Should I get an extended Warranty?
05-26-2008, 11:10 AM
#41
The Darker the berry....
Join Date: Nov 2006
Location: NYC
Age: 52
Posts: 270
Likes: 0
Received 0 Likes
on
0 Posts
Case in point - I have an 04 MDX that I purchase an ESP for about 3 years ago. The standard warranty ran out in Nov 07. In Feb 08, the starter went out - it would have been about $600 to repair with no warranty - so I'm already half way to recouping the $1200 I spent on the ESP. As I said, only if you don't plan to keep a car past 3/4 years, then ESPs don't make sense.
05-27-2008, 12:23 PM
#42
gcason
Join Date: May 2008
Location: Orlando
Posts: 24
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Type S Fan
There is no doubt that some dealers are ripping people off! Mine wanted $2780.00 for a third party warranty that was only a couple of years longer than the original warranty.
However, a real Acura Extended Warranty is available at a substantially better price that provides a good value for owners that are going to keep their cars a long time.
It's worth it to some peeps, not to others. I'm still trying to make up my mind whether to go for it!
However, a real Acura Extended Warranty is available at a substantially better price that provides a good value for owners that are going to keep their cars a long time.
It's worth it to some peeps, not to others. I'm still trying to make up my mind whether to go for it!
Let’s say that you and I are going to gamble. It’s even money every bet. We’ll roll a 6-sided die. If it comes up a 1 or 2, you win. If it comes up 3,4, 5 or 6 then I win. This is basically your odds on getting more money out of an extended warranty than you put in. If these kind of odds give you “piece of mind” somehow, then by all means get an extended warranty.
The reason we’re hearing from people who did well with their extended warranty is simple: No one wants to admit in public that they spent $1500 or so on a warranty they never used. The people who sell extended warranties count on this as a large part of their marketing. Who wants to admit they got taken?
</soapbox>
05-27-2008, 12:49 PM
#44
Something is missing...my
Originally Posted by bmaczo6
I am trying to understand what you are trying to say but I still can't figure it out. The sale of an extended warranty and a repair are completely unrelated. The dealer is acting as a sales agent when they sell an extended warranty. They get paid a very large commission for performing this service. Once the warranty is sold the selling dealership no longer has any responsibility for the repairs. That becomes the responsibility of the company underwriting the warranty.
05-27-2008, 12:55 PM
#45
Something is missing...my
Originally Posted by gcason
Yep, clearly Consumer Reports has no idea what they're talking about. (Excerpt quoted below) See if you can find similar data supporting your claim on a website that doesn't take adds from extended warranty companies or promote them directly. You'll get a lot of "peace of mind" crap, but no data supporting their claims.
"But extended warranties sell costly "peace of mind" for repair nightmares that probably won't occur, according to a survey of more than 8,000 readers in December 2007 by the Consumer Reports National Research Center. We have long advised that extended warranties are a poor deal for almost every product. Now we have the first data showing that this advice applies to most new cars as well.
The survey included buyers of extended warranties for cars in the 2001 and 2002 model years. That allowed sufficient time for the factory warranties to expire, as well as several years of extended coverage. The chart on Costly contracts lists results for makes for which we have sufficient data; note that models within a make may vary. Some owners in the survey might have had coverage remaining, but our analysis shows that the need for serious repairs is uncommon."
I'm not and have never denied that extended warranties can pay off. However, they pay off for less than 1 out of 3 consumers according to the Consumer Reports study. That is NOT a good bet, especially for us because we've bought a VERY reliable car. I'll bet it's 1 out of 4 or less for Acura owners.
"But extended warranties sell costly "peace of mind" for repair nightmares that probably won't occur, according to a survey of more than 8,000 readers in December 2007 by the Consumer Reports National Research Center. We have long advised that extended warranties are a poor deal for almost every product. Now we have the first data showing that this advice applies to most new cars as well.
The survey included buyers of extended warranties for cars in the 2001 and 2002 model years. That allowed sufficient time for the factory warranties to expire, as well as several years of extended coverage. The chart on Costly contracts lists results for makes for which we have sufficient data; note that models within a make may vary. Some owners in the survey might have had coverage remaining, but our analysis shows that the need for serious repairs is uncommon."
I'm not and have never denied that extended warranties can pay off. However, they pay off for less than 1 out of 3 consumers according to the Consumer Reports study. That is NOT a good bet, especially for us because we've bought a VERY reliable car. I'll bet it's 1 out of 4 or less for Acura owners.
05-27-2008, 07:15 PM
#46
gcason
Join Date: May 2008
Location: Orlando
Posts: 24
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by bibledriver
It is a bit more than saying 3:2 odds against you. That is not statistics or logic. That is an analogy based on your opinion.
05-27-2008, 07:51 PM
#47
I caught the mod flu
Join Date: Mar 2008
Location: Cape May NJ
Age: 46
Posts: 371
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by gcason
OK, this is my last attempt at using logic and statistics:
Let’s say that you and I are going to gamble. It’s even money every bet. We’ll roll a 6-sided die. If it comes up a 1 or 2, you win. If it comes up 3,4, 5 or 6 then I win. This is basically your odds on getting more money out of an extended warranty than you put in. If these kind of odds give you “piece of mind” somehow, then by all means get an extended warranty.
