Buying A New Car: Is A New Car Warranty Worth It?

new car warranty

Many people are unsure as to whether they should get a new car warranty when they buy a car. The answer to this question depends on two things:

1. How many miles a year do you drive?

Your vehicle’s factory warranty covers you for a certain number of years OR miles, whichever comes first.

If you do enough driving that you will run out of the miles on your factory warranty before the years run out, then you should definitely extend your warranty early on, while the miles are low.

Most people don’t know that a lower mileage car will cost way less to place a new car warranty on than a car that has more miles on it.

2. How long are you planning on keeping your car?

Again, it’s important to know that your warranty covers you for either a certain number of years OR a certain amount of miles, whichever comes first. This varies from vehicle to vehicle. Your dealership will be able to let you know when your factory warranty expires.

If you’re not planning on keeping your vehicle past the point when your factory warranty expires, then there is no need to extend it with a new car warranty.

If you plan on keeping your vehicle after the factory warranty expires, then you should definitely extend it so you don’t have to pay for repairs after that point.

Again, if you already know you will be keeping your car past the point that the factory warranty expires, it’s a good idea to extend your warranty while the car is still new and has low miles, that way it will cost you less.

A common misconception is that by extending your coverage earlier you are paying for “double coverage”.

That’s actually not the case; what you ARE doing is getting the best new car warranty you can get (such as Exclusionary Coverage), one that might not be available if you waited. And you are paying less for it because with lower mileage, your vehicle is considered less of a risk to repair than when it’s no longer new.

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