pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Must be different engine... the Grand Priz never had the 5 cylinder to my knowledge.
I'm a fan of only one type of car extended warranty - the added mfg. warranty that comes with the purchase of a certified used car. I bought a used 2015 car with three years remaining on the new car warranty, and the certified qualification added another year/12,000 miles to the bumper-to-bumper coverage.
Even though I said this may be our last vehicle purchase, never say never applies in this case.
Good luck, hope the cancellation goes well.Thanks for all responses on this topic. I called my auto insurance agent yesterday and added GAP coverage to my policy. Auto Owners Insurance does not offer Anything in the way of extended warranties. Think I'll wait until original warranty is about to expire and then consider extending it. So, today I will cancel all four policies from the dealer. Even though I said this may be our last vehicle purchase, never say never applies in this case. Again, thanks for all the replies, information and recommendations. They were all helpful in making my decision.
So, when do we know we are buying for the last time? Or should we assume (like in FIRECalc) that our needs will continue beyond the averages for our age?+1
I remember my dad saying that, and saying it again a few years later, then saying it again more than 15 years after saying it the first time...
Or should we assume (like in FIRECalc) that our needs will continue beyond the averages for our age?
I suspect I will have outlived my teeth, probably have a bypass surgery, a hip replacement, new knees, be fighting prostate cancer and diabetes, be half blind, can't hear anything quieter than a jet engine, take 40 different medications that make me dizzy, winded, and subject to blackouts, have poor circulation, bouts with dementia, be unable to remember if I'm 85 or 92. But I'll be OK with that - as long as I still have my driver's license.
I worked 24 years at a major auto manufacturer's captive finance company, and one of my jobs was to approve outside extended service plans to be included for financing. I am also fully trained to be a F&I man in a dealership--Finance and Insurance.
Bear in mind that any dealer can go and setup their own ESP company--with or without adequate capital resources to back it up. And realize that failures are the norm in this business with companies that are not extremely financially stable.
.....Let me just say that you wouldn't believe how profitable the ESP companies are. Especially since modern drivetrains are so reliable. And dealers' commissions for selling ESP are also substantial.
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....But, to get back to the OT and your second paragraph- extended warranty coverage on any product with a life of many years is notoriously hard to price and properly account for. Think about it- they collect the money when your car is shiny and new and not likely to need repairs, and if they don't keep enough in the cookie jar (the official term is "loss reserves"), when you get near the end of the warranty period and things start to fall apart the money may not be there to pay claims. You can keep writing new business to pay the old claims but eventually the house of cards will fall apart. I'm an actuary and Extended Warranty business is a specialty.
Can you cite any examples that have failed?
I'm a fan of only one type of car extended warranty - the added mfg. warranty that comes with the purchase of a certified used car. I bought a used 2015 car with three years remaining on the new car warranty, and the certified qualification added another year/12,000 miles to the bumper-to-bumper coverage.
OK, this is ancient history and regulation has probably stepped up since then, but in 1997 I was a part of a board handling a case against an actuary who certified reserves of a Canadian Auto Warranty company that eventually became insolvent. (He was based in the US, as am I.) I still remember reading through a pile of disciplinary hearing proceedings, many of which were in French.
Thanks for all responses on this topic. I called my auto insurance agent yesterday and added GAP coverage to my policy. Auto Owners Insurance does not offer Anything in the way of extended warranties. Think I'll wait until original warranty is about to expire and then consider extending it. So, today I will cancel all four policies from the dealer. Even though I said this may be our last vehicle purchase, never say never applies in this case. Again, thanks for all the replies, information and recommendations. They were all helpful in making my decision.
OK, this is ancient history and regulation has probably stepped up since then, but in 1997 I was a part of a board handling a case against an actuary who certified reserves of a Canadian Auto Warranty company that eventually became insolvent. (He was based in the US, as am I.) I still remember reading through a pile of disciplinary hearing proceedings, many of which were in French.
So Johnnie, how did it go canceling the four policies with the dealer? Did they pressure you not to cancel? Do you think they will give you a prompt refund?
Brothers Darain and Cory Atkinson start a business selling vehicle service contracts, but the warranties prove worthless and the brothers pocket millions.
the reprimand may be on the abcd website. were you on the abcd?
I have a friend who had to have the engine replaced after about 5,000 miles... it was covered under warranty.... Pontiac Grad Prix.... he is up into the 60s right now and his second engine is starting to have problems... he does take care of them, so it is not lack of maintenance....
One of my major clients was an insurer that specialized in extended warranties and it was an obscenely profitable business. Reserving was not a particular issue because claims were reasonably predictable (stable historical loss development triangles).
I totally disagree with the "house of cards will fall apart" comment with respect to these insurers.... it is unnecessarily alarming. These entities are regulated like any other insurer... they have adequate reserving practices that are audited annually, examined regularly by the regulators, lots of surplus and very strong RBC ratios. Can you cite any examples that have failed?