Financial Education (US)

Car warranty: is it worth it and what is a good price?

Today, you'll find out if it is worth getting a car warranty to have your rights guaranteed in case of vehicle problems. Learn all about it here!

Learn all you need to know about car warranties

See what the benefits of getting a car warranty are. Source: Unsplash.
See what the benefits of getting a car warranty are. Source: Unsplash.

Buying a brand new car for many people is a dream. And also the certainty that you will have a car free of defects, common in used ones, in the first few years. Did you just buy a car and didn’t yet decide whether to buy a car warranty or not?

Well, then you might keep reading as in this article we will answer the question: “Is it worth getting car warranty?”.

When buying a car, the customer expects protection and safety. The warranty provides precisely this: a promise of peace of mind.

The car warranty makes sure you will have the repair done with no costs or your money back in case of some problem.

This protection is worth it, as it guarantees you that your money will not be wasted.

A good car warranty is about $2,550, but it can range from $1,000 to $4,500.

One thing no one wants when buying a product, especially a car, is for it to go into trouble. But it is important to know that you have options in case of situations like this. And that is why today we are going to clarify the main doubts about car Warranties related to defects or problems in vehicles.

Logo XRP crypto

XRP crypto: how it works? Get Started With XRP

The universe of digital currencies might be challenging to understand. So, today, we will present the XRP crypto, how it works, and more.

Save money by getting a car warranty that covers everything

Trust is the basis of any negotiation. When buying or selling a car, this trust is expressed through the warranty. The main objective is to minimize the possible financial costs in the event of an unexpected failure in the vehicle. And safeguard the consumer.

When choosing a car warranty, you should choose one that covers everything, because we can’t prevent what might happen.

Generally, the difference is not a tremendous amount of money to choose a warranty covering every situation.

So, keep that in mind.

What is a car warranty?

Everything you need to know about car warranty. Source: Pexels.
Everything you need to know about car warranty. Source: Pexels.

The car needs protection and, therefore, buying a warranty provides peace of mind to the customer. Having a mechanical problem with the car you just bought is a setback to which, unfortunately, everyone is subject. 

But, to give a minimum of peace of mind to the consumer, there is a warranty, which covers all products sold on the market – including, of course, cars. Mechanical problems can appear quite frequently. And having this card in hand can be very helpful to reduce possible mishaps. After all, the vehicle is insured.

The car warranty facilitates repairing or exchanging a product with factory defects, at no cost to the consumer. Therefore, it represents a great advantage for those who purchase a transport, avoiding major headaches.

A car warranty is a contract that has as the main goal to minimize financial loss in case of some unexpected damage to the vehicle. The warranty is a device that, in general terms, orders the repair or replacement of the product with factory defects, at no cost to the consumer.

When you buy a car warranty, you can have peace of mind that you can get insurance if something happens.

If your car is damaged, the car’s manufacturer or the aftermarket warranty company will pay for the repairs needed. 

How long is a car covered under warranty?

Usually, a car warranty period is set by a period of time, or, in other cases, by a number of miles run by the vehicle.

Typically, the contracts are set with a period of 3-years, or, when set in miles, 36,000 miles.

But it will depend on the contract offered by the warranty company.

What is a good price for an extended car warranty?

The extended warranty is a type for a warranty that has no relation with the manufacturer or the importer but is an insurance offered by a third company. The consumer pays to have the warranty benefits for a more extended period of time.

In this modality, there are still three types: the original, which maintains exactly the same coverage as the original factory warranty; the enlarged original, which offers extra benefits over the original; and the differentiated one, which has a smaller coverage than the original.

It will depend on the car and its price because the warranty price is calculated depending on that.

Generally speaking, a good car warranty is about $2,550, but it can range from $1,000 to $4,500.

Pre-approved credit cards for low credit score available now

We analyzed your profile and found some offers that you can apply for today.

You will be redirected to another website

After all, is it worth getting a car warranty?

Have your rights guaranteed in case of vehicle problems. Source: Pexels.
Have your rights guaranteed in case of vehicle problems. Source: Pexels.

It is worth getting a car warranty as it will make sure that you and your money will be protected in case of some damage in the car.

A car is not cheap, so it is worth being more careful and investing a little more in safety.

Also, a car warranty will ensure you will not have to pay for expensive repairs that would cost a lot more than the warranty itself.

The warranty sets several benefits to customers and selling car companies. Customers are assured that they will be safe in case of problems in the car that may happen in the future, minimizing the need to spend money on extra services.

However, it is not just the consumer who benefits; the selling car companies also benefit. After all, they manage to optimize sales, providing more security to the consumer and reducing post-sales expenses.


  • You will save a lot of money by not paying for expensive repairs
  • Feeling of peace of mind because of the extra protection
  • You will not feel pressured to sell your vehicle, therefore, you will drive it for longer
  • Value your vehicle at resale
  • No losses after the purchase of a used or new vehicle


  • Some warranty companies set a certain period of time for the warranty to kick in.

Now that you know all about car warranties, you can decide the best option for you!

And if you’re looking for a way to improve your credit score, check out our article below!

Pessoa segurando celular com aplicativo Experian

How to improve credit scores with Experian BOOST?

Raise your credit score using Experian BOOST™ Credit Score and Monitoring! Keep reading to learn how to apply for it.

About the author  /  Aline Augusto

My name is Aline Mesquita; I'm a writer here on the blog, where I write about finance in general and other subjects. I have been working with content creation for ten years. Also, I'm post-graduated in Project Management, with expertise in SEO practices. Currently, I am studying finance, market trends, and cryptocurrencies.

Reviewed by  /  Aline Barbosa

Senior Editor

Trending Topics


What is the best automated crypto trading platform?

What is the best automated crypto trading platform? Learn how the process works and which platforms are the best to trade crypto for you!

Keep Reading

Oportun® Visa® credit card review

Get credit lines of up to $1,000, and there is no credit score needed! Read our Oportun® Visa® credit card review to learn more!

Keep Reading

Bank of America® Customized Cash Rewards Secured Credit Card review

Check out this Bank of America® Customized Cash Rewards Secured Credit Card to learn how you can strenghten your score and earn rewards!

Keep Reading

You may also like


How to budget for an apartment

Are you ready to live your best life in the perfect apartment? Make sure you learn how to budget for an apartment realistically. Keep reading and learn!

Keep Reading

Elon Musk announces Twitter bid on hold

A few weeks after Elon Musk made a $44 billion bid to buy Twitter, the billionaire CEO of Tesla and SpaceX has announced that he is putting the deal on hold. Keep reading to learn more.

Keep Reading

123 Money Loans Review: Payday Loans for All Credit Scores

Looking for quick cash? Dive into our 123 Money Loans review to uncover the ins and outs of this payday loan marketplace. Up to $5K for you!

Keep Reading