What Does An Extended Car Warranty Cost?
Getting an extended car warranty is a great option for most, but not a lot of people know the cost. Knowing what factors go into the cost of an extended car warranty can help you decide if its a good choice for you.
What Is an Extended Car Warranty?
An extended car warranty is a warranty that extends the coverage of your car after the original has expired. It covers the cost of repairs when you have a mechanical breakdown. It covers both mechanical and electrical parts, along with labor costs. Depending on the warranty you choose, it can cover a variety of items. Such as the engine, transmission, brakes, steering, and suspension.
It’s made to give you security and peace of mind when it comes to owning a vehicle. It’s important to know if an Extended Warranty Is Right For You, so it’s never a bad idea to do your research before making a decision.
Average Costs For An Extended Warranty
Extended warranty prices vary depending on the provider and the vehicle’s make, model, and mileage. An average cost for a yearly premium is $1,000-$2,000. Prices vary so widely because there are many factors that can influence costs, such as the warranty type and length.
When choosing an extended car warranty, you can research and find the one that is best for you. Providers typically offer varying levels of protection, from basic extended powertrain warranties up to bumper to bumper coverage.
Mopar Extended Warranties provide up to 24 month at 0%.
Factors That Determine The Price Of An Extended Car Warranty
Extended warranties vary from person to person and your cost will be determined by a few factors. Some of those factors being:
Age of Vehicle – The older the vehicle, the easier and more often it will break down and have more expensive repairs than newer cars. Because of this, vehicle warranty plans for older cars typically cost more than warranties for newer ones.
Coverage Type – The more coverage a plan provides, like bumper-to-bumper warranties, the higher the price will be when compared to basic powertrain warranties.
Deductible – Choosing a lower deductible will cause a higher cost for extended warranties. Most companies offer deductible options ranging from $0 to $200. If you have a low or no deductible, you’ll pay more for the extended warranty than if you choose a higher deductible. This will raise the cost because the warranty will be paying for more damages itself.
Mileage – Vehicles with a higher mileage are more likely to have a mechanical breakdown and need repairs. Extended warranty providers tend to charge more for cars with high mileage because of the risk factor.
Seller – You can buy an extended warranty from your vehicle’s manufacturer or an independent provider. Manufacturer warranties tend to be more expensive because they usually include dealership markups and set deductibles.
Independent providers, such as Chrysler Factory Warranty, can allow you to have a say in your deductible to make it easier for you to purchase and maintain your payments.
Type of Vehicle – The more expensive your vehicle is, the more money it will cost to repair it. The availability and cost of your vehicle’s parts help determine how expensive your warranty is going to be. If you have a more common vehicle with easily accessible parts, you wont be spending as much money.
How To Get The Best Price On An Extended Car Warranty?
Determining that you need an extended warranty is only the first step. You want to be sure that you’re getting the best deal and not spending any unnecessary money. Knowing that the Extended Car Warranty Is Worth It can help in easing your worries.
Research
When looking for a warranty company, you always want to read the reviews and shop around. The Best Car Company Warranty isn’t always going to be the first one you find, you need to make sure the company has the resources and plans that best suit your needs. Otherwise, you’ll be wasting your money. Once you have thoroughly looked through and asked questions about a company, you can make an informed decision about whether to purchase their warranty or not.
Know Your Needs
Be sure to research and understand what type of warranty would be best for your needs and driving style before making any decisions. Watch how often you drive, the type of driving you do and the duration of your trips. Be sure to understand the different types of warranties available, such as powertrain warranties, bumper-to-bumper warranties and the benefits associated with each. If start with knowing exactly what you need, it’s less likely that you’ll make a decision that’s going to cost you more when you don’t need it.
Negotiate
Don’t be afraid to negotiate the price of an extended warranty. At most dealerships, salespeople or finance managers may inflate the cost of the extended car warranty. If you express your concern for the price and ask if they can find anything lower, they may give you a different rate.
Some companies offer a discount when purchasing more than one warranty or if the warranty is purchased at the same time as the car. The discount varies depending on the company and the type of warranty purchased, so always be sure to ask questions.
Ask About Price Matching
If you are shopping around for a warranty and find a better price, ask the company if they will match the price. Many companies will be willing to match or even beat the price of a competitor to complete the sale. Make sure to tell them that you are considering the purchase, but are trying to find the best price. It will show that you are serious about the purchase and might help the company offer you a better deal.
Watch For Hidden Fees
You should ask about the cost of any additional services you may need, knowing the full cost of the warranty coverage can help you make the decision about the warranty being the right choice for you. When purchasing a warranty, it is important to know the details of the coverage. Warranties sometimes include additional fees, like deductibles or service charges, that you will have to pay.
Read The Fine Print
It is important to read the terms and conditions carefully and understand exactly what is included in the coverage. Look at any exclusions that are listed, any time limits, what happens if you decide to cancel the policy and any fees included. Always ask questions so that you can be sure that the vehicle service contract meets your needs.
