Yes, dealers do make money off of warranties they sell. But the grocery store makes money off of the can of soup you bought too..... and it is a much larger profit margin. I would call you crazy to buy a $60,000 piece of machinery and not insure it for your protection. Cars now-a-days are mostly computers and you are going to sit it in the sun, and cold and then be !Removed! at your dealer when something goes wrong and you have to fork out $2500. Tire and wheel might not be for you, but I would not listen to the people saying dont buy extended warranties.... you probably did for your cell phone, why not your $60,000 car?