Comment on "9 Rules No More"
In essence, an extended warranty is an insurance policy on your vehicle, a safeguard against expensive, unforeseen repairs. The term extended warranty is actually a misnomer, since, in the strictest sense of the word, these aren't warranties at all. Like auto warranties, they cover repairs and/or regular maintenance for an agreed-upon period of time. True warranties, though, are included in the price of the product; extended auto warranties are really service contracts, since they cost extra and are sold separately.
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Comment on "9 Rules No More"
Some dealers do mark up their prices over the suggested retail of an extended warranty plan. Just like additional dealer markup (ADM) on vehicles, the difference is that ADM is posted on the vehicle. 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. Why not try to negotiate a better price on the extended warranty, just like you did on the vehicle? After all, you are an Edmunds.com reader.
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