Dealerships push these contracts because they are high-profit items, often with markups of 30% to 50%.
Despite the odds, there are scenarios where a contract makes sense: buying extended warranty on new car
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 you aren't just paying the $1