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View Poll Results: Do you use vehicle service contracts?
Yes I have one and have found it pays for itself. 2 40.00%
Yes I have one and have found it a waste. 0 0%
No I wouldn't; they are scams. 2 40.00%
No, I either lease or only own cars under warranty. 1 20.00%
Voters: 5. You may not vote on this poll

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  #1  
Old 07-03-2019, 07:17 AM
hogwldfltr hogwldfltr is offline
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Do You Use Vehicle Service Contracts?

Do you use vehicle service contracts? (AKA extended warranties or aftermarket warranties).

I'm just taking on a 2014 X3 35i at 86K+ miles and have scheduled five years of payments. This is the first used car I've purchased without a warranty since I was first out of engineering school ('79). The cost for warranty insurance through the dealership basically doubled the payments for the car over the five year loan period adding about $250 per month.

I've found one aftermarket warranty company, Endurance, which will cover four years of repairs for $4.2K. I know there are others which I'll price compare. A couple of days ago I was ready to write them a figurative check for the entire amount with 30 days to cancel. The payment didn't go through due to the CC company flagging it as potential fraud so I've bought myself some time while the vehicle's title comes through to the dealership.

To give this a frame work, my F250 diesel cost $9K for a single issue through the Ford dealership and took multiple repairs before it was fixed. It had approximately 110K miles at the time.
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  #2  
Old 07-03-2019, 07:57 AM
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Doug Huffman Doug Huffman is offline
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No. One is betting against the house and the house always wins, else they couldn't stay in business.
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Scepticism and Animal Faith (1923)
Scepticism is the chastity of the intellect, and it is shameful to surrender it too soon or to the first comer: there is nobility in preserving it coolly and proudly through long youth, until at last, in the ripeness of instinct and discretion, it can be safely exchanged for fidelity and happiness.
(The Works of George Santayana p. 65)

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  #3  
Old 07-03-2019, 11:18 AM
hogwldfltr hogwldfltr is offline
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Quote:
Originally Posted by Doug Huffman View Post
No. One is betting against the house and the house always wins, else they couldn't stay in business.
Figuring $1K expenses for unscheduled maintenance per year then a $4K policy breaks even. Figuring anything above that then a $4K policy is a good deal. Just adding some figures as opposed to casino metaphors. God, I hate the use of mom and apple pie statements instead of actually discussing the issue at hand.

Last edited by hogwldfltr; 07-03-2019 at 11:22 AM.
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  #4  
Old 07-03-2019, 12:57 PM
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Zeichen311 Zeichen311 is offline
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Quote:
Originally Posted by hogwldfltr View Post
God, I hate the use of mom and apple pie statements instead of actually discussing the issue at hand.
It is the core of the issue at hand. No one can predict the future so no one can say whether one's covered repair costs will exceed the cost of the plan. Statistically, they will not. There's little to discuss; that's an incontrovertible fact.

Doug gave you the reason why he doesn't buy them: Option #3 in your poll. Where's the problem?

Incidentally, that third option is unnecessarily biased. For example, my I answer would be "No" but I don't think the plans are scams. I simply don't need one and they make no economic sense for me. So, I cannot respond to your poll as written.
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Last edited by Zeichen311; 07-03-2019 at 01:02 PM.
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  #5  
Old 07-03-2019, 01:15 PM
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Quote:
Originally Posted by hogwldfltr View Post
Figuring $1K expenses for unscheduled maintenance per year then a $4K policy breaks even. Figuring anything above that then a $4K policy is a good deal. Just adding some figures as opposed to casino metaphors. God, I hate the use of mom and apple pie statements instead of actually discussing the issue at hand.
I have never had $1K unscheduled expense in a year, let alone for maintenance. Maintenance is planned, scheduled and more or less budgeted. Consumables are planned, scheduled and more or less budgeted.

Mom and Apple Pie statements are such because they embody essential truths. They're actual memes, ear-worms easy to recall.

