re: Folks who don't buy an extended warranty are asking for it...

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You do realize that because that is their highest profit margin that makes it negotiable right? My guess is you'e re too dumb to think of negotiating with them on it.

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You'll just have to take my word on it, I know more about this than you do. If you negotiate it down to $1, you are still statistically unlikely to come out ahead, though your odds are certainly better than if you pay $4k for it.

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Ugh. let's see a show of hands how many people on here can work on their own diesel repairs!
Or transmission repairs, or electronic repairs and on and on and on...

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Maybe I'm just a bad SOB compared to everyone else, but I can handle the vast majority of work on all of my vehicles with basic hand tools. I have ~ 300k miles combined on the 3 in my family and the only thing I've had someone else do is body work after a wreck. It isn't because I can't afford to pay someone else to do it, it's because I can't stomach paying someone else $120/hr plus parts to do something I can do in 20 minutes with a $15 part. New stuff is easier to fix than old stuff.

Cool anecdote! CNA must have figured out the magical sauce to paying out more than the customers pay in and remaining a viable business.

I'm not arguing with you because you either sell extended warranties or lack the critical thinking skills to understand this whole dynamic but for the other people in the room: Think about it this way. You're gambling that the vehicle you are purchasing WILL fail within the gap between factory standard warranty and the one you purchased, the repair will be fully covered, and the failure repair value will exceed the sum total of the money you paid in to the extended warranty.

Lets ignore the companies profitability and how much commission the sales weasel is making on this - Why are you buying that car in the first place?

Put savings in HYSA and move the interest to an emergency fund for repairs and when shite happens

Fair enough. I’m damn sure glad I had mine.

They would not offer extended warranties if they didnt make money on selling em...which means they pay out less than the premiums. I made a decision to never get an extended warranty. To this day I would have never needed one. In the event I will, I am more than ahead financially from not wasting my money over the last 30 years.

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Cool anecdote! CNA must have figured out the magical sauce to paying out more than the customers pay in and remaining a viable business.

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To clarify this on how they make money, even when they pay out more than an individual paid in - investment. The warranty companies are not bringing in peoples money and stashing it under the bed. They are taking the several millions to 100 millions and investing that in various strategies. They are making money off your money and that keeps them solvent. This is what keeps them from being a ponzi scheme, along with most people will not use all the money loaned to them.

Other fun numbers from AI -
Only 1-2% of term life insurance policies get paid out. Most people do not die during term. Profits galore. This is still a solid option for young people starting families.

70%-80% do not use extended car warranties at all or just partial use. Major profit center for companies, even if negotiated down.

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What exactly are you arguing? OF COURSE THE WARRANTY COMPANIES MAKE MONEY! I mean, damn. Every insurance company in existence makes money. But the $2295 policy I purchased has now paid out over $7000 in claims since I’ve owned the vehicle….math.

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If you want to bring in math to it, you have to expand the picture. This is a singular data point, that specifically reinforces your initial premise. Earlier I pointed out I have not purchased extended warranties over 6 purchases. I listed total repairs on all vehicles and with an average of $2000 per vehicle warranty, I am positive ~$6000 by not purchasing extended warranties.

You have saved technically $4705 on this vehicle, however what happens when you purchase your next car. If you purchase another warranty at similar price, you savings is now down to $2410. If that car is more reliable and you fall into the 70% that never use the warranty, that is you new baseline. Once you buy another car and get warranty at same price, your savings is $115.

Over 50% of cars sold, never have factory warranty work done. As pointed out above, with extended warranties that falls even further. At this point you basically hoping to go against the winning argument to justify your decision.

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So just let them throw an extra $5000 extended warranty fee on there huh? Lol

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You do know you can shop around for extended warranties totally independent of the ones the dealership is pushing, right?