Cars & Vehicles Car Buying & Selling & Rentals

How to Evaluate an New Car Extended Warranty

    • 1). Read any extended warranty before buying. Make notes where you have questions. Be sure to read any and all fine print. Sometimes the devil really is in the details.

    • 2
      Before you take those keys, know the extended warranty is solid.keys to the new car image by Jake Hellbach from

      Identify the issuer of the extended warranty. Confirm the issuer's financial ability and willingness to stand behind the warranties it issues. Review the company's service track record for satisfied customers. Look for any recurring issues others have experienced.

    • 3). Review the warranty to find out the service area it covers. Be wary of any extended warranties that are not nationwide, since "out of service area" is a common reason for denying payment.

    • 4
      Going to your local mechanic for warranty repairs makes issues that may arise convenient to car engine with red trim image by Raxxillion from

      Read the warranty to make sure you are buying the right to choose who will repair the vehicle. Do not buy a warranty that gives the issuer the right to tell you where you must get the repair done. Make sure you can use people whom you already know and trust for covered repairs.

    • 5). Look for the coverage statement. Read this most closely, since this tells you what you are getting for your money. Analyze the list of what is covered to make sure all major expense repairs, roadside assistance and towing are listed. Take it to your mechanic if you are not sure what the major expense items are. The short list should include all or most of the following: engine, drive train, transmission, climate control, electronics like the main engine computer, ECM, steering rack and exterior finish.

    • 6). Review the warranty issuer's method of payment. Buy the warranty that pays the repair facility directly with no out-of-pocket from you. Take yourself out of the payment loop, and do not buy the warranty that requires you to pay the shop, then, get paid by the warranty company.

Leave a reply