What’s a good price for an extended warranty?
We also surveyed 1,000 extended auto warranty owners in January 2025. The majority of respondents, 70%, paid between $500 and $2,500 in total for an extended warranty plan. The remaining 30% paid $2,501 to more than $4,000 in total. While the primary repair costs are typically covered, extended warranties may not cover secondary damages or losses resulting from engine failure.Whether you have an extended warranty or a vehicle service contract, you typically have two options—transfer the coverage to the new owner or cancel it for a prorated refund.They typically don’t cover damage that may occur in an accident or normal wear and tear to the vehicle. An auto service contract or extended warranty is not a warranty as defined by federal law, because you buy it separately; it’s not included when you buy a car.It’s not too late to get an extended warranty on your car, even if it’s been out of warranty for years. Commonly referred to as a Vehicle Service Contract, an extended auto warranty offered by third parties is the best bet to keep out of control repair costs in check.All manufacturers offer extended warranties. However, many of these warranties only last up to 100,000 miles. Your car’s manufacturer might not have a plan that covers repairs after 100,000 miles. That said, some manufacturers can cover cars after 100,000 miles.
How to calculate the cost of an extended warranty?
Calculating the Cost Use the formula Extended Warranty Cost = (Percentage of Product Cost) × (Total Product Cost). Ensure the final cost does not exceed 30% of the product’s price, adhering to industry recommendations. Extended normal costing derives production costs by multiplying budgeted or standard costs by the number of actual units produced. This approach differs from normal costing, where the actual costs of direct materials and direct labor are assigned to the actual number of units produced.In accounting, an extended cost is the unit cost multiplied by the number of those items that were purchased. For example, four apples purchased at a unit cost of $1 have an extended cost of $4 (=$1 × 4 apples).
Can I purchase an extended warranty at any time?
You can purchase an extended warranty when you purchase your vehicle or at a later time. The major benefit of purchasing it when you buy the car is the ability to add the purchase price into your total amount financed. New and Pre-Owned Extended Warranties An extended warranty may not be worth the cost if you’re planning on switching your vehicle within 10 years, since many modern vehicles are highly reliable. If you do plan on keeping the vehicle for 10+ years, then an extended warranty is certainly recommended.Yes, extended warranty plans can be worth it if you don’t want to pay out of pocket for expensive repair bills. They work best for car owners looking to keep their vehicle for a long time — way past when the manufacturer factory warranty expires.Extended warranty plans typically cover your vehicle anywhere from 2 to 7 years. If you expect to keep your car for several years, a longer plan may make sense for you. Even if you do sell your car before the warranty runs out, your extended protection plan may be transferable.The best way to buy an extended car warranty is through either a third-party provider or the dealership where you purchased the vehicle. Extended warranties can cost anywhere from $372 to over $2,000 per year, depending on your coverage level and vehicle, with an average annual price of $977, according to our research.
Can you negotiate the cost of an extended warranty?
Negotiating a Better Deal Speak with the finance and insurance managers, explain that you want to buy a new car and need to talk to them about the factory extended warranty on the vehicle. You may find that three different dealerships will give you three different prices on the same coverage. Extended warranties These warranties provide protection on certain mechanical and electrical components not covered by the manufacturer’s warranty, but they typically exclude routine maintenance, such as oil changes and tire replacement.A used car extended warranty might be worth it if the vehicle make and model has a poor reliability record. An extended warranty on used cars isn’t needed if the vehicle still has the manufacturer’s warranty. Consider used car warranties that exclude specific repairs rather than those that list what they will cover.Extended car warranties typically don’t cover damage from accidents (you’ll need car insurance for that) or wear and tear. They only cover what’s specified in the warranty.To cancel your extended car warranty, review your contract for cancellation terms and contact the dealership with a written request. Ensure you keep a copy of all submitted forms and request confirmation of your cancellation. If the dealership is uncooperative, contact the warranty provider directly.Like most insurance policies, an extended warranty is something you pay for in the hope that you’ll never need to use it. For many owners, it’s worth paying the price for peace of mind; even if your car is built by a brand renowned for its reliability, there’s always a risk that something could go wrong.
