Bought a phone with the extended warranty. The sal...

Bought a phone with the extended warranty. The salesman said with this warranty if anything was wrong it would be a direct exchange. Brought the phone in as it was having problems a few months later with the speaker. Seems that he actually was incorrect says this salesman in saying that and it now has to go in to get fixed. When asked if this was using the manufacturer warranty he said no it will be the extended warranty we purchased. So that would have been used and if anything else was to happen it would no longer be covered. Please explain the extreme rip off of this and why you would not use the warranty of the manufacturer first. Do not buy the extended warranty !! We will never buy from this company again.