Warranty from a Used Car Dealer

I sell these warranties, too. I have sold two, but I didn't get the payment in on time. A year later the buyer came in and asked about the status of his warranty. I gave him back his check and said, guess you didn't need it! We took care of all the problems on our required warranty!

Actually, $995 is a good price for 7 years or 100,000! I charge $695 for

I would check out the Toyota warranty that they extended due to the sludge problem. It may be longer than you think.

The 7 year/100,000 mi warranty is only going to last about 2 more years, so it may not be such a great deal. Also, what is the deductible, and what if you move away.

The most important thing is the maintenance records of vehicle.

Think about all that goes into one of these things:

a) commission to the saleman. b) analyse fees to figure out the risk to the insurance agency (and techniques to elliminate risk). c) administrative fees over the life of the policy for claims

So what do you think all that overhead costs are?

Now think about how the issuing insurance company makes their money: d) figuring out ways to delay payouts (oops - you waited 2 days extra to get that oil change.......1 mile over the oil change limit....tisk tisk, oops one day late on the payment). e) figuring out ways to deny payments

I had one once - went to the dealer were i got it! "We're still waiting on getting approval to go foward with the repair". Delay results in about 3 hours longer in the shop.

Does the policy allow manufacture replacement parts or do you have to use other non dealer parts?

Now look at the policy. Its a long multipage contract full of all kinds of details. It doesnt simply say "WE WILL PAY FOR ANY REPAIRS YOU NEED!" Why not - isin't that what you really want?

So instead you get some long winded contract that you could not possibly understand unless you were a lawyer and studied all kinds of case law.

Let's see - the insurance company is betting you won't need / be able to use the warranty, and you would be betting that you will.

Since the insurance companies continue to sell these warranties you can be sure that the odds are in their favor.

If it is not a Toyota warranty, how do you know the company will still be in business when your car breaks. Also read the fine print. Some warranties say they do not cover wear and tear. When you transmission breaks they call it normal wear and tear and won't pay.

Typical profit margin on extended warranties are 80%-90%. Based on this they aren't worth what you have to pay, unless you have a catastrophic failure which, in Toyota's case, isn't likely. davidj92