New Car Dealerships
Do new car dealerships make money from selling extended warranties?
Yes dealerships make money on extended warranties. The amount depends on the dealership. We have a set amount of profit on each warranty sold at our dealership so the customer is not gouged. The choice to buy one is a dificult one. The fact is that on most cars something breaks within five years. Just to pull your car into a dealer's service department costs the customer around $90.00 and that's only to open the hood. Some simple repairs can cost over $500.00. It's easy for someone to say that they are a rip off but those people arent going to help you pay for a costly repair if you need one. For every person that doesn't believe in extended warranties there is someone that swears by them. Only you can choose weather you need one or not. When it comes down to it they are an insurance policy on your investment. Every type of insurance is a gamble.
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Can Dealer Void Car Warranty by install of remote starts, etc? by ENORMIS of Erie, Pa