When I bought my little hotrod truck back in January, I went for the $1200
extended warranty, which covers nearly everything for 72 months and/or 72,000
miles. I was anxious to get the paperwork over with and get my butt into the
new toy and get gone, so when I heard that if I never used the extended
warranty, at the end of the 72-month period I would get my whole $1200 back, I
bit. It only occurred to me a day or two later, when the excitement wore off a
little, that (a) the "free" warranty covers exactly half that period anyway,
and (B) the closer I get to the end of the extended warranty period, the less
likely I am to use it unless it's for some catastrophic failure, like the
engine or transmission, neither of which is likely, because it's natural to
figure that it's better to pay $500 for a repair today so I can get my $1200
back tomorrow.
What the hell, though! I've spent money on stupidier stuff. You ought to see
my camera closet. At 71 months and 20 days, I may drive it up to Road Atlanta
and see how far it'll run flat out. It might be worth the $1200 to find out.
Until then, maybe they'll treat me nice. They have so far. :-)
Walt
--
"Anything more than 500 yards from
the car just isn't photogenic." --
Edward Weston
-------------- Original message ----------------------
From: ScottGee1 <scottgee1@xxxxxxxxx>
>
> Handled intelligently, extended warranties are very profitable for
> sellers unless something goes horribly wrong with a lot of products.
> Most people never file a claim so the profit on the piece of paper on
> which they printed the agreement is very impressive. I'm the guy they
> hate because, if necessary, I make claims that reduce that profit. A
> lot of people forget they bought them or misplace the paperwork and
> think they're out of luck. Same principle applies to gift cards that
> are lost/never get used. Lotsa profit!
>
> In the U.S., car companies/dealers are notorious for treating like
> dirt customers who do not buy extended warranties. Don't ask how I
> know that . . .
>
> ScottGee1
>
>
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