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Extended warranty (service contract): do you have to pay it?

Found "Extended warranty (service contract)" on your car quote? Here is what it is, whether you have to pay it, and what to say to the dealer. Check your whole quote free: it stays on your phone.

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What it is

A contract that pays for some repairs after the manufacturer's warranty ends, sold by the dealer or a third party.

Do you have to pay it?

No. It is optional, the price is negotiable, and you can often buy one later. Read what is covered and who pays the claims.

What to say to the dealer

"I'll pass on the extended warranty today."

Before you sign

Ask for the out-the-door price in writing, with every line itemized. Compare it with other dealers, and don't sign until the buyer's order matches what you agreed.

Related fees

Sources

  1. FTC: Auto warranties and auto service contracts