They are not scams but they are honey-pots for the innumerate and stupid.
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Scepticism and Animal Faith (1923)
Scepticism is the chastity of the intellect, and it is shameful to surrender it too soon or to the first comer: there is nobility in preserving it coolly and proudly through long youth, until at last, in the ripeness of instinct and discretion, it can be safely exchanged for fidelity and happiness.
(The Works of George Santayana p. 65)

Eschew eristical argumentation. I am responsible for what I write, not for your understanding of it.
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  #6  
Old 07-03-2019, 03:41 PM
z3jeff z3jeff is offline
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I have gotten the extended warranty on all new cars for the last 40 years. I have cashed in for big expenses 3 times. The air conditioner replaced on a 79 Datsun. A tranny replaced in a 83 Dodge van and an air conditioner on a 2011 Camry. Small things like a fuel pump on a 97 Mustang, etc along the way. Adding up the total cost, I am probably way in the hole but the added knowledge of having one is worth the comfort.
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  #7  
Old 07-03-2019, 05:14 PM
hogwldfltr hogwldfltr is offline
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Do You Use Vehicle Service Contracts?

Quote:
Originally Posted by Doug Huffman View Post
I have never had $1K unscheduled expense in a year, let alone for maintenance. Maintenance is planned, scheduled and more or less budgeted. Consumables are planned, scheduled and more or less budgeted.

Mom and Apple Pie statements are such because they embody essential truths. They're actual memes, ear-worms easy to recall.

They are not scams but they are honey-pots for the innumerate and stupid.


Do you really believe the house always wins? That makes no...zip...zero sense. Clearly there are times when the consumer comes out ahead. I believe the correct statement is "odds favor the house." The other is an example of using a motherhood statement without using the brain. That is exactly my problem with the use.

FWIW, following a lot of passionate negative input regarding the extended warranties, I've decided to not get one. I'll just have to work without a net. Thanks all for the inputs.

Last edited by hogwldfltr; 07-04-2019 at 05:49 AM.
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  #8  
Old 07-12-2019, 11:16 AM
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I went round and round about buying an extended warranty when I bought my 640. I finally bit the bullet and bought one. 3/36 for $3600. Two months later, while mounting new tires a torn boot was found on the right front axel. The warranty paid, no questions asked. Iíve already recouped half the cost and Iíve got 30 months to go.


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  #9  
Old 07-12-2019, 11:23 AM
southcoastguy southcoastguy is offline
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So that first repair costs you $3600? If you had the money for the warranty plan, you had the funds to cover the repairs.
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  #10  
Old 07-12-2019, 03:32 PM
SNAGuy SNAGuy is offline
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Quote:
Originally Posted by southcoastguy View Post
So that first repair costs you $3600? If you had the money for the warranty plan, you had the funds to cover the repairs.


Not necessity .... Many if not most manufacturer and 3rd party extended service contacts can be paid over 12-24 months, depending on the length of the contract at no additional cost.


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  #11  
Old 07-12-2019, 04:29 PM
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Quote:
Originally Posted by southcoastguy View Post
So that first repair costs you $3600? If you had the money for the warranty plan, you had the funds to cover the repairs.


It appears your read comprehension isnít the greatest. I said I recouped half the cost of the contract with one repair. The point is, BMWís are expense cars to repair. If I spent $3600 and never had to use the service once I would still feel I got my moneyís worth just in the peace of mind. Some may not think that way. To each their own.


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  #12  
Old 07-12-2019, 06:23 PM
Autoputzer Autoputzer is offline
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Doug's right... sort of On average, warranty premiums cost more than warranty claims.

Anytime there's a discussion on extended warranties people post how they've saved money by having one. I believe them. But, they are not a representative sample of those who have bought extended warranties. People are less likely to post "I spent $4k on an extended warranty and have nothing to show for it."

BMW's extended warranties have an inherent advantage, in that they provide the parts and they get a discount on the tech's labor at dealerships.

