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re: Exactly how stupid am I: Car warranty edition.
Posted on 12/17/16 at 5:05 pm to KG6
Posted on 12/17/16 at 5:05 pm to KG6
You certainly see the value in it. Dropping $50k+ on a Lexus I'm sure you won't sweat a $720 vs a $700 note. Lexus of all dealerships will likely come though for those repairs. The reality is it really doesn't matter much. You prepay and possibly overpay a few hundred to not deal with the aggrevation.
1
Posted on 12/17/16 at 5:56 pm to Ice Cream Sammich
quote:
So, you are stating that the dealership sold you something that they will lose money on?
not at all. I understand the statistics dealing with parts failures. The set their warranty based on that. I would never buy an extended warranty for those types of items.
Now windshields and tires don't fail in the same way as other parts. I've personally replaced two windshields and have chips in two additional windshields over the last 2 years. I've also replaced 3 tires and patched others recently. Some of these tires were brand new. Those issues have absolutely nothing to do with expected failure life of component parts. Those are due to the driving conditions I face regularly. In that way, yes I believe I may.... may come out good on this. It's not a guarantee, but it may be a logical chance to take. Plus, the cost for me to replace it is not equal to the cost for Lexus. They could still come out ahead even if I make claims.
I've read where windshields with rain sensors and pre-collision radar sensors can run over $1500 installed. One windshield would make it worth it over the 5 years. I have yet to drive a five year span without a windshield Crack. But again, I know that's no guarantee.
I'm definitely second guessing myself, but at the same time it may turn out okay.
quote:
$720 vs a $700 note
Wayyy less than that. Even with the warranty, my new note is less than what I have been paying for a VW Jetta (again, thanks to VW for making the buyback right and getting me a solid down payment). So there's that
This post was edited on 12/17/16 at 6:31 pm
Posted on 12/17/16 at 6:16 pm to KG6
quote:
I'm definitely second guessing myself, but at the same time this kind it may turn out okay.
No need for that, its too late.
I am just simply stating that if they were losing money, you would not have the insurance. You were already buying the vehicle before this was offered, they just fattened their pockets a bit more.
I hope you get 15 broken windshields and 9 flat tires in the next 3 years though!
Posted on 12/17/16 at 7:55 pm to KG6
quote:
for free
Good one!
Posted on 12/17/16 at 9:23 pm to KG6
quote:
not at all. I understand the statistics dealing with parts failures. The set their warranty based on that. I would never buy an extended warranty for those types of items.
Now windshields and tires don't fail in the same way as other parts. I've personally replaced two windshields and have chips in two additional windshields over the last 2 years. I've also replaced 3 tires and patched others recently.
Windshields and tires are much more individual dependent than other items, If you have been replacing that many I would have done it as well.
For example if your commute is on a two lane highway with lots of gravel driveways you will be replacing a lot more glass than someone navigating city streets only.
Posted on 12/18/16 at 11:10 am to pjab
quote:
Lexus of all dealerships will likely come though for those repairs
Ehhhhhh. I haven't been very impressed.
My wife has a CPO RX350. I took it in because the driver's door panel now has a rattle. I thought they'd see that it was under warranty and just fix it. Not so fast. They charge you a diagnostic fee to determine if the problem is covered by warranty, *if* it is then they wave that fee. If it's not you're on the hook. I also learned that Lexus' CPO warranties are a 3rd party, not actually Lexus.
This post was edited on 12/18/16 at 11:12 am
Posted on 12/19/16 at 9:34 am to notiger1997
quote:
notiger1997
quote:
I went and purchased a $40 modem the other day and they tried to sell me a protection package(warranty) with it.
Similar situation. Bought my 6yr old daughter a 42 inch smart TV so she can have Netflix in her room. TV was like $300 because it was a Cyber Monday deal at Walmart. Lady asked if I wanted the $99 protection plan.
Posted on 12/19/16 at 9:52 am to basiletiger
quote:
If I'm purchasing a $60,0000-$70,0000 vehicle I'm buying an extended warranty.
So you've got 70 G's to burn on a new car but are sweating the cost of a new tire?
To OP: There's no real answer other than it might work out for you and it might not, but if it's done there's no use worrying about it.
Posted on 12/19/16 at 11:02 am to Cold Cous Cous
quote:
sweating the cost of a new tire
To be honest, the cost of the rim worries me more than the tire. But tires have been a very annoying issue for me recently. So that just made it more appealing. Windshield was my main concern. I know it's done and I'm not sweating it too much. I just always second guess pretty much any purchase over 250 bucks
Also, do people not realize you can get a Lexus for wayyyyy less than 60 or 70k. I paid less than most pay for their pickup truck. I paid sub 40k. That doesn't take a millionaire to own. But some component costs are much higher than say a Toyota.
Posted on 12/19/16 at 11:55 am to Cold Cous Cous
quote:
if it's done there's no use worrying about it.
Pretty much. It's in the past, it's done, 20 bucks a month isn't gonna kill you, and there's a chance it'll pay out, no need to beat yourself up over it
Posted on 12/19/16 at 4:15 pm to TheIndulger
My philosophy is to never purchase extended warranties for anything. I figure the money I've saved will more than cover any repair/replacement i need to make.
