Quote:
Originally Posted by Isaac Zachary
If it hadn't been for an aftermarket used car warranty, my friends with the Ford Escape would have had to have paid for their transmission replacement. They were quoted $9,000 as the cheapest option. They ended up paying a $1,000 deductible and got a new transmission.
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Which is good for them if they didn't have the money to fix their car. The vast majority of people that buy extended warranties don't come close to getting back the money the spent.
Extended warranties have huge profit margins for the company providing the warranty and a fat commission for the dealer selling the warranty. Long term it is cheaper to just say no to extended warranties.
(Also a rebuilt 2015 Escape transmission with warranty is about $2,500 so whoever was offering $9,000 as the cheapest option was taking advantage of your friends)