The finance guy is there to make money for the dealer. Is it a GM extended warranty? Do they still offer it as Major Guard?
How much are they quoting? Usually there is a option after the sale of the vehicle to purchase it.
My last quoted prices were in the $2000 range.
If I bought an extended warranty for my last vehicle, a 2008 outlook, I would have thrown that money away because all my major work came after 100,000 miles. Even GM extended coverage to major items which many vehicles had the same issue, didn't help me, all my issues came after the extended coverage.
How long is the coverage good for? And you may even be able to negotiate the price of it.
The dealer also makes money on the financing of vehicles. And don't fall for all the extras, scotchgard, undercoating, nitrogen in the tires. pinstriping, and last but not least, window etching.
I bought one for my '88 Grand Caravan for $700. Had an AC compressor replaced under it - they claimed it would have been $700 (imagine that!). So for me, it was a wash - $700 up front or $700 later. BUT, I haven't bought one since and I wouldn't buy one again.
That being said, there's nothing wrong with "peace of mind," provided you're willing to pay for it. Because in most cases, it will cost you. That's how they make their money.
I recently just went through the debate. Bought our new premier redline on Saturday evening. Got back to the finance/business guy and he was trying to sell us this dealership bumper-to-bumper warranty for $2600. I told him no, we're good. He went out and came back like 5 mins later and offered us the GM extended bumper-to-bumper coverage for 60k miles for $990. I jumped on that as that didn't seem too unreasonable. Just makes me mad they try to sell the same one through their large dealership franchise for almost 3x that.
I have used my extended warranty twice. The first time was to replace the gas pedal which has a sensor in it. If the sensor goes out it powers down the vehicle and you can only go 25 mph. Basically just to get off the road and that's it. The cost of that was $300, I paid $100 deductible. I just got done fighting for two weeks to get my second repair done, which is the torque converter. (I am 2k miles away from 100k.) The cost for this is $2200, I'm paying $100 deductible. The cost for my extended warranty was $2200, which was added to the financing. I have a 2016 Traverse. In the past two weeks of this fight I have learned that yes the extended warranty is worth it. Before you decide to buy a new vehicle, look at your options for one. After I financed this vehicle I later found out from my credit union that they actually have an extended warranty available directly through them that I could've purchased that was a lot cheaper. My extended warranty is through Portfolio, which is a crappy company my service adviser has informed me. I also found out from a friend at a dealership in another state that most of the time the extended warranty revenue is the dealership owners "retirement fund" and they must approve the claims for repairs.