| Author |
Message |
Ron Thomas (Ronsupercar)
Junior Member
Username: Ronsupercar
Post Number: 73
Registered: 5-2002
| | Posted on Tuesday, May 21, 2002 - 10:03 am: | |
I have to agree with Frank as well..You have to figure if something goes wrong with the car, That warranty is paid for on that first accurance.
I only hope the $2600 they are asking is for a bumper to bumper warranty.
I would go with that one year coverage and drive that car as much as possible. After your year is up and nothing goes wrong you car by another year because you know once you finally cancel it thats when something always happens.. |
TomD (Tifosi)
Member
Username: Tifosi
Post Number: 735
Registered: 9-2001
| | Posted on Tuesday, May 21, 2002 - 9:08 am: | |
I think Frank hit it on the head, they are nice if you need them, but warranty companies make out like bandits especially on electronics - this is why they push them so much, its crazy to pay 50 or 60 bucks for an extended warranty on a dvd or vcr that is obsolete after 2 or 3 years plus they don't break that oftern, problem is the consumer worries about his one unit while the warranty co spreads his costs over 1000s of units and does not pass it on to the consumer. think about it a dvd costing $200. say the warranty co charges 30s buck for extended warranty. say 1000 units. statitics show that say 50 of the units will have claims (prob high) the warrant co collects 30,000 and could buy new units at 200 for the people with claims and still make out. it is a great business. |
Frank Parker (Parkerfe)
Member
Username: Parkerfe
Post Number: 915
Registered: 9-2001
| | Posted on Tuesday, May 21, 2002 - 8:51 am: | |
All warranties are a rip off if you don't use them. But, they sure are nice if you need them. I have been buying extended warranties on my BMWs for years and they have ALWAYS paid off. On my 1991 M5 i used the extended warranty from WarranTech to replace warped brake rotors on five difference occassions(after almost every track event). On my M3 I had the sycros, the ECU and the brake rotors replaced. On my wife's 740iL, the ac compressor, the radiator and electric seat control were all replaced by a WarranTech 100,000 mile extended warranty. On my current M5 I have bought a WarranTech 100,000 mile extended warranty as well for $2200.00. While I am now still under the 50,000 mile factory warranty, I am sure I will use the extended warranty sometime between 50,001 and 100,000 miles. On Bmws or Ferraris it doesn't take much to go wrong to cost a lot more that the cost of the warranty. While I would never buy an extended warranty on other consumer items such as electronis and appliances, I think they're a great buy on automobiles. Plus, they help with resale since you can boast that the car comes with a warranty. |
Frederick Thomas (Fred)
Member
Username: Fred
Post Number: 481
Registered: 2-2001
| | Posted on Sunday, May 19, 2002 - 10:45 pm: | |
I think extended warrentys are a rip off. It is how companies make extra money off of a sale. Several times when I have purchased electronics from best buy the sales person always askes if I want the extended warrenty. They almost seem insulted when I don't take it and usually pitch it two or three times. |
James Dixon (Omnadren250)
Junior Member
Username: Omnadren250
Post Number: 205
Registered: 7-2001
| | Posted on Sunday, May 19, 2002 - 9:26 pm: | |
I took a marketing class this semester. It went over extended warrarnty plans in the electronic goods industry, and I assume it is similar to the car industry.
After that class, I decided never to buy an extended warranty on anything.
The manufacturer knows , with some degree of certainty, how long various parts on the product will last, and they base their stock and extended warranties on this information.
The auto dealership has most likely done an in-depth inspection on this car. They would only sell you a warranty if they felt that the chances of something going wrong with this car were slim. Otherwise, they would rather not push the warranty and force you to fix the expensive repairs on your own (and hopefully return to the dealer who sold you the car to fix it). Either way, the dealership wins.
The will set their warranty based on time and usage rate. As stated earlier, a year is not a very long time, probably not long enough for something to go wrong.
Ask them if it is $2600 for a second year, and then $2600 for a third year of coverage. I seriously doubt it, as the cost of the warranty over time will probably increase exponentially (as the chance of something breaking does).
