Everything at the dealership is negotiable, even the extended warranty price. While there may be guidelines on how to chisel the customer, I mean, what to charge the customer, you should never, NEVER believe anything anyone working at the dealer tells you. Never take anything at face value from any car dealer. They're not all dishonest, they're not all crooks, but their goal is to get as much money out of you as possible.
When I bought my brand-spanking new 2002 Chevy, I was so tired of the BS car buying negotiation process that I just caved in and bought $3000 worth of extended warranty. I found out later, that the going rate, the fair market price for it, was more like $1200. Luckily, I could cancel that purchase in 30 days, and I did. They don't call 'em the "car stealerships" for nothing.
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