Is Buying an Extended Warranty Worth the Price Paid? [Opinion]

Extended warranties are rarely worth your money. Products don't break on their own, and when they do, the price of repairs is usually lower than what you'd spend on an extended warranty. ... But take a moment to ask yourself why a company would offer you an extended warranty. The answer is: because they're profitable.

1. Is it worth buying extended warranty?
2. Does it make sense to buy extended car warranty?
3. Can you negotiate the price of an extended warranty?
4. What does Dave Ramsey say about extended warranties?
5. How much should an extended warranty cost?
6. Can I buy extended warranty later?
7. Who has the best extended car warranty?
8. What does bumper to bumper warranty not cover?
9. What does Ford bumper to bumper warranty cover?
10. What is a fair price for an extended car warranty?
11. How much do dealers make on extended warranties?
12. How much should I pay for an extended warranty on a used car?

Is it worth buying extended warranty?

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.

Does it make sense to buy extended car warranty?

If you hope to keep your car for 10 years and it only comes with a three-year/36,000-mile warranty, you might consider extended warranty coverage for peace of mind for the first couple of years after your new car warranty expires. ... If you see low scores, that's a hint that an extended warranty might be a good idea.

Can you negotiate the price of an extended warranty?

However, you can and should negotiate the cost of any extended warranty plan. The finance manager will typically receive a commission for selling an extended warranty. When included as part of your vehicle purchase, the price offered may be the full retail price plus a considerable mark up by the dealer.

What does Dave Ramsey say about extended warranties?

Well, the worst thing about an extended warranty is that it is overpriced. ... In fact, about half of what you pay goes to the salesperson's commission.

How much should an extended warranty cost?

The average monthly payment for an extended warranty is around $1,200 to $1,500, but this can vary widely depending on the aforementioned factors. This is why it's important to do some research ahead of time on different providers and to get quotes.

Can I buy extended warranty later?

It is important to note that you have the option to purchase this auto warranty any time before the manufacturer warranty expires. You can even purchase an extended warranty after the manufacturer warranty expires, although the price will go up considerably.

Who has the best extended car warranty?

Top Reputable Extended Car Warranty Companies

What does bumper to bumper warranty not cover?

Aside from excluding certain parts, the bumper-to-bumper warranty also does not cover repairs or replacements to parts that have a limited life span – also known as “wear” parts. Those include air, fuel and oil filters, brake pads, windshield wipers, light bulbs and sensors.

What does Ford bumper to bumper warranty cover?

What is covered under Ford Bumper to Bumper Warranty? Ford Bumper to Bumper warranty covers 3 years or 60,000 km on all parts. All parts on Ford vehicle that fail during normal use due to a manufacturing defect in factory-supplied materials or factory workmanship.

What is a fair price for an extended car warranty?

Extended Car Warranty Cost

The average cost of an extended car warranty is $1,500. The exact price can vary widely between policies, however, usually falling between $1,000 and $3,000. There are several factors that affect how much an extended car warranty is going to cost.

How much do dealers make on extended warranties?

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.

How much should I pay for an extended warranty on a used car?

The price of coverage is dependent on which driver and which vehicle is applying for the coverage. Typically, the average extended warranty for used cars cost ranges from $350-$700 per year, but every person and policy is different.