- First Name
- Sherman
- Joined
- Dec 1, 2021
- Threads
- 29
- Messages
- 1,804
- Reaction score
- 1,830
- Location
- MIDDLETOWN, MD
- Vehicle(s)
- '22 Badlands ordered 12/17/2021 - Arrived 3/25/22
In response to the posts about whether to buy extended warranties --
There is no right or wrong choice, just different ways of thinking about them.
One position is more 'left brain', a straight financial POV.
The other is more 'right brain.' Legitimate concerns about potentially large repair bills can understandably make some people anxious.
It's clear that my preference is to forgo warranties -- and all insurance aside from health; auto; and homeowners. Some people might add life and/or disability insurance to that list. For everything else we're self-insured.
Often, when a person states their opinion about something it can be interpreted as implying that anything different is 'wrong.' That's not the case here. If someone cannot be self-insured for car repairs -- or can but wants to limit their maximum repair costs -- that's fine. I fact, if they will lose sleep over the possibility of a large repair bill, a warranty is advisable.
One reason for buying a warranty that doesn't hold water is the cost of parts. That's what the dealership tried on us. They used the example of the rear camera, claiming it cost ~$850 to replace. My response was that I'd either fix it myself or we'd do without it (the camera is nice, but we've never owned a vehicle with one before and somehow we managed). The underwriter has all of the data -- parts and labor costs; percentage of vehicles that have specific problems, etc. They average those costs out and use a significant multiplier to determine the warranty cost. The only way to possibly beat the underwriter is if an owner knows their use is 'severe' (but acceptable) -- towing a large frontal area trailer at the max CGWR on mountain highways and off-road. In that case, an extended warranty might make financial sense.
There is no right or wrong choice, just different ways of thinking about them.
One position is more 'left brain', a straight financial POV.
The other is more 'right brain.' Legitimate concerns about potentially large repair bills can understandably make some people anxious.
It's clear that my preference is to forgo warranties -- and all insurance aside from health; auto; and homeowners. Some people might add life and/or disability insurance to that list. For everything else we're self-insured.
Often, when a person states their opinion about something it can be interpreted as implying that anything different is 'wrong.' That's not the case here. If someone cannot be self-insured for car repairs -- or can but wants to limit their maximum repair costs -- that's fine. I fact, if they will lose sleep over the possibility of a large repair bill, a warranty is advisable.
One reason for buying a warranty that doesn't hold water is the cost of parts. That's what the dealership tried on us. They used the example of the rear camera, claiming it cost ~$850 to replace. My response was that I'd either fix it myself or we'd do without it (the camera is nice, but we've never owned a vehicle with one before and somehow we managed). The underwriter has all of the data -- parts and labor costs; percentage of vehicles that have specific problems, etc. They average those costs out and use a significant multiplier to determine the warranty cost. The only way to possibly beat the underwriter is if an owner knows their use is 'severe' (but acceptable) -- towing a large frontal area trailer at the max CGWR on mountain highways and off-road. In that case, an extended warranty might make financial sense.
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