Quote:
Originally Posted by rastaFarai
Anyone know how these extended warranty companies make $? They couldnt have spent $850 on my behalf. Seems crazy considering I paid $2600 total for 5 yrs. Is it all in the science of probability and risk assessments?
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Yes. Don't think of it as a warranty, think of it as an insurance policy, because that is what they are selling. And some people come out ahead, while others don't (but they get peace of mind to a certain extent). The rest of the story is that there are low barriers to entry for these companies, meaning that many companies that got into this business didn't calculate the prices right, and those are the ones that went out of business and left customers stranded.
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2007 X3 3.0si, 6 MT, Premium, White
Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue
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