Is it advisable to take extended warranty for car?

Buying an extended warranty is always beneficial, especially if you are looking at keeping your car for long. Yes, it may not cover some parts and faults, but what you get is a lot. And even though it might cost you a premium, it can save you big money in the long run or help you sell your car.

Do all cars have a 3 year warranty?

Although most new cars come with a three-year warranty, some have a five-year warranty and Kia even offers a seven-year, 100,000 mile warranty. So you could consider looking for a used car with some years to go on its manufacturer’s warranty.

Can a car dealership force you to buy a warranty?

You don’t need (or want) duplicate coverage. Before you buy a service contract, compare it with the manufacturer’s warranty you already have. New car warranties usually offer coverage for a certain period time or miles, whichever comes first.

What are the benefits of extended warranty?

An extended warranty helps by providing warranty coverage beyond the warranty tenure to help maintain the vehicle for a longer period. An extended warranty or vehicle protection plan helps to keep the vehicle running smoothly and hassle-free.

How much profit does a car dealer make on an extended warranty?

Each warranty plan a dealership sells can add up to $2,000 per purchase to its bottom line. The average dealer generally makes up to half of the selling price of an extended warranty. For example, if you purchase an extended warranty for $2,000, the dealer may make a profit of up to $1,000.

Do car dealers have to give a 3 month warranty?

Many used cars are sold with a three-month warranty, some have one year while others may have none. This is entirely legal. Although warranties do not have to be offered Lawgistics recommend car dealers provide customers with something in writing (dealer guarantee, claims procedure or simple terms and conditions).