Once you know your rights, you should speak to the financial department of the dealership or a general manager. If a dealer refuses to cancel your extended warranty, check your contract’s cancellation policy to clarify your rights. What do I do if my dealer refuses to cancel my extended warranty? However, cancellation terms may differ so we recommend reading the cancellation policy in your warranty agreement. In most cases, you have the right to cancel a dealership extended warranty at any time and must receive a prorated refund for unused portions of your contract. What are my rights to cancel a dealership extended warranty? You can also take your vehicle to an independent auto shop or a different car brand’s dealership, but repairs likely won’t be covered. Yes, you can take your car to any dealership connected to your automaker for warranty services. Can I take my car to a different dealer for warranty service? ![]() Customers who buy a dealership extended warranty with a low deductible will be more willing to bring their car to the service department for repairs, which increases the profit a dealer will make for the life of the car. Why do car dealerships push extended warranties?ĭealerships lean on selling extended warranties because of how profitable they are. There are many affordable third-party providers such as Olive, CarShield, and Endurance that we recommend when searching for the best value. Several factors affect overall prices, but the average extended car warranty cost is about $2,800. What is a fair price for an extended car warranty? Many drivers find value in the peace of mind that a dealership warranty offers, but some find the lower cost and customizable options of a third-party warranty more appealing. Your decision to buy a dealer extended car warranty should be based on the type of coverage you want and what you’re willing to pay. Should I buy an extended car warranty from the dealer? Depending on the length of the warranty, there’s a chance that it could expire before you’ll need any repairs done. Poor return: Dealership extended warranties take effect almost immediately, which means that you may be paying for a warranty well before you need to use it.While you may be able to negotiate with the salesperson, these fees and add-ons are usually set in place and can’t be altered as easily as with a third-party warranty plan. Fees and unwanted add-ons: A dealership warranty can come with additional fees and unnecessary add-ons.This results in paying interest on your warranty along with your car, making your purchase more expensive. Higher interest rate: When you accept an extended warranty offer from a dealer, your warranty payments may be combined with your regular monthly auto payment.Any deals you’re offered during your car purchase may make warranty pricing seem more reasonable as well, and you may be offered a reduced down payment.Īlso take the time to look over some of the disadvantages of buying a dealership warranty: Convenient for car buyers: Buying an extended warranty at the same time as when you purchase your used or new vehicle eliminates the need to search later on.Manufacturer’s warranties also remove the hassle of paying for services upfront and having to be reimbursed later. Benefits: Dealership warranties offer an array of benefits like roadside assistance and rental car reimbursement.You’ll gain access to high-quality service from licensed dealerships that employ factory-trained technicians and use factory parts. Reliable coverage: Buying a manufacturer-backed extended warranty from a dealership can give you more comprehensive coverage than one backed by a third party.Pros Of Dealership WarrantiesĬonsider the pros of dealership warranties to determine if it’s the best option for you: Our team has put together a few of the pros and cons of buying an extended warranty from a dealership to help you make an informed decision. If you’re offered an extended warranty when purchasing your vehicle at the dealership, it can be difficult to know what type and length of coverage you need, as well as how much it should actually cost.
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