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Heard a finance guy on a podcast drop a number about extended warranties and it stuck with me
Last Tuesday I was driving to my sister's place in Akron and had some car podcast playing in the background. The guest was a former dealership finance manager and he claimed the average profit margin on an extended warranty sold in the box is somewhere between 50 and 60 percent. That number is what got me. It means if you hand over $2,000 for one of these plans, half of it is pure profit before they even think about paying a claim. He also mentioned that most people never read the exclusion list, which is usually where the real gotchas hide, like wear items and pre-existing conditions. So before you sign anything at the desk, ask for the full contract and read the exclusions page twice. Has anyone here actually gotten a claim paid out without a fight, or is it always a runaround?
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