Buying a car is a big investment. To protect it, you’ll hear about warranties and extended warranties.
Here are the key points:
What’s a Warranty?
- Bumper-to-Bumper: Covers most parts (not routine maintenance).
- Powertrain: Covers the engine, transmission, and major components.
- Typical coverage: 3 yrs/36,000 miles (bumper-to-bumper) and 5 yrs/60,000 miles (powertrain).
What’s an Extended Warranty?
Optional coverage you can buy after the factory warranty ends. Usually it covers major repairs but:
• Doesn’t include routine maintenance
• May not cover all failures
• Often comes with a deductible
Pros
✔ Peace of mind for big repairs
✔ Helpful if you keep your car long-term
✔ Sometimes includes extras (like roadside assistance)
Cons
✘ It can be expensive ($1,000–$3,000)
✘ It may go unused if car is reliable
✘ It may have limited coverage with strict rules
Tips Before You Buy
- Check your car’s reliability ratings
- Don’t decide under pressure and remember you can buy later
- Read the fine print carefully
- Consider saving money aside for repairs instead
Bottom Line
Extended warranties can help some drivers, but they’re not always the best deal. Knowing your factory warranty and your car’s reliability can help you decide whether extra coverage makes sense.