Much like gap coverage in my previous post, extended warranties are another item delears will try to sell you when you sit down to sign the final papers.  You may find that an extended warranty is important to you and would like to buy one, but one of your many car buying questions will be, “should I buy it from the dealer.”  If you do not need to finance the extended warranty and can pay for it out of pocket, then the answer to that question is no you should not buy it from the dealer.  Generally dealers will charge more for extended warranties so they can make more money.  If you do a bit of research you will find you can buy the same warranty from the same place the dealer gets them for half the price.