Quote:
Originally Posted by kp11364
Hi everyone,
I'm constantly seeing all these ads on TV for automotive warranties - "I saved $8700 on repairs!!" ... always *sounds* good, but has anyone had any true experience with them? Good? Bad? Scam?
Thanks!
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Biggest scam in the automobile business, but people keep buying them.
Our company has 17 dealerships and we have our own warranty company (almost all dealers do). It's the highest profit item we sell. We probably make 75%+ profit, maybe more. It's essentially, over-priced insurance.
Some of the manufacturers (particularly of high line cars) have a "certified used cars" which come with an extended warranty and they're a little bit better deal, with an expensive vehicle.
In general, there are a 1000 reasons they're not a good investment and the only positive, is if you happen to be the 1 person out of a 100, who gets to benefit from one.