Your Guide in Estimating the Cost of Car Warranty Before Buying a New Car
Well, it is that time again. You are searching on the Internet for a brand-new car. But, you want to create a guide so that you can gauge or estimate the total cost of a car warranty before purchasing the new car at the dealership. How can you approach this? There is a formula that is used to calculate the cost of a car warranty.
The Dealers Extended Warranty Formula is: Total MSRP or Manufactured Suggested Retail Price X 2.3% & Total MSRP X 3.5% = The dealer’s cost. Another way to calculate the dealer’s extended warranty is: Total MSRP X 4% & Total MSRP X 5.5% = Dealers wants you to pay in advance. It is in your best interest to use these two formulas when you are negotiating the extended car warranty cost. It will save the consumer a lot of money in the long run.
The car salesman adds his or her profit on the cost of the car warranty when they sell you the new car. Most car dealership attempt to sell the new car warranty at 60% higher than what they paid for the new car.
Average price for brand new car warranty
The average price for a new car warranty will cost $1,800 dollars with an excellent package and sales service. A new car engine will typically cost $3,400 along with a new air conditioning system, which will cost $1,100 alone without a new car warranty. Extended vehicle protection warranties are extremely helpful in covering the costs for consumers. Car buyers do not have to cover the costs of car items that break down in the new car.
There are several types of car warranties. There is a corrosion or rust warranty coverage, Powertrain warranty coverage, federal emission warranty coverage, roadside assistance warranty coverage, and basic bumper to bumper warranty coverage. Bumper to bumper car warranty covers everything in the car for 3 years with no cost to the car buyer. Tires are not covered in a bumper to bumper car warranty. Seat belts are covered for use, but not wear and tire.
Be aware of this when you purchase a bumper to bumper warranty. Headlights are covered, but if the service technician sees that there is moisture build up, new bulbs are not covered, and the new car owner has to shell out the cost.
Read this if you want to save some money
New car buyers can save a lot of money by following these steps. You can purchase a long-extended policy from a provider or an auto dealership. The downside of buying an extended car warranty from an auto dealer is that it is very expensive.
Another great way to save money is knowing when to purchase an extended car warranty for the new car that they want to buy for themselves or their family. Car buyers typically seek financial and insurance managers for an extended car warranty because they can pay for the coverage monthly without paying several thousand dollars at once from a dealership. Also, you can look for discounts if you served in the military or if you are a senior citizen.