Extended Car Warranty Cost
Making sure your car has mechanical coverage is a great way to ensure that your car will get the repairs it needs in the event of a mechanical breakdown. The monthly cost of such a plan is affordable and can be seen as a much easier way to do a monthly budget than the “what if” approach. This can be done through your vehicle manufacturer in the form of an extended car warranty or via a vehicle service contract, which we will get into a bit more detail shortly. Let’s jump into an extended car warranty cost and how you could benefit from a vehicle service contract in its place.
What is an Extended Car Warranty vs a Vehicle Service Contract?
An extended car warranty is offered by the vehicle manufacturer and it is intended to extend the factory warranty the vehicle received upon original purchase of the vehicle in one way or another. Often these extended car warranties need to be purchased at the time of original purchase of the vehicle. Some manufacturers do offer used vehicle warranties for vehicles with a full history. Sometimes these warranties come with added benefits but they are often quite limited.
A vehicle service contract is offered via a third-party provider such as those found on the Chaiz platform. These plans often have better flexibility in terms and have greater benefits. The vehicle service contract offers coverage for your vehicle in the event of a mechanical breakdown. The parts covered are stipulated in each of the contracts and the deductible is often quite low. The added benefits are definitely a perk with the vehicle service contract as you will have access to a number of roadside assistance services that make the whole experience of breaking down a little more bearable.
Extended Car Warranty Cost vs a Vehicle Service Contract Cost
Extended car warranty costs are often not made public, though you can find a good deal of information on fan forums. Factors like the manufacturer, year of the vehicle, and the model will contribute to the end price. To get an accurate number you will need to contact your vehicle manufacturer to find out if they have any options and what those options might be for your model car. Costs can vary greatly depending on the vehicle, between $2,500 to $7,000 (total price) can be expected for most popular models.
Vehicle service contracts are most often priced similarly. For the most comprehensive coverage for a compact SUV looks like the following for popular providers:
- Supreme: 5 years/100,000 miles at 86.00 per month
- Titanium: 6 years/125,000 miles at $105.00 per month
- Diamond: unlimited miles at $99.99 per month
While Chaiz, being the first entirely online vehicle service contract comparison website, we are able to offer the same coverage with more flexibility, transparency, and at much better rates. For a similar vehicle you will be looking between $39 and $50 per month for the most comprehensive coverage. It is well within anyone’s means and provides the driver with peace of mind that you are totally covered in the event of a mechanical breakdown. Mechanical coverage has never been more affordable.
Should I buy a vehicle service contract?
Well, let’s take a look at how extended car warranties can benefit you. The plan provides protection against mechanical breakdowns as listed above and lends to saving you thousands in repair bills. Depending on what repairs are needed, bills can range from $200 to $4,000. The make and model also influence the cost of repairs and labor.
Vehicle service contracts prevent you from having to shell out thousands of dollars for repair bills. Mechanical breakdowns tend to happen in an unforeseen manner. This generally means you need to have sizable savings to be sure you can cover the repair costs. Bear in mind that you will still need to pay for any further services such as towing.
Overall there are a few good reasons to have a vehicle service contract, even outside of the savings aspect:
- Repairs on critical parts are covered
- If you travel frequently by car
- If you are buying a used car outside of warranty
- Option of added benefits
- Being prepared for inevitable mechanical problems
Chaiz is an online marketplace for third-party extended auto protection providers where information and rates are transparent. Offering you the chance to comfortably search for a warranty that is perfect for your model car and mileage usage.