Are batteries covered under an extended warranty?
Car batteries are considered wear & tear items, like tires, brake pads and motor oil, so they are not typically covered by extended warranties. However, batteries do typically come with their own warranty coverage. An extended warranty can provide many benefits, including financial coverage and peace of mind, should something go wrong with your vehicle. If you are considering the purchase of an extended warranty for your used car, it is possible to negotiate with the dealer for the best price and the warranty coverage you need.An extended warranty — also known as a protection plan or service contract — provides similar guarantees for even more years. These policies cost extra, may have different fine print than a manufacturer warranty and often are sold by a third party rather than the product’s manufacturer.Upfront Cost: Extended warranties can be expensive, and you might never use them. Weighing the cost of the warranty against the potential repair bills is crucial. Limited Coverage: Many warranties have exclusions and may not cover all types of repairs.Additionally, you can purchase Mercedes-Benz Extended Limited Warranty coverage at any time prior to the expiration of your original New Vehicle Limited Warranty.Many consumers and third-party companies commonly use these terms interchangeably, so we’ve done the same in this article. Extended warranties for cars over 100,000 miles cost $136 per month or $1,398 per year of coverage on average.
Can I get a refund on my Mercedes extended warranty?
Mercedes-Benz Extended Warranty Protections Honored at more than 350 authorized Mercedes-Benz dealerships. New Vehicle Warranty. The cost of a Mercedes extended warranty can range from $2,400 to nearly $8,000, depending on the vehicle and plan. You can extend the factory warranty by one to three years and cover up to 75,000 or 100,000 miles on the odometer.Once your CPO Limited Warranty expires, the CPO Extended Limited Warranty offers up to 2 additional years (unlimited miles), providing the same comprehensive coverage. For additional details, contact your local Mercedes-Benz dealer.For electric vehicles, Mercedes-Benz extends confidence with a robust EV Battery Warranty, guaranteeing the battery for 8 years or 100,000 miles, whichever comes first. This extended coverage highlights the brand’s commitment to cutting-edge EV technology and durability.Our Extended Warranty product has both a mileage limit and an age limit. In order to take out an Extended Warranty for your Mercedes-Benz, your car must not have completed more than 120,000 miles (or 100,000 miles for AMG and Maybach vehicles) at the start of the policy.
What is the unlimited warranty on Mercedes-Benz?
The purchase of any Mercedes-Benz Certified Pre-Owned vehicle includes a 1-year unlimited mileage Limited Warranty. That warranty includes coverage extending to the engine and powertrain, steering, suspension, brakes, electrical systems, and climate control system among other components. The Mercedes-Benz Extended Limited Warranty Agreement may be canceled for a full refund at any time prior to the expiration of the New Vehicle Limited Warranty and the effective date of this Agreement, if a written request for cancellation is submitted using the Cancellation form that can be obtained from the selling .Once your CPO Limited Warranty expires, the CPO Extended Limited Warranty offers up to 2 additional years (unlimited miles), providing the same comprehensive coverage. For additional details, contact your local Mercedes-Benz dealer.This Mercedes-Benz new vehicle limited warranty covers your new vehicle for 50,000 miles or 4 years, whichever comes first. If the car is sold before the warranty expires, it is transferred to the new owner.To purchase the Extended Limited Warranty or to learn more, please visit an authorized Mercedes-Benz dealership. To locate a dealership visit MBUSA. FOR-MERCEDES (1-800-367-6372) today.Extended warranty plans typically cover your vehicle anywhere from 2 to 7 years. If you expect to keep your car for several years, a longer plan may make sense for you. Even if you do sell your car before the warranty runs out, your extended protection plan may be transferable.