If you may trade the car within a year, compare the price you could actually pay by your trade date. Check how the offered contract handles an early exit.
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What to check before you buy
Ask whether trade-in and private sale are treated differently, what triggers any refund, and whether it goes to you or a lender. Compare a confirmed refund separately from one the seller cannot estimate.
Work through your own numbers
A hypothetical $1,800 upfront price and a confirmed $600 refund would leave $1,200 in net cost. Run a second calculation using the full $1,800 if the refund is uncertain.
For a closer look, see our related buying guide. The FTC’s auto warranty and service contract guide explains what to review before signing.
