Extended Warrenty is it worth it , have you gotten your moneys worth out of it ?

"Whoever" > wrote in message
caldomain...

> 2. The companies selling these policies know what the failure rates of the
> vehicles are and can set terms and prices accordingly. In other words, you
> are betting against someone that has already stacked the deck in their
> favor.
>

Not always.

The insurers only have a stacked deck on an OVERALL view. You can still
"win" if you happen to choose a vehicle that turns out to have an
exceptionally
bad service record.

For example I'm sure that the majority of people with extended service
contracts
on 1989-1996 Chrysler minivans with the infamous Ultradrive A604/41TE
transmission
in it did in fact benefit since very few of those vehicles passed 100K miles
without
a trans rebuild. Of course, if you looked at Chrysler minivans - all
models -
as a whole over that time period, the insurers would still have come out
ahead -
but far less profitably than over model lines.

Naturally, if you do in fact choose a model that turns out to have an
exceptionally
bad service record, you lose in some fashion because it's going to be in the
shop
more than your driving it.

If you are one of these new car buyer that simply must have the latest car
models
with the newest and least-proven engine and transmission designs in them -
like for
example the first generation Priuses - why then
you probably are making a good financial bet with an extended service
contract.

Very stupid auto purchase in all other respects, but at least you will
probably get your
money's worth out of the service contract.

Ted

On Mon, 8 Aug 2005, Ted Mittelstaedt wrote:

>
>
> The insurers only have a stacked deck on an OVERALL view. You can still
> "win" if you happen to choose a vehicle that turns out to have an
> exceptionally
> bad service record.

Yes, but how do you get to find out the poor service record before the
insurers? The answer is, that you cannot.

Clearly, there will be cases that, largely through luck, you buy an
insurance policy and come out ahead. Mostly, though, you won't. If you
take a long-term view over several cars, self-insurance is the way to go.

If you can't afford to have a transmission rebuilt on one of these
vehicles after 3-4 years, then you probably can't really afford the
vehicle in the first place.

"Whoever" > wrote in message
caldomain...
> On Mon, 8 Aug 2005, Ted Mittelstaedt wrote:
>
> >
> >
> > The insurers only have a stacked deck on an OVERALL view. You can still
> > "win" if you happen to choose a vehicle that turns out to have an
> > exceptionally
> > bad service record.
>
> Yes, but how do you get to find out the poor service record before the
> insurers? The answer is, that you cannot.
>

You don't -but the point was that for a new model car line that has never
been on the market before, the insurers don't have any better idea of how
long it
is going to last than you do.

Ted

I'm probably in the extreme minority, but I believe in extended warrantees.
I had one on a Ford Escort which began to idle very rough after a local
trip. Took it to the garage and after a week, with the engine spread over
two bays, the Ford area rep found it was from a camshaft which wasn't
hardened properly! Except for a $50 deductible, it covered all the repair
and car rental; some $5000+ worth.

Today I went and purchased a max care extended warrantee on my wife's
Sebring Convert. Went with 7 years/50k miles. Covers everything except for
consumables with a $100 deductible. (Car wasn't eligible for the 7/70 as it
was a former rental.) Bitch all you want guys, but it's just piece of mind
knowing that wherever I go, Chrysler will cover everything from towing to
room rental and meals to car rentals and full repair and all I pay is the
first $100. (I hope I never have to use it.)

One thing when talking warrantees is that (like everything) the price is
negotiable. What I did was to search the web to determine what I could get
this particular warrantee for from another Chrysler dealer (which turned out
well under what the local dealer was quoting.) Printed off the page, took it
into him and he met the price.

I look at this the same way I look at any insurance, life health or
whatever.

"Dennis" > wrote in message
newsw9Ke.3742$0d.2019@trnddc03...

>
> I look at this the same way I look at any insurance, life health or
> whatever.

Many people feel the same as you about insuring themselves and their
possessions.
One must be sure that the insurance he chooses will actually pay when there
is a problem.
Apparently there are ample cases where the insurers avoid payment using fine
print and
clever interpretations of their liability.

I suppose that's especially true of the off-brand auto policies.

Personally I have always stuck with policies offered by the local dealer
(where I get the car serviced.) In only once case (and I forget exactly
what it was) did the policy not pay (and it was specifically cited in the
policy - had to due with brakes if I remember.)

I've read the horror stories about how Chrysler refused to honor warranties
(extended or current) on engines that sludged. If I remember, Chrysler fell
back on their refusal because the engine was sludged. Perhaps they had a
right to take this stand as over 95% (probably much more than this - I don't
know the exact figures) of this engines did NOT sludge. So who do we
believe, a consumer who swears that he religiously changed the oil ever 3000
and it sludged up anyway or Chrysler who takes the stand that oil changed
every 3000 miles will not sludge? (Of course Chrysler did make certain
modifications in 2003 to lesson this problem, but I have believe that an
engine will not burn the oil if you keep the shaving at bay.) And I also
read that some people who had the same problem DID get a new engine from
Chrysler; so I would have to lean towards what type of relationship each had
with his local dealer.

Perhaps it's something like 'if you support your local dealer and when it
hits the fan, he'll support you'?

I, as the purchaser, am the one responsible for reading the fine print of
the contract. As I stated, I just purchased a policy last Monday, and the
business manager was quick to point out all the fine print. He was truly
concerned that I understand what wasn't covered and why.

So I'm confident that the car is reasonably covered up to it's 7th birthday
and that I can could on my local dealer to be there when need be. (I hope
that I'm not wrong.)

> One must be sure that the insurance he chooses will actually pay when
> there
> is a problem.
> Apparently there are ample cases where the insurers avoid payment using
> fine
> print and clever interpretations of their liability.

"Dennis" > wrote in message
news:5laLe.681$Y55.114@trnddc06...

>
> Perhaps it's something like 'if you support your local dealer and when it
> hits the fan, he'll support you'?

*********It should be that way, but many many dealerships have dropped this
principle from their mission statement.


> I, as the purchaser, am the one responsible for reading the fine print of
> the contract. As I stated, I just purchased a policy last Monday, and the
> business manager was quick to point out all the fine print. He was truly
> concerned that I understand what wasn't covered and why.

*****This is a good lesson for life. Always read the fine print, ask
questions, be
SURE you know what you have agreed to, and what the other party will stand
by.

Many dealerships sell 'off brand' policies...They are very profitable to the
dealership.
Some may be good, but others are clearly not worth a darn. I again refer to
www.ripoffreports.com , and you can search directly for this sort of
warranty abuse.

Best regards