Average Extended Warranty Costs
Comprehensive bumper-to-bumper coverage is more expensive, often $2,000-$4,000+ total.
The overall average cost for an extended car warranty is around $2,500-$3,000 total.
Basic powertrain warranties tend to be cheaper, averaging $1,000-$2,000 total.
Average Extended Warranty Cost – Dealership vs Online Providers
- Dealership warranties tend to be significantly more expensive, sometimes 2-3 times the cost of third-party options.
- Online providers often offer more flexible and affordable plans.
- The average annual cost across all providers is around $1,000 per year of coverage.
- Costs vary widely based on factors like vehicle make/model, age, mileage, and coverage level.
- Luxury and high-performance vehicles have much higher warranty costs from both dealerships and third-parties.
- Many third-party warranties allow monthly payments, while dealerships may require full upfront payment.
- Dealership warranties may offer more comprehensive coverage but at a premium price.
| Model | Make | Online Provider | Dealer Price |
|---|---|---|---|
| Altima | Nissan | $1,306 | $2,735 |
| F-150 | Ford | $1,404 | $2,891 |
| Grand Cherokee | Jeep | $1,439 | $3,132 |
| Sentra | Nissan | $1,322 | $2,861 |
| Explorer | Ford | $1,439 | $3,132 |
| Accord | Honda | $1,292 | $2,606 |
| Malibu | Chevrolet | $1,520 | $3,119 |
| Escape | Ford | $1,374 | $3,073 |
| Mustang | Ford | $1,345 | $2,844 |
| Wrangler | Jeep | $1,404 | $2,891 |
| Impala | Chevrolet | $1,439 | $3,132 |
| Silverado 1500 | Chevrolet | $1,404 | $2,891 |
| 330i | BMW | $1,795 | $3,564 |
| Rogue | Nissan | $1,322 | $2,861 |
| Civic | Honda | $1,292 | $2,606 |
| Corolla | Toyota | $1,292 | $2,606 |
| Rover Sport | Land Rover | $2,913 | $4,994 |
| X3 | BMW | $2,014 | $3,962 |
| Forte | Kia | $1,345 | $2,884 |
| Journey | Dodge | $1,439 | $3,132 |
| Sonata | Hyundai | $1,345 | $2,844 |
| Enclave | Buick | $1,520 | $3,119 |
| Cherokee | Jeep | $1,345 | $2,844 |
| Equinox | Chevrolet | $1,404 | $2,891 |
| Soul | Kia | $1,345 | $2,844 |
| Murano | Nissan | $1,404 | $2,891 |
| Acadia | GMC | $1,404 | $2,891 |
| CR-V | Honda | $1,322 | $2,861 |
| S-Class | Mercedes-Benz | $2,913 | $4,994 |
| Durango | Dodge | $1,404 | $2,891 |
| Sierra 1500 | GMC | $1,404 | $2,891 |
| Pacifica | Chrysler | $1,439 | $3,132 |
| Charger | Dodge | $1,439 | $3,132 |
| RAV4 | Toyota | $1,322 | $2,861 |
| Edge | Ford | $1,404 | $2,891 |
| Challenger | Dodge | $1,594 | $3,167 |
Read more on is purchasing a warranty for a used car at dealership always a bad idea?
Factors Affecting Extended Car Warranty Cost
Several factors influence the cost of an extended car warranty, including:
Deductible: The deductible, which is the amount you pay out-of-pocket before the warranty covers repairs, can influence the overall cost. A higher deductible typically lowers the premium.
Vehicle Age and Mileage: Older or higher-mileage vehicles generally have higher warranty costs due to the increased risk of mechanical problems.
Coverage Level: The level of coverage you choose will impact the price. More comprehensive warranties covering a wider range of components will be more expensive.
Provider: Different providers offer varying prices and coverage options. It’s essential to compare quotes from multiple companies.
Term Length: The length of the warranty coverage will affect the cost. Longer terms generally result in higher premiums.
