When my car gets to be three years old, is it worth getting the extended warranty?
Extended warranties are such a huge profit center for car dealers, this is one reason they push them. In many cases a dealer makes a higher profit from the extended warranty than from the car itself. I will generalize here and say that any car that needs an extended warranty is a car to stay away from. An extended warranty is an insurance policy. The company is betting that you will never make a claim. Essentially, when you purchase an extended warranty, you are betting that your car will break down. Do your homework before you buy a car. Check with Consumer Reports on the reliability factor of the different makes and models you are considering. If you buy a car that has a history of reliability, such as a Subaru, Toyota, or Honda, the chances are you will never need even the basic warranty, let alone an extended one. It is possible that something terrible will go wrong with even the most reliable model. I won’t kid anyone. If the automatic transmission goes out on any modern car, it i
