![]() ![]() ![]() Most of the warranties that are worth getting(the manufacture ones) you normally can only get on a new car and don't always pass onto the second owner. I can't imagine how expensive the mentality is for those who buy extended warranties and insurance for every aspect of their life.Ī lot to warranties don't outlast the things they cover. Is the loss event more than I can bare? If no, I would not buy the insurance. Same goes for pet insurance or any other sort of insurance product in general. I can deal with a $2500+ engine repair, and after deductibles smaller repairs are just not worth it. ![]() I cannot absorb a $150k car accident or someone's kid wandering onto my property, stubbing their toe on a stray rusty nail, and suing me for $1M. I buy car, home owners, and general liability coverage because of point 1, the total loss potential is too high for me to bear the burden. The loss events are likely not that huge (a few grand?), and on average you pay more for insurance than you get out, therefore given both of those points, I would not buy it. Just like all insurance they have to take in more than they pay out to make their business work. A third party is taking your money and will pay out in the event of a loss event, and they have nothing to do with manufacturing the product. It's an insurance product, the word "warranty" is sort of misleading. You aren't paying for their commission, their data anlayses, their benefits, etc - you're just paying for what you need. Therefore, statistically, it is better to just have the money out of pocket. Maybe there was a 10% chance that you'd need a new front end, but then there's a 90% chance that you'd have gotten nothing out of the warranty. If they couldn't make money off of you, they wouldn't take your business. how do I know that? Because they are in business. See, if you buy the warranty, you are paying into all of their overhead - the sellers commission, the company behind it the warranty, their rent, their utilities, their their vacations, holidays, benefits, holiday parties, year end bonus, etc, PLUS the actual cost of servicing the warranty. This number is based off of what they expect will earn them money. The cost for your warranty is a thoroughly researched, calculated number, determined by an actuarial professional who earns 6 figures a year. It's amazing what some preventative or hell, just routine, maintenance can do to a vehicles's life. And people are lazy, and have no desire to maintain their crap. And if its later, it usually comes with a recall which will be done for free. If something is going to happen its going to happen sooner rather than later. So those clear coat 'dealer add-ons' are even more of a sham. Some new cars are starting to have 10 year paint warranties from the factory now too. ![]() Most are 3yr/36k miles bumper to bumper and power train is ~80k miles and emissions crap is at like 10 years. I don't like extended warranties because the fine print can screw you and the factory warranties are usually enough to cover you. on a used car, so that wouldn't have saved you either. So you'd be stuck with a $4000 payment on something you couldn't use. You're insurance isn't going to cut you a check for that extended warranty, they'll cover the car. First.īut what happens, God-for-bid, if two weeks after you left the dealer you total your car? You're fine, the car not so much. So some of your down payment (if you had one) went to that, and not all of it towards the price of the car. Probably what happened is they added $4000 to your finance total. How? $4000/$30 = 133 months.I hope you didn't get a used car loan for 11 years. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests. ![]()
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