OT: extended warranties

OK, if buying a new vehicle an extended warrenty is a joke. Most failures that accrue that are covered by extended warranties happen within 8,000 miles. So the manufacturers warrenty covers it. Most extended warranties only cover major components past the manufacturers warrenty. If it runs past that first 8K it will run past the extension. You have to read the contract! Bush could have screwed a lot of people after 9/11. He declared it to be an act of war. Now go dig out your insurance policies.......most things covered are excluded if the loss was caused by an act of war. So the insurance industry could have refused to pay....they didn't at the cost of about 7 billion dollars! Oops there goes that greedy insurance company thing!

Any time you are putting your name on any kind of a contract you need to know what you are signing......a hundred bucks for a lawyer could save you thousands!

Anyone paying for homeowners or renters insurance needs to know what RCV is and that only a certain dollar amount is a limit for coverage on certain items like guns, jewelery or electronics! An extended warrenty is an insurance policey. If you don't understand it take it to someone who will!

Rick

When I worked for a dealership, the extended
warranties were gravy. 2 to 5 per month were
covered, and we never tried to make money by denying
repair, it was just that the vehicles didn't have
defect issues. They are not a wise investment. Jim

I am no fan of the extended warranty, either. I figure, even if you don't do your own work, unless you lose a transmission or engine, you will unlikely get your money out of it. That's just my humble opinion.

every new vehicle I have bought has had enough defects to make the extended warrenties more than pay for themselves. Maybe just bad luck? Jeeps,fords and dodges so far. Bill

yes. The insurance companies calculate the odds and sell them at a cost where they come out on top across the average. Simple statistics. Consumer comes out on bottom most of the time. So, here is the best bet, look at good used cars or trucks that have a good reputation for low major repairs. Take it to a mechanic before you buy it. That is the best insurance.

(quoted from post at 04:43:07 03/09/12) yes. The insurance companies calculate the odds and sell them at a cost where they come out on top across the average. Simple statistics. Consumer comes out on bottom most of the time. So, here is the best bet, look at good used cars or trucks that have a good reputation for low major repairs. Take it to a mechanic before you buy it. That is the best insurance.

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Insurance companies have to make a profit or else they would go under so they have to pay out less than they take in.

I agree about taking something to a mechanic if you don't know enough about the systems. I get a kick out of dealers with their certified used cars. They are trying to tell you there is no need to take it to a mechanic because their mech has already done that. It's one thing if you know and trust the dealer......

Rick

Sounds like a good reason to buy a Chevy!

I'm about to put my first extended warranty to the test.


As of right now I have my highlander in the shop with a blown head gasket and burnt motor. I'm paying $1,400 up front for the tear down/diagnostic.

If they pay for it I'll get that refunded. I'll keep y'all posted. ...and yeah, I'm a sweatin' it!

It is obvious that ANY business, large or individual, must eventually take in more than they pay out. That is otherwise known as profit. Then you get in to gross profits, net profits, EBITA, etc.
I have never met anyone that was opposed to a company making a profit.
I set the stage for reality. Profit is what it is, until people manipulate rules, fine print, etc., to gain an unfair advantage.
Many of the extended warranties are NOT designed to protect many signers, they are designed to generate large sums of cash. They use unfair tactics to gain the unfair advantage over unknowing or trusting people.
One of the cash cows in all car dealers is the accidental death and dismemberment insurance that your "friend" in the accounting office tries to sell you. They make huge percent in profit.
The "deal" is done, you think this person is your friend and just trying to help you out.
What is funny as heck to me is that when the economy turned and many of these car dealer millionares found themselves bankrupt, they whinned.
I say, oh well! It was probably just some good old fashioned Karma comin around.

(quoted from post at 08:03:23 03/09/12) It is obvious that ANY business, large or individual, must eventually take in more than they pay out. That is otherwise known as profit. Then you get in to gross profits, net profits, EBITA, etc.
I have never met anyone that was opposed to a company making a profit.
I set the stage for reality. Profit is what it is, until people manipulate rules, fine print, etc., to gain an unfair advantage.
Many of the extended warranties are NOT designed to protect many signers, they are designed to generate large sums of cash. They use unfair tactics to gain the unfair advantage over unknowing or trusting people.
One of the cash cows in all car dealers is the accidental death and dismemberment insurance that your "friend" in the accounting office tries to sell you. They make huge percent in profit.
The "deal" is done, you think this person is your friend and just trying to help you out.
What is funny as heck to me is that when the economy turned and many of these car dealer millionares found themselves bankrupt, they whinned.
I say, oh well! It was probably just some good old fashioned Karma comin around.

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Lot of companies that sell extended warrenties and the death/dismemberment policies on loans are nothing more than crooks and darn sure isn't the bigger companies like State Farm or American Family.

Rick

wasn't on a car but we bought a big screen tv, a
samsung, no extended warranty. had nothing but
trouble out of it. had the power supply repaired
once, repaired myself twice( I have an electronics
degree), had the screen replaced (samsung extended
the warranty on the screen only and I had to pay
275 in labor, screen very expensive). right now
has bad screen again. we replaced the tv with one
from costco(a phillips tv). costco extends the warranty to two years without cost. we bought an
additional three year warranty. will see how it
pans out, but I have five years of warranty on the
tv. btw costco's extended warrenty for this tv
only cost $60.

frank

ps: bought an extended warranty on a 2004 Jeep and
never used it.

I have bought extended warranties three times, the
first for a P.O.S. Bronco II I bought new that was
a lemon. I bought the warranty after I had it six
months and realized it was junk, seems it cleared
final assembly in Louisville the day they came
back from Christmas break. When the transmission
went out 300 miles past the warranty I was glad
for the warranty, the fact it paid for the rental
car was great because the truck sat for 3 weeks
waiting for a tranny. The next was on a washer &
dryer and it was a waste of $80.00. The last
extended warranty was on a dishwasher. It is an
Ariston, never heard of them but it was a nice
looking dishwasher with a stainless steel inside
and it was $25 cheaper than the plastic Frigidaire
so I bought it and the warranty to hedge the bet
on the off brand, the dishwasher is Italian, it
has had a few problems and I am glad I took the
warranty. The bottom line the warranty is not a
favor to you, it is something they sell you to
make more money. You're only going to come out
ahead if something goes wrong with your purchase.
I don't know about you but if I buy something new
I try to shop for the item that won't give me
problems. If you have knowledge that the warranty
company doesn't you can do all right but most of
the time the dealer and the warranty company is
going to make money off the warranty, that's why
they offer it.

Unless ours in a situation where you'd really be unable to afford to repair/replace the item you're looking at getting this plan on, it's a waste of money.

Never get a service plan, use the money you saved not protecting your last dozen purchases to fix/replace the one thing that does go bad. Use the money you saved for something fun for yourself and your family.

Must be a misprint. Not a Highlander? Thought they lasted forever.

(quoted from post at 21:41:33 03/09/12) Must be a misprint. Not a Highlander? Thought they lasted forever.

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That's what I was hoping for, but...

I sure need it back, 16 mpg in the truck is eating away at all my little homestead dreams!

I got my money's worth out of extended warranties.