Extended Warranty Scams: What Car Owners Need to Know - NerdWallet
: This is the official document that regulates how warranties must be disclosed. It explains that a "service contract" (extended warranty) can be purchased for an extra charge and clarifies your rights under the FTC's Used Car Rule . buying a car warranty after purchase
: It is generally safer to buy a warranty directly from the car manufacturer rather than a third-party company. Manufacturers have a greater incentive to maintain a good customer experience. Extended Warranty Scams: What Car Owners Need to
: This comprehensive resource analyzes whether these contracts are actually worth the cost. Their research shows that 55% of owners who bought one never used it, and they typically recommend setting up a personal emergency fund instead. Manufacturers have a greater incentive to maintain a
: The price of an extended warranty is not fixed. Dealerships often have profit margins between 30% and 50% on these contracts, so you should bargain hard on the final cost. Exclusionary vs. Inclusionary :
: You don't have to buy the warranty at the dealership on the day of purchase. You can often buy them later, provided it's before the original factory warranty expires.