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From: rjwade@rainbow.ecn.purdue.edu (Robert J. Wade)
Subject: Re: Saturn Extended Warranty
Message-ID: <C65ErI.LF9@noose.ecn.purdue.edu>
Sender: news@noose.ecn.purdue.edu (USENET news)
Organization: Purdue University Engineering Computer Network
References: <1r6bqgINN4ei@roundup.crhc.uiuc.edu> <93113.123459U59985@uicvm.uic.edu> <C63rrw.1G9w@austin.ibm.com>
Date: Tue, 27 Apr 1993 15:23:41 GMT
Lines: 21

In article <C63rrw.1G9w@austin.ibm.com> $LOGIN@austin.ibm.com writes:
>
>I've owned a Saturn for and year and a half, and didn't have the extended
>warranty, but just traded it in for a 1993 (for reasons that I won't mention
>unless someone wants to know.)  I opted for the 5 year/60,000 mile extended with
>$50 deductible.  It's sorta like buying health insurance.  You could say that
>you're not sick now, and haven't been sick for a while, but you can't guarantee
>that you won't be sick tomorrow.  A little money invested today is better than
>being sick tomorrow and now being able to pay for it, or having to pay a lot
>more tomorrow than you can today.

justify all you want.  extended warranties are a ripoff, high profit item for
the dealer.  and you didn't buy 5yr/60k, you get 3yr/36k *free*, so what you
bought is 2yr/24k.  and you still have to pay $50 every time you use this 
great 'warranty'.  better to put your money in the bank and use it for repairs
if/when you need it.  considering that your last car was only 1.5 years old,
are you sure you will even keep this new one past it's *free* warranty period?
btw, typical profit on extended warranties is around 80%.  that's right, only
20% of the money needs to go into the collective pot to pay for any future
repairs that the group of extended-warranty-people collect.