I wouldn't be surprised if they wanted $3500 for the second year and even more for a third and fourth year warranty plan. |
Tim N (Timn88)
Member
Username: Timn88
Post Number: 961
Registered: 6-2001
| | Posted on Sunday, May 19, 2002 - 9:12 pm: | |
If it saved you money it would cost them money. If that were the case they wouldnt offer it. |
magoo (Magoo)
Advanced Member
Username: Magoo
Post Number: 2760
Registered: 2-2001
| | Posted on Sunday, May 19, 2002 - 3:14 pm: | |
Also Guys, Don't forget it is only a "1 yr." policy. That goes by pretty fast especially and most likely since the car won't be a daily driver. Like Mike says pay a few hundred dollars for a pre-inspection, not using the dealer you are buying the car from, and know what you're getting. |
martin J weiner,M.D. (Mw360)
Member
Username: Mw360
Post Number: 413
Registered: 5-2001
| | Posted on Sunday, May 19, 2002 - 12:49 pm: | |
Agree completely with Michael.It is more important to spend some bucks on a good pre-purchase inspection."extended warranties" only extend the pockets of those that are pushing them. |
Chris Richardson (Boozy)
Junior Member
Username: Boozy
Post Number: 156
Registered: 11-2001
| | Posted on Sunday, May 19, 2002 - 12:36 pm: | |
Malibumk is right, so the other way of looking at it is they are making a lot of money on it so they have room to negotiate. Offer them half of what they want and settle in the middle. They con't underwrite the warranty so any money they make off it is a bonus. I've always been able to negotiate on extended warranties, though I've rarely bought them. |
Michael Klein (Malibumk)
New member
Username: Malibumk
Post Number: 8
Registered: 5-2002
| | Posted on Sunday, May 19, 2002 - 11:48 am: | |
What you are really talking about here is a $2600 insurance policy. And the guys who design these know very well what they are doing...and it is a money maker for them. Usually it's a 50% commission for the dealer( who also administers claims) and the third party insurer get's the rest and pays the claims. Here in the US these are considered high margin deals for all involved except you. Personally, I wouldn't go near it with a 10 foot pole. Keep your $2600 and pay for any repairs youself. Spend a few hundred to have a reputable 3rd party do a pre-purchase inspection, and then use the results from the inspection (with the related repair estimates) to negotiate the price down a little further...unless the inspection reveals a big surprise.
Everyone gets and opinion, and has their own affinity or adversion to risk...this reflects mine. I hope it helps.
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Mr. Doody (Doody)
Junior Member
Username: Doody
Post Number: 198
Registered: 11-2001
| | Posted on Sunday, May 19, 2002 - 10:50 am: | |
steve - i don't know what the coverages are like in asia, but here in the states the dealers seem to only sell a powertrain warranty. it covers stuff that is wildly unlikely to fail, but doesn't cover all the BS that is likely to fail (the light motors, roof motors, weird electrical glitches, etc. etc. etc.). in fact, while i was 355 hunting, i had two dealers respond to queries of "what about extended warranties" with "well, i can sell you blah blah - but it's really a waste of money since it only covers parts that'll basically never break during the warranty period."
if you can get a REAL warranty that'd be a smart thing to do, for sure.
GOOD LUCK!
doody. |
Frank Parker (Parkerfe)
Member
Username: Parkerfe
Post Number: 912
Registered: 9-2001
| | Posted on Sunday, May 19, 2002 - 7:21 am: | |
Get the warranty ! It doesn't take much to go wrong to go over $2600.00. |
steve (Honky)
New member
Username: Honky
Post Number: 1
Registered: 5-2002
| | Posted on Sunday, May 19, 2002 - 2:19 am: | |
Hi - first time to this board, and I'm about to purchase my first Ferrari - a 355 Spider. Its a 1995/6 and has 39,000km on the clock. Its been sold by a local Ferrai dealership on consignment - thus the warranty is an "extra".
They want to charge $2600 for 12months mechanical warranty (this seems to be normal practice in Asia).
Any advice? Am i paying too much for this or should it be money well spent? |