Extended Car Warranties For Used Cars

Extended Car Warranties For Used Cars – Editor’s Note: This content was researched and compiled by an expert review team. The links in this article may earn us a commission, but do not affect our advice or recommendations. More information

Dealership warranty plans are usually add-ons sponsored by automakers that include various repair services at approved dealerships for a specified period of time.

Extended Car Warranties For Used Cars

Brogan is a senior writer based in Central Oregon. He produces comprehensive auto product guides on topics ranging from car warranties and insurance to tips on selling a car.

When Is The Best Time To Buy An Extended Car Warranty? Find Out!

Best coverage 4.6/5 Chosen by 82% of readers* who purchase a warranty. Coverage: 6 plan options, from routine care to full coverage Cost: Multiple discounts available Reputation: Smooth claims experience as a direct provider

Best monthly payments 4.5/5 Coverage: 6 plan options, some up to 300,000 miles Cost: Flexible monthly contracts Reputation: Most popular warranty provider

Best for used cars 4.4/5 Coverage: 6 package options, highest similar to manufacturer’s warranty. Costs: No down payment required Reputation: Strong Better Business Bureau (BBB) ​​rating

Dealer warranty programs offer significant coverage and often offer similar benefits to third-party service providers. Be careful not to overlook auto loan markups, add-ons you don’t need, and insufficient coverage.

Laws Of Buying A Used Car From A Dealer

You may also have noticed that extended warranties from dealers can be more expensive than those from third-party companies. This might have made you wonder how much money dealers make on warranties and whether the dealership’s extended car warranty is worth it. Below we give the answers to these questions.

Our goal is to provide car owners with the well-researched information they need to make informed decisions about car warranties. Our editorial team consists of experienced automotive researchers, writers and editors who follow strict guidelines to ensure our articles are impartial and fact-checked.

To compile our product reviews and rankings, our team constantly evaluates dozens of warranty companies to compare plans, coverage, costs, customer service and transparency. We verify the quality of each service provider through our hands-on research process. More than 1,500 hours of research have gone into analyzing past customer reviews and the best providers of mystery shopping to gather quotes for different plans. We’ve also surveyed 2,000 extended warranty customers to find out what matters most to consumers when purchasing a warranty. Finally, to gain first-hand knowledge of the products, our team purchased five warranty plans from separate providers to test each company’s coverage levels and claims process.

Dealer warranties are extended auto warranties backed by the manufacturer that cover manufacturing defects in your vehicle. Like most vehicle protection plans, dealer warranties do not cover wear and tear damage. This type of extended protection can be purchased from almost any authorized dealer of your car manufacturer. An extended warranty is beneficial for a number of reasons, and in our 2022 customer survey, these were the most common answers to why customers purchased an extended warranty.

Is Extended Warranty On Cars Worth The Money?

When you’re offered an extended warranty when you buy a vehicle from a dealership, it can be difficult to know what type and length of coverage you need and how much it should actually cost.

Our team has put together some pros and cons of buying an extended warranty from a dealership to help you make an informed decision.

Dealerships make significant money from aftermarket sales, which include sales of intermediate insurance, auto products and accessories, and extended auto warranties. Each warranty plan sold by a dealer can add up to $2,000 per purchase to your bottom line. For example, if you buy an extended warranty for $2,000, the dealer can make up to $1,000 in profit.

Additionally, when you purchase an extended warranty from a dealer, dealers make money over the life of your vehicle’s service contract because you are more likely to bring your car to their service department when you need your car repaired or replaced.

Should I Buy An Extended Warranty?

Since dealerships make a significant portion of their profits from aftermarket sales rather than new cars, they expect to be the primary source of your extended car warranty. Dealers want to make buying a car as easy and efficient as possible, so they try to sell you warranties based on convenience and accessibility.

But dealers often mark up the prices of their extended warranties because sales are so lucrative. Since the cost of a dealer warranty is likely to be more expensive than a third-party warranty, it’s worth evaluating other options on the market.

