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.

New cars already come with a (typically 3 years/36,000 miles or 5 years/60,000 miles). An extended warranty only kicks in after the factory coverage expires. 📉 Why you might skip it

Dealerships make high commissions on these plans; the house usually wins. should you buy extended warranty on new car

You pay for coverage today that you cannot use for several years.

Does it cover "wear and tear" or only "mechanical breakdown"? Some auto insurers (like GEICO) offer "Mechanical Breakdown

Buying an extended warranty (officially called a ) on a new car is a significant financial decision. For most buyers, it is not statistically worth the cost , but it provides "peace of mind" for those who prefer fixed monthly costs over unpredictable repair bills . 🛠️ The Core Logic

You can usually buy a manufacturer’s extended warranty any time before the 3-year factory warranty expires. 📉 Why you might skip it Dealerships make

Modern cars are less likely to have major mechanical failures in the first 100k miles.