What’s a good price for an extended warranty?
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. The majority of respondents, 70%, paid between $500 and $2,500 in total for an extended warranty plan. Extended warranties for cars over 100,000 miles cost $136 per month or $1,398 per year of coverage on average.Additionally, you can purchase Mercedes-Benz Extended Limited Warranty coverage at any time prior to the expiration of your original New Vehicle Limited Warranty.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.Going into effect as soon as your New Vehicle Limited Warranty expires, the New Vehicle Extended Warranty helps protect your vehicle after the first 48 months or 50,000 miles. This warranty covers components such as the engine, transmission, climate control, electrical systems, and many more.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.
Is it worth extending a Mercedes warranty?
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 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.An extended warranty provides an added layer of financial protection beyond the manufacturer’s warranty, potentially sparing you from unforeseen repair expenses down the road. It can offer peace of mind and financial security, particularly for those dealing with mechanical and electrical failures.Longer warranties may provide extended protection against unforeseen engine issues, while comprehensive coverage can include not just the engine but related components like the cooling system or electrical parts.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!Extended warranties are great for people who want to be prepared for possible repairs that may be needed once the factory warranty expires. Keep in mind there is a difference between third party and factory warranties.
What percentage of people buy extended warranties?
What percentage of people buy extended car warranties? About 37% of vehicle owners hold an extended warranty. Only 1 in 10, however, actually use their warranty. Yes, you can purchase an Extended Warranty at any time, even if you don’t have an existing Mercedes-Benz warranty. However, please be aware that you’ll be unable to take out a monthly or 24-month policy, and will need to purchase a 12-month policy.The average cost of an extended auto warranty is about $90 per month, though rates vary based on your car’s age, mileage, make, and more.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.New Mercedes vehicles typically come with a 3-year manufacturer warranty. At the end of your manufacturer warranty, you can generally extend for future years. AA Extended Warranty offers an alternate way to protect your Mercedes against potentially expensive repair bills.You can buy an extended car warranty from your dealer or car manufacturer when you purchase a new car or any time before the car’s standard warranty expires.
What are red flags in extended warranties?
Protect yourself from extended warranty scams First, before agreeing to any warranty, research the company that’s offering it. Look for reviews to see if the company is registered with your state’s consumer protection agency. A lack of information or negative reviews should be a major red flag. 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. The majority of respondents, 70%, paid between $500 and $2,500 in total for an extended warranty plan.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.You can cancel an extended warranty at any time and you’ll get a prorated refund for the unused portion of your policy.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.
Can I negotiate the price 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. Mercedes-Benz new and demonstrator vehicles first registered on or after 1 March 2020 receive a 5 year Warranty period. If you purchased a Mercedes-Benz prior to 1 March 2020, you will have a 3 year warranty. We can extend car warranty coverage on selected Mercedes-Benz vehicles for an additional three years.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.You can get an extended warranty for a car with over 100,000 miles, but options may be limited. Many third-party providers specialize in high-mileage vehicles, offering coverage for major repairs.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.
Can I cancel my Mercedes extended warranty?
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. Many extended warranty companies negotiate discounted repair rates with service providers. This means they pay less for repairs than a customer would if they paid out of pocket, further increasing their profit margins.The benefits of an extended warranty After the manufacturer’s warranty has expired, you may consider taking out an extended warranty on a used car. The advantages of this are that you gain the peace of mind of being able to cover the cost of certain repairs to your vehicle for the period of the warranty.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.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.