Hidden fees to watch out for with dealership extended warranties
- Markup on the warranty price. Dealerships often mark up the cost of extended warranties significantly compared to what you could get directly from a third-party provider.
- Interest charges if the warranty is rolled into your auto loan. This increases the total cost over time.
- Deductibles that you have to pay out-of-pocket for each repair visit. These can range from $0-$200 or more per visit.
- Exclusions and limitations on what’s actually covered. Many extended warranties have long lists of parts and repairs that are excluded.
- Administrative fees for processing claims or paperwork.
- Cancellation fees if you decide to cancel the warranty early.
- Transfer fees if you want to transfer the warranty to a new owner if you sell the car.
- Inspection fees that may be required before coverage begins on older vehicles.
- Surcharges for high-mileage vehicles or certain makes/models deemed higher risk.
- Upsells for additional coverage options or “protection packages” that may not be necessary.
To avoid hidden fees, it’s recommended to
- Carefully read the full contract and understand all terms before purchasing
- Ask about and negotiate any fees beyond the base warranty price
- Compare prices from third-party warranty companies, not just the dealership
- Consider paying for the warranty separately rather than rolling it into your auto loan
- Understand exactly what is and isn’t covered before buying
- The key is to be vigilant about all potential costs beyond just the advertised warranty price. Getting quotes from multiple providers can help identify hidden fees.
Tips for Choosing an Extended Car Warranty
- Compare Multiple Providers: Get quotes from several reputable providers to find the best deal.
- Read the Fine Print: Carefully review the warranty contract to understand the coverage limitations, exclusions, and any additional fees.
- Consider Your Driving Habits: If you drive a lot or in harsh conditions, an extended warranty may be more beneficial.
- Evaluate Your Financial Situation: Assess your budget and determine if you can afford the premium.
Ultimately, the decision to purchase an extended car warranty depends on your individual needs and circumstances. By understanding the average cost and factors affecting the price, you can make an informed choice that best suits your situation.
Extended auto warranty financing
Cost: The cost of the warranty is added to the total amount financed, so the buyer pays for it over time with their monthly loan payments. This can make the cost feel less significant, even though it may be more in the long run.
Financing options: Some manufacturers offer 0% APR financing on extended warranties. Banks may also offer 0% APR for a set period of time on the remaining warranty cost.
Potential savings and cost factors for extended warranties
| Category | Potential Savings | Cost Factors |
|---|---|---|
| Bumper-to-Bumper | Highest potential savings, covers most repairs | Highest premium cost |
| Powertrain | Moderate savings, covers major components | Lower premium than bumper-to-bumper |
| Drivetrain | Savings on transmission, driveshaft, axles repairs | Lower cost than full powertrain coverage |
| Corrosion | Savings on rust and corrosion damage repairs | Generally lower cost, depends on location |
| Manufacturer Warranty | Factory-trained technicians, OEM parts | May be more expensive than third-party options |
| Third-Party Warranty | Often cheaper than manufacturer warranties | May have more flexibility in coverage options |
Potential average savings with extended warranty
| Repair | Cost without warranty | Cost with warranty |
|---|---|---|
| Ignition coil | $200 – $400 | $0 – $100 (deductible) |
| Alternator replacement | $500 – $1,000 | $0 – $100 (deductible) |
| AC condenser replacement | $600 – $1,100 | $0 – $100 (deductible) |
| Oil pump replacement | $1,000 – $1,500 | $0 – $100 (deductible) |
| Catalytic converter | $1,000 – $2,500 | $0 – $100 (deductible) |
| Radiator replacement | $700 – $1,200 | $0 – $100 (deductible) |
| Transmission replacement | $4,000 – $8,000 | $0 – $100 (deductible) |
| Engine replacement | $4,000 – $10,000 | $0 – $100 (deductible) |
| Fuel pump replacement | $400 – $1,000 | $0 – $100 (deductible) |
| Suspension strut replacement | $450 – $900 per strut | $0 – $100 (deductible) |
*Note: Data was accurate at the time of publication.
