Quote:
Originally Posted by ryanjoe13
A warranty company wouldn't be called a warranty company unless it serviced every customer.
|
Sorry, but that's just false. Sadly there are plenty of crap "warranty" companies.
Quote:
Originally Posted by ryanjoe13
It's not about making money on every individual warranty deal but rather seeing the bigger picture and making money on 10,000 deals in a pool together. Some will be losers and others will be winners.
|
EXACTLY. This is what I've been saying. Thing is, they make money more often than they lose money. And any decent company isn't going to warranty a whole model line of cars without doing their due diligence on their return. It's naive to think that they just accept losing money on V8 X5s.
Quote:
Originally Posted by ryanjoe13
I don't think they really give a shit if they lose a couple grand on a car here and there to be honest. They get out of paying on certain issues so many times as well that they probably aren't concerned
|
Again, that part is right. It's just that more often than not, they aren't going to pay out more than they make. They simply wouldn't warranty a V8 X5 if they lost money on every one. There is no requirement for a warranty company to cover any car. You also contradicted your first statement - a warranty company can't be considered to honorably "service every customer" and "get out of paying on certain issues so many times."
Quote:
Originally Posted by ryanjoe13
These companies give warranties on crap like dishwashers and microwaves and lawnmowers. They must have 10s to 100s of thousands of warranties that they never pay a single penny on.
|
Some may, some do not. They still aren't going to add a product to their 'warrantied' list if they lose more than they make on that product. Take a look around the internet at what generally reputable groups have to say about third-party warranties - USAA, Consumer Reports, Consumer Affairs, Edmonds, etc.
If you want a warranty for peace of mind, get one! But the assumption that it's automatically going to be a positive return on your investment is a bad one.