Know anything about the real price for new car warranties?

Someone in the car business recently told me the finance guys at the car lots get something like 40% for the extended warranty price as profit for them. I was told if the extended warranty is say for example $1,800, you can say you will only purchase it for $900. The finance guy probably will do the deal, because he still gets some sort of kick back for every extended warranty he sales.

What I really need to know is real world experience for working out a price for the extended warranty, and how much play you actually have.

If they say the extended warranty is x, should I say I will only pay 1/2 of x?

Thanks

Know anything about the real price for new car warranties?

Yes most warranties are marked up about $1000, and yes he may accept the lower offer, but he also may not, because his payplan may require him to average a certain amout of profit.

Example

avg$1000 profit and get 15%

avg$800 profit and get 12%

avg$500 profit and get 10%

so taking a lower price may actually cost him money(the % are not just for that 1 transaction but all money he earned for the month). The owner sets this payplan so that his finance manager does not give the produst away.

10 years in auto biz

Know anything about the real price for new car warranties?

You can offer anything you want to. It does not mean they will accept it. That is the beauty of living in a free country.