Beware of deductibles. You may be charged the deductible for every part repaired. If you buy direct, you avoid dealer markups. The dealer's business manager may make you feel like a fool if you don't buy an extended warranty, some unscrupulous dealerships may even insist upon it if you're financing the vehicle through them. Typically, the salesperson gets a flat fee and the balance of the profit goes to the dealer.
Salesmen can make more money selling extended warranties than they can selling cars.
That's why I can't recommend buying an extended warranty at the dealer. There are a lot of people making a lot of money selling inferior products. Inc. All rights reserved.