DelphiFAQ Home Search:

Should I buy the extended warranty from the car dealer?

 

comments2 comments. Current rating: 5 stars (1 votes). Leave comments and/ or rate it.

MyAutoLoanFinder 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'.


Content-type: text/html

Comments:

2007-01-08, 19:35:59
[hidden] from United States  
rating
Thanks. You just saved me $2,000. I bought one which I think I will
cancel. My policy says that I have 60 days to cancel for a refund for
a new car and 30 days for a used car.
2008-09-24, 18:15:57
anonymous from Dominican Republic  
tdev172-88.codetel.net.do

 

 

NEW: Optional: Register   Login
Email address (not necessary):

Rate as
Hide my email when showing my comment.
Please notify me once a day about new comments on this topic.
Please provide a valid email address if you select this option, or post under a registered account.
 

Show city and country
Show country only
Hide my location
You can mark text as 'quoted' by putting [quote] .. [/quote] around it.
Please type in the code:

Please do not post inappropriate pictures. Inappropriate pictures include pictures of minors and nudity.
The owner of this web site reserves the right to delete such material.

photo Add a picture: