Should I Buy an Extended Warranty from a Car Dealership?

Created on 2/13/2023

Man purchasing vehicle at the dealer

Whether you should buy an extended car warranty from a car dealership or not depends on several factors, including the terms and conditions of the warranty, the dealership's reputation, and the cost of the warranty compared to other options. Here are some things to consider:

  1. Warranty terms and conditions: Carefully review the terms and conditions of the extended warranty offered by the dealership. Make sure you understand what is covered, what is not covered, and any exclusions or limitations. The most comprehensive warranty coverage is often referred to as a bumper to bumper warranty or a powertrain warranty. 
  2. Dealership reputation: Consider the dealership's reputation and history. Look for a dealership that has a good track record and a positive reputation for customer service and support. This is key to avoiding warranty scams. 
  3. Cost comparison: Compare the cost of the dealership warranty to other options, such as a third-party warranty or aftermarket warranties. Make sure you are getting a good value for your money.
  4. Customizability: Some extended warranties offered by dealerships may be inflexible, while others may allow you to choose the coverage that best fits your needs. Consider what level of coverage is right for you and make sure the warranty you choose provides the protection you need.
  5. Convenience: Consider the convenience of having the extended car warranty from the dealership. If you already have a good relationship with the dealership, it may be easier to use the warranty if you have a problem with your car.

In conclusion, whether you should buy an extended car warranty from a car dealership or not depends on several factors, including the terms and conditions of the warranty, the dealership's reputation, the cost of the warranty compared to other options, customizability, and convenience. Carefully consider these factors before making a decision to ensure that you are getting the best value for your money.