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October 03, 2006

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I just completed the purchase of a car and have a piece of advice...don't forget to investigate extended warranties, both manufacturer and third-party, before you finalize your car purchase.

Determine if you want one and decide which one is best for you. If you are going to buy the one the dealer is offering, negotiate the cost of the warranty (it is negotiable) after you have agreed on the price of the car but before you have finalized the sale. Otherwise, you will end up in the "business office" having committed to buy the car, and finding yourself having to make an uninformed decision about warranty without any bargaining power.

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