Extended Warranties
A warranty is a promise to cover repair costs if something breaks. New cars come with one from the manufacturer for a few years. "Extended" warranties add coverage beyond that—but dealerships mark them up massively. The "Finance Office" (where you sign paperwork) is really a sales office, and this is where they make their real money.
Should You Buy It?
The Simple Version
Maybe - but don't decide under pressure. Warranty pricing varies a lot, is often negotiable, and you can usually shop options outside the dealership. Focus on the car deal first, then decide on coverage separately.
Action: Say This
Memorize this line or read it off your phone.
"This coverage is only a few dollars a day. Can you really afford a $4,000 repair bill?"
"I understand, but I prefer to self-insure. If I decide I need coverage later, I will buy a manufacturer-backed plan online. I am declining all optional products today."
Quick Decision
Golden Rules for Warranties
You can buy it later.
You often can buy coverage later, but timing rules vary by manufacturer and provider. Don't let "today only" pressure force a decision.
Shop Online.
Compare multiple quotes (dealer, credit union, and third-party providers). Ask for the full terms: coverage, exclusions, deductible, cancellation, and transfer policy.