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. 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.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.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.An extended warranty price represents a percentage of the total product cost. As a general rule of thumb, you shouldn’t spend more than 30% of the product cost on a product warranty. Assuming you file one claim during your plan, the warranty cost of AppleCare+ is 36% of the purchase price of the iPad.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.
Is it worth paying for extended warranties?
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. 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.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.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.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.
What is a downside to purchasing an extended warranty?
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. All About Extended Warranties The initial car warranty is built into the cost of a new car. But after your initial car warranty has expired, it’s possible to buy additional coverage in the form of an extended warranty. These are also sometimes called service contracts.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.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.Some auto service contracts will extend the length or coverage of the warranty that came with your vehicle, and others will cover some maintenance tasks like scheduled oil changes. They typically don’t cover damage that may occur in an accident or normal wear and tear to the vehicle.
What is the maximum mileage for an extended warranty?
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. One year unlimited mileage warranty Every Approved Used Mercedes-Benz 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.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.The warranty on a new Mercedes-Benz lasts for 4 years or 50,000 miles, whichever comes first. This coverage includes a wide range of components, providing peace of mind for new vehicle owners.
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. 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.
Can I buy a Mercedes extended warranty after purchase?
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. Once that warranty ends, the Mercedes-Benz certified pre-owned limited warranty kicks in, offering you a 12-month, unlimited-mile warranty covering the engine, powertrain, suspension, steering, climate control, electrical system, audio and navigation system, brakes (but not wear items like pads and rotors), and more.Mercedes-Benz Australia has announced it will offer a permanent five-year warranty from 1 April 2020. The new warranty coverage replaces the three-year structure and applies to all cars, vans and utes including Mercedes-AMG models and EQC variants.Mercedes-Benz Extended Warranty Protections Honored at more than 350 authorized Mercedes-Benz dealerships. New Vehicle Warranty.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.
What is the warranty on a used Mercedes-Benz?
Every Mercedes-Benz Approved Used car for sale comes with a guarantee of at least 12 months’ comprehensive unlimited mileage warranty. 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.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.Policy flexibility: You can choose either a monthly ‘pay as you go’, 12-month or 24-month policy*. Age and mileage limits apply. You have cover of a wide range of Mercedes-Benz components.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.