Just before Christmas my Suburban died. I will spare you the mechanical diagnosis, especially since I don't understand it myself, but, in layman's terms, my Suburban made a kachunk-kachunck-kachunk sound.
While a new car does increase some of your costs it also reduces some and most importantly, gives you a better chance of having reliable transportation for a longer period of time with a manufacturer warranty to protect your financial risk of major repairs.
You're in final negotiations to buy a new car and the dealer is urging you to protect your $20,000-plus investment by purchasing an extended warranty (also known as a service contract). Are these costly add-ons worth the expense or simply a sucker bet intended to boost the seller's bottom line?