If they can afford all the folks that I'm sure demand a pretty penny to advertise for them, it's an obvious warning sign. It's one thing for an extended factory warranty, they're operating on the same principle, that less will have to use it than those that will, but they have skin in the game as the manufacturer. I think a lot of people who are buying these TV car warranties are putting them on 8-10+ year old, higher mileage vehicles, they finally just made the last payment on the 6-7 year note they put on it when they bought it used, and know they can't afford a $2000-$5000 hit when it comes and they'll be without a vehicle.. they'll pay 10k over the life of the warranty whether they use it or not, but they don't see any other option. Those companies prey on those folks, no different than the buy-here, pay-here lots. When I was in the Navy in the mid 90-s, the only place you ever saw buy-here pay-here was within a mile of seemingly every single military installation in the country. "We finance, E-1 and up, no money down!" 17-21 year old young men and women, with their first "real" job, guaranteed pay on the 1st and 15th, and for a portion of that every two weeks, you could be in a "new to you vehicle". Wasn't uncommon for 17-20% interest rates to be the norm with those. Just down from those, would be "XYZ Furniture and Electronics", with a sign reading, you guessed it, "We finance, E-1 and up!". Folks would leave the buy here pay here lot, and pull right into that place and finance a new car stereo and a shiny set of cheapo wheels. Firsthand witnessed someone have $35K tied up in what was at best a $7500 dodge neon at the time, and didn't have money to put gas in it the last couple days of the pay cycle. People were buying the cheapest insurance they could find, getting the proof of insurance card, and cancelling it a week later (DMV's were still registering and licensing cars off of that paper proof of insurance at that time, so they would just buy insurance at renewal time and cancel afterwards.) Financial counselors on base had lines out the door every day of young folks looking for help to get out of a bad deal. Lots of lawsuits came about, few did any good. The XYZ Furniture and Electronics I mentioned, I think a lawsuit finally put them under, they were a big offender out of Norfolk VA that was hooking thousands of folks from all 4 branches each year. 

Now, it's a nationwide thing. Check cashing places, America's Car-Mart, Furniture rental places... I put them all in the same category. They all make a fortune offering to get folks into things they don't truly need, yet people will flock to them like moths to a flame. I cringe when I see dealers, BRANDED dealers with all their pricing shown as $XXX a month, but that's the way of the world for most folks under 40 or 50 now I believe. Doesn't matter the total cost, what's it going to cost me per month?