Quote:
Originally Posted by MKE_M3
simple math is that the companies that sell warranties due it because it is profitable, thus the net present value of your warranty purchase is negative.
I'm not saying one should never buy one, it all comes down to what the comfort is worth and how devastating a major repair would be for you financially.
If you had unlimited funds, you'd be selling the warranties (insurance), not buying it. Just look at our friend Warren Buffett.
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Companies make money off extended warranties due to pooling of their risks.
My car is out of warranty now and im considering selling it and picking up and 11 or 12.