24% Pay At Least $600 Above Dealer Cost For Auto Extended Service Contracts

You may be safest with an auto extended warranty backed by a car manufacturer like Ford or GM. If you choose this option, there are a few things to note:

• You do not have to buy the auto service contract at the dealership where you bought the car or where you plan to have it serviced
• You can often wait to buy the extended service contract just before the new car warranty expires or in some cases up to one year/12K miles from purchase
• Dealers make big markups on auto extended warranties

So it makes sense to shop around. A study has shown that 92% of customers paid at least $200 above dealer cost, 24% paid at least $600 above cost and 3% paid $900 above cost.

To make it easier for you to get a better deal on the auto extended warranties, CarBargains has put together a list of dealerships which had agreed to offer a fixed amount of markup on their plans. The markups range from $50 to $200. The dealerships include ones for Acura, BMW, Dodge/Chrysler/Jeep, Ford, General Motors, Honda, Hynudai, Lexus, Mercedes, Nissan, Subaru, Toyota and Volvo. The only problem is that these dealerships are probably not close to where you live. Most are in Maryland, California, New Jersey and Illinois. Even if you don't live close by, you can arrange by phone or by mail to purchase the extended warranty. At the very least, it can help you decide how much your local dealerships are marking up their cost.