Has anyone USED Troy's extended warranty?

You're wasting your breath on that guy.

 

In my case buying the extended warranty has nothing to do with "peace of mind". I can afford to fix anything that breaks but with all the complexities I think that there is a real chance it will need an expensive repair before I sell it.

I understand how insurance works, but in the case of extended warranties everyone pays the same amount no matter which version or which options they have. So maybe for me it will end up saving money? It's kind of as if every one paid the same amount for liability insurance regardless or the kind of car they owned or their driving record. People with a high probability of an expensive claim might make out pretty good, in fact sometimes they do anyway.

 

You are betting against the odds. Insurance spreads the risk, but also adds overhead, meaning that the *average* user pays more. If you are lucky (unlucky?), or if you are smarter than the insurance actuaries, you can come out ahead.

It's just like gambling at a casino: the house will always win in the long run, meaning that the average gambler loses money. Some, however, will be lucky and pocket some extra cash. Some have been smart enough to beat the system, but then, of course, the casino changes the system.

Tom

 

Well put and so very true.

Extended warranties were created to generate more profit for the dealer and the manufacture of the car. They are calculated based on years of research and data and are extremely profitable. The consumer is the only one that looses.