Is extended warranty really worth the cost on a new car or one less than 3 years old? What is the approximate costs? Did a google - something like $535 came up. Unclear if for one or three years.
j
Extended Warranty
Jun 03, 2006
2 Replies
j
What most people call "extended warranties" is not a warranty. The proper term is extended service contract, and it is actually an insurance policy that covers certain repairs.
Some people are firm believers in extended service contracts and have saved a lot of money. This may make sense if you have little or no ability to diagnose and repair your car yourself.
I have never purchased an extended service contract and my vehicles have never needed repairs within the coverage period.
A transferable FACTORY service agreement may help on resale. I would not bother with a 3rd party agreement.
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