Extended Warranty On Car: Should You Buy

Consider it for "all-new" models with unproven technology or brands with lower reliability scores (e.g., certain European luxury brands).

Buying an extended car warranty (formally known as a ) is generally considered an "expensive gamble" . Statistical data from Consumer Reports indicates that 55% of buyers never use the coverage , and those who do typically spend more on the plan than they save in repairs. When It Makes Sense to Buy should you buy extended warranty on car

If an unexpected $2,000–$4,000 repair bill (like a transmission failure) would cause a financial crisis, a warranty acts as a predictable monthly insurance cost. Consider it for "all-new" models with unproven technology

If you plan to keep the car well beyond 80,000 miles or the expiration of the factory warranty, the risk of mechanical failure increases. When to Skip When It Makes Sense to Buy If an