What it really costs to own, insure and maintain a car
Plain-English guides to car insurance, gap insurance and extended warranties: what they cost, when they pay, and when they are not worth it.
Used cars depreciate slowly, so many buyers never need gap insurance at all. But a long loan, a small down payment or a fast-depreciating model can still leave you thousands underwater. Here is how to tell in two minutes.
Extended car warranties advertised at “$80–$150 a month” typically total $2,000–$4,500. Here is the real monthly cost by vehicle type and coverage level, how payment plans add 20–40%, and what the same money buys as a repair fund.
Extended car warranties cost $1,500–$4,000 and most owners never claim back what they pay. Here is the real math, the four situations where a warranty does make sense, and how to buy one for a third of the dealer’s price.
Gap insurance costs $20–$60 a year from your auto insurer or $400–$900 as a one-time dealer add-on. Here is what you actually pay, who needs it, and how to buy it for less.
Gap insurance only pays in a total loss or theft — and even then, late payments, rolled-in negative equity, deductibles and extended warranties are often excluded. Here are the nine situations where gap pays nothing or far less than you expect.