Go directly to the "Used Car Warranty Options Guide"
Go directly to the "Yes or No Decision Guide"


How To Calculate The Cost Of A Used Car Warranty Sold By Dealerships


Have a ?
Need Advice?

If offline - leave a message.


Want to know how to Lower your Car Insurance Costs?  Then check out the 12 1/2 Simple Steps to Slashing your Car Insurance Costs by almost 54%....forever - no matter where you live, your age or your driving record


Interested in Knowing How to Get The Lowest New Car Prices the 1st time, every time?  Then make sure you see the simple trick the Largest Companies in the U.S. use


See The Best & Worst Lists for 2005 - 2006 Cars, Trucks, Vans & SUV's listed on the middle of this page


Wouldn't it be great if you had an idea what Used Car Dealers paid for the warranties they sold....and what they plan on charging you?

Well, I believe I can show you that.

It's really just simple math.  The actual dealer cost and anticipated sale price of a Used Car Warranty can generally be calculated as a percentage of the selling price.

I can't give you an exact price, but I can certainly give you a better idea of what to expect.

Here's an example of how a used car warranty is priced.

Say you're thinking about purchasing a 2002 Ford Taurus and you're considering a warranty - let's say a 4 year, 48,000 mile offer.

The average retail selling price for the 2002 Ford Taurus is just under $10,000.

The sale price on the warranty will be 8% - 12% of the selling price - meaning for a low mileage Taurus the sale price for the warranty will be $800 (8%) and for a high mileage Taurus the warranty sale price will be $1200 (12%).

And the Dealers actual Cost?  In almost all situations, the actual cost of the used car warranty will be half of the selling price.

In the case of the Taurus we're using as an example, the actual cost to the Dealer is between 4% and 6% of the selling price or, $400 to $600.

So there you have it.  A simple way to calculate what a used car warranty costs, and the profit the dealer can make selling you that warranty.

Make sure you use this information when you're negotiating the price of a Manufacturers Extended Car Warranty.  It should save you a considerable amount of money.



What Used Car Warranties You Should Consider.....And What Warranties You Should Avoid


I want you to be very, very careful when shopping for a used car warranty.  There's a lot of fly-by-night companies out there today and many folks aren't getting their repairs paid for.

Here's a question I get asked all the time is - What makes one used car warranty better than another?

I have two answers to that question....

One, does the warranty you're looking at cover engine damage due to over-heating.

And two, does the repair bill get paid by the Warranty Company before you leave the repair shop.

Most used car warranties (even many manufacturers) don't cover over-heating and in my opinion don't qualify as a true warranty.  If the warranty you're considering will pay for damage associated with overheating, it's a good one.

And if you're considering a warranty that requires you to pay for a major repair and then reimburses you at a later date....avoid that warranty like it's a plague.  You're just asking to be left out-in-the-cold.

When you're shopping for a warranty, you typically have 3 options.  They are:

1. A Manufacturer's backed Warranty sold by a Dealership
2. A Non-Manufacturer (Aftermarket) Warranty sold by a Dealership
3. A Used Car Warranty backed by an Insurance Company

With the Manufacturers Warranty sold by Dealers, you're pretty safe.  You're vehicle gets repaired by Pros and the Warranty is solidly backed.

The only real issues I have with manufacturer-backed warranties is the way they are sold and whether or not they cover over-heating.  Dealers can essentially charge whatever they want, or....whatever they can get from an unsuspecting buyer.

Here's an example of what can happen - I recently spoke with a young lady in Alabama that ended-up paying more than $2,100 for a used car warranty....and didn't even realize it.

The Dealer had hidden the amount in the contracts and she never caught the total figure they were charging her.  Since Manufacturers don't police their Dealerships very well, Dealers will continue to charge whatever they believe they can get away with.

Make sure you remember to read what's covered (over-heating must be covered), know what the Dealer paid for the warranty and what a fair profit is for the Dealer.

A recent development regarding used car warranties are non-manufacturer warranty products, or aftermarket warranties, sold by Dealerships.  These products are usually sold to dealers by small companies which many times have limited financial resources to honor any warranty claims.

So, why would a Dealer push a used car warranty from a small "aftermarket" company, you ask?  It's simple - Money.

Dealers can make a lot more money selling these warranties because the profit levels are significantly higher than those offered by the the Manufacturers.

If the Dealer is offering a used car warranty from an outside company, make sure you pass on it.  You're asking for trouble if you don't.

A third option for used car warranties offered and backed by Insurance Companies.

