If you’re considering purchasing a car sometime soon, one of the easiest ways to save money is by saying no to any extended warranties you may be offered. And the answer as to why is simple: the cost of the warranty generally is more than the benefits you’ll get from it.

Pretty much every new car on the market these days already comes with at least a 3-year, 36,000-mile bumper-to-bumper warranty. This warranty can be even longer depending on the brand.

Keep this in the back of your mind especially if you plan on owning or leasing the vehicle for less time than the original warranty covers! Because if you’re thinking that you may sell it in about two years, you’ll literally never get a chance to use it.

Is It Worth Buying If You Do Want to Own It Past the Original Warranty?

Keep in mind, dealers will pitch you all the worst-case scenarios to convince you to buy an extended warranty. Why wouldn’t they?  They make commissions on extended warranties.

Though they may have you imagining horrible possibilities, the more realistic scenario is that you may have a failing oxygen sensor or other small repairs that are less expensive than the extended warranties.  

Extended Warranties Don’t Cover All Repairs

These warranties don’t include your ‘regular’ maintenance fees, I.e., oil changes, tires, brake jobs, or any other items that are subject to wear. Plus, extended warranty contracts tend to be littered with fine print, going into detail as to what it does and does not cover.

If the extended warranty doesn’t even have an “exclusion list” of all the things the warranty doesn’t cover, that is a sure sign that you’d be wasting your money by purchasing it.

Another good thing to always walk away from is when it is an inclusion warranty. This means it only covers specific parts. And these specific parts also have exclusions in their warranties for what they won’t fix as well.

So, when you’re at the dealership trying to get the best price on your new vehicle, steer clear of the extended warranties.