Is an extended warranty worth it ?

[shadowgray396]

Looks like people have had good and bad experiences with them.

[RBeckman]

I'll tell you how dealerships make money. And I'm for people making a profit but a little at a time...LOL

I just traded in my perfect conditon 2009 Saturn VUE Redline with 49K on it and they offered me 12K for trade in after I told them I needed 15K (which was at the low end per the KBB) for it and I got up and started to walk out, they stopped me and asked me again what I needed and I said 15K and not one penny less....they looked at it again (1/2 hour later) and said 14K. I was done at that point, and then they said ok that they would take the loss to sell me the new Escape at 35K. Within 2 days (It was in perfect condition, they did not even have to wash it) the VUE was on the lot for $18,900 and sold that week....not sure what is sold for but I imanage it was in between 15K and 19K...so a profit was made.

Also, for example we make the Anti Braking Systems for a various vehicles and mfg and our selling price to them is about 80-90 dollars (at very little profit margin) and they are sold to the general public through the dealership at well over $500....I know the dealer does not make all that profit but someone is, and they don't even touch the part.

Oh yeah, I did buy the extended warranty but not a the price they were offering it for, they wanted $1600 and I told them I could get it online from another dealer for $1200 and we setteled on $1300.

Moral of story....do your homework before walking into the dealership and everyone wins.