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How to expand warranty

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In a YouTube tutorial, Alejandra explains the breakdown of extended warranties, highlighting that 12% typically covers the probability of an item breaking. The majority of the money goes towards salaries, overhead, profit, and marketing fees. For example, if you buy a $1500 extended warranty for your car, the dealership likely makes $700, and the average repair cost is $180.

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What are the types of extended warranty?

Basic Warranty. Also known as bumper to bumper coverage, this is standard on new vehicles. Dealership Warranty. Car warranty types also include coverage from a dealership. Adjustment Warranty. Extended Warranty. Powertrain Warranty. Rust and Corrosion Coverage. Emissions Warranty. Statutory Warranty.

What is covered under car warranty?

What Does a Car Warranty Cover? A car warranty covers defects or damage that occurs during regular use and cant be considered normal wear and tear. It pays to replace defective parts with new or reconditioned parts at the companys discretion behind the warranty. It also covers labor.

What is an example of an extended warranty?

Extended Warranty Overview Most warranties can be extended for a reasonable cost. An example of a common extension is the limited labor warranty extension from one to ten years.

What is a downside to purchasing an extended warranty?

Con: They Are More Expensive When Purchased Later The best prices, though, are when the vehicle is new. In addition, with a few miles on the odometer, you will command a top deal. For new cars, the service contract will not kick in for several years, usually near the time the original warranty expires.

What is the meaning of extended warranty?

Extended warranties are policies that extend the warranty period of consumer durable goods beyond what is offered by the manufacturer. It covers the cost of replacement or repair of the product, if it is caused due to a manufacturing defect or poor workmanship. Prerequisities.

What does extended warranty mean?

Extended warranties are policies that extend the warranty period of consumer durable goods beyond what is offered by the manufacturer. It covers the cost of replacement or repair of the product, if it is caused due to a manufacturing defect or poor workmanship. Prerequisities.

What are the types of car warranties?

There are two main types of car warranties: the manufacturers warranty and the extended warranty. Contracts within these categories do vary to some degree, however. For instance, one manufacturers warranty may cover more parts, for longer, than a competitor.

What is an extended warranty on a vehicle?

An extended warranty covers all or some of the cost of certain repairs after the standard factory warranty expires. It may also cover other items such as dent repair, key replacement, and the like. Extended warranties are primarily intended for buyers who plan to own their car beyond the manufacturers warranty.

What does the extended warranty cover?

The primary purpose of an extended warranty is to cover major mechanical repairs. This can include the engine, transmission, drivetrain, electrical system, and more. More premium extended warranties will also cover the cars entertainment system, like the radio and GPS, and the climate control system.

What are the disadvantages of an extended warranty?

Con: They Are More Expensive When Purchased Later The best prices, though, are when the vehicle is new. In addition, with a few miles on the odometer, you will command a top deal. For new cars, the service contract will not kick in for several years, usually near the time the original warranty expires.

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