Deciding whether or not to purchase a warranty for your car, truck, or other motor vehicle can be tough. After all, spending such a large sum of money on something that will be unnecessary is a pretty bad feeling. It’s important, then, to do your research on extended warranties before deciding whether or not a warranty is right for you and your car. Keep reading to see 5 reasons why extended warranties on cars are a waste:

1. Trading in or switching ownership

If you’re planning on trading in your car or selling it—thus, switching ownership—you may not get the full benefits of the extended warranty you purchased. This is because plenty of extended warranties involve transfer fees or aren’t even transferable in the first place. Either way, if you do end up trading in your car or selling it to someone else, an extended warranty will likely become redundant.

2. Resale value impact

While every vehicle owner has probably heard this term, it can be tricky knowing which factors actually impact the resale value of your vehicle. According to many, an extended warranty is one of those factors that does not add significant resale value to your car. Thus, if you’re counting on an extended warranty to make your car more appealing and valuable when it comes to future resale, then it may be good to reconsider purchasing one.

3. High cost

Of course, extended warranties can be expensive—this is no surprise. Thus, if you’re already on a budget while purchasing your car, an extended warranty could be a significant cost and even a waste. Plus, if future repairs end up costing less than the extended warranty during the coverage period, then said warranty will likely go to waste. As an alternative to purchasing an extended warranty, setting costs aside and budgeting accordingly for any future repairs might serve to be more cost effective.

4. Changes in technology

Everyone knows that technology is changing with us and our world. Therefore, what’s valuable now may not be valuable years, months, or even weeks down the road. It could be redundant to pay money for an extended automobile warranty with so many of these rapid technological changes. There’s a potential that the value of your warranty might have depreciated, whether slightly or largely, by the end of your coverage period.

5. Modern day reliability

Piggybacking off of the last point, modern day reliability of cars and other vehicles is becoming apparent as the years go on. Granted, not all vehicles are reliable—still, if you have a car that’s known for its reliability, an extended warranty could very well be a waste if there are low repair costs or perhaps even no repair costs at all. Of course, with an advanced, reliable car, significant repairs likely won’t be as frequent, meaning you’ll use your warranty little, if at all.