The buy-back clause makes getting a warranty a more financially acceptable situation for many people who are considering the purchase. Check also to see if the policy is transferable, as this is an excellent selling point if you decide to get rid of the vehicle before the extended warranty policy expires. Obviously, price is an important factor in all of this, but you should remember that you can add the price of the warranty contract in with the financing of the vehicle, in most states, to help spread the cost out over the length of your vehicle loan. When you are looking at another couple hundred dollars to go up to the next level of coverage it works out to a very small increase in your payments. Consider the best plan that you can reasonably afford.
Some dealers do mark up their prices over the suggested retail of an extended warranty plan.
You never know when the dealer is giving you suggested retail or their own higher price for a warranty. It's best to ask them straight out, then double check prices with another dealer. Keep in mind that a vehicle purchase is one of the bigger investments you make. Even though it is a bit of a gamble, purchasing an extended warranty plan that you never have to use can be worth the peace of mind it offers. What you spend in the short term will go a long way toward keeping your sanity if you are the person calling the tow truck while you are on vacation, stuck on the side of the road, with a broken gizmo .