Is an extended car warranty good?
On One Hand: Many Factory Warranties Are DecentNew car manufacturers rely on repeat business and a good reputation, so most aren’t in the habit of scamming their customers. While insurance companies in general only make money by not paying claims, many factory-extended warranties are more of a marketing tool than a cash cow for the associated insurance company.On the Other: Read the Fine PrintWhen you get extended warranty coverage from a private seller, they’ll hand you a list of seemingly random items not covered by the warranty, such as turn signal flashers, wiper motors and left-front brake pads. Cross-reference that list with your vehicle’s Technical Service Bulletins (company memos listing the most common faults for that vehicle and how to fix them), and you’re likely to find some surprising correspondences. In short, the insurance company knows what parts are going to break, so they don’t cover them.Bottom LineExtended warranties are a good selling point if you intend to sell th
