I Sold Cars for 15 Years — The Truth About Extended Warranties

The extended warranty is the highest-margin product in the finance office. The dealer's wholesale cost for the contract is forty to sixty percent of what they charge you — and one in three buyers who files a claim gets denied because of exclusions they never read. In this video David from Auto Insider, a former car salesman and finance manager with fifteen years inside franchise dealerships, explains exactly what the extended warranty is, what it does not cover that most buyers assume it does, how much the dealer actually paid for it, and what to do instead. This video is for educational purposes only and is not financial or legal advice. Consult a qualified professional before making any decisions about your specific situation.