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You Can Play Their Games

New-Car Warranties
There are basically two kinds of new car warranties:
l. The manufacturer's warranty specifically states what it covers and the length of time and/or miles that it applies.
2. The other new car warranty is provided by the selling dealer and is an "adjustment warranty." This is designed to cover smaller problems like rattles, leaks, alignment, noise, and other problems that develop within the first 60 to 90 days. You should ask about the length of the adjustment warranty and have the salesperson confirm, in writing, that these adjustments will be fixed free.

Extended Warranties
These are warranties or service contracts that purport to cover your car after the factory warranty runs out. Generally these warranties represent just another way for the dealership to make money. Some make a 50 percent or greater profit on each extended warranty sale. (As of publication of this book, dealers are not required to reveal the profit they build into these service contracts. This may change.)

If you read the fine print you'll find that most of the things that could or will go wrong after the manufacturer's warranty expires are not covered. In addition, many of these warranties have a deductible.

Take time to read all the fine print, even if it takes you a half hour. When ,you've read all the fine print, you might want to ask the salesperson if he or she really feels that their car is so poorly built that it needs this added coverage. You might even suggest that if the dealership has so little faith in the reliability of their vehicle, they should throw in the extended warranty free or that maybe you should reconsider the whole deal. Watch them try to squirm out of that one.
One other note: If you should decide to buy an extended warranty, make sure it's one that is backed by the factory. Avoid third-party warranties. All too often owners discover that third-party warranties end up offering no more value than the paper they're written on.