They can be a very good option - but you have to be very selective and very careful with any choice you make.  Over the years, I've heard numerous horror stories about car owners spending tremendous amounts of money - only to have the Warranty Company deny a claim.

The first thing I recommend you do is check with your Car Insurance Company to see if they offer a warranty for a used car purchase.  If it meets your mileage and time needs (4 years - 48,000 miles for example), isn't to expensive, covers over-heating and pays for any repairs before you take your car home - think about purchasing it.  That warranty is usually going to be a good choice.

If your car insurance doesn't offer a warranty, there are perhaps 20 or so large companies that can help.  However, more than 75% of these companies have negative ratings or complaints on file with the Better Business Bureau.  Always check the BBB first to make sure you're dealing with a quality company.

One company I highly recommend is Warranty Direct & their used car warranty coverageThey typically have the lowest-cost warranty coverage's available, and they:

- Let you use the Repair Facility of your choice
- Pay the Repair Facility before you leave
- Give you Free 24x7 Roadside Assistance
- Offer an EZ Pay Financing Plan
- Have been in business for more than 24 years (long before the Internet);
- Serve almost 2 million customers;
- Offer 5 different levels of warranty coverage to meet whatever needs you have
- Give a Money Back Guarantee
- Have a stellar record with the Better Business Bureau;
- Are a Forbes Top 200 Company
.

They keep their promises, answer the phone when you call and pay for your repairs - while you're still at the shop!

They offer two warranty coverage's for used cars, trucks, vans and suvs.  Basic coverage is offered through MajorCare Warranty Coverage while complete coverage is offered through SecureCare+ Used Car Warranty Coverage.

Overall, Warranty Directs Used Car Warranty Coverage is a very solid choice....and a company worth taking a look at when you're looking at purchasing a used car or truck.



Should You Spend The Money On A Used Car Warranty....Or Not?



Should you purchase a Used Car Warranty?  Great Question....one answer.

Absolutely....unless you're wealthy.

I want you to think of it this way.  You're purchasing a machine.  A used Machine.  And machines break-down.  It's that simple.

No matter how well the car or truck has been taken care of, the chance of major and very expensive repair stand at about 50%.  I don't like those odds....and neither should you.

If a major repair, say $2000, would seriously dent your budget, get a used car warranty.  It's an insurance policy worth investing in.



Words Of Wisdom


When considering a used car warranty, remember to take your time and review the Company and what is, and is not, covered by their warranty.  In particular, make sure over-heating is covered and repairs are paid for....before you take your car home.

We hope you enjoy your shopping experience and save some money with these tips and advice.

And do make sure you let us know what you end up doing - e-mail us at "warranty at mynewcarpurchase.com".











I do have an obligation to point out that not all Car Makers, Dealers, Salespeople, Insurance Companies and Banks are greedy or crooked.  This site is dedicated to honest Companies and their Professional Employees who've grown weary of the ignorant and classless giving the automotive related industry a black eye......a black eye that I feel is very close to being permanent.

By using these new and used car guides, I hope to be able to help you find the Best Businesses, and the Professionals that represent them, with very little effort on your part and help you....

Save More Money and More Time Than You Ever Have Before.

It is also my hope that these Companies and the Professionals that represent them will have more business than they can handle - a reward they justly deserve.

Thank you for visiting My New Car Purchase - and please take 5 seconds to or perhaps let a friend or relative know about us - Click here to send this page to a friend.

I guarantee that you will have an exceptional experience the next time you buy a car, van, truck or SUV - again, thank you for visiting this Web Site!

Tom O'Leary  - "A Concerned Dad....and Automotive Analyst"

New Car Purchase - Exceptional New Car Purchase Advice and Automobile Purchase Strategies for your next new car or used automobile purchase.

Feel free to e-mail me at: Tom at my new car purchase (no spaces) dot com - or take a few seconds to send a question or comment by Clicking here

P.S. Make sure you check out the My New Car Purchase Blog.