Insurance is best suited for those losses that would wipe you out: destruction of a house, $1M in medical bills, dying early and leaving dependents, causing a traffic accident that kills 20 people, etc.
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  #13  
Old 07-12-2019, 06:51 PM
hogwldfltr hogwldfltr is offline
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Quote:
Originally Posted by Autoputzer View Post
Doug's right... sort of On average, warranty premiums cost more than warranty claims.

Anytime there's a discussion on extended warranties people post how they've saved money by having one. I believe them. But, they are not a representative sample of those who have bought extended warranties. People are less likely to post "I spent $4k on an extended warranty and have nothing to show for it."

BMW's extended warranties have an inherent advantage, in that they provide the parts and they get a discount on the tech's labor at dealerships.

Insurance is best suited for those losses that would wipe you out: destruction of a house, $1M in medical bills, dying early and leaving dependents, causing a traffic accident that kills 20 people, etc.
I agree with the odds being that the payout from the policy is likely to be less than the cost of the policy. I'm certain the companies that sell the policies had statistics and use them to their advantage. The rest of us can only research the likelihood of failures on the net and look for trends reported on due to major issues.
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  #14  
Old 07-13-2019, 04:01 AM
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Doug Huffman Doug Huffman is offline
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Originally Posted by hogwldfltr View Post
The rest of us can only research the likelihood of failures on the net and look for trends reported on due to major issues.
Thatís what #FakeNews and paid positive reviews is all about, gulling the credulous.

Quote:
Originally Posted by George Santayana
Skepticism is the chastity of the intellect, and it is shameful to surrender it too soon or to the first comer: there is nobility in preserving it coolly and proudly through long youth, until at last, in the ripeness of instinct and discretion, it can be safely exchanged for fidelity and happiness. [My emphasis] Animal Faith, The Works of George Santayana 1923
__________________
Scepticism and Animal Faith (1923)
Scepticism is the chastity of the intellect, and it is shameful to surrender it too soon or to the first comer: there is nobility in preserving it coolly and proudly through long youth, until at last, in the ripeness of instinct and discretion, it can be safely exchanged for fidelity and happiness.
(The Works of George Santayana p. 65)

Eschew eristical argumentation. I am responsible for what I write, not for your understanding of it.
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  #15  
Old 07-14-2019, 10:03 AM
hogwldfltr hogwldfltr is offline
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Originally Posted by Doug Huffman View Post
Thatís what #FakeNews and paid positive reviews is all about, gulling the credulous.
God almighty, for an engineer you seems to side much more with propaganda than data. Just incredible.
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  #16  
Old 07-14-2019, 11:21 AM
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Doug Huffman Doug Huffman is offline
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Originally Posted by hogwldfltr View Post
God almighty, for an engineer you seems to side much more with propaganda than data. Just incredible.
LOL. I am much more than an engineer retired, that was just my formal training and career. I am 70 y.o. and well retired since my facility was closed by BRAC-03 in 1995. I went back to school and studied what I wanted to learn for ten years, and not just to be employable. God Bless you.
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Scepticism and Animal Faith (1923)
Scepticism is the chastity of the intellect, and it is shameful to surrender it too soon or to the first comer: there is nobility in preserving it coolly and proudly through long youth, until at last, in the ripeness of instinct and discretion, it can be safely exchanged for fidelity and happiness.
(The Works of George Santayana p. 65)

Eschew eristical argumentation. I am responsible for what I write, not for your understanding of it.
Reply With Quote
  #17  
Old 07-14-2019, 12:12 PM
hogwldfltr hogwldfltr is offline
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Quote:
Originally Posted by Doug Huffman View Post
LOL. I am much more than an engineer retired, that was just my formal training and career. I am 70 y.o. and well retired since my facility was closed by BRAC-03 in 1995. I went back to school and studied what I wanted to learn for ten years, and not just to be employable. God Bless you.
Well we're close in age however I'm still a working engineer in electronics. Strangely I wasn't only a student of Chem E but also of quite a bit more. Cheers!
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