You don't have to buy an extended warranty when taking out an auto loan, and𓆉 you shouldn't feel pressured to do so. Whether or not you should get i﷽t depends on your risk tolerance and financial situation.

If you're nervous about paying for repairs that standard 澳洲幸运5官方开奖结果体彩网:car insurance won’t cover, and you can afford the extra cost of an extended warranty—averaging roughly $1,000 per year—it could be worth it. Otherwise, you may prefer to save for c✱ar repairs on your own🤪.

What Does a Warranty Do?

A car warranty provides a guarantee that vehicle parts will function properly for a given amount of time or mileage, otherwise the manufacturer or a third party must cover the cost of repairs or replacements. However, warranties won’t cover everything that can happen to your vehicle. Things like normal wear and tear as well as accidents are typically excluded, whereas manufacturing defects are generally covered.

Some cars come with a manufacturer's warranty, which is included with the purchase of the vehicle and can't be separated. Extended warranties, however, go beyond what standard manufacturer warranties cover, and they can be sold by third parties like car dealerships. These extended warranties are always optional.

Why a Warranty Is(n’t) Worth It

A comprehensive manufacturer's warranty can make 澳洲幸运5官方开奖结果体彩网:buying a car more palatable, as you can then worry less about the cost of unexpected repairs. However, 澳洲🌃幸运5官方开奖结果体彩网:paying extra for an🃏 extended warranty is harder to justify.

Car dealers may try to sell you on an extended warranty. As with all insurance-like products, some buyers will end up needing the extra protection and will be thankful they have it. But for the most part, the seller comes out ahead.

That said, if you don't feel confident you can save for repairs on your own, or you wish to avoid the stress of something going wrong with your vehicle, you might prefer to buy an extended warranty.

The Bottom Line

A manufacturer's warranty is included with the purchase of a vehicle. That's a benefit that's worth comparing between different vehicles to help you evaluate risk. But when it comes to buying an extended warranty, the extra expense might not be worth it. You’ll likely be better off saving for miscellaneous car repair and replacements on your own.