Should You Buy an Extended Warranty from the Dealership or a Third Party?
"Car warranties are like dating contracts—great in theory, but read the fine print or prepare for heartbreak." — Chase Jordan
Should You Buy an Extended Warranty from the Dealership or a Third Party?
🛠️ What Is an Extended Warranty, Really?
We've covered this before but here is some more food for thought!
An extended warranty (a.k.a. Vehicle Service Contract) is like insurance for future car repairs. I like them. I've purchase many myself, at a deep discount and at 0% interest.
Anyhow, it kicks in after the factory warranty expires—and promises to cover certain mechanical and electrical failures.
Sounds great, right?
But here’s the catch: Not all warranties are created equal.
Some are worthless.
Most are overpriced.
And some have more exclusions than a nightclub guest list in the 70's.
Let’s break down whether you need one, what to look for, and how to choose between dealership vs. third-party options.
✅ What a Good Warranty Should Cover
A solid plan should include:
Engine and transmission
Electrical systems
A/C and heating
Suspension
Fuel system
Drivetrain components
In some cases: navigation, infotainment, and hybrid systems
The best policies are exclusionary (they tell you what’s NOT covered) rather than inclusionary (only list what IS).
📌 Pro Tip: Always ask for a sample contract before signing anything. The dealer will try to build value in these warranties and you should not let them over charge for these, even the good dealerships try.
🚗 Should You Buy It From the Dealership?
Pros:
Can be rolled into your loan (easier upfront but more expensive)
Sometimes backed by the manufacturer (love that)
Dealer handles claim paperwork for you 9can be good or bad depending on how good the staff is over at the dealer
Cons:
Often overpriced by 50–100% - Yikes!
Add-ons you didn’t ask for may be slipped in - happens all of the time
Limited flexibility (use their shop only - I like to freedom to go anywhere and I like companies that want me to go to Cadillac to repair my Cadillac.)
🧠 Deal Guard Insight: If you buy from the dealer, negotiate the price like you would a car. Warranties are high-margin products. Pay no more than 10% over.
🧾 What About Third-Party Warranties?
Pros:
Often more affordable
Can shop across multiple providers
Use any certified repair shop (more flexible)
Pro rated refund may be available if you sell
Transferable - many are but you must make sure before you sign and pay
Cons:
Some companies are sketchy
May require you to pay first, then get reimbursed - No bueno
Some have bad reviews or claim denial histories
⚠️ Not all third-party companies are bad—just research them like crazy. Look for:
BBB accreditation
Solid Google reviews
No complaints on forums like Reddit or Trustpilot
I've used Endurance several times, had several repairs and had zero problems
❌ Extended Warranty Red Flags
“Bumper-to-bumper” promise with tons of fine print
Coverage starts AFTER 30/60/90 days or miles
Required inspections at sketchy partner shops
Transfer fee (if you sell the car)
Excludes wear-and-tear items (brakes, belts, wipers)
No rental car or roadside assistance
🛡️ How Deal Guard Helps You Choose the Right Coverage
As the most trusted car buying concierge, we don’t sell warranties—we vet them.
Our role is simple:
Review your car’s make/model reliability data
Show you what future repairs may cost
Compare dealer vs. third-party options
Read the fine print and translate it to plain English
Help you decide if it’s worth it—or if you’re better off saving that money
We also work with verified providers when our clients do want third-party coverage.
👉 See how we protect your car decisions
Final Takeaway
Extended warranties can be smart protection—or expensive fluff.
The best move is making an informed decision with all the facts.
With Deal Guard on your side, you’ll know if a plan is real value or just dealership profit padding.
That’s why we’re the most trusted brand in car buying.
Go to GETDEALGUARD.COM and see how we help people all over the US and Canada!
Let us deal with ALL the issues. for you.
Our car buying concierge service confirms every detail and protects your time, money, and more importantly your sanity.
Our concierge car buying service saves you hours of stress and thousands in bad deals.
Your time is valuable—let’s protect it together.
Go to FUNNEWCAR.COM to learn how we can make your new car purchase as fun as eating your favorite dessert! Maybe even better!
See you soon,
Chase Jordan
