One misconception most people have is believing they must buy an extended warranty at the time they purchase a car. This is not true, I will show you how to find reputable online auto warranty companies and properly request free no-obligation extended auto warranty price quotes for any car, truck, or SUV.
Table of Contents
One of the biggest mistakes people make is buying an extended car warranty based on price alone. Just because a warranty is cheaper does not necessarily mean it’s the best warranty for you.
Purchasing a cheap policy from a fly-by-night company may save you a little bit of money now, but may end up costing you plenty when you have to file a claim in the future. Some of these companies may not still be in business for you to file a claim with.
How some warranty providers offer a cheaper price:
When you call the customer service line to some of these “cheaper” companies you get a rude customer service rep ready to give you the fight of your life if they answer the phone at all!
Some of these rogue warranty companies may call you on the phone, email you, send you a cheap postcard, or an official-looking letter in the mail offering cheap coverage. You must be careful with these types of companies and review them thoroughly. We advise avoiding them altogether.
Must-Read Guides and Resources
When a warranty provider sells their extended service contracts too cheap and the customer claims start to roll in, something has to happen. The first thing the warranty company does is makeup excuses to deny or reject your repair claims over minor technical issues, this is the only way for the company to stay afloat.
Always research before buying coverage from a warranty provider. Check to see if there’s any information about the company with the Better Business Bureau, Web Assured, and/or the Vehicle Protection Association.
The companies AutoCheatSheet.com recommends have a long-standing history and are listed with one or more of the companies above. If there’s no information about the warranty company with these sites, their policies are most likely not worth the paper they’re printed on.
“Select the right coverage for your driving needs”
When selecting a warranty, make sure you get the coverage that meets your individual driving needs. You will also want to select the coverage that’s important to you, but don’t over-spend by selecting coverage that you will never need.
See more car buying tips
Car dealerships make large profits when selling extended warranties to car buyers. A policy that costs a dealer $800 can be marked up to a retail price of $2,500 or more, that’s a profit of $1,700 from the sale of just one extended warranty.
Let’s say a dealership sells 300 cars a month and only half (150) of those people bought an extended warranty. Now let’s be conservative and say each customer only paid $2,000 per warranty. 150 X $1,200 (profit) = $180,000 in just one month on warranty sales. It was not a bad month for that dealer.
I’m not faulting the dealer for making money, that’s why they do what they do. I just want to give you an idea of why you should explore all your alternatives when it comes to buying an extended warranty from a car dealership. It never hurts to shop around.
My advice is to not roll the cost of a warranty into your car loan. If you have the means to pay for your extended warranty separately, do it. We understand that some people are unable to pay for it separately. If you’re unable to pay cash for it, you may want to use a low-interest credit card.
If you qualify for a subvented rate such as 1.9% you may want to roll it into your car loan. Just be sure you read everything. But again, our advice is to pay cash for it or put that amount of money down on top of what you’re already putting down towards the vehicle.
Your goal is to not over-pay for the car warranty. Depending on the total price you pay for your extended service contract will determine how much you will add to your car loan payment.
Below is an example of the amount of money that will be added to your monthly payment if you roll your extended warranty into a 60-month car loan at a 5% annual interest rate (APR).
| How an extended warranty affects your payment | |||
|---|---|---|---|
| Warranty Cost | Interest Rate | Added to Payment | Total Warranty Price |
| $1,000 | 5% | $18.07 | $1,084.20 |
| $1,250 | 5% | $23.59 | $1,415.40 |
| $1,500 | 5% | $28.31 | $1,698.60 |
| $1,750 | 5% | $33.02 | $1,981.20 |
| $2,000 | 5% | $37.74 | $2,264.40 |
| $2,500 | 5% | $47.18 | $2,830.80 |
Rolling your extended warranty into a car loan at 5% interest or more will tack on even more in interest charges over a 60-month term. Online warranty companies such as Complete Car Warranty and Endurance Vehicle Protection have payment options as low as 0% interest and can be spread out over time so you don’t have to pay the high-interest rates dealers charge you. When shopping for extended warranties, take your time, prepare yourself, and comparison shop to save yourself some money.
View more insider car-buying tips
Most online automotive extended warranties are cheaper and more affordable than what you will find at a dealership. Also, the warranties these companies offer are more comprehensive, provide a higher level of protection, and include more benefits than what a dealer has to offer.
I recommend using third-party extended warranty companies such as Complete Car Warranty or Endurance Vehicle Protection. These companies will provide you with an extended warranty, legally named extended service contract, with equal or better coverage at a lot cheaper price than what a dealer will charge you.
These companies also allow you to submit your vehicle’s information and receive free, no-obligation price quotes. No games, no gimmicks, just straight-up coverage options from top administrators within the industry so you can decide on which coverage is best for you. You can use these free quotes to leverage yourself when negotiating a warranty with a dealership.
Why do we like these companies over the rest out there? Simple, they have longevity in the business, they’re backed by large reputable insurance providers, and have some of the greatest benefits to our readers. Here are just a few of the benefits you will find:
It’s very easy to request new and used car extended warranty quotes from the companies we recommend. You can take advantage of these free; no-obligation quotes to comparison shop and use them as leverage when negotiating the price of an extended warranty while at a car dealership.
“Competition will always get you the best price”
I’ve provided a direct link to each extended warranty company we recommend below. Click on each companies link and it will take you to their trusted website. You will be asked to fill out a little information about yourself and the vehicle you’re requesting a warranty price quote on.
Make sure you provide your entire email address when submitting a quote (example. [email protected]) Submit your information and you will have your free warranty quotes and coverage options on your computer immediately. If you don’t receive an email immediately, you probably entered something wrong, give it a few minutes, check your “junk folder” or just try again.
Complete Car Warranty offers free no-obligation quotes and a broad range of coverage. Get full protection for up to 60% off of dealer prices when you go direct.
Visit Complete Car Warranty Now >>
Endurance Vehicle Protection offers a 30-day money-back guarantee. They are the direct administrator and obligor so you can rest assured, there’s no middleman involved.
Olive Mechanical Breakdown Insurance offers a quote in 60 seconds, easy monthly payments, cancel anytime and you can manage 100% online. No robocalls and no human interaction are required.
After you receive your quotes, review them and pick the best one that fits your driving needs. If you’re having a hard time making a decision or need help selecting which coverage is right for you. Contact a customer service representative for each company and/or read our section on the extended warranty selection process.
Remember, it’s not necessarily the cheapest priced warranty coverage that’s right for you; you’ll want to find the best value for the money. Once you pick the plan that’s right for you, print it out and keep it with you for when you visit the dealership.
You can use your quotes as leverage to negotiate an even better price when dealing with the dealership’s finance department. If the dealer won’t come down on the price of their products, just go with the one with the best protection that fits your driving needs.
Finance managers are normally paid a couple of different ways when it comes to selling extended warranties. One way they get paid is a percentage of the profit they make on each warranty sold.
The other way is on the total number of warranties they sell for the month. This is called “warranty penetration” and is great information to know when it comes time for you to negotiate.
More insider car buying advice
