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 06-20-2008, 08:47 Post: 154724
earthwrks

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 Extended warranties on cars and trucks

Yooper that warranty doesn't cover diesel trucks.

I have an '03 Ram quad cab, 4x4, automatic, H.O. diesel that I bought the extended warranty on for about $1200 plus interest. It covers car rental too while repairs are being done. I'd say I have gotten about $10,000 or more in repairs done including a new trans last month. Murphy's Law says that just when you don't have insurnace---youi need it.






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 06-20-2008, 18:10 Post: 154738
earthwrks

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 Extended warranties on cars and trucks

Auerbach, I buy my extended warranties for my trucks through the dealer selling manufacturer-sponsored palns. That way I can bitc..errrr...complain right up the chain of command if there is a problem, and I don't have to worry about them skipping town as easy as a fly-by-nite company. As far as the cost versus what you get from what's left after the dealer takes his cut, that shouldn't be a concern. Like any insurance policy there is no realist connection between what you pay and your claim cost. The premiums we pay go into a big kitty from which the insurance companies invest those preminum dollars to make mor money and cover claims. And the deductible goes toward associated fees and costs. Similar industries are medical insurance and home owners insurance. A dealer freind of mine sold me my policy for their cost--he showed me the mark-up sheet---they mark it up 100%---so there is a lot of "fat" in the price when it comes to negotiating the final cost. And even if the dealer makes nothing on the paln itself he stands to gain on warranty service claims.






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 06-21-2008, 23:17 Post: 154769
earthwrks

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 Extended warranties on cars and trucks

As far as the price goes, there is a direct correlation between the price and how confident the manufacturer is with the product---the higher the price and the less the coverage is a good (err...bad?) indicator that they really don't have confidence in the product which could be based on initial design parameters (like purposely not heat-treating tie rod ends---"sorry not covered"Wink yeah right, actual field testing, actual testing data, and more importantly real-world test data-- otherwise known as "you the customer who complains about a failure". I know from a 10-year stint as an automotive service engineer/technical writer/illustrator that Engineering inherently blames Manufacturing who then blames Warranty. All have deadlines and budgets to meet. When that doesn't happen, all hell breaks loose and somebody has to take the blame. By then Management has changed, and engineers have moved on to another project, Manfacturing is building something new. Warranty gets left holding the bag.






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