Dealerships push these contracts because they are high-profit items, often with markups of 30% to 50%.
If you roll the cost of the warranty into your auto loan, you aren't just paying the $1,500 to $3,000 sticker price; you are also paying interest on that amount for years, significantly increasing the total cost. When It Might Be Worth It buying extended warranty on new car
From a purely statistical standpoint, extended warranties rarely pay for themselves. you aren't just paying the $1
Surveys by Consumer Reports have shown that more than half of owners with these plans paid more for the coverage than they ever received in repair benefits. 500 to $3