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An extended car warranty may help cover the cost of certain repairs to your vehicle when the manufacturer's warranty expires. 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.
An extended car warranty may help cover the cost of certain repairs to your vehicle when the manufacturer's warranty expires. 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.
The more used a vehicle is, the more expensive extended coverage will probably be. The average monthly payment for an extended warranty is around $1,200 to $1,500, but this can vary widely depending on the aforementioned factors.
Dealers often try to sell the convenience of rolling coverage into a new-car loan, but that means you may be paying up front for coverage that you already have with the factory warranty. You can purchase an extended warranty after buying the car, although you may find the cost increases as the vehicle ages.
Paying $100 for an extended warranty on a $600 laptop doesn't make sense because laptops are very reliable, Sin ha says. ... If a warranty is more than 20 percent of the product's price, it may be too much. According to the SIC, most extended warranties are 10 to 20 percent of the sales price.
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.
Typically, the average extended warranty for used cars cost ranges from $350-$700 per year, but every person and policy is different.
Are extended warranties worth it? ... When you purchase a used vehicle, you may have the option to purchase a service contract, also known as an extended warranty. With a service contract, the dealer agrees to perform or pay for certain repairs or services on the car. You can buy the coverage for an extra cost.
In general, the average extended car warranty cost ranges from $350-$700 per year, but every person and policy is different.
Typically the average cost of an extended car warranty would be around the range of $1,800 with a good quality package and after-sales service.
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