Last post on May 03, 2008 at 7:47 PM
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Car Buying, Car Warranties
#39 of 40 Re: He canceled it. [euphonium]
May 02, 2008 (11:13 am)
My take on Insurance is to prevent a financial event past my pain threshold. That event may not be a 'catastrophe'.
If you pay list price at the dealer for the extended warranty, it probably is profitable for them. Looking at the pricing on gmoutlet.com, discounts run 20-30% depending when you buy the coverage. I'm would guess other on-line discounters are in a similar price range.. At that price there is probably a reasonable profit for the seller, but less than 'very profitable'.
May 03, 2008 (7:47 pm)
You might NOT want to do it that way.
Depending upon who backs the extended service plan, some have requirements. Such as it needs to be 1K or at least 30 days before the expiration of the factory warranty (ie: have 30 or more days of factory warranty remaining and be below the 36 or 50K in mileage)
Some require a pre inspection and any pre exsisting conditons are NOT covered.
In addition, some also have a waiting period once you sign up - 30 days AND 1K.
Just be careful, I have seen many perople buy the 2K warranty only to find out that it ONLY covers internally lubricated components (which is a JUNK warranty and is merely pissing $$ away)
Best bet: get your dealer service advisor/writer/assistant manager to review the coverage. They can best guide you and get you the best coverage for your hard earned money. Most policies sold by the F&I dept of the dealership have the best coverage. STAY AWAY from the internet warranty companies - you usually get the JUNK warranty or one with limited coverage or limited re-imbursement.
I have directed many of my clients to the proper warranty/coverage and they have given me many thankx for pointing them in the right direction.
You really do "get what you pay for"