Warranty on Denon DVD-5900 (1 Viewer)

I am looking at purchasing the Denon DVD-5900. Web pricing showed sellers $500 less than dealers who are Denon authorized. I called one of these unauthorized dealers and asked about this. His answer to this was an offer to purchase a secondary 4-year warranty for an additional $100. This is still a $400 savings in price.
Just curious if anyone has had an experience doing this, I would appreciate your comments.
How can an unauthorized dealer offer the unit for such substantial savings? Why does Denon refuse to honor the warranty (price protection?)if purchased from an unauthorized dealer?
Thank you

I can only guess at Denon's marketing reasons, but I would say it is to protect their local B&M dealers. They're not alone in this practice (Levi Strauss for another) and I guess it works well enough for their target market.

One concern I'd have about buying grey market would be the question if you could have it fixed through any of Denon's repair facilities....at any cost....if they deemed it "unauthorized"? Also, most extended warranties are just that...extended from the end of the manufacturers warranty. Soooooo, since you had no warranty to begin with, and the extended warranty merely extends the factory warranty, would there be any coverage there either?

Mort

Mort:
I did call Denon and spoke with a very nice representative. I asked to the point questions and my take was that his answers were honest.
First of all, anyone can go outside of the USA and bring in DENON products. These would be unauthorized. But Denon while not honoring a warranty would support their product, meaning repair it (albeit at the customer's as well as shipping).
So my take is this: Denon is considered a quality product. If I purchased it thinking it will be defective I would use another manufacturer. If it breaks, and one purchased the unit for $400 to $500 less, and it cost $150 to repair and ship, one is still ahead of the game. Frankly the warranty is only one year.
BTW, I purchased a scratch and dent Denon DVD-5900 from Crutchfield. The warranty is one year, and I have one month to return the unit (free shipping to me and return if I do not like the unit). It is $300 less than retail and slightly more than $100 over the unauthorizes dealer price. If I do not like the unit, the choice to return for a new one remains.
Seemed like it was worth the savings.
Sooooooooo.........

My belief is that who's to say that a Denon repair would be any better or different than a repair done by any professional shop? All propriatary parts would be ordered either from Denon or their supplier. I'd go for the $400 savings.