The reason we’re hearing from people who did well with their extended warranty is simple: No one wants to admit in public that they spent $1500 or so on a warranty they never used. The people who sell extended warranties count on this as a large part of their marketing. Who wants to admit they got taken?
</soapbox>
Let’s say that you and I are going to gamble. It’s even money every bet. We’ll roll a 6-sided die. If it comes up a 1 or 2, you win. If it comes up 3,4, 5 or 6 then I win. This is basically your odds on getting more money out of an extended warranty than you put in. If these kind of odds give you “piece of mind” somehow, then by all means get an extended warranty.
The reason we’re hearing from people who did well with their extended warranty is simple: No one wants to admit in public that they spent $1500 or so on a warranty they never used. The people who sell extended warranties count on this as a large part of their marketing. Who wants to admit they got taken?
</soapbox>
My chances of using a warranty are much more then going to a casino and winning sub amount of money.
05-27-2008, 10:51 PM
#48
gcason
Join Date: May 2008
Location: Orlando
Posts: 24
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Goldenboy_Don
Millions apon millions gamble everyday! Whether it's lottery, or going to the casino...poor choice my friend. People lose more then $1500 gambling else where. People who buy warranties know it's a gamble. So please tell me how people are getting scamed? The few that I've bought, going in I knew that I may never use them. But, in the back of my mind the $900 I spent, would be far less then costly trans, or engine problems.
My chances of using a warranty are much more then going to a casino and winning sub amount of money.
My chances of using a warranty are much more then going to a casino and winning sub amount of money.
My intent was to inform the original poster that buying an extended warranty for an Acura is almost always a waste of money. I think we're done here.
Now, about that dice game I mentioned in an earlier post on this thread... Up for a few games? :-)
05-28-2008, 04:03 PM
#49
The Darker the berry....
Join Date: Nov 2006
Location: NYC
Age: 52
Posts: 270
Likes: 0
Received 0 Likes
on
0 Posts
Who cares whether Acura or the dealership or the salesman is making $$? All I am concerned with is whether the ESP makes financial sense to me - am I going to break even or even come out ahead by purchasing this ESP. Some people don't use the ESPs b/c their cars don't break during the ESP period, others save tons of $$ because they have repairs that would cost way more than the ESP. An ESP is insurance - simple as that. Companies that sell ESPs are no different than StateFarm, AllState, Geico, etc. I've got house insurance and car insurance - I may never submit a claim, does that make it a scam or a waste of $$? The point is I want to protect myself JUST IN CASE...
05-28-2008, 04:11 PM
#50
I caught the mod flu
Join Date: Mar 2008
Location: Cape May NJ
Age: 46
Posts: 371
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by gcason
Your choice is fine with me. It's your money. I prefer to spend mine on what I choose rather than waste it on a warranty, but that's just my personal preference.
My intent was to inform the original poster that buying an extended warranty for an Acura is almost always a waste of money. I think we're done here.
Now, about that dice game I mentioned in an earlier post on this thread... Up for a few games? :-)
My intent was to inform the original poster that buying an extended warranty for an Acura is almost always a waste of money. I think we're done here.
Now, about that dice game I mentioned in an earlier post on this thread... Up for a few games? :-)
You do know the factory warranty is included in the cost of the vehicle, right?
Another way I look at an extended warranty, is just like home owners insurance or car insurance. I've never had use either my homeowners insurance or my car insurance. There is a very good chance, I might not ever have to use it. Am i getting scammed?
05-29-2008, 02:34 PM
#51
gcason
Join Date: May 2008
Location: Orlando
Posts: 24
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Goldenboy_Don
So when you purchase a new vehicle, you ask the dealer to remove the factory warranty? I mean, in your logic both are worthless. You might as well ask the dealer to remove the factory warrany and save about $1200.
You do know the factory warranty is included in the cost of the vehicle, right?
Another way I look at an extended warranty, is just like home owners insurance or car insurance. I've never had use either my homeowners insurance or my car insurance. There is a very good chance, I might not ever have to use it. Am i getting scammed?
You do know the factory warranty is included in the cost of the vehicle, right?
Another way I look at an extended warranty, is just like home owners insurance or car insurance. I've never had use either my homeowners insurance or my car insurance. There is a very good chance, I might not ever have to use it. Am i getting scammed?
As to homeowners insurance: That's not a good comparison because the bank that holds your mortgage requires you to have that insurance. It isn't optional. It's there to protect the bank, not you, btw. Car insurance is the law in all 50 states. You have to show proof of insurance to get a license. That's to protect other drivers from you. Again, not a good comparison.
Based on the Consumer Reports study, with an extended warranty you voluntarily spend your money with a 1 in 3 chance that you will break even on the policy. I'm assuming an Acura, btw. If you have a Yugo, you should definitely get a policy if anyone will sell you one. :-)
It's sounding more and more like you guys are trying to convince yourselves you didn't get ripped off instead of trying to convince me. :-) You're not going to convince me. I'm looking at studies, math, and logic. All you guys have are anecdotes.
Thread
Thread Starter
Forum
Replies
Last Post
