What Factors Affect The Cost Of An Extended Auto Warranty
Your extended car warranty cost will be determined by several factors, including your coverage length, level of coverage, deductible, provider, and vehicle type. Below, weve explained how each impacts how much youll pay for a vehicle service contract.
- Coverage length: Typically, longer contracts are more expensive.
- Level of coverage: More comprehensive coverage plans, like exclusionary bumper-to-bumper warranties, have a higher price tag than basic powertrain warranties.
- Deductible: Similar to auto insurance, choosing a lower deductible will lead to a higher overall premium cost for extended warranties. Most companies offer deductible options ranging from $0 to $200.
- Provider: You can purchase anextended warranty from your vehicles manufacturer or an independent provider. Manufacturer-backed warranties tend to be more expensive, as they usually include dealership markups and set deductibles.
- Vehicle type: Older, higher-mileage vehicles have a higher chance of breaking down, so they will typically cost more to cover. Luxury vehicles are also more expensive to cover, as their repair costs are usually higher than those of standard vehicles.
Toyota Extended Warranties In 2021
When your Toyota factory warranty expires, you will likely be eligible for extended protection in the form of an extended warranty from the Toyota dealer. These plans are sold by Toyota and include the following:
- Three levels of protection to choose from: Platinum, Gold, and Powertrain
- Access to Toyotas nationwide service and support network
- Flexible coverage terms that last from three years or 50,000 miles to 10 years or 125,000 miles
- 24/7 roadside assistance and travel protection
- A one-time warranty transfer
- Cancellation options
- Deductible of $0 or $100 disappearing
Toyotas Platinum, Gold, and Powertrain Vehicle Service Agreements all offer extended coverage after your factory warranty expires. Read on for more about what each extended warranty offered by Toyota covers in 2021.
How Do You Pay For An Extended Warranty
Whether you purchase an extended warranty at the dealership or a VSC/ MBI through a third party company, the cost will be additional to the price of the vehicle.
When purchased at the dealership, often you are asked to pay up front or consider financing the cost of the extended warranty with your vehicle. While it may seem like a convenient idea to roll it into your car payment, youll end up paying more in the long run because of the interest youll incur.
Third-party VSC providers will offer you options as well, and those options will vary based on the company you choose. Some may give you the option to pay in full or pay a certain amount up front then disperse the remaining balance over monthly or quarterly installments. Its important to note that if you pay for any part of the payment up front or roll it into your loan payments, you may have a difficult time canceling, if thats even an option.
Pro-Tip: olive is one of the few extended warranty solutions companies that only offers monthly payment plans. And because they charge an equal amount monthly, their customers can cancel anytime.
If you decide to purchase an extended warranty or VSC for your vehicle, we strongly recommend researching third party extended warranty companies also to ensure youre partnering with a trusted and reputable company. Youll want to know that your preferred extended warranty company is transparent with their communication, has good reviews and is in good standing with the BBB.
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Advantages Of An Extended Car Warranty
After It Is Paid Off Will I Continue To Be Charged For My Used Car Warranty
Some customers choose to pay for their policy in full when they enroll in our vehicle protection. Others take advantage of our no-fee payment plans.
We split up the cost of your coverage into 12 to 18-month payments and do not charge any fees or penalties.
When your policy is for 5-years, paying it off in 1 and ½ means youre payment-free for the remaining 3 and ½ years. Besides the deductible, if your policy is paid off, thats all you pay.
Instead of just Waiting to see if something goes wrong, protect your investment with extended vehicle protection. You cant make payments on a repair, so lock in your affordable price and payment plan today!
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What Does The Average Extended Car Warranty Cost
Like car insurance, extended car warranty costs are personalized and vary from driver to driver. Based on the quotes our review team has collected, an extended car warranty can cost anywhere from $1,300 to $4,600, with the average cost being around $2,600.
Prices vary so widely because there are many factors that can influence costs, such as the plan type and contract length you choose. The contracts included in the data above ranged from three-year terms up to seven-year terms and included bumper-to-bumper and powertrain warranties. You can see a breakdown of costs for each type of coverage below.
Toyota Warranties For Used Cars
Toyota offers similar levels of coverage for used cars as it does for new cars, but there are eligibility variations.
Any used Toyota less than 9 years old with fewer than 150,000 miles on the odometer is eligible for Platinum and Gold protection, but the plans may only be purchased at the time of vehicle sale.
