The "Backend" Product

Extended Warranties

"The Finance Office" is actually a sales office. This is where they make the real money.

Should You Buy It?

The Simple Version

Usually, NO. Or at least, not from the dealer, and not today. Extended warranties sold at the dealership are marked up by 200% or more. You can buy the exact same warranty online for half the price later.

The Setup: You have finished negotiating the price of the car. You are tired. You just want to sign the papers and go home.

You enter the Finance Manager's office. He is nice. He asks about your family. Then he turns his screen to show you a scary chart about how expensive modern touchscreens and sensors are to replace.

The "Payment Packing" Trap: He won't tell you the warranty costs $3,000. He will say: "It's just an extra $40 a month to protect your investment."

The Math: $40/month x 72 months = $2,880. Plus, you are paying interest on that $2,880 for 6 years!

The Secret: The dealer likely bought that warranty policy for $900. The rest is pure commission for the Finance Manager.

Action: Say This

Memorize this line or read it off your phone.

THEM

"This coverage is only a few dollars a day. Can you really afford a $4,000 repair bill?"

YOU

"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 typically have until the factory warranty expires (3 years / 36k miles) to buy an extended warranty. There is ZERO rush.

Shop Online.

Search for "[Brand] Care Warranty Online." There are dealers who sell genuine factory warranties online for $20 over cost just to hit volume bonuses. You can save $1,000+ instantly.

What's Next?

Nitrogen Scam

Another fee to refuse

Battle Plans

Step-by-step buying guides

Negotiation Scripts

How to decline in F&I

Calculators

Compare loan costs