What should it cost? How do I know if I am paying a reasonable price for my extended warranty and not just giving a “middleman” additional profit?
Most dealership finance departments are profit centers. The company offering the extended warranty buys the plan from another company and then marks up the price of the plan. Added profits for each company means a higher price for you. You can save a tremendous amount of money on your extended warranty, without sacrificing the value of the plan. Select your extended warranty from a company that owns the contract and is ultimately responsible for the contractual agreement between you and the extended warranty company. Eliminating the middleman can save you up to 60 % off the price you would expect to pay at a typical dealership.
Most dealership finance departments are profit centers. The company offering the extended warranty buys the plan from another company and then marks up the price of the plan. Added profits for each company means a higher price for you. You can save a tremendous amount of money on your extended warranty, without sacrificing the value of the plan. Select your extended warranty from a company that has a long history in the service contract industry who has properly insured all future claims liability. Some so called “Low price” providers are backed by Risk Retention Groups that might not have the financial stability to insure that all claims will be paid in the future. Price is important but too low of a price can mean that not enough money is being set aside to pay tomorrow’s claims. With this in mind, you can still purchase from a quality provider, eliminate the middleman and save up to 60 % off the price you would expect to pay at a typical dealership.
