Quote:
Originally Posted by Dadhawk
In my experience, if you are having 1 issue per year with a modern car with under 100,000 miles on it, you will want to dump the car, warranty or not. In all the cars I've owned, in the last 25 years (new and used) I have not had more than one major service issue under 100K miles on any car. In fact, I've had a half dozen or so with well over 200K miles on them and none have a major repair every year.
I'm not saying taking the "risk" is for everyone, but I can say that I have NEVER owned a car (since 1975) where the extended warranty would have been a good decision. Maybe I've just been lucky.
Are you willing to share what the actual cost of the Extended Warranty is after you subtract the sales cost (commissions/etc)? Like with any insurance (which is really all an extended warranty is) the cost to the consumer has to exceed the average risk + cost of sales minus any growth of the money over time for the insurer. Therefore, again on average, the product costs the consumer more than it will pay out.
Admittedly, there are people where the piece of mind of having the coverage is worth the money, and I'm OK with that. For me though, I'd rather put the money in the bank and self-insure.
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Google JD Power Dependability Study and get your mind blown.
http://autos.jdpower.com/ratings/201...ss-Release.htm The only make that didn't average one issue in the fourth year of ownership was Lexus. Some of the lower makes averaged closer to 2.
I would be more than happy to share the actual cost, as far as I am aware. If the dealer principle packs anything else into that cost, that, I am not aware. Just like invoice pricing on vehicles, just because you know the cost, doesn't mean you can buy it for that. These products are reinsured so essentially the dealer pays the claims. At cost, the risk/reward for the dealer aren't work printing the paperwork.
Of course, it depends on the term and mileage, the deductible option, coverage, and of course varies from company to company. But throw something out there, I'll be happy to fill you in.