To see specific information on how to have the best new car purchase you've ever had, click on the My New Car Purchase links listed below.








home :: auto loans guide :: auto purchase research guide :: bad credit auto loans advice :: buy a new car :: buying a new car :: car buying online :: live deal online auctions :: car dealers scams :: car donations :: car lease terms :: lease or buy :: auto lease payments :: used truck prices :: car lease shopping checklist :: used truck dealers :: car lease faqs :: auto lease contracts part 1 :: used truck sales :: auto lease contracts part 2 :: blank auto lease contract :: buy used cars :: what happens on delivery day :: car insurance guide :: car insurance quotes :: driving records :: gap insurance :: cheap-auto insurance :: sell my car part 1 :: sell my car part 2 :: auto bill of sale :: beware used car sales :: sell used car form :: bogus one-time truck sales :: auto & truck trade-in values :: used car prices :: new car purchase selection guide :: used truck loans :: test drive :: car dealers :: buying a car :: new car purchase pricing guide :: sell used car :: new car prices :: find used car dealers fast :: get more than the used car history :: new car quotes :: how to get the cheapest car insurance rates :: the four best car insurance companies In The U.S. :: new car pricing organizer :: car accessories :: used cars bible :: discount tires :: car care guide :: car audio :: car rims :: auto parts :: the trucks, pickups & 4X4's bible :: free credit repair guide :: truck accessories :: truck parts :: truck tires :: truck tool boxes :: truck prices :: truck caps :: truck bed covers :: truck bed liners :: trucks for sale :: suv bible :: suv accessories :: suv tires :: top 4 choices for car & truck financing :: ebay auto parts auction :: save on your auto parts :: ebay motors guide :: used trucks bible :: ebay motors auto auctions :: ebay luxury auto auctions :: auto warranty guide :: best used car warranties :: auto purchase and delivery :: car dealers and fees :: dmv web sites :: your guide to a new or used car, van, truck or suv :: new car purchase blog :: affordable car seat covers :: guide to car leases :: guide to online auctions :: car rebates guide :: guide to new car loans :: new car sales :: nhtsa :: cars for sale :: personal credit reports :: lowest rates on used car loans :: pricing advice for large retail items :: temp tags and other problems







Best & Worst Picks
 For 2006 - 2007
Cars, Trucks, Vans & SUVs

Best Picks for  2006 - 2007*




    NSX
    MDX
    RSX
    RL
    TL
    TSX
    A4
    A6
    TT
    5 Series
    6 Series
    325 Series
    330 Series
    X3
    7 Series
    X5 Series
    Z4
    Rainier
    XLR
    CTS
    SRX
    STS
    Corvette
    Monte Carlo
    SSR
    K1500 Silverado Pickup
    Avalanche
    K2500 Silverado HD Pickup
    K3500 Silverado Pickup
    Trailblazer
    Colorado Pickup
    Equinox
    Express Cargo Van
    Suburban
    Tahoe
    Pacifica
    Town & Country
    Crossfire
    PT Cruiser
    300 Series
    Viper
    Dakota Pickup
    Durango
    RAM 1500 Series Pickup
    RAM 2500 Series Pickup
    RAM 3500 Series Pickup
    Freestyle
    Five Hundred
    Mustang
    Thunderbird
    F150 Series Pickup
    F250 Super Duty Pickup
    F350 Super Duty Pickup
    Econoline Van
    Econoline Wagon
    Escape
    Excursion
    Expedition
    Explorer
    Ranger Pickup
    K1500 Sierra Pickup
    K2500 Sierra HD Pickup
    K3500 Sierra Pickup
    Savana Cargo Van
    Yukon
    Canyon Pickup
    Envoy
    Yukon XL
    Pilot
    CR-V
    Accord
    Civic
    Element
    Odyssey
    S2000
    Ridgeline
    H2
    Santa Fe
    Tucson
    FX
    G35
    Q45
    QX56
    S-Type
    X-Type
    Grand Cherokee
    Liberty
    Wrangler
    Sedona
    Sorento

    LR3
    Range Rover
    ES330
    GX470
    RX330
    SC430
    GS300
    GS430
    IS300
    LS430
    LX470
    Aviator
    LS
    Navigator
    Town Car
    MPV
    Tribute
    Mazda 3
    Mazda 6
    Mazda Truck
    Miata
    RX-8
    CLK Class
    E-Class
    SLK-Class
    C-Class
    CL-Class
    M-Class
    S-Class
    SL-Class
    Mariner
    Montego
    Monterey
    Cooper
    Altima
    Murano
    Maxima
    Pathfinder
    Titan
    Armada
    Quest
    Sentra
    350Z
    Grand Prix
    GTO
    Vibe
    911 Carrera
    GT2
    911 Carrera 4
    911 Turbo
    Cayenne
    9-2x Series
    9-3 Convertible
    9-3 Series
    9-5 Series
    Vue
    xA
    xB
    tC
    Impreza
    Outback
    Outback Sport
    Baja
    Forester
    Legacy
    4Runner
    Highlander
    Sequoia
    Tundra
    Camry
    Solara
    LandCruiser
    Camry
    Celica
    Corolla
    Matrix
    MR2
    Sienna
    Tacoma Pickup
    New Beetle
    Golf
    GTI
    Jetta
    Passat
    Touareg
    V50
    XC90
    S60 Series
    V70 Series
    S40
    S80 Series


