file.newsgroup.cars.103809 Maven / Gradle / Ivy
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From: [email protected] (Robert J. Wade)
Subject: Re: Saturn Extended Warranty
In article [email protected] writes:
>
>I've owned a Saturn for and year and a half, and didn't have the extended
>warranty, but just traded it in for a 1993 (for reasons that I won't mention
>unless someone wants to know.) I opted for the 5 year/60,000 mile extended with
>$50 deductible. It's sorta like buying health insurance. You could say that
>you're not sick now, and haven't been sick for a while, but you can't guarantee
>that you won't be sick tomorrow. A little money invested today is better than
>being sick tomorrow and now being able to pay for it, or having to pay a lot
>more tomorrow than you can today.
justify all you want. extended warranties are a ripoff, high profit item for
the dealer. and you didn't buy 5yr/60k, you get 3yr/36k *free*, so what you
bought is 2yr/24k. and you still have to pay $50 every time you use this
great 'warranty'. better to put your money in the bank and use it for repairs
if/when you need it. considering that your last car was only 1.5 years old,
are you sure you will even keep this new one past it's *free* warranty period?
btw, typical profit on extended warranties is around 80%. that's right, only
20% of the money needs to go into the collective pot to pay for any future
repairs that the group of extended-warranty-people collect.