Aftermarket auto warranty companies bankrupt

[Al]

quote:

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Originally posted by thooks:
EXACTLY!!!

Most extended warranties are gonna run $1500 or more on a new vehicle to even get you to 75k miles or more.

And, that $1500 will be financed, which will really be $1800 or so. Take $50 per month, stick it in a mutual fund ($1800) and at the end of that 36 month period, you will have about $4000.

No problems for 24 more months? Heck, you've got almost $5500 or more!!

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Well then why buy any insurance for anything period. Sure on the average you are gonna' lose but you are buying insurance to fix your costs. That's what its all about. There is a measure of stress freedom for doing it (for me).

Out of 3 extended warranties I have bought I have had a claim on every one. I lost on one made out on one and right now with a year and 9 months I'm behind 600 bucks. So for 21 years of peace of mind its cost me 600 lol lol. Worth every penny.And even if I had no claims its worth it (for me).

Now TV's and Refrigeratore, etc..whole other story. I never buy those bc its not a big ticket item.

 

[ekpolk]

Al:

The real question is whether the coverage (call it whatever, insurance, extended wty, etc) offered is worth the price. IMO, the EWs are rarely worth the price. Sure, some folks roll the dice and make out, but most won't. If most plans were resulting in customers taking more out of them then they put in, then it seems self-evident that the sellers of the plans would be looking for other work. Auto liability insurance, in comparison, makes sense because through driving a car, you can easily expose yourself to truly catastrophic loss (do the math, for a morbid example, on what happens if you accidentally run over and kill a 35 year old neurosurgeon who has three kids...). By contrast, you pay huge premiums compared to the risk with these EW plans. They're pushed aggressively for a reason, and that reason isn't benevolence.

 

[Al]

Granted risk/benefit is low in this case but.......I think I paid 1200 for the warranty. Nissan auto-trans are weak. Believe me I don't throw money away often. But I know the vehicle will be with me for 7 full years. The auto trans went out in the first 1000 miles..: cost to me would have been 2300 bucks (for a remanufactured trans

) Also I use the car for trips of 335 miles down to my daughter's. If it pukes its guts out on the way, I'm covered for a rental/tow/repair.

When you get to be 60, anything that you do to lower stress is a good thing. A few hundred to keep my blood pressure undercontrol..priceless

 

[ekpolk]

Al:

You do make the virtually inarguable point that in a society such as ours, whether or not something is "worth it" is entirely up to the one who's about to fork over the cash. If you feel that you have received adequate value for the money spent, then I will be the last one to question your choice. We can argue over the "objective" comparisons and interpretations all day long, but in the end, it's just like another of our common BITOG themes: the "value" of synthetics, UOAs, and so forth. I've made a more than a few decisions that I think most others would think are nuts (I'm not implying this is the case with your decision to buy an EW), but I'm pleased with most of them, and prepared to live with the consequences of the others. Free country -- enjoy the peace of mind.

 

[LARKBILL]

I work in parts at a Chev-Buick dealership. As a relative insider, but also customer, here are the conclusions I've reached on extended warrantys.
1. While any number of non-factory warrantys (actually insurance policys) may be solid companies and honest to deal with, the fact is many dealership and private shops have had enough problems with them to refuse to deal with them, leaving the customer to file himself. Often with negative results.
2. Never pay the asking price from the dealership finance man for their extended, they can sell it for whatever they want above the posted price, they almost never sell low on the first try. In fact, if they won't deal you can always buy it anytime during the vehicles major waranty period for a decent price, directly from the manufacturer.
3. As much as I hate to buy them, the complicated electronics scare me enough to make me bite the bullet.
4. Keep in mind that it's insurance. If you have unrepaired collision damage, or even heavy hail damage, a large mechanical repair could cause your car to be considered "totalled". In this case the extended warranty company will insist on paying you off and junking the car. This is their right. I've seen it happen, and they have the lawyers to pull it off.
As always "Let the buyer beware" and your results may vary.

 

[Pontius Pilate]

my g/f got sold into a $900 aftermarket warranty on her 2000 kia, of course they never said anything about a waranty or a charge for a warranty, i was po'd when i found out.... the good news is i think they went out of business cause the lot is empty and they are nowhere to be found.... made me smarter when it comes to buying cars though, read everything, waste 4 hours of their time reading all the fine print on everything then refuse any extra **

 

[GROUCHO MARX]

Al said:

"Believe me I don't throw money away often"
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Oh, I believe! In fact, I hope I belong to the same church!