Powertrain protection is available for models younger than 12 years old and with fewer than 150,000 miles and also must be purchased at the time of vehicle sale.
Toyota Vehicle Service Agreement terms are shorter for used vehicles. To learn how to choose the right extended warranty for your used Toyota, click here. The longest period your car may be covered for is five years or 60,000 miles.
Certified pre-owned vehicles from Toyota are eligible for Toyota Certified Protection, as long as they have a Toyota Certified Vehicle Limited Powertrain Warranty and their car is less than six years old with fewer than 85,000 miles on it.
Toyotas protection plans should not be confused with factory warranties, which cover your car up to a certain mileage or year owned. Toyotas come with bumper-to-bumper coverage that lasts for three years or 36,000 miles, and powertrain coverage lasts for five years or 60,000 miles. An extended warranty is designed to kick in after these warranties expire.
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How Much Does A Ford Extended Warranty Cost
There is no clear-cut answer to this question, but we do see an average in the industry. Based on our research, an extended warranty can cost anywhere between $1,600 and $4,500 for three to six years of coverage. The average is about $2,862.
While there isnt a universal pricing table that the manufacturer or third-party companies follow, its easy to know what the prices are based on. The following factors affect the cost of an extended warranty:
- Condition of your vehicle: The older your vehicle and the higher the mileage, the more you can expect to pay.
- Coverage type: If you choose comprehensive coverage, you will pay more than you would with just a powertrain warranty.
- Deductible: The higher your deductible, the lower your premium will be. Just remember that you will need to pay that deductible any time you have warranty work performed.
- Vehicle type: If you drive a luxury model or sports car, you will pay more for your warranty because the parts for your vehicle cost more.
Disadvantages Of An Extended Car Warranty
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How Do I Find The Best Deal
If you’re buying a pre-owned car from a dealer, it is more than likely that you will be offered a warranty deal through them. These are often competitively priced and can be a really good option, although it’s always worth comparing the offer with other providers. As a general rule, the larger the dealership, the better placed they are to negotiate good deals for their customers.
If you are buying privately, you’ll need to do your homework and compare warranties from a range of providers. Good advice to follow might be:
- use an online car warranty comparison website to get a feel for the market
- consult independent experts like the AA, RAC and Which?
- make sure you look carefully at the warranty package details – are you sure you’re comparing like with like in terms of levels of cover?
- look at the ‘extras’ like breakdown cover and car hire allowances
- think about whether you need to be covered abroad – the best providers offer European cover as standard
- look very carefully at what is and isn’t covered, taking particular care with words like ‘betterment’ and ‘consequential damage’
- be prepared to ask plenty of questions – a phone call can make all the difference
- read customer reviews
Negotiating An Extended Warranty
Dealers mark extended warranties up from the wholesale cost as they do with many products they sell. But this actually leaves you room for negotiation.
Begin by getting quotes from at least two sources. Call local dealerships, speak with the finance and insurance managers, and ask what they charge for the extended warranty that you’re interested in buying. Dealers quote different prices, but once you have a few answers, you’ll know roughly what the going rate is.
At this point, you can either take the lowest offer or venture into more advanced negotiations. If you decide to go the latter route, said Oren Weintraub, president of L.A. car concierge company , the most effective negotiating method is to get a realistic estimate of the dealer’s cost of the warranty and then offer to pay $100-$200 over that. Weintraub negotiates warranties on behalf of his clients.
He describes how he does this in our article on the secrets of negotiating an extended warranty. The dealer will likely make a counteroffer. “A fair profit margin for dealers is between $200 and $500 over their cost,” Weintraub said.
Here’s another tip: When they’re selling extended warranties with new cars, dealers often talk about the overall monthly payment for the deal, not the cost of the warranty itself. To know exactly what you’d be paying, ask for an itemized cost of everything involved in the vehicle purchase, including the specific cost of the extended warranty.
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How Much Does An Extended Warranty Cost
An extended car warranty costs between $1000 and $4000 in total. This range varies so widely because there are numerous factors that factor into determining how much the specific cost you will pay. Along with these factors, the information below contains information about the specific car warranty costs you can expect with an extended warranty:
What Is A Car Warranty And Are They Worth Paying For
All new cars come with a warranty that lasts at least two years. The majority of manufacturers then top this up to three years. Hyundai shook things up in 2001 with a five-year/unlimited mileage offering that was soon imitated by its sister company Kia with a seven-year/100,000-mile warranty.
