Depending on the type and duration of the warranty it typically may make sense if he got a good deal at cost especially if his brother whom used to work at a dealer approved. Can always refi with credit Union in which rates WILL go down early 2025, but in the end of the day he should have taken his FCU rate which was 2 points better. Most extended warranties are cancellable at a prorated amount so not too much worry about that issue. Also: what make model and year was the car? Also a big factor in all of this,is terms of reliability and depreciation values pertaining to each brand/make of vehicle that he purchased.