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According to Motor1.com, the total cost of an extended warranty ranges from $2,000 to $5,000. The average annual cost is $1,330, or a little over $110 monthly.
Read about extended car warranties, see which car warranty is the best financial option for your vehicle, and learn how much an extended car warranty costs.
An extended car warranty cost varies from policy to policy, and the car you want to cover will have a lot to do with the cost of the warranty. Your quote will depend on a few factors, including ...
An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty on new items. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer. Extended warranties cost extra and for a ...
Whether an extended service plan is worth the extra cost depends on the item and the perceived value by the consumer. Basic service plans on desktop computers, for example, typically come close to the actual average repair cost of a system, with the retailer using the service plan as a way to keep the customer from going to a competing service center.
The dealer has the option of marking up the interest rate of the contract and retaining a portion of that markup. For example, a bank may give a wholesale money rate of 6.75% and the dealer may give the consumer an interest rate of 7.75%. The bank would then pay the dealer the difference or a portion thereof.
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