found the car of your dreams—new or used—and all the paperwork is almost done. The dealer representative then highly recommends buying the extended warranty for additional peace of mind. But do you need one?
Here are some things to consider. Basically, an extended warranty lengthens the warranty a new car manufacturer offers. For example, it might be used for additional coverage on a 3-year/36,000-mile warranty.
The first thing to consider is how long you are going to keep your new car. There’s no sense in buying an extended warranty if you don’t plan to keep the car beyond the manufacturer’s warranty.