What is one advantage of offering a customer an extended warranty?

Offering a customer an extended warranty provides additional peace of mind, which is a significant advantage. This assurance can be especially beneficial for customers concerned about potential future repairs or mechanical issues after their standard warranty expires. An extended warranty often covers a range of potential defects and service needs, alleviating fears about unexpected costs and allowing customers to feel more secure in their purchase. This added layer of security can make the vehicle more appealing, as it helps customers feel they are protected against unforeseen circumstances, ultimately enhancing their overall buying experience.

The other options do not provide the same level of benefit to the customer. For instance, while an extended warranty may increase the initial price of the vehicle, this is not inherently an advantage—it may deter some customers who are sensitive to cost. Eliminating all service costs is an unrealistic expectation as warranties typically have exclusions and do not cover every scenario. Lastly, a warranty is generally intended to protect the vehicle's value rather than decrease it, making the notion of decreasing the vehicle’s resale value a disadvantage rather than an advantage.