Are extended warranties worth it on a new car?

Usually not on the factory bumper-to-bumper warranty period (typically 3 years / 36,000 miles). Beyond that, it depends on the brand — German luxury and some EV brands see higher post-warranty repair costs. Always compare third-party providers to the dealer's F&I quote (third parties run 30-50% cheaper).

Can I cancel an extended warranty after I buy it?

Almost always — most contracts include a 30-60 day full-refund window and prorated refunds beyond that. Fees vary by state. If you financed the warranty into your loan, cancellation reduces your loan balance.

All terms

WarrantiesGlossary

Extended Warranty

A vehicle service contract that pays for certain repairs after the factory warranty expires.

Extended warranties (technically VSCs — Vehicle Service Contracts) average 40% cheaper through third-party providers than through dealer F&I offices. Read the exclusion list carefully — many 'bumper-to-bumper' contracts exclude wear items and pre-existing conditions.

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