Extended warranty: yay or nay? More...
06-20-2006, 11:20 AM
#11
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the other factor that plays into it
is her financial situation.
Other people have made some good points about running the numbers and probabilities; however, there is value in having predictable costs, and if she's tight on her mortgage and fixed costs, sometimes an unexpected repair bill can put someone over the edge.
If she has enough financial reserves to 'self-insure,' then I bet she'll be better off passing on the extended warranty.
Other people have made some good points about running the numbers and probabilities; however, there is value in having predictable costs, and if she's tight on her mortgage and fixed costs, sometimes an unexpected repair bill can put someone over the edge.
If she has enough financial reserves to 'self-insure,' then I bet she'll be better off passing on the extended warranty.
06-20-2006, 11:21 AM
#12
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The big thing to remember is that with a manufacturer warranty (like Audi Assured)...
...the manufacturer can spend more than your fee on fixing the car and still end up ahead simply by
1) Keeping you happy for when you make the next purchase
2) Using the availability of the warranty to increase resale value
3) Getting you hooked on dealer service (which benefits the manuf indirectly)
That said, she could still end up with a major repair that exceeds the cost of the warranty even though the odds are against that. It's a lot like health insurance: chances are, you won't need that $150k surgery - but if you do, it sure would be nice to have insurance.
1) Keeping you happy for when you make the next purchase
2) Using the availability of the warranty to increase resale value
3) Getting you hooked on dealer service (which benefits the manuf indirectly)
That said, she could still end up with a major repair that exceeds the cost of the warranty even though the odds are against that. It's a lot like health insurance: chances are, you won't need that $150k surgery - but if you do, it sure would be nice to have insurance.
06-20-2006, 12:53 PM
#14
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Yup, I agree with your logic - but there's a big difference between health insurance that
covers costs that few of us could ever afford to pay out-of-pocket vs. an aftermarket car warranty that is more like pre-paying for service. A serious illness or injury could destroy you financially, whereas a replacing a H2O pump might change your weekend drinking plans.
Since you're the Mirror man, here's a reflection: Aftermarket warranties are the inverse of the Lottery - one exploits fear of something bad happening and the other exploits hope that something good might happen.;-)
Since you're the Mirror man, here's a reflection: Aftermarket warranties are the inverse of the Lottery - one exploits fear of something bad happening and the other exploits hope that something good might happen.;-)
06-21-2006, 04:44 AM
#18
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On a Toyota? Nah. On a German car......
should be required by law for German cars ;-) If I had had one on my '97 A6 I'd still have that car. I didn't and it was just way too much to keep servicing it.
On a Toyota I agree with the Dr. , Those things rarely break plus they aren't that expensive to repair, comparatively...unless you are paying dealer repair rates ;-)
On a Toyota I agree with the Dr. , Those things rarely break plus they aren't that expensive to repair, comparatively...unless you are paying dealer repair rates ;-)
06-21-2006, 01:21 PM
#20
FYI
Make sure to only buy "Exclusionary" warranties. Dealers sell the ones that have a list of 500 parts they cover, but then when something breaks, they say part #501 caused part 500 to fail so you are **** out of luck.
Buy it through AAA or become a member first. They cover everything, and do not cost a lot more. They do charge tons for Audis though, but worth every cent
Buy it through AAA or become a member first. They cover everything, and do not cost a lot more. They do charge tons for Audis though, but worth every cent