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The BMW 3 Series (E46) Forum
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BMW 3 Series (E46)
Automaker: BMW
Model: 3 Series (E46)
Years:
Topic: Automotive Forums, BMW
Related Forums & Links: Old archives; The E46 Off-Topic Forum: E46 Lounge


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Mod-O-Matic (beta!): Please vote with care. You must be logged in to use Mod-O-Matic Move post to: For Sale | Group Buy | Off Topic | NWS/Adult    Remove due to Spam/Troll | Prohibited       Highlight as: Informative | Success Story
 
Author:  
SedanMan on 2004-06-29 at 11:16:20(posted from: Host: IP: 204.97.138.104) 
    
Subject:  
The truth about extended warranties (300 views) 
Message: Don't bother. I teach statistics in my spare time, and every year I tell my students what I learned years ago in sales:

Q: WHAT'S THE PERFECT PRODUCT? IT'S ONE THAT...
- Makes the customer happy
- Can enhance your revenue from any sale
- Is nearly pure profit
- Never runs out of stock
- Instantly adds value to any other product
- Requires no shelf space

A: THE EXTENDED WARRANTY! SELL ONE WITH EVERY PRODUCT!

Companies use warranty repair statistics to determine what price to charge, so that on average every extended warranty yields more profit to the dealer. Unless your car has a history of problems, I would recommend skipping it. Put it in an account as suggested by another poster.

BTW, the only time I ever purchased an extended warranty was when I bought a new '89 Mercury Topaz (cousin to Ford Tempo). The car was so bad, Ford was practically giving the warranty away to keep customers (the dealer actually said so). I was a college kid and price was right, so...
 
 



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