Join Date: 05-28-2007
Location: SW Ohio "Buckeye Country"
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Re: Protection plan worth it?
I've never purchased any kind of an extended warranty on anything other than the US Built Vehicles I've owned and never regretted it. I read once that the "insurance companies" basically perform a risk assessment (which makes complete sense) and the fee that they charge for the extended warranty represents the mean expenditure they would expect to pay out over the duration quoted. So; that means they expect you to incur a $420 bill over the years worth of coverage for the bike. They play the odds and say "give me the $420 and I will keep it, if your bike breaks down I will pay out on the carefully chosen items that I have agreed to cover. If your bike doesn’t break down, I just made $420". I'm sure the math model is a little more complex than I just described, but the basics couldn't be much different.
When I've purchased vehicles from dealerships and the extended warranty is offered, I normally begin to dispense rhetoric on "why would I need an extended warranty, aren't these vehicles very good? Do they have a history of breaking down a lot?". Of course, one must play a little simple minded bit to get the sales drone to hang himself with the argument you so cleverly will weave. In the end I push for them to throw in the extended warranty and I agree to finance the vehicle with the lender of their choice. Otherwise, I bring my own lending office to the table and turn down the extended warranty. The dealerships normally stand to profit more from the lending institutes arrangement than they do from the extended warranty profits. They more often than not will throw in the ex warrant no cost to you (if you played your hand right)
Ultimately; it's your choice, I just think one has to really way the risks and the costs and make a sensible decision.
"Political correctness is tyranny with manners."
Last edited by Phadreus; 08-21-2007 at 5:38 PM.