Others have followed suit, including SsangYong, though you need to beware – sometimes a manufacturer will offer an extended warranty as an incentive rather than it being a permanent offering.
Once the manufacturer’s warranty runs out, you have several options. The first is to sell the car, take a hit on depreciation, buy a new one and benefit from the manufacturer’s warranty.
The second is to do nothing and cover the costs out of your own pocket. This is a bit of a lottery, sometimes you’ll get lucky and nothing will go wrong other times you’ll be left with a big bill. Good luck if you go down this route…
Then there are manufacturers’ extended warranties. These can be on the pricey side and aren’t always available on all models.
Which is where warranty specialists such as MotorEasy*, *, Warranty Wise and ALA – provided by the RAC* come in. These companies offer warranty cover for most makes and models and usually undercut main dealers. Shop around for the best cover, but make sure that you’re comparing like-with-like as what is covered in a warranty varies from company to company.
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What Does A Used Car Warranty Cover
You might assume that used car warranties would cover any repairs that aren’t obviously down to wear and tear . But when we’ve analysed several third-party warranties in the past, we’ve discovered terms, conditions and caveats aplenty, all designed to limit when the provider has to pay out.
The reams of small print can be baffling and contradictory. For example, if a warning light prompts a trip to the garage and a fault is discovered, your warranty may not cover it. But if you ignore the warning and let the part break, this can invalidate your claim a catch 22 and one of several confusing examples we came across.
Our A-Z of terms and conditions further down the page should help you decode the lingo.
Unlike used car warranties, car insurance is a legal obligation. Read ourcar insurance companies reviewsto find the top insurers.
Types Of Car Warranties
Buying a new or used car will impact the types of warranties available to you. All the types of warranty listed here are included in the price of the car and start the day you purchase the vehicle. Authorized dealers are expected to honour them even if you did not buy the vehicle from the location.
Here are the most common types of car warranties for new vehicles:
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What Are Extended Car Warranties
First of all, extended warranties are service contracts, not warranties as defined by law, according to the Federal Trade Commission . A warranty comes with the car, offers a promise to fix certain defects during the warranty period, and is included in the sales price. A service contract simply lists the things that the other party will fix, what you’ll pay for the contract, and other fees.
Your first job is to see whether your car’s warranty will cover the same things as the service contract does. In addition to the traditional three-year bumper-to-bumper warranty, which covers most things on a vehicle, most new cars also have a power train warranty that covers the car’s transmission, engine and drivetrain. Typically, a power train warranty lasts longer than a bumper-to-bumper warranty. Hyundai and Mitsubishi, for example, offer 10-year/100,000 power train warranties Cadillac offers a six-year/70,000 power train warranty.
If you’re buying a used car, the car may still have a manufacturer’s warranty. You can find out by looking at the buyer’s guide posted on a side window. If the car still has the manufacturer’s warranty, you don’t need the service contract.
How Does A Third
Most people will first become aware of a manufacturer-derived extended warranty when they are sitting at the dealer showroom and getting ready to acquire their car. They may be offered this product and told they can roll it into their final purchase price.
Coverage will vary from manufacturer to manufacturer with some, such as Acura, offering a true extension of the original bumper-to-bumper warranty for a certain number of years or up to a maximum mileage, whichever comes first. Its very important for the consumer to think carefully before purchasing a product like this, however, and to compare both the coverage and the cost to a third-party provider, such as Protect My Car.
Many extended warranties provided by the factory have strict eligibility requirements. The consumer may be required to take the vehicle in to specific dealer facilities for repairs, and they may find that coverage is limited to certain components, with a long list of exclusions. The details are usually set in stone, so the buyer will need to accept the offer as is, with no options available.
On the other hand, extended warranties offered by companies like Protect My Car will typically come with a variety of coverage options and will also have additional benefits like rental car coverage and roadside assistance. The owner may be able to choose a policy that offers maintenance elements as well, such as tire rotations or free oil changes and partner rewards that can be traded in at retailers nearby.
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Much Depends On Your Ability To Pay For A Major Repair And The Status Of The Original Warranty
by John Waggoner, AARP, May 10, 2021| 0
En español | You may have been getting calls lately about your extended car warranty. Of course, you don’t have one, so the . But there are such things as legitimate extended car warranties and you can buy them. If you have a tight budget and an unreliable car, a warranty might be worth the money. In many cases, however, you can do without one.