What is the cost of a vehicle extended warranty plan? If you expect to buy from an A-rated warranty company and have chosen the most protection for the greatest length time, be prepared for sticker shock. Bumper-to-bumper coverage for three or more years can be two thousand dollars or more depending on your auto’s year, make, model and miles on odometer. An auto extended warranty plan on a Mercedes Benz will be priced much higher than a Honda Accord.
Before you start shopping, find out how many miles you drive annually and how many additional years you’ll be keeping your automobile. Be sure to jot down your (VIN) vehicle identification number also as many warranty companies will request it. You’re now ready to call for free price quotes.
The True Cost to You
Make an estimated guess of the cost of future repairs you’ll incur in the coming years without the assistance of an extended warranty plan. Next, subtract your figure from the price of the extended warranty you are purchasing. The new value is your true cost for warranty coverage on additional repairs including major breakdowns such as a transmission or ABS breaking system. It is common today to see repair bills totaling in the thousands.
What if You Decide to Trade or Sell Early?
If you decide to sell your vehicle sooner than previously expected, you may transfer your extended warranty plan thereby allowing the new owner the benefits for the remainder of its life. This may become a key tool in your effort to sell your vehicle in a competitive marketplace.
If you trade-in your vehicle earlier than you thought you would, you many cancel the time remaining and receive a pro-rated refund, thus reducing the total cost of your extended warranty plan.
Be sure to follow the procedures for both transferring and cancelling spelled out in the extended warranty contract as many warranty companies have stipulations that must be followed closely.
Getting the Best Price
Should you negotiate for a better price? It doesn’t hurt to try. If you are at your local dealership, start by asking the salesperson for a $500 discount. Tell them you’re aware of many online deals available, including websites selling the same programs at deep discounts! You may not get the full $500 off, but you’ll be positioning yourself for a discount at some figure. In my experience, most dealers and online sellers will settle for very little profit.
What if Your Dealer Won’t Discount?
If your salesperson acts offended when you ask for a big discount, give him a big smile, you’re playing his game now! But hold your ground. You may get the price you’re looking for. But if they won’t budge on the retail price, just say no to their offer. In most cases, the same factory or aftermarket extended car warranties are offered online, some at deep discounts. With a little research and effort, you will find the right auto extended warranty at a price you can afford.
Should you buy at your local dealership or shop online for your extended service contract?
Be sure you know what situations to avoid when making a claim and collecting from your extended warranty company.
About the authors: As an 11 billion dollar U.S. business per year, the auto extended warranty is an integral part of the vehicle ownership experience for millions of Americans.
Written by a group of industry professionals with a combined 30 years experience, WarrantyWatchman.com is a consumer protection site and premier source for information regarding auto-extended-warranties.
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