Extended car warranties?

After hours at a car dealership, about the time you’re starting to feel numb from long negotiations, all you want to do is step into your new car and drive away.

That’s when the real hard sell begins.

The finance manager will start talking about an extended warranty. An extended warranty is actually an extended service contract that covers the cost of certain repairs and problems after the factory warranty expires.

Make a wrong move here and it could cost you hundreds, even thousands, of dollars. Extended warranties are enormous moneymakers for auto dealers, with mark-ups running to 100 percent over what you could buy the same coverage for elsewhere.

Do you need an extended warranty?

Don’t let the dealer pressure you into a quick decision. First, you may not need an extended warranty. And even if you do, you’ll get a much better deal later by shopping around. People who buy and trade cars frequently shouldn’t buy an extended warranty. There’s no need to purchase one if you only plan to keep the car for three or four years, because repairs are covered under the car’s original warranty.But let’s say you plan on keeping a car long after its original warranty expires. Should you purchase an extended service contract? Answering these questions might help you decide.