If your car’s factory warranty is about to expire or if you are buying used, then you should think about an extended car warranty. These plans cover repair costs when the original warranty has expired. But are car warranties really worth it when compared to actual cost to repair? Let’s take a look.

When Factory Warranties Expire

After a new car warranty expires, all repair and maintenance problems are paid for out of your pocket. If you are lucky, you won’t have many problems. However, a car with an expired factory warranty is an older car, and mechanical problems are more likely. At CARCHEX our proprietary data shows that warranties may actually save you significant amounts of money when compared to paying for repairs on your own.
>Real Life Example

With data we collect regarding actual warranty claims we can compare the costs. For example, a 2010 Audi A4 2.0 T Premium carries an average 5 year repair cost of $5,515. The cost of a CARCHEX warranty with exclusionary coverage (best available coverage plan) costs $4,745. This means you save $770 over the true cost to repair.

Get a free online warranty quote from CARCHEX now.

Repairs Cost Money

No matter what, auto repairs have to be paid for. This can happen out of pocket or under warranty protection. The example above is just an average. The beauty of an extended protection plan is that even if you have above average repair problems, the repairs are still covered under the warranty terms at no extra cost. Even with plans that have a deductible, you could end up saving thousands of dollars in repair costs.

The Reality Without A Warranty

If you are not covered under warranty, you are basically on your own. Who are you going to call for roadside assistance? What about a rental car while repairs are being made? With an extended auto warranty, you get roadside assistance and rental car benefits. These factors are not included in the comparison numbers, meaning you can save even more.

Think Of It As Pay As You Go

The other advantage of an auto warranty is that you can pay as you go. In the example above, the monthly payments of $197.71 are reasonable. Many people would rather pay monthly instead of getting stuck with a $2000 repair bill all at once. This also makes household budget planning easier since your car maintenance costs are well defined.

Or Pay It All Off Now

Other people like to pay for the entire warranty plan up front, in-full. This gives you peace of mind since your car repairs are covered no matter what your economic future holds. If you have the cash available, this might be the best option for you.


Looking at the numbers, an extended auto warranty can be a great way to save money on car repair costs. Add in the security and convenience, and you have a very solid argument in favor of extended warranty coverage.

Get a fast, free online extended warranty quote from CARCHEX today.

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