Should You Buy The Extended Auto Warranty?

December 15, 2016

Dreamstime

So you're planning to buy a new car.  Part of buying a new car from a dealer is the finance room, where all the terms of the deal are laid out and most likely, an extended warranty is offered for your car.  But is it really worth the extra money per month for years?  Most new vehicles are covered for their first 36,000 miles or three years miles on the road, with engine and transmission warranties extending up to 100,000 miles or 10 years. Many third parties offer coverage last the manufacturer’s warranty.  However consider that in 2013, Consumer Reports survey of 12,000 readers found that 55% of respondents never had to use their coverage during the period their vehicle was protected. Those that did usually had repair bills that were less than the total sum of the warranty’s cost, meaning they still lost money. But it really depends on you.  If it is worth paying a few extra dollars a month for the peace of mind not worrying about unexpected, and generally expensive repairs, then you may want to strongly consider it.  You also may want to consider makes and models that have a positive history of minimal repair problems, reducing the odds you’ll need the coverage in the first place.

SOURCE: Mental Floss

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