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A warranty is a hedge, it is insurance. It is not pure profit for the dealer because they are usually selling someone else's product.
your contract is set for a certain payment. And it will not change. Even if you send in 2000 one month they'll still want your originally agreed upon payment next month.
i may not sell warranties but I'm also not ignorant. Dont listen to this uniformed ranting individual who has no idea how business works.
Might as well get shark and lightening insurance too. I mean, they could happen too right?
Yes, extended warranties are like insurance.... unnecessary insurance. When insurance isn't cashed in, guess what? 100% of it goes to the issuer. Like I said, pure profit.
There are extended warranties offered by manufacturers, 3rd party and dealers. Bulk of it goes to whoever issued it.
So you think financing $25k and $23k (at 0%) equals same exact monthly payments? ON what planet? Certainly not Earth.
Warranties are re-sold, so they made some money on it but it's not "pure profit." If the warranty isn't a Nissan warranty, then it's probably not a good idea. If it is an official Nissan warranty, then it's just a hedge against something going wrong at 75,000 miles. If nothing does, then you didn't need it. If for some reason the entire transmission blows up, then you will be glad you have it.
If you like the peace of mind then keep it. But Tourian is correct in that it won't change your contractually obligated payment amount, it will just reduce your total overall balance by $1775.
Ridiculous.
Payments aren't "contractually obligated"... that's the dumbest thing I've ever heard in all my life. All contracts contain a contingency clause and aren't set in stone. I've had rates lowered after signing a contract and the payments were subsequently lowered. How do you figure payments remain the same when the selling price is reduced by $2k?
Just stop, it's obvious you know nothing about buying cars.
Might as well get shark and lightening insurance too. I mean, they could happen too right?
Yes, extended warranties are like insurance.... unnecessary insurance. When insurance isn't cashed in, guess what? 100% of it goes to the issuer. Like I said, pure profit.
There are extended warranties offered by manufacturers, 3rd party and dealers. Bulk of it goes to whoever issued it.
YOU said "Ext warranty is a complete waste of money and pure profit for the dealer".
Tourian is correct in saying that the dealer, as a reseller of the warranty, gets a commission, but it's not "pure profit" for the dealer.
YOU said "Ext warranty is a complete waste of money and pure profit for the dealer".
Tourian is correct in saying that the dealer, as a reseller of the warranty, gets a commission, but it's not "pure profit" for the dealer.
Stop arguing just for argument's sakes.
It is pure profit. They didn't spend 1 cent on it, did they? Instead they received a big fat commission for doing nothing but tricking you in to buying it.
The amount of the pure profit depends on whether it's a manufacturer, 3rd party or dealer backed.
In addition to new car sales Dealers make money on the financing and service department. If they maintain a used car lot chances are they have decent inventory and will make money on those sales and financing.
Payments aren't "contractually obligated"... that's the dumbest thing I've ever heard in all my life.
You better be careful what and who you are calling dumb. Monthly payments most certainly can be contractually obligated. Your mortgage payment is a good example of that. If you have a 30yr 200k mortgage at 4%, you have a P&I mortgage payment of $955/month. The mortgage papers you sign state that you will pay that exact amount for the duration of the loan. If you subsequently decide to write your bank a check for $100k to cut your mortgage in half, you are still contractually obligated to continue to make monthly payments of $955. The only difference is that your mortgage obviously will be paid off in fewer years, but your payment remains the same.
$264 off of MSRP is no big savings, I feel you could of got a couple of grand off to work the deal. I don't understand the Warranty, new car comes with a Warranty
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