Should You: Buy Extended Warranty On New Car

Some auto insurers (like GEICO) offer "Mechanical Breakdown Insurance" (MBI) which is often much cheaper than a dealer's warranty.

Most plans do not cover brakes, tires, bulbs, or upholstery.

To give you a more tailored recommendation, could you tell me: What is the of the car? How many miles per year do you drive? Do you plan to keep the car longer than 5 years ? should you buy extended warranty on new car

Dealerships make high commissions on these plans; the house usually wins.

If you plan to keep the car for 10+ years, the risk of failure increases. Some auto insurers (like GEICO) offer "Mechanical Breakdown

Knowing these details will help me determine if that specific vehicle's justifies the extra cost.

You can usually buy a manufacturer’s extended warranty any time before the 3-year factory warranty expires. How many miles per year do you drive

A transferable warranty can increase your car's resale value .