July 4 -- There has always been a question about the value of buying an extended warranty on an automobile. Most consumers don't realize that they can negotiate the price of an extended warranty, which makes them big-profit items for dealers.
But the game is changing. One of the big insurance companies that backs thousands of Smart Choice extended warranties sought protection from its creditors.
Now, some dealers say they aren't being reimbursed and are paying for customer repairs out of their own pockets.
Some finance companies have stopped financing extended warranties as part of the purchase price of a vehicle. That will hurt sales.
Not all of the extended warranty programs are in trouble.
But you can bet that there will be investigations.