Originally Posted by
Joe Chritz
The math is that all extended warranties are bad buys. They have to make money or they couldn't make money selling them.
Joe
Not necessarily. The companies run the numbers. They know what it takes to make a profit. But as Bill mentioned in his quip about Vegas, that profit is "in the long run".
But just like in Vegas, knowledge can skew the odds more in your favor.
If youdo something that affects the variables differently than what the companies have inputted, then the odds of use would change. If you know this, than you could make a decision as to whether an add on makes sense.
We purchased a new Sonata for my wife. Now, when I get a new vehicle I tend to baby it for a while. I will park in a more distant spot at the shopping center to better isolate it. My wife, on the other hand thinks the best thing about a compact is it can squeeze between cars other models could not. She tends to pick up her cappuccino and drink while she drives.
We purchased the extended care program. They detail her car on a regular basis, touch up door dings, and such. In winter I tend to scrape off any ice on the windshield completely, she kinda scrapes it off, then uses the wipers to try to get the rest. They replaced the wipers 2 months after we bought it.
Just replacing her lost key paid for the program that year.
She thinks if the speed limit in town is 35mph, then you should go that fast till you HAVE to stop. If I see the light turn yellow 200' ahead, I'll start slowing down, she would speed up if not at the speed limit, then brake hard.
The point is the company makes generic assumptions, but you have specific knowledge. The extended care program would not have made sense for a vehicle driven primarily by me; but one driven by my wife, it looked a lot more attractive.
Comments made here are my own and, according to my children, do not reflect the opinions of any other person... anywhere, anytime.