How much does the extended warranty cost the dealer?

[Leicesterdave]

..Out of interest and roughly on a VW polo?

[matc]

If it's for 12 months I would take a guess at £350-400 + VAT.

[Leicesterdave]

£400 is what it would cost me as a customer- surely it doesn't cost them anywhere near that much? They're going to throw it in as part of the deal!

[matc]

Leicesterdave said:

£400 is what it would cost me as a customer- surely it doesn't cost them anywhere near that much? They're going to throw it in as part of the deal!

Is it a proper vw warranty or just a third party one? A proper manufacturers warranty would cost them in the price bracket I mentioned above. If its a third party warranty it will probably cost them about £150-200 I would imagine.

They can be up to £1k for us to buy on a Mercedes, and that's dealer rates. However we have to put one on every car we sell, it sounds like its optional on your purchase?

[Shambler]

most dealers make between £30 to £100 commission on Warranties

[matc]

Shambler said:

most dealers make between £30 to £100 commission on Warranties

Franchise dealers don't make any on manufacturers backed warranties. They will if the sell an AutoProtect or AA gold policy.