- #12 of 84
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Re: Extended Warranty - Tender Loving Care [steve_]
by blndamb15
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Sep 25, 2007 (4:40 am)
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Replying to: steve_ (Sep 24, 2007 6:40 pm)
No you didn't make my decision harder. It would have been a lot easier if I had known all this before buying the car but I wasn't aware of this type of thing. They really gave me a great price on the car plus a great interest rate so I saw the extended warranty as an insurance policy. If I never use the warranty, I get the $1500 back. The dealer has been in this area forever so I figured if anything happens with this warranty, I could go back to the dealership since they are the ones who sold it to me. I'm sure they wouldn't like showing up on the news with the a consumer reporter talking abt their business practices if they decide not to honor what they sold me.
I had a Honda before, bought it used, and I seemed to have so many problems with it that the thought of having a warranty to save me some money in the event of a breakdown for my new car seemed like a smart idea.
I did call Fidelity Warranty Services yesterday and they seem legit and they did confirm the refund policy.
Does anyone know how much the dealership makes on selling these warranties? I am curious to find out.
Thanks so much for your time. This is really a great education for me!
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- #13 of 84
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Re: Extended Warranty - Tender Loving Care [blndamb15]
by lucky_777
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Sep 25, 2007 (4:58 am)
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Replying to: blndamb15 (Sep 25, 2007 4:40 am)
One more thing to add to my post above... Don't hold your breath on getting $1500 back. Chances are high that you'll have a non major issue within next seven years. Once you get your car repaired even for let's say $50, or $200, or $500 then you can kiss your $1500 good bye. And if you invest your $1500 today in the moderate mutual fund then it will be worth around $3K in 7 years.
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- #14 of 84
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Re: Extended Warranty - Tender Loving Care [lucky_777]
by blndamb15
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Sep 25, 2007 (5:18 am)
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Replying to: lucky_777 (Sep 25, 2007 4:58 am)
Lucky, you give a good case for cancelling this warranty. Have you or anyone you know, ever done this?
I have another question, and you might now know the answer, but why are businesses allowed such bad business practices? Shouldn't stuff like this be against the law?
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- #15 of 84
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Re: Extended Warranty - Tender Loving Care [steve_]
by blndamb15
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Sep 25, 2007 (5:27 am)
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Replying to: steve_ (Sep 24, 2007 6:40 pm)
Steve, I tried to be so careful in getting a good deal on a car. The warranty was for me an insurance policy against big repairs. Now, I'm beginning to think that I should cancel this. I spoke to the dealer yesterday about my concerns with the warranty company. He definitely sounded defensive, like he knew I was thinking of cancelling it. So, now if I do go ahead and tell him to cancel it, I'm concerned abt his attitude and getting his cooperation with the cancellation. He could sit on it for months and all I could do was bother him weekly to see if it's been done.
I am getting the feeling that their livelyhood is based on selling these warranties.
Any suggestions on the best way to handle this? I know I sound clueless, and I am, so any suggestions would be helpful.
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- #16 of 84
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Re: Extended Warranty - Tender Loving Care [blndamb15]
by lucky_777
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Sep 25, 2007 (5:37 am)
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Replying to: blndamb15 (Sep 25, 2007 5:18 am)
Some people here canceled warranty without a problem but you need to read a fine print on yours. I'd say then sooner you do it then better. As far as car dealers and "bad business practices"... They go hand by hand for ages. You hadn't seen the worst of it yet. Nothing new here.
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- #17 of 84
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Re: Extended Warranty - Tender Loving Care [blndamb15]
by steve_ HOST
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Sep 25, 2007 (11:05 am)
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Replying to: blndamb15 (Sep 25, 2007 4:40 am)
Does anyone know how much the dealership makes on selling these warranties?
I've seen reports as high as 60 to 80% profit on each plan:
shadow5599, "Malibu/Malibu Maxx: Warranty/Extended Warranty" #19, 31 May 2006 8:02 am
My gut tells me 40 to 50% is more typical and my guess is that the profit margin is lower with the factory backed ones.
Here's another option to further muddle the issue - you could tell the dealer you paid too much and you're going to cancel unless he lowers the price $500. 
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- #18 of 84
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Re: Extended Warranty - Tender Loving Care [steve_]
by blndamb15
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Sep 25, 2007 (1:55 pm)
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Replying to: steve_ (Sep 25, 2007 11:05 am)
Ok, but here's the thing: I'm scared to do this! The guy seems mean and like he would be angry. I'm not upset at all with the car, I love it actually, but I wish I hadn't bought the warranty.
Can someone give me some courage here to do this?????
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- #19 of 84
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Re: Extended Warranty - Tender Loving Care [blndamb15]
by lucky_777
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Sep 25, 2007 (1:59 pm)
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Replying to: blndamb15 (Sep 25, 2007 1:55 pm)
He's not gonna bite you. You're not stealing from him, but him from you. This is your right to cancel and this is your money. I guess you need to bring your mom along to scare the hell out of him. 
You never said how much you paid for the car, I'm sure your were taken there too.
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- #20 of 84
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Re: Extended Warranty - Tender Loving Care [lucky_777]
by blndamb15
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Sep 25, 2007 (2:15 pm)
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Replying to: lucky_777 (Sep 25, 2007 1:59 pm)
Actually, I got a great deal on the car.
My mom is like me, very passive, so she wouldn't be much help.
Geez, I hate this type of stuff!
How do you do it? You sound like nobody gets one over on you. What the secret?
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- #21 of 84
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Re: Extended Warranty - Tender Loving Care [blndamb15]
by lucky_777
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Sep 25, 2007 (2:27 pm)
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Replying to: blndamb15 (Sep 25, 2007 2:15 pm)
Secret is very simple. Educate yourself before not after. This site has wealth of information on car buying process. I knew about warranty, windows etching, seat protection, and other high margin gimmicks ahead of time and refused everything on the spot. Don't be afraid to confront the dealer. Get your hard earned money back from him or he'll spend it on gold watch or silk tie.
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