Do we really need extended warranty?
Is Your Vehicle Unreliable? An extended warranty is worth your time if your car isn’t extremely reliable and you wouldn’t necessarily be able to pay for major repairs right now. If you purchase a used car from a dealer, an extended warranty could be the right choice if you’re uncertain about a vehicle’s reliability. 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.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.What happens to my extended warranty when I sell my vehicle? You have two main options: Transfer it to the new owner (if allowed by your provider). Cancel it for a prorated refund (if applicable).Can I purchase an Extended Warranty if I don’t have an existing Mercedes-Benz warranty? Yes, you can purchase an Extended Warranty at any time, even if you don’t have an existing Mercedes-Benz warranty.
When should you buy extended warranty?
We recommend considering an extended warranty if you own a used car that you plan to keep for several years, but that has high mileage or is a model with known reliability issues. 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. You may even need to purchase separate extended warranties for different parts, depending on what you want coverage for.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.High-mileage warranties can be worth it since vehicles break down more often as they age. Extended warranties for cars over 100,000 miles cost $136 per month or $1,398 per year of coverage on average.The cost of your extended vehicle warranty depends on a variety of factors, like the make, model and age of your car. However, you’ll typically need to pay at least $1,000 per year of coverage, and you may need to pay as much as $3,000 per year, or even more.
How much should an extended warranty cost?
Based on this data, extended auto warranties cost an average of $1,297 per year across providers, plans, coverage options and vehicles. We also surveyed 1,000 extended auto warranty owners in January 2025. Extended warranties offer protection beyond the standard warranty. 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.How to get your money back. You can cancel an extended warranty at any time and you’ll get a prorated refund for the unused portion of your policy. If the warranty was included in your loan, your car payment won’t drop, but you may pay off the car sooner after the refund is deducted from your balance.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.Once your car warranty expires, you have several options. You can extend your warranty, get a service contract, or save for repairs. Each option has its pros and cons, and the best choice depends on your situation.Absolutely, We consider this plan “No risk” which means that you have the option to cancel your coverage at any time and receive money back. If you have used the extended warranty you will need to speak with your dealer for information about refund policy.
Do you get money back on extended warranty?
Like most goods and services, extended warranty policies can come with the option of getting refunds. However, extended warranties — especially automobile extended warranties — are unique entities and, as such, have unique characteristics regarding when and how refunds are available. 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.With a Mercedes-Benz Extended Warranty, you’re covered for any costly repair bills that may arise if your car experiences a mechanical or electrical failure. As the owner of one of our Extended Warranty policies, you can drive with ease knowing you’re protected.We recommend considering an extended warranty if you own a used car that you plan to keep for several years, but that has high mileage or is a model with known reliability issues.Wear and tear on parts like brakes, tires, and batteries is not covered by extended warranties. Warranties often don’t cover parts that wear out over time. This means you’ll have to pay for regular maintenance, which can cost over $10,000 a year.The biggest downside is the price tag. An extended warranty adds to the total cost of your car purchase, and if you never need to use it, you might feel like you wasted money. It’s a gamble—you’re betting on something going wrong. Not all repairs are covered.
What are the disadvantages of an extended warranty?
On the other hand, extended warranties can be expensive and often include coverage limitations and exclusions that may not be immediately apparent. Additionally, not all repairs may be covered, and there can be disputes over what constitutes ‘normal wear and tear’ versus a covered repair. KEY TAKEAWAYS: Extended warranties provide coverage for car repairs beyond the manufacturer’s warranty period, offered by third-party companies for a fee. Coverage options vary widely in terms of cost, coverage, and terms, necessitating careful consideration before committing.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.Extended car warranties can be worth it if you have an older vehicle with a high mileage but may not be worth it if your vehicle isn’t likely to break down.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.
What are the worst extended car warranty companies?
Through our extensive research, we found the worst extended auto warranty companies include Direct Buy Auto Warranty, ASAP Warranty, and Us Fidelis. The worst car warranty companies tend to have red flags, such as a bad reputation and a lack of industry endorsements. Do extended warranties cover consequential damages resulting from engine failure? While the primary repair costs are typically covered, extended warranties may not cover secondary damages or losses resulting from engine failure. It’s advisable to clarify these details with the warranty provider.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.Manufacturer’s warranty: Components still under the manufacturer’s or supplier’s warranty at the time of breakdown may not be covered by the Extended Warranty. Service and maintenance items: Routine service items like oil, filters, and spark plugs usually aren’t covered. These are considered regular maintenance costs.Wear and tear on parts like brakes, tires, and batteries is not covered by extended warranties. Warranties often don’t cover parts that wear out over time. This means you’ll have to pay for regular maintenance, which can cost over $10,000 a year.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.
Will extended warranty replace engine?
Extended warranties can be a good option for those seeking extra protection and peace of mind. In addition to warranties on parts, some warranties also cover the labor costs associated with replacing a defective engine. Extended coverage period: A primary benefit of an extended warranty is the extension of coverage beyond the manufacturer’s warranty period. This ensures your product against unexpected breakdowns or malfunctions for the opted cover period.What is Covered under an Extended Warranty? Extended warranties typically cover repairs or replacements for mechanical or electrical failures of your essential household products like refrigerator, washing machine, Television etc.Extended warranty providers should be willing to give you specific information about the extent of coverage for each plan they offer. Even basic coverage can include a long list of components that are covered. Compare the specifics of the plans you’re considering to find one that matches your needs.Yes, motor mounts are typically covered under an extended warranty if the warranty also covers the vehicle’s powertrain or major engine components like body and paint items. Motor mounts are essential parts that help secure the engine to the vehicle’s frame and absorb engine vibrations.