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Should I buy extended warranty on new car


If you keep or lease your car for less than the length of your factory coverage, you do not — repeat, do not — need an extended warranty. If you plan on keeping your car until the wheels fall off, you might consider buying an extended warranty to cover repairs in the car's fifth and sixth year or longer.

What are two reasons not to buy an extended warranty?

An extended warranty is worth your time if your car isn't extremely reliable and you wouldn't necessarily be able to pay for major repairs right now. If you purchase a used car from a dealer, an extended warranty could be the right choice if you're uncertain about a vehicle's reliability.




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[PDF] Extended Warranty Ratemaking - Casualty Actuarial Society

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[PDF] Rebuilding Customer Loyalty with Extended Warranties - Assurant

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