I get those offers all the time and I never even had an extended warranty. What a country!
On Thu, Jun 16, 2022 at 4:53 PM Bob Rentfro via Mercedes < mercedes@okiebenz.com> wrote: > Yeahbut now, in four years time, someone will call you telling you > extended warranty is about to expire and they won’t be making up a story. > > AZBob > > Sent from my iPad > > > On Jun 16, 2022, at 1:41 PM, Kaleb Striplin via Mercedes < > mercedes@okiebenz.com> wrote: > > > > Warranties are a 3rd party product that the dealer sells. It’s a huge > profit center for them. There are basically 2 sides of a dealership. The > fixed ops side which is parts and service, and the variable ops side which > is sales. In a car deal, it is a 3 legged stool basically the dealer makes > money on. First is the gross on the car. Next is what they will make on > your trade. And finally is F&I. This is when you are in the box after > negotiating the price and they sign the paperwork. This is really just > another sales session where they sell you aftermarket’s and warranties. > This is also where they make most of their money if they are not making all > that much on the front end. Also, they make money on the financing. Let’s > say they hang your paper at a local credit union, bank, or even a national > lender. That lender comes back at 3% on the deal and they allow a 2 point > markup. Dealer can then sell it to you at anywhere from 3-5%. So if dealers > signs you at 5% they are making 2 on your loan. Also depending on the > situation if you are a prime customer different lenders may also pay the > dealer a fixed amount to send them the deal which the F&I manager typically > pockets. If you are subprime, the dealer might actually have to pay the > lender a fee to get the deal bought. That’s why you might see cars listed > for x amount but when somebody with low credit wants to buy it, not only > are they going to pay a higher interest rate they also raise the price of > the car in order to cover the fee. > > > > In other words, there is a lot involved in a car dealership and a lot of > crooked stuff happens. Even if the dealer is not crooked, they are making > money every step of the way. > > > > In normal time, a dealer would gross maybe $1500 on a used car. On new > sometimes they didn’t make anything except the hold back, which is a fixed > among the OEM pays the dealer per car sold. Sometimes they might make $400. > Now days the average gross is $5-6k in the front end, not including the > back end gross which could be another $2k or more. Some of these stores are > doing over a million a month in gross, not even counting fixed ops. > > > > Sent from my iPhone > > > >> On Jun 16, 2022, at 1:53 PM, Donald Snook via Mercedes < > mercedes@okiebenz.com> wrote: > >> > >> I imagine most people on here wouldn’t buy an extended warranty. And I > have never bought one before. But, back in September I decided I needed an > SUV. We went on a family vacation and taking the dog, kids, stuff, etc we > didn’t have much room in my car. > >> > >> I bought a 2014 Lexus GX 460. It’s not the biggest SUV, but it is still > full size and three rows. I bought it with only 39,000 miles from the > local BMW dealer. They offered to sell me an extended warranty and I > immediately said no. Then, I wondered what crazy number they were going to > quote me. They said $2000 for 4 years and 48,000 miles — on top of the > miles it already had. I started thinking with an 8 year old vehicle things > like an alternator or a starter or power window motors are going to fail. > None of those are outrageous, but a few repairs here and there and it’s not > hard to get to $2000. This is the zero deductible top of the line coverage. > >> > >> I got an oil change last week and they called me and said the timing > cover is leaking oil and said $3000 to fix. BUT, I had the warranty. They > covered it. I watched the video on how to do it. ALL the stuff in front has > to come off. It’s a huge job. > >> > >> I picked up my car at lunch and it’s all done and it cost me nothing. I > only mention this because it is so rare that a car extended warranty (other > than CPO) actually works out. > >> > >> Donald H. Snook > >> > >> > >> _______________________________________ > >> http://www.okiebenz.com > >> > >> To search list archives http://www.okiebenz.com/archive/ > >> > >> To Unsubscribe or change delivery options go to: > >> http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > >> > > > > > > _______________________________________ > > http://www.okiebenz.com > > > > To search list archives http://www.okiebenz.com/archive/ > > > > To Unsubscribe or change delivery options go to: > > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > > _______________________________________ > http://www.okiebenz.com > > To search list archives http://www.okiebenz.com/archive/ > > To Unsubscribe or change delivery options go to: > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
