Posted on 12/5/2014
We have all had sales people try to sell us extended warranties, typically on electronics or appliances. Some of our Grand Rapids customers bought used vehicles and received the same sales pitch. The automotive ‘extended warranty’ is nothing more than an insurance policy. An average on how much the auto insurance industry pays back on every dollar they collect, is roughly $.98, or 98% payback. The used car extended warranty policies that people have purchased have, by my own experience of dealing with them for almost 40 years, much lower. Used car extended warranties are some of the worst ways to spend your money, in my opinion. With an insurance company, there is some recourse if a consumer feels that he or she has not been fairly compensated in the event of a loss. With the used car extended warranty, the consumer has nothing but a 1-800 number to call and state the loss. If the company agrees the consumer has a claim, THEY decide how much is covered, what kind of parts ... read more