In the first half of our ongoing series, you learned all about what a car warranty is, as well as how to check to see if your vehicle is still under warranty. You also learned when to pay out-of-pocket for repairs versus when to allow your warranty to do the heavy lifting. Finally, you learned what specific actions and inactions can void your warranty and how long a given warranty lasts, whether from the manufacturer or a third party.
The second half of our warranty series answers another common question about extended car warranty coverage: how much does it cost? After all, the cost of the original warranty is baked into the monthly car payment of a given new vehicle; therefore, the price of an extended warranty may not be something most people think about at first.
It turns out that the cost for a given extended warranty depends on the issuer, as well as what the specific warranty offers to the consumer. Your vehicle’s make, model and mileage also factor into the total cost of an extended warranty, as well as the deductible, the high-tech components in your vehicle and your own driving habits.
According to a survey of 1,000 consumers by Market Watch partner Home Media, the median cost for an extended warranty amounted to $2,458. Half of the respondents mentioned paying anywhere from $1,615 to $3,208 for their vehicle’s warranty coverage. Of course, you won’t pay that price all at once, but over a month-to-month basis for the term of the warranty.
For example: $76.10 per month for 30 months with a $175 down payment would lead to a total cost of $2,458.
If you are considering buying an extended warranty for your vehicle, be sure to buy coverage as soon as possible, as higher-mileage vehicles may result in higher warranty payments. Also, keep in mind that third-party providers not only offer lower warranty prices than manufacturers, but greater flexibility on where to take your vehicle for repairs.
Finally, talk to one of our helpful representatives to find the right plan and price for your vehicle and budget.
An extended warranty provides peace of mind — something you’ll wish you had next time you’re faced with a shockingly high repair cost.