Quote:
Originally Posted by BrianL99
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.
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Remember too....they don’t use manufacturer parts either. Mostly after market, inferior stuff. The marketing is towards the fairly older, higher mileage vehicles. Then you have to make sure your mechanic is even in the program. As @BrianL99 stated, owners with new dealer purchases....already have a built in warranty. So extended ones are the focus there. If you can part with a minimum of $100 a month (that’s the lowest coverage), read the fine print on what is actually covered and what isn’t. The commercials you are referring to use paid ‘actors’....unless you really believe Ice T is so destitute (net worth 65M) that he needs this type of ‘coverage’!