Is That Extended Warranty Worth It? A Quick Guide for Indian Car Buyers

When buying a new car, many Indian buyers are offered an extended warranty—often pitched as essential protection by salespeople. But is it really worth spending extra for an additional warranty period? With rising repair costs and cars equipped with high-end technologies, this decision needs to be careful and calculated. Here's a quick guide to help you decide.

What is an extended warranty?

An extended warranty gives you additional coverage after the standard warranty expires, usually adding two to three more years. It typically covers critical sub-assemblies or components like the engine, transmission, and electronics.
However, the additional warranty does not cover regular wear-and-tear items such as tyres, brake pads, or cosmetic damage. It's important to know exactly what's included before signing up.

How much does it cost?

In India, extended warranties generally cost between Rs 12,000 and Rs 40,000, depending on the brand and model. Before paying, it would be prudent to check what parts are covered, whether the warranty can be transferred to a new owner if you sell the car, and if the plan includes extras like roadside assistance or free servicing. It is pertinent to note that not all extended warranties offer the same benefits, so comparison is necessary.

Also Read: Thinking of Selling Your Car? Here’s the Perfect Time to Cash In for Maximum Resale Value in India | Republic World

Why is it gaining traction?

Indian car owners are now keeping their vehicles for five to eight years on average. At the same time, repair costs are steadily climbing, especially for feature-loaded models. For popular brands like Hyundai, Tata, and Toyota, extended warranty sales have seen a steady rise, especially in metro cities where service and parts tend to be costlier.

When you should opt for this

An extended warranty makes sense if you plan to keep the car for more than five years, or if your car is equipped with premium features or engines that may cost more to repair. It is also ideal if you travel long distances regularly, as higher mileage increases the risk of mechanical failures. Above all, if you’re thinking about resale value, a car with an active warranty is often more attractive to buyers.

When you can disregard it

If you’re planning to sell your car within three years, you may not get full value from an extended warranty. Similarly, if your car model is known for long-term reliability and your usage is relatively low, you might be better off saving the money and handling any minor repairs as they come up.

Bottom line

Extended warranties offer peace of mind, especially for long-term car owners or those with feature-packed vehicles. But they aren't indispensable for everyone. Make sure to read the fine print, understand what you're paying for, and decide based on your ownership plans.