Worst Picks for 2006 - 2007*




    Audi A8
    Buick Century
    Buick LeCrosse
    Buick LeSabre
    BuickPark Avenue
    BuickRendezvous
    BuickTerraza
    Cadillac Deville
    Chevrolet Cobalt
    Chevrolet Aveo
    Chevrolet Cavalier
    Chevrolet Astro Passenger Wagon
    Chevrolet Impala
    Chevrolet Malibu
    Chevrolet Uplander
    Chevrolet Venture
    Chevrolet Astro Cargo Van
    Chevrolet Blazer
    Chevrolet Express Passenger Wagon
    Chevrolet Uplander Cargo Van
    Chevrolet Venture Cargo Van
    Chrysler Sebring
    Chrysler Sebring Convertible
    Dodge Caravan
    Dodge Magnum
    Dodge Stratus
    Dodge Neon
    Dodge Caravan Cargo Van
    Ford Crown Victoria
    Ford Focus
    Ford Freestar
    Ford Taurus
    Ford Freestar Cargo Van
    GMC Safari Cargo Van
    GMC Savana Passenger Wagon
    GMC Safari Passenger Wagon
    Hyundai Accent
    Hyundai Elantra

    Hyundai Sonata
    Hyundai Tiburon
    Hyundai XG350
    Isuzu Ascender
    Jaguar XJ-Series
    Jaguar XK-Series
    Kia Amanti
    Kia Optima
    Kia Rio
    Kia Spectra
    Land Rover Freelander
    Mercedes-Benz G-Class
    Mercury Grand Marquis
    Mercury Mountaineer
    Mercury Sable
    Mitsubishi Eclipse
    Mitsubishi Endeavor
    Mitsubishi Galant
    Mitsubishi Lancer
    Mitsubishi Montero
    Mitsubishi Outlander
    Pontiac Aztek
    Pontiac Bonneville
    Pontiac Grand Am
    Pontiac G6
    Pontiac Montana
    Pontiac Montana SV6
    Saturn Ion
    Saturn L300
    Saturn Relay
    Suzuki Grand Vitara
    Suzuki XL7
    Suzuki Aerio
    Suzuki Forenza
    Suzuki Reno
    Suzuki Verona
    Toyota Echo
    Volkswagen Phaeton


*Comparison Based on Price, Insurance Costs, Finance Costs, Repair Costs, Safety & Resale Values
Best & Worst Picks
 For 2006 - 2007
Cars, Trucks, Vans & SUVs

Best Picks for  2006 - 2007*




    NSX
    MDX
    RSX
    RL
    TL
    TSX
    A4
    A6
    TT
    5 Series
    6 Series
    325 Series
    330 Series
    X3
    7 Series
    X5 Series
    Z4
    Rainier
    XLR
    CTS
    SRX
    STS
    Corvette
    Monte Carlo
    SSR
    K1500 Silverado Pickup
    Avalanche
    K2500 Silverado HD Pickup
    K3500 Silverado Pickup
    Trailblazer
    Colorado Pickup
    Equinox
    Express Cargo Van
    Suburban
    Tahoe
    Pacifica
    Town & Country
    Crossfire
    PT Cruiser
    300 Series
    Viper
    Dakota Pickup
    Durango
    RAM 1500 Series Pickup
    RAM 2500 Series Pickup
    RAM 3500 Series Pickup
    Freestyle
    Five Hundred
    Mustang
    Thunderbird
    F150 Series Pickup
    F250 Super Duty Pickup
    F350 Super Duty Pickup
    Econoline Van
    Econoline Wagon
    Escape
    Excursion
    Expedition
    Explorer
    Ranger Pickup
    K1500 Sierra Pickup
    K2500 Sierra HD Pickup
    K3500 Sierra Pickup
    Savana Cargo Van
    Yukon
    Canyon Pickup
    Envoy
    Yukon XL
    Pilot
    CR-V
    Accord
    Civic
    Element
    Odyssey
    S2000
    Ridgeline
    H2
    Santa Fe
    Tucson
    FX
    G35
    Q45
    QX56
    S-Type
    X-Type
    Grand Cherokee
    Liberty
    Wrangler
    Sedona
    Sorento