Posted on 12/19/16 at 7:37 pm to KG6
I bought my first Dodge a year ago and bought the bumper to bumper 100K extended warranty.
Never had a Dodge, heard horror stories but also heard they've moved passed those issues.
I have piece of mind.
Never had a Dodge, heard horror stories but also heard they've moved passed those issues.
I have piece of mind.
Posted on 12/19/16 at 7:45 pm to KG6
I have a buddy that swears by extended warranties. He buys them for almost everything. He claims extended warranties on his cars always cost less than his repairs. I guess I'm not as lucky as my buddy. I bought the premium extended warranty when I bought my truck 6years ago. They claimed everything was covered "bumper to bumper". I took it in with 5 minor different issues. Long story short they fixed 1 issue, the others "weren't covered". I had a $100 deductible and the part they fixed was a $30 part I could've changed myself. Needless to say I was pissed off. Bitched and complained and they still did nothing.
I hope this isn't your experience, but it all sounds good until you have to make a claim. It's all about fattening their wallet. I promise you they won't lose money on it.
I hope this isn't your experience, but it all sounds good until you have to make a claim. It's all about fattening their wallet. I promise you they won't lose money on it.
Posted on 12/19/16 at 9:13 pm to wfallstiger
quote:
We have warranty coverage on darn near anything and everything
I do wonder about the wisdom of doing so.
Falls (long time purple board member) - just take a look at how much you are spending per year on the coverage and how much that coverage has paid out to you. Extended warranty coverage is crap.
Posted on 12/19/16 at 9:51 pm to Tigris
quote:
Falls (long time purple board member) - just take a look at how much you are spending per year on the coverage and how much that coverage has paid out to you. Extended warranty coverage is crap.
I once paid a lot of money for term life insurance but I didn't die, did I waste my money? The overwhelming majority of life insurance policies never pay out, we buy them because the cost to mitigate risk seems reasonable, the same analysis should be applied to extended warranties. Like life insurance just because extended warranties are very profitable for the seller and for most do not pay off is not a sufficient reason to say they are a waste of money?
Posted on 12/20/16 at 1:16 am to secondandshort
quote:
Exactly how stupid am I: Car warranty edition. by secondandshort I thought the same thing about flood insurance. Thought if I flood everyone is going to flood. Well everyone flooded. Going to be about a 50k mistake. I'm not a huge insurance guy but this did open my eyes a little bit. I'm tired of learning things the hard way.
Insurance policies exist to make the insurer $. For both parties it's about risk. If you have enough money to cover the cost of a tire, windshield, or flood damage, then by all means don't buy the insurance. If the adverse event covered by the policy will put you in financial ruin, you should probably buy the insurance policy that protects you from it if said event happens.
Posted on 12/20/16 at 5:05 am to YipSkiddlyDooo
quote:
If the adverse event covered by the policy will put you in financial ruin,
I don't think it necessitates that the issue put you in financial ruin to get the coverage. If I totaled my car, I could probably buy a new one cash (wouldn't want to). I could still pay my bills, etc. It's the reason I have a safety net. But, if someone offers coverage at a reasonable rate, then I'll take that. I know car insurance is required, but comprehensive is not.....and I still get that coverage.
Not saying the coverage I got for road hazards worth it. I made a quick decision based on annoyance of recent events......the reason I made the thread. But, it could be that someone did their own risk analysis to determine that even though they can afford a tire, it might be financially wise to take what is offered. And if it isn't used, it's athe a cost they are willing to lose.
Posted on 12/20/16 at 10:31 am to EA6B
quote:
once paid a lot of money for term life insurance but I didn't die, did I waste my money? The overwhelming majority of life insurance policies never pay out, we buy them because the cost to mitigate risk seems reasonable, the same analysis should be applied to extended warranties. Like life insurance just because extended warranties are very profitable for the seller and for most do not pay off is not a sufficient reason to say they are a waste of money?
You are an idiot, so is the guy about the flood insurance.
Insurance is for protecting yourself against an occurrence that you can not afford to happen without insurance. You buy term life insurance in case you do die if you have a wife and family to support after your death. You buy car insurance in case you wreck your car to replace it and for the liability of injuring someone else. You buy flood insurance in case your house floods and you can't afford a $100,000 fix.
The issue with extended warranties are two fold:
1.) Is it going to save you money? Statistically no
2.) Is it going to save you time/ hassle?
In my experience dealing with warranty issues are a HUGE pain. It is almost always easier to fix it yourself then have to deal with the dealer/ warranty provider. As said above, if you have an extended warranty its not as simple as dropping it off at the dealer and having it fixed free of charge no issues asked, or at least rarely is.
This post was edited on 12/20/16 at 10:33 am
Posted on 12/20/16 at 12:54 pm to baldona
quote:
You are an idiot, so is the guy about the flood insurance.
It is almost always easier to fix it yourself then have to deal with the dealer/
Not if my time is worth more than yours.
Posted on 12/20/16 at 1:42 pm to EA6B
quote:
It is almost always easier to fix it yourself then have to deal with the dealer/
Not if my time is worth more than yours.
Poor wording on my part, I meant its almost always easier to just have it fixed the easiest way than take it to the dealer. Example: Tire goes out, dealer is 30 mins away but there's a tire place 5 mins away. Much easier to just get the tire done than worry about the dealer.
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