Buying: Extended Warranty On New Car

Dealerships push these contracts because they are high-profit items, often with markups of 30% to 50%.

When you purchase a new vehicle, the finance office will almost certainly offer you an extended warranty. While these plans—technically called "vehicle service contracts"—promise peace of mind, they are one of the most debated financial products in the automotive world. For most drivers, an extended warranty is a poor investment, yet for a specific subset of owners, it can serve as a vital hedge against catastrophic repair costs. The Illusion of "Warranty" buying extended warranty on new car

Despite the odds, there are scenarios where a contract makes sense: buying extended warranty on new car