How much should I pay for an extended warranty for my new car for 6 yrs/100,000 miles?
Monday, July 26th, 2010 at
8:14 am
How much should I pay at the dealer when buying a new car? Is ,000 a fair price?
Editor’s Comment:
An extended auto warranty can increase the value of your vehicle as the unexpired portion of the warranty can be transferred to a new owner. To find out more, click here to receive a free, no obligation auto warranty quote
I wouldn’t buy an extended warranty unless it’s the first year of a redesigned model.
if your buying a Chrysler or a Jeep, then it will be money well spent.
Without knowing any other details, its almost impossible to say. For example, If the dealer tells you that you have to change the oil every 3000 miles to keep the warranty in effect, then charges you $30 for each oil change, its not a good deal. Most new cars will easily get 100,000 miles before major problems occur. Many problems will be evident within the manufacturers warranty period anyway, so you don’t need extra coverage. If you sell the car before 6 years and the warrenty isn’t transferrable, you’ve paid for something you’ll never use. In a lot of cases, the dealer warranty will benefit the dealer more than the customer in the long run. Tread cautiously.
you are only getting a 3 year extension. new cars usually have a three year warranty and your six year starts the date of purchase. you are actually paying $330. per year for 3 years. its a gamble you have to decide if you will keep the car more than three years.
Warranties typically aren’t worth the extra money.
Cars are made very well today. You have to do the normal maintenance anyways, and most of the time you will never get back what you pay for the warranty.
ZERO. DO NOT BUY ANY EXTENDED WARRANTY.
The manufacturers warranty is free and that is all the coverage you’ll ever need.
Those warranties are pure profit for the dealer and they are a waste of your hard earned money.
I would get a longer term, try for 7-8 yrs. As far as price… it depends on the vehicle. Different vehicles have different premiums due to thier loss ratio, (cost of repairs, how often a repair is needed, etc). Premiums for a European car will cost more than Amiercan car, American will cost more than a Asian. Read all the material carefully, and look for any stipulations as far as where you can take your vehicle… how much is covered, deductible, etc.
Also check with your local Credit Union or personal auto insurance provider.
All cars have different rates due to repair experience and this is what the insurance companies or warranty companies use as a rate charge basis.
That price maybe fair for a 6 yr/100,000 mile engine/transmission power-train only warranty that probably has limits of $3000 engine $2000 transmission and lifetime aggregate of $5000 in claims.
Watch out for some of these warranties and their requirements, some are outrageous as the warranty company is betting you will not perform the maintenance on time at an ASE mechanic and keep the receipts through out the warranty period as in changing the oil every 4 months or 4,000 miles and keep the factory maintenance schedule in the warranty book. Less than 15 % of new car owners make this grade on maintaining their cars, this includes new cars with free oil changes!
Some people do not believe in extended warranty’s, but if you have an Audi or Chrysler V6 Intrepid you will wish you have bought a warranty – both these vehicles have oil sludge problems – a warranty will cover them.
Warranties are like Health insurance – sometimes you use it and maybe you will never have to, but it is better to have it when you need it rather than spending half the book value of the car for a repair.
There is a company Vehicle Life that has factory coverage warranty that starts the day that your factory warranty expires – (many warranties overlap each other and you pay for time that the factory covers, but their warranty does not)
Visit their website for more details:
http://www.vehiclelifespan.com
(it seems they are updating their site as new cars are appearing in past few days)
I have been a New Car Dealer Finance Manager for over 20 years and these people pay claims! They have very competitive rates and you get what you pay for with warranties.