Monday, January 27, 2020 Detailed Auto Topics
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Con-men work by making the mark think they are getting a good dealThere is an enduring method used by con-men. It is to make the person being taken, think they are getting a great deal. There is something in human nature that tends to make people abandon caution, when they think they are going to gain. This is the basis of most classic cons and I believe the basis of extended warranties.

New car dealers tenaciously push extended warranties. With new-vehicle sales margins down, they stand to gain a lot. How much? Up to $800.00 and more on some policies. The client paying the tab will normally gain a lot less.

Extended warranties are not actually warranties at all. They are more like a decreasing value, term insurance policy. The insurance company has your money and you hope they will pay some back, if there is a problem. The less they pay back, the more they keep; and they are professionals.

Consumer advocates, like Consumer Reports and constantly warn people NOT to buy extended warranties. Unfortunately, the warranty companies have a LOT more money to promote their policies, than the average consumer agency.

A far better plan is to put the warranty amount, into a certificate of deposit and follow good maintenance on the vehicle. With good maintenance and care the odds of an expensive problem are almost nil. The other benefit is when the period that would have been covered is over, you still have most of your money.

 Extended warranty companies make lots of money. That money comes from you. If it were a good deal for you, they would not push it.

 Extended warranties are notorious for denying claims. They have your money, if they say no there is little you can do.

 A defective vehicle component will normally fail well within the manufacturer’s warranty. With good maintenance, there is very little chance of a problem.

 Extended warranties are vastly over-priced for the actual coverage. This is why they are so actively pushed. They are very profitable.

 If the warranty company goes out of business, you lose your money. The company could be little more than a back-room with a telephone.

When a warranty is being pushed, watch for the hookYou will win, when you control your money. Warranty companies push their policies because they know you will lose.  The odds are greatly stacked in their favor.

Save money by buying a quality vehicle and maintaining it. This way you can keep your money and avoid being hooked.

For more ideas on overall lowest cost of driving an automobile, come to AGCO. AGCO is the place to go!

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