    LR3
    Range Rover
    ES330
    GX470
    RX330
    SC430
    GS300
    GS430
    IS300
    LS430
    LX470
    Aviator
    LS
    Navigator
    Town Car
    MPV
    Tribute
    Mazda 3
    Mazda 6
    Mazda Truck
    Miata
    RX-8
    CLK Class
    E-Class
    SLK-Class
    C-Class
    CL-Class
    M-Class
    S-Class
    SL-Class
    Mariner
    Montego
    Monterey
    Cooper
    Altima
    Murano
    Maxima
    Pathfinder
    Titan
    Armada
    Quest
    Sentra
    350Z
    Grand Prix
    GTO
    Vibe
    911 Carrera
    GT2
    911 Carrera 4
    911 Turbo
    Cayenne
    9-2x Series
    9-3 Convertible
    9-3 Series
    9-5 Series
    Vue
    xA
    xB
    tC
    Impreza
    Outback
    Outback Sport
    Baja
    Forester
    Legacy
    4Runner
    Highlander
    Sequoia
    Tundra
    Camry
    Solara
    LandCruiser
    Camry
    Celica
    Corolla
    Matrix
    MR2
    Sienna
    Tacoma Pickup
    New Beetle
    Golf
    GTI
    Jetta
    Passat
    Touareg
    V50
    XC90
    S60 Series
    V70 Series
    S40
    S80 Series


Worst Picks for 2006 - 2007*




    Audi A8
    Buick Century
    Buick LeCrosse
    Buick LeSabre
    BuickPark Avenue
    BuickRendezvous
    BuickTerraza
    Cadillac Deville
    Chevrolet Cobalt
    Chevrolet Aveo
    Chevrolet Cavalier
    Chevrolet Astro Passenger Wagon
    Chevrolet Impala
    Chevrolet Malibu
    Chevrolet Uplander
    Chevrolet Venture
    Chevrolet Astro Cargo Van
    Chevrolet Blazer
    Chevrolet Express Passenger Wagon
    Chevrolet Uplander Cargo Van
    Chevrolet Venture Cargo Van
    Chrysler Sebring
    Chrysler Sebring Convertible
    Dodge Caravan
    Dodge Magnum
    Dodge Stratus
    Dodge Neon
    Dodge Caravan Cargo Van
    Ford Crown Victoria
    Ford Focus
    Ford Freestar
    Ford Taurus
    Ford Freestar Cargo Van
    GMC Safari Cargo Van
    GMC Savana Passenger Wagon
    GMC Safari Passenger Wagon
    Hyundai Accent
    Hyundai Elantra

    Hyundai Sonata
    Hyundai Tiburon
    Hyundai XG350
    Isuzu Ascender
    Jaguar XJ-Series
    Jaguar XK-Series
    Kia Amanti
    Kia Optima
    Kia Rio
    Kia Spectra
    Land Rover Freelander
    Mercedes-Benz G-Class
    Mercury Grand Marquis
    Mercury Mountaineer
    Mercury Sable
    Mitsubishi Eclipse
    Mitsubishi Endeavor
    Mitsubishi Galant
    Mitsubishi Lancer
    Mitsubishi Montero
    Mitsubishi Outlander
    Pontiac Aztek
    Pontiac Bonneville
    Pontiac Grand Am
    Pontiac G6
    Pontiac Montana
    Pontiac Montana SV6
    Saturn Ion
    Saturn L300
    Saturn Relay
    Suzuki Grand Vitara
    Suzuki XL7
    Suzuki Aerio
    Suzuki Forenza
    Suzuki Reno
    Suzuki Verona
    Toyota Echo
    Volkswagen Phaeton


*Comparison Based on Price, Insurance Costs, Finance Costs, Repair Costs, Safety & Resale Values




Copyright TS & Associates Publishing - My New Car Purchase.com - All Rights Reserved 2002-2007

Privacy Promise

By using this web site and related services, you accept the terms of our visitor agreement.

Text diplayed when image unavailable
[an error occurred while processing this directive]
Who has the lowest Interest Rates for Auto Loans?

Capital One Car Loans

America's Largest Online Lender Offering some of the Best Interest Rates available

Get your Loan Response in minutes and a Blank Check as soon as tomorrow
Our Top Pick For Car, Truck, Van & SUV Accessories

- Auto Anything -