Is An Extended Car Warranty Cost Worth The Price?

I often get asked by my clients if an extended car warranty cost is worth the price.

In answering this question day after day, I thought this may benefit some of you, who may have had the same question cross your mind at one time or another.

Below are some ideas and facts to think about that can help you decide if an extended car warranty cost is worth the price for you.

Did you know that the car you are driving today has more electronics and computers than the first space shuttle had? That means there are more things that can go wrong or break down. We are all aware that vehicle repairs are expensive and usually happen after the manufacture warranty has expired.

It seems that your car knows when the manufacture warranty runs out because the next day, it usually starts to act up or break down. If you are going to keep you car beyond the manufacture warranty, then you'll definitely see it is worth buying the extended car warranty. The extended car warranty cost will soon pay for itself after getting one or more repairs. This is especially true since you can get your car repaired immediately, instead of having to wait to save the money for the repair.

Something else to think about when you are considering an extended car warranty cost.

Do you have the money to pay for a major repair should your car break down? If you don't have it, then it can make a lot of sense to get an extended warranty. I find that most of my clients don't have a clue to how much repairs can cost now days.

Keep in mind the prices below are only averages. The exact price of repairs depends on the make and model of your vehicle and how severe the problem is.

Average Cost of Repairs:

Transmissions: $1,500 to $6,900
Replace an engine: $3,500 to $21,500
Engine Management System Computer: $1,000 to $3,000
Air Condition Compressor: $1,500 to $2,580
Cooling Fan: $350 to $900
Fuel Injectors: $800 to $1,100
Seat Track Motor: $400 to $650
Steering Gear: $850 to $3,100

This gives you some idea to what repairs can run today. When you drive there is always that "what if" factor. What if something breaks down?

The debate of whether an extended car warranty cost is worth the money is a tricky one. Remember that the cost of repairing your vehicle is always on the rise. If you go to a repair shop today, you could end up paying anywhere from $60 to $110 per hour just for the labor. Having an extended warranty will cover all of the labor costs plus the parts.