It can be difficult to determine whether the added benefits and reliable coverage of a dealer warranty are worth its higher costs. Dealer warranties offer unique advantages in terms of convenience and quality service, but you also run the risk of not really benefiting from an extended warranty.

Many drivers find the peace of mind that comes with knowing their vehicles are covered in the event of a mechanical failure well worth the price of a dealer warranty. For many drivers, it can also be good to be in touch with your dealership when it comes to breakdowns and maintenance.

Should I Get An Extended Car Warranty

To make your decision, consider the type of coverage you want, the average cost of repairs for the car you’re buying, and possible add-ons and fees. Also explore the average cost, types of coverage and benefits offered by third-party providers for extended warranties.

While dealer warranties are expensive, they can provide more extensive coverage than other options. The dealer warranty also offers a convenient way to maintain the car, as it can be done at any car manufacturer’s dealership.

Whether this type of warranty is right for you depends on whether you find the benefits to be worth the extra cost. We encourage you to shop around and compare options to find the best deal for your situation.

To help you compare dealer warranties with third-party vehicle maintenance contracts, our team reviewed and ranked the best extended car warranty companies. We’ve highlighted three reputable providers below to help you compare extended warranty plan options.

Understanding Extended Warranties: An Insider’s Guide

As one of the largest third-party extended warranty companies on the market, Endurance offers multiple coverage options for car owners and is Gold Level Certified by the Vehicle Protection Association. Our team gave Endurance a 4.6-star rating for excellent customer service, positive reviews, reasonable costs, and quality coverage options. Another factor that makes Endurance stand out is that it is a direct warranty provider, meaning they pay repair shops without a middleman, making claims processing easy.

All Endurance protection plans include benefits such as 24/7 roadside assistance, rental car compensation and free Endurance Elite benefits for a year. As a member, you can get up to $1,000 for a replacement vehicle with full damage coverage. You also have the option to add additional services to your chosen warranty plan.

A reputable extended car warranty company that offers six levels and has excellent customer reviews. It’s our pick for the best coverage and our top pick for extended warranty providers.

This relatively new digital extended warranty company offers three coverage options that last up to 3 years/185,000 miles. Olive is subscription-based, which means you can cancel the extended warranty plan at any time. The company has an A+ rating from the Better Business Bureau (BBB) ​​and 4.7 stars on Google.

Understanding Extended Car Warranties For New And The Used Cars By Gp Warranties

Olive offers warranty coverage that ranges from a basic transmission plan to a full maintenance plan that excludes. Each also has three deductible options — $100, $250 and $500 — giving customers nine price points to choose from.

CarShield offers six types of extended warranties on both new and used cars, with some plans offering coverage up to 300,000 miles. The company has affordable monthly payments starting at around $100, making it a popular choice among buyers looking for a budget-friendly warranty plan.

Some of the benefits of an extended warranty with CarShield include the ability to choose a certified repair shop of your choice, 24/7 roadside assistance and transferable vehicle maintenance contracts. Our team gave the company a 4.5 star rating and we think they deserve CarShield’s comprehensive coverage and low prices.

Your decision to purchase a dealer extended car warranty should be based on the type of coverage you want and what you are willing to pay. Many drivers find that a dealer warranty offers value for peace of mind, but for some, the lower costs and customization options of a third-party warranty are more attractive.

Extended Car Warranty On Used Cars — Is It Worth It?

A number of factors affect overall prices, but the average cost of an extended car warranty is around $2,800. There are many affordable third-party providers such as Olive, CarShield and Endurance that we recommend when looking for the best value for money.

Dealerships rely on selling extended warranties because they are profitable. Customers who purchase a low-deductible extended warranty from a dealer will take their car to the service department for more repairs, which increases the profit the dealer makes over the life of the car.

Yes, you can take your car to any car manufacturer affiliated dealership for warranty services. You can also take your vehicle to an independent auto shop or another auto shop

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