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It is important to note that you have the option to purchase this warranty any time before the manufacturer warranty expires. You can even purchase an extended warranty after the manufacturer warranty expires, although the price will go up considerably. Some dealers sell replacement warranties for run-flat tires.
Extended warranties are rarely worth your money. Products don't break on their own, and when they do, the price of repairs is usually lower than what you'd spend on an extended warranty. Sure, some people have saved a lot of money with extended warranties.
While it may sound like a good idea in theory, extended warranties often come with a high price tag and don't necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.
In general, the average extended car warranty cost ranges from $350-$700 per year, but every person and policy is different. When your car needs repairs, and you don't have coverage, the mechanic will require payment in full.
But are they worth it or will what you spend be money down the drain? First, consider the manufacturer's warranty. While factory warranties do vary, most offer a year on parts and three months on labor. And, in most cases, out-of-pocket repairs do not cost much more on average than an extended warranty.
If you hope to keep your car for 10 years, and it only comes with a three-year/36,000-mile warranty, you might consider extended warranty coverage for peace of mind for the first couple of years after your new car warranty expires. Cars with high marks are less likely to need costly repairs.
In general, we don't recommend buying an extended warranty on a used car. Warranty companies are in business to make money, and they've usually done their homework. This means you'll likely spend more on the warranty than any repair costs your car may accrue during the period when the warranty is valid.
While it may sound like a good idea in theory, extended warranties often come with a high price tag and don't necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.
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