The Truth about Buying Extended Warranty

There are lots of places where the salesperson will try to sell you an extended warranty after you buy a car. There has been talk that the reason that the salesperson wants to sell you the extended warranty is that the commission on those sales is about 50%. So pretty much the amount of money you pay for the extended warranty is only worth half the price. There have been stories about the companies that sell these warranties will do everything possible to avoid covering damages by using terms on the warranty that are not clear and could be answered in a lot of ways. There was also an incident where an extended warranty was sold and there was an issue with the car and then the company was bankrupt. Extended warranty is pretty much an insurance coverage, even when the dealer sells it to you they are being covered by the insurance policy. The insurance company has a contract with the dealer. The best advice for extended warranty is for quality cars such as Honda or Toyota, we are better off without the warranty and try to save our money by putting it in the bank. For some luxury cars that require a lot of maintenance are breaks down a lot such as Mercedes or Jaguar, I would recommend asking for a warranty from an authorized dealer with a clear written policy. These cars are luxurious, they are not as good of quality compared to Toyota or Honda and they are expensive to fix. Then again now we know about the big expense of these cars with poor quality compared to the price of the car we might just not buy these cars in the first place. At the end of the day the extended warranties benefits the salespeople and hurt the customer, when we think about it and ask ourselves this question, if it was a win for us and a loss for them would they offer it to us? The answer is no.  

Modern German Cars

We might think of German cars as luxurious and high end cars, these cars such as Mercedes-Benz, BMW and Audi are the ones usually of the first things that pop up in people's minds. A lot of modern German cars do have a lot of great features and have built in technology just because they can. A lot of the users of these cars do not know what half the buttons do. A lot of parts on these cars that used to be metal are now plastic, they do this to cut costs, but that means that the parts on these cars will not last that long and when there is a problem then it will need to be fixed. Fixing these cars do cost a lot, as these cars are expensive to maintain. These modern cars look good on the outside and have great style, but on the inside when you take  a close look at the parts you can see that a lot of the parts are not design to last long. These German cars have gotten cheaper over the years when it comes to purchasing these cars, however if you have a car that constantly needs maintenance and these cars are not cheap to maintain you are basically throwing away your money. Some might argue that if you can buy a high end car you should be able to pay more for maintenance because it is luxurious car. That is a good point, but however I like to argue that if the car is luxurious and a high end car we should expect reasonable quality. Even with these cars being cheaper than before they are still not cheap and are consider a luxury. Do I expect to pay more for even the basic maintenance such as an oil change? The answer is yes absolutely and the price may be a lot higher as well, but I do not expect the car to be breaking down constantly that it needs to be fixed, because that tells me the car's quality is not good. With cars that have the brand name such as Mercedes-Benz, BMW or Audi I expect the car to be in reasonable quality, when a mechanic examined a Mercedes that has not had any problems yet, the computer had found a lot of faults with the car. When we look a the Japanese cars we can see their quality and they are cheap to maintain, I believe it is perfectly reasonable to expect a luxurious car to have around the same or better quality than those non luxurious Japanese cars such as Honda and Toyota. I also do believe that it is perfectly reasonable to expect that the luxurious cars will have a higher maintenance cost than those non luxurious cars. There have been a lot of people who have been complaining about the quality of the Mercedes-Benz and that these cars are more about features that are not necessary over quality.