They will offer to fold the extra costs into your car payments. Here are a few thoughts on this controversial subject. There is also a high profit for the dealership. However Car salespeople and experienced service personnel have written to us saying that these warranties provide an important function. For a few extra dollars a month, they could have fixed the car and avoided a blemish on their credit record.
Extended warranties bring peace of mind to some people.
But rather than buying one from the dealership, consider purchasing one for a fraction of the cost from an independent company. These are sold only at dealerships. While they may cost more than the aftermarket warranties, factory warranties are easier to use and are accepted at all authorized dealerships. Remember, while warranties are expensive, they are negotiable, and if you have the misfortune to need an expensive repair, such as a transmission replacement, they are well worth it. Furthermore, if you are leasing a vehicle for three years, it will be covered by the manufacturer's warranty for the entire time.