The Real Cost of Going Without an Extended Auto Warranty

by Gregory Nelson

At DCI Warranty Services, we deal directly with mechanics all day everyday. We know the games they like to play. In fact, if you have a repair that isn’t covered under your extended auto warranty, we can usually negotiate the rate lower on your behalf so you don’t get ripped off. How is that possible? It’s called Purchasing Power – because of the amount of business we bring to each car repair center, we can use our relationship to negotiate better rates for our extended auto warranty customers.

So if you think you can’t afford an extended auto warranty, think again. You can’t afford not to have one because you could end up paying more dealing directly with mechanics and repair shops.

Just look at the table below and you can see the typical cost per major car repair. When you car breaks down and you don’t have an extended auto warranty, is it really worth the aggravation of haggling with mechanics or worrying if they’re overcharging you?

Component

Current Cost

Cost in 5 Years

A/C System

$900

$1322

Brakes

$1050

$1525

CV Joints

$350

$515

Electrical System

$525

$794

Engine

$2400

$3254

Fuel Injectors

$1025

$1471

Instrument Cluster

$250

$392

Oxygen Sensor

$536

$692

Power Steering System

$950

$1456

Radiator

$380

$495

Suspension

$450

$686

Transmission

$1700

$2738

*More than 1/3 of all vehicles experience one or more failures in a given year. In fact, the average vehicle service contract holder will make 4-5 claims over the life of their contract. Hourly labor rates currently average over $80 nationwide. With the complexity of today’s vehicles combined with today’s labor rates, one repair can often cost more than a warranty itself. Additionally, the risk of component failure and associated repair costs increases with your vehicle’s age and mileage. Often owners put off needed repairs until they can afford the cost of the repair – often resulting in additional damage to the vehicle, additional repair costs, and unsafe driving conditions. – Data provided by American Auto Shield

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