Date: Mon, 04 Mar 2002 13:41:06 GMT From: Bob <uctraingNOSPAMnopsamanet.com> Subject: Re: Looking for recommendation on extended warranty plans
On Mon, 04 Mar 2002 06:58:23 +0000, Johannes H Andersen <johsnopsamanytime.co.uk> wrote: >Well said. My gut feeling is that the extended warranty is just an >extra layer; they make money from the average customer. Yes, great post. With the cost of the typical extended warranty, and the fact that they do not cover any maintenance repairs, odds of coming out ahead are low. Most of these warranties will not cover items like seals (head gaskets, drive seals, etc) unless they are part of another covered repair. These are the most common "expensive" repairs are normal maintenance. The parts the warranties cover: engine and tranny internals, electrical items, etc. are the least likely to go bad. You are betting your money against a 'catastrophic' repair. I think you are better off putting the money into an investment and taking a risk. If you need repairs, hopefully the investment income covers it. If not, you still can spend up to the amount that the warranty would have cost and you are *still* doing no worse. If you end up needing less repairs by the time the warranty would have ended, you get to keep *all* the money for yourself (which is what the insurance company is betting). Bob