Quote:
Originally Posted by David70
Extended warranty companies price their coverage to pay sales commission, overhead, claims and still make profit. Then most do whatever possible to sell the coverage and deny the claims. Some customers will come out ahead but on average they won't even come close. If customers on average received even close to what they paid the companies wouldn't be remain in business.
Exactly how insurance works, customers on average have to pay in more than they will receive which is why I only buy insurance on items that would cause me long term financial problems (homeowners, car, health) and then set the deductible high.
With car warranties I am not buying, I only buy cars I can afford to fix and then self insure with expecting some amount of repairs as they get older (which also reduces depreciation expense).
I find it funny when I see people that constantly buy a new BMW as the warranty runs out because they are afraid of what repairs might cost. I much prefer the possibility of a high priced repair over the guaranteed igh depreciation cost that will come with the new car. Get the new car if you want it but not because of the warranty.
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Not everyone has the physical space or ability to DIY.
Besides most BMW's are leased anyways.