Extended Warranty: A Game of Numbers
Posted by Joseph Della Morte on Wed, Aug 25, 2010 @ 10:36 AM
According to ConsumerReports.com, “the average three year old car has 55 problems per 100 vehicles”. So, a couple of things to note:
Not everybody has an extended service contract -- so some number of those car problems will be paid by the owner.
Not every car is going to experience a problem. But on a statistical basis, over half the cars three years or older will experience a mechanical problem.
If you paid $2500 for your extended service contract and had major work done on your car, you probably saved yourself between $500 and $1000 on that repair.
You still might have another car problem (or two) before that extended service contract expires. This could easily save you another $2500 to $5000. We have customers who have had that experience. They would never consider not having an extended service contract on their car.
In the grand scheme of things, lots of cars are going to have a mechanical problem or two. Most of those cars are not going to have an extended service contract and their owners will pay lots of money to get that car back on the road. Are you one of those? Or are you one of the few who benefits financially by buying an extended service contract for your car?
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