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Old 12-08-2013, 11:52 PM   #11
syncro87
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The average car on the road is around 11 years old.

http://www.autonews.com/article/2013...IL/130809922/#
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Old 12-09-2013, 04:42 AM   #12
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Quote:
Originally Posted by dustin102 View Post
I already have purchased the car.... I got this car last summer... But to maintain this warranty... I must have a dealer do all maintenance... Everything, even down to swapping in an air filter. I have always worked on all my vehicles myself. I now have done 2 oil changes at a dealer... I was just curious if anyone has delt with this "warranty forever" company, and what there real deal is. I'm guessing like 500 bucks or more is what the dealer is paying to put it on there cars.... Then forcing it down everyone's throat.


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there is the catch
you must take it to the dealer for all work
he now is making money off every return visit
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Old 12-09-2013, 07:53 AM   #13
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Originally Posted by rexazz2 View Post
there is the catch
you must take it to the dealer for all work
he now is making money off every return visit
Yep. The fine print probably requires you to do every little scheduled maintenance item and check under the sun at the dealership on time to keep the warranty valid. By the book. Then there are probably exclusions for wear items, etc. There might even be a clause where if you exceed a certain dollar value of repairs that they can drop you or just refund a certain premium cost, etc.

On a side note, related...

The bottom line is that the warranty and service contract business is big profit for dealerships and the companies that sell the contracts.

For example:

The dealership sells an extended service contract to a customer for $1000. The dealership actually pays $600 for this contract to the provider. So the dealership makes a $400 profit for selling it, and the provider gets $600. Now, that $600 is not all profit, they have to pay claims out of it. So you figure they probably on average pocket $300 of that and pay out the other $300.

Of course my numbers are all hypothetical, but you get the idea. The actual percentage of the warranty sale price that goes to claims is, in our little example, $300 out of the $1000 the customer shelled out. The warranty companies have real smart people doing the math on this, and they are darn sure that the average person is not going to rack up $600 in claims on average. They have the data right there in front of them. Statistically, they know exactly how expensive your car is going to be on average to repair for a certain number of miles, and they price the warranty accordingly.

Now, of course, there are a minority of people who make out on the warranty and pay $1000 for it and have $3000 in claims. But rest assured this is not the average situation. The game is set up with a house advantage just like a casino in Vegas. A few people beat the odds and win, and 90% of the people do not.

Whatever you pay for an extended warranty, chances are way better than 50/50 that you'd have been further ahead just pocketing the cost of the warranty and using it to cover repairs down the road. If the odds were in favor of the customer, the companies would not be selling service contracts.

In the case of a dealership where you get a "free" lifetime warranty with the car, same thing really. You aren't directly paying the cost of this, but it's in the selling price of the car somehow, since the dealership is paying a premium to a company to cover the car for you.
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Old 12-09-2013, 04:27 PM   #14
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Quote:
Originally Posted by Romans5.8 View Post
LOTS of people own their cars for more than 3-5 years. When I bought my focus it replaced a 14 year old car with 297,000 miles on it! (Ran great!). My wife drives my '02 Taurus with 170k on it. Probably will keep it for a couple more years before replacing it with a new Mustang Convertible!
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What? Is that why you see so many old cars on the road today? Heck, my car is 16 years old!
It's my personal appreciation, I never own a car for more than 2-3 years, I just don't have the time and knowledge to come visiting a mechanic over and over or to work in my own car. A car with more than 5 years old needs a mechanic work (not just the regular maintenance).
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Old 12-10-2013, 12:09 AM   #15
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Quote:
Originally Posted by CunFFS13 View Post
It's my personal appreciation, I never own a car for more than 2-3 years, I just don't have the time and knowledge to come visiting a mechanic over and over or to work in my own car. A car with more than 5 years old needs a mechanic work (not just the regular maintenance).
Sure, if that's what you do, then that's fine. You should've prefaced it as such instead of saying "nobody keeps their car..."
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Old 12-10-2013, 05:55 AM   #16
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My lifelong PERSONAL experience has been that I've had either car payments or car repair payments. I have neither the mechanical knowledge / skill nor the tools / equipment to do car repairs.
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Old 12-10-2013, 06:25 AM   #17
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My lifelong PERSONAL experience has been that I've had either car payments or car repair payments. I have neither the mechanical knowledge / skill nor the tools / equipment to do car repairs.
Yup, I'm going to be in the same boat. When I graduate next year, I'll be in a high stress position and I won't have the time to properly pick up the tools and learn how to work on a car.
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Old 12-11-2013, 12:17 AM   #18
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I printed 4 color for many years at often 80+ hour weeks and still managed to juxtaposit the cars so that I always was able to fix them myself. I have never paid for any car repairs at all and entire life now, one time only I let Ford change out a fuel pump for free under a (Tempo) recall, they even managed to botch that one time up, so after that I even did any recall or TSB work too. I have gone so much time without payment or repair it's not funny, any car I bought was a program one with 1-2 years on it to lower the price and they all were paid for in generally no more than 3 years max, most in 2. Have never gone over $11k for one yet.

It can be done, and I'm not that smart...................
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Old 12-12-2013, 11:08 PM   #19
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Originally Posted by BlueFocusSE5 View Post
It would appear you have been scammed. I highly encourage you to call the Ohio Office of Consumer Affairs and proceed to get your money back.

Here is the link -

http://www.consumeraffairs.com/links/oh.htm
Agree 100% In my area we had a local Kia dealership trying this. A friend of mine bought into it after I tried to talk him out of it, well he got burnt. It is a scam to ensure you will buy all of your service parts off of them, even if it is a set of wiper blades in my friends situation. He ended up contacting the Atty General; he was out of luck though because this store knew what they were doing and had all of their I's dotted and T's crossed. He ended up abandoning their "rules" that he got bribed into buying. Again, good luck.
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Old 12-14-2013, 09:03 AM   #20
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Ford ESP's are great peace of mind for a vehicle.

the mistake people make is let the finance manager of the dealer pressure them into buying one. Its a money maker for the dealer AT THAT POINT.....

If you are interested in a FORD ESP, decline it at the dealer, then search online for one.

Several FORD dealers across the US sell ESP's online, and DEEPLY DISCOUNTED!

A $1500 FORD ESP that the dealer wanted can be had for about $600 at a online dealer. these are GENUINE Ford Esp's. they sell alot more of them at a discount, so they can still make a small profit.

Just goes to show you the markup and the added dealer profit.

Check out a FORD ESP on the ford.com website, then compare its cost
to an online dealer such as www.zeiglerfordesp.com........you'll be
shocked at the price difference.



In the case of the OP's concern....offering the "lifetime" warranty......that's purely a "we gotcha" case, since they are requiring that the car be returned there for EVERY PART OF SERVICE the car receives. They will recoup their money fairly fast by doing this....
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