Are extended warranties ever worth buying?
At the end of the day, the decision to purchase an extended warranty really comes down to the value that you place on peace of mind. Many extended warranties, especially those offered for lower-cost items, are overrated and offer limited coverage. 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.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.Compare the specifics of the plans you’re considering to find one that matches your needs. How long is coverage available? 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.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.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.
What is a good price for an extended warranty?
Based on our secret shopping, extended warranties cost an average of $1,297 per year. Endurance and Olive offer some of the most affordable bumper-to-bumper, mid-level and powertrain warranty plans. CarShield and Carchex both sell plans with flexible month-to-month terms. Ask for a Discount Inform them the price is too high, and if they can lower it, you may reconsider. Often, they will offer a different rate. Additionally, many companies offer a discount when purchasing multiple warranties or if the warranty is purchased at the same time as the car.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 car warranties can be purchased from either your vehicle’s manufacturer or from an independent provider. Though coverage includes both parts and labor costs from repair shops, you’ll likely still have to pay a deductible on new auto claims.
Can you negotiate extended warranties?
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. Every Mercedes-Benz Approved Used car for sale comes with a guarantee of at least 12 months’ comprehensive unlimited mileage warranty.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 Extended Limited Warranty can be purchased at any time during the new vehicle basic warranty period (48 months/80,000 km), as long as the vehicle has been regularly maintained at an authorized Mercedes-Benz Retailer.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.
Should I buy an extended warranty on a used car?
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. 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.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.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.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.Once you sell your vehicle, you may be able to cancel the extended warranty and qualify for a prorated refund. Please contact your warranty provider for details.
Is extended warranty a ripoff?
While a service contract might sound like a good idea, it could duplicate coverage you have through your manufacturer’s warranty. And you might actually pay more for a service contract than you get back in benefits. What’s more, some companies pitching warranty extensions are scammers. 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.The Bottom Line Extended warranties can offer peace of mind, functioning as a safety net for certain purchases. However, many products are reliable, so the cost of an extended warranty might outweigh the benefits.Today, extended warranties represent a global industry worth over $120 billion annually, with profit margins that frequently exceed 50%. For many retailers, these warranties have become more profitable than the actual products they’re designed to protect.The likelihood of needing an extended warranty is low, especially if the product is durable and reliable. The cost of an extended warranty may be more than the cost of repair or replacement of the product.Instead of buying a bunch of extended warranties that you’ll probably never use, you’re better off self-insuring by paying yourself the warranty payments. That way, if your TV does break after the normal warranty, you have the money saved to fix it. If not, it’s your money to keep. It’s a win-win!
Can you extend a Mercedes-Benz warranty?
Yes, you can extend the warranty on your Mercedes with Warranteeze. We offer extended warranties that provide additional coverage after your manufacturer’s warranty ends, giving you peace of mind and protection against unexpected repair costs. 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.Mercedes-Benz Extended Warranty Protections Honored at more than 350 authorized Mercedes-Benz dealerships. New Vehicle Warranty.Great protection continues. Peace of mind. Every Mercedes-Benz Certified Pre-Owned (MBCPO) vehicle is covered by the MBCPO Limited Warranty1, which runs for 1 Year with Unlimited Mileage2, and any remainder of the vehicle’s original 4 Years/50,000 miles Mercedes-Benz New Vehicle Warranty.One-Year Unlimited Mileage Warranty. Every Mercedes-Benz Approved Used car for sale comes with a guarantee of at least 12 months’ comprehensive unlimited mileage warranty.