Re: [MBZ] OT Extended Warranty success story
When I worked at a large Oldsmobile and Honda dealer (97-2001), the order of the departments in terms of revenue/profit was 1. Service Department 2. Used cars 3. F 4. New cars 5. Body shop Donald H. Snook > On Jun 16, 2022, at 3:41 PM, Kaleb Striplin 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 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 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 >> 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
Re: [MBZ] OT Extended Warranty success story
All these games are why I only buy from private sellers now. They aren't always honest either but the only thing they can trick you on is the selling price. On Thu, Jun 16, 2022, at 3:41 PM, Kaleb Striplin via Mercedes 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 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 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 >> 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
Re: [MBZ] OT Extended Warranty success story
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 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 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: >
Re: [MBZ] OT Extended Warranty success story
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 > 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 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 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 >> 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
Re: [MBZ] OT Extended Warranty success story
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 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 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 > 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
Re: [MBZ] OT Extended Warranty success story
I forgot about all the shmoes who never file a claim... On Thu, Jun 16, 2022 at 3:36 PM Donald Snook via Mercedes < mercedes@okiebenz.com> wrote: > Yep. The administrator works for an insurance company. In this case, the > BMW made money selling it and the Lexus dealer made money getting the > work. I will never feel bad for an insurance company. Some actuary has > run the numbers and on some they might lose and most others they make > some. > > Donald H. Snook > > > > On Jun 16, 2022, at 2:13 PM, dan penoff.com wrote: > > > > Warranties are sold and serviced by third parties, not the dealerships. > They’re just one more “add on” that they purchase through a third party. > > > > The dealer has no exposure. If anything, they profit from the warranty > work, as they get paid for doing it. > > > > -D > > > >> On Jun 16, 2022, at 11:58 AM, Andrew Strasfogel via Mercedes < > mercedes@okiebenz.com> wrote: > >> > >> Great story, although I predict that dealer will be out of business by > the > >> end of the year. > >> > >>> On Thu, Jun 16, 2022 at 2:53 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
Re: [MBZ] OT Extended Warranty success story
Yep. The administrator works for an insurance company. In this case, the BMW made money selling it and the Lexus dealer made money getting the work. I will never feel bad for an insurance company. Some actuary has run the numbers and on some they might lose and most others they make some. Donald H. Snook > On Jun 16, 2022, at 2:13 PM, dan penoff.com wrote: > > Warranties are sold and serviced by third parties, not the dealerships. > They’re just one more “add on” that they purchase through a third party. > > The dealer has no exposure. If anything, they profit from the warranty work, > as they get paid for doing it. > > -D > >> On Jun 16, 2022, at 11:58 AM, Andrew Strasfogel via Mercedes >> wrote: >> >> Great story, although I predict that dealer will be out of business by the >> end of the year. >> >>> On Thu, Jun 16, 2022 at 2:53 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
Re: [MBZ] OT Extended Warranty success story
On Thu, Jun 16, 2022, at 2:13 PM, dan penoff.com via Mercedes wrote: > The dealer has no exposure. If anything, they profit from the warranty > work, as they get paid for doing it. They also get a commission for selling the warranties! They get paid on both ends with zero risk. That's why they push them so hard when you buy a car at a dealer. ___ 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
Re: [MBZ] OT Extended Warranty success story
Yes this is exactly right. Even though it worked out well for you, if were 5 other people who bought that warranty and never used it, that's $7,000 gross profit for the warranty company (less whatever commission they had to pay to the dealers who sold the warranties, and their other administrative costs). On Thu, Jun 16, 2022, at 2:03 PM, OK Don via Mercedes wrote: > Most dealers don't cover the extended warranty themselves - it's basically > an insurance policy. The insurance company is spreading the risk among many > customers, most of whom will not use it. > > On Thu, Jun 16, 2022 at 1:59 PM Andrew Strasfogel via Mercedes < > mercedes@okiebenz.com> wrote: > >> Great story, although I predict that dealer will be out of business by the >> end of the year. >> >> On Thu, Jun 16, 2022 at 2:53 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 >> >> > > -- > OK Don > > "Whenever you find yourself on the side of the majority, it is time to > pause and reflect." Mark Twain > > “Basic research is what I’m doing when I don’t know what I am doing.” Wernher > Von Braun > 2013 F150, 18 mpg > 2017 Subaru Legacy, 30 mpg > 1957 C182A, 12 mpg - but at 150 mph! > ___ > 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
Re: [MBZ] OT Extended Warranty success story
Warranties are sold and serviced by third parties, not the dealerships. They’re just one more “add on” that they purchase through a third party. The dealer has no exposure. If anything, they profit from the warranty work, as they get paid for doing it. -D > On Jun 16, 2022, at 11:58 AM, Andrew Strasfogel via Mercedes > wrote: > > Great story, although I predict that dealer will be out of business by the > end of the year. > > On Thu, Jun 16, 2022 at 2:53 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
Re: [MBZ] OT Extended Warranty success story
Most dealers don't cover the extended warranty themselves - it's basically an insurance policy. The insurance company is spreading the risk among many customers, most of whom will not use it. On Thu, Jun 16, 2022 at 1:59 PM Andrew Strasfogel via Mercedes < mercedes@okiebenz.com> wrote: > Great story, although I predict that dealer will be out of business by the > end of the year. > > On Thu, Jun 16, 2022 at 2:53 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 > > -- OK Don "Whenever you find yourself on the side of the majority, it is time to pause and reflect." Mark Twain “Basic research is what I’m doing when I don’t know what I am doing.” Wernher Von Braun 2013 F150, 18 mpg 2017 Subaru Legacy, 30 mpg 1957 C182A, 12 mpg - but at 150 mph! ___ 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
Re: [MBZ] OT Extended Warranty success story
The Lexus dealer (where I got the work done) or the BMW dealer where I bought the warranty? Unlikely for either. They are both the only dealers in the area for their respective brands. Donald H. Snook > On Jun 16, 2022, at 1:58 PM, Andrew Strasfogel wrote: > > > Great story, although I predict that dealer will be out of business by the > end of the year. > >> On Thu, Jun 16, 2022 at 2:53 PM Donald Snook via Mercedes >> 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
Re: [MBZ] OT Extended Warranty success story
Great story, although I predict that dealer will be out of business by the end of the year. On Thu, Jun 16, 2022 at 2:53 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
Re: [MBZ] OT Extended Warranty success story
It’s all about the numbers, and you made a good choice based on the numbers. I would have taken that, especially if I was carrying paper and I could wrap it into the price. If I was paying cash I would have to give it more thought, but I still would have done it. -D > On Jun 16, 2022, at 11:53 AM, Donald Snook via Mercedes > 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
[MBZ] OT Extended Warranty success story
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
