Mid-life crisis hits critical mass
04-05-2012, 07:35 PM
#51
Yup. I tell certain people that come to me "It's $5K, but if it was $10K you should buy it anyway...you CAN NOT LOSE."
There aren't a lot of cars like that, but I see hundreds and hundreds of claims on thousands of cars I've written plans for, so I know which ones are virtual locks.
And even if you buy a plan that does not pay out at 100%, is it a waste of money? Let's see:
Assume the plan is $5K for 4 years. Let's say nothing catastrophic happens in those 4 years, but along the way you file $3.5K in claims for typical MB stuff.
Now your actual cost for the 4 year warranty was $1500. So you've paid less than $400 per year to protect yourself against engine, trans, and other potential horrendously expensive failures.
You've also probably enjoyed the car more, driven it harder, and driven it for more miles knowing you were protected against major problems.
Is that worth it? I think it is, especially on an AMG car where engine failure claims start at $20K and go up from there.
Bruce
There aren't a lot of cars like that, but I see hundreds and hundreds of claims on thousands of cars I've written plans for, so I know which ones are virtual locks.
And even if you buy a plan that does not pay out at 100%, is it a waste of money? Let's see:
Assume the plan is $5K for 4 years. Let's say nothing catastrophic happens in those 4 years, but along the way you file $3.5K in claims for typical MB stuff.
Now your actual cost for the 4 year warranty was $1500. So you've paid less than $400 per year to protect yourself against engine, trans, and other potential horrendously expensive failures.
You've also probably enjoyed the car more, driven it harder, and driven it for more miles knowing you were protected against major problems.
Is that worth it? I think it is, especially on an AMG car where engine failure claims start at $20K and go up from there.
Bruce
Last edited by Becks Imports; 04-05-2012 at 07:37 PM.
04-07-2012, 11:00 PM
#52
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Yup. I tell certain people that come to me "It's $5K, but if it was $10K you should buy it anyway...you CAN NOT LOSE."
There aren't a lot of cars like that, but I see hundreds and hundreds of claims on thousands of cars I've written plans for, so I know which ones are virtual locks.
And even if you buy a plan that does not pay out at 100%, is it a waste of money? Let's see:
Assume the plan is $5K for 4 years. Let's say nothing catastrophic happens in those 4 years, but along the way you file $3.5K in claims for typical MB stuff.
Now your actual cost for the 4 year warranty was $1500. So you've paid less than $400 per year to protect yourself against engine, trans, and other potential horrendously expensive failures.
You've also probably enjoyed the car more, driven it harder, and driven it for more miles knowing you were protected against major problems.
Is that worth it? I think it is, especially on an AMG car where engine failure claims start at $20K and go up from there.
Bruce
There aren't a lot of cars like that, but I see hundreds and hundreds of claims on thousands of cars I've written plans for, so I know which ones are virtual locks.
And even if you buy a plan that does not pay out at 100%, is it a waste of money? Let's see:
Assume the plan is $5K for 4 years. Let's say nothing catastrophic happens in those 4 years, but along the way you file $3.5K in claims for typical MB stuff.
Now your actual cost for the 4 year warranty was $1500. So you've paid less than $400 per year to protect yourself against engine, trans, and other potential horrendously expensive failures.
You've also probably enjoyed the car more, driven it harder, and driven it for more miles knowing you were protected against major problems.
Is that worth it? I think it is, especially on an AMG car where engine failure claims start at $20K and go up from there.
Bruce
When Bruce found me my S600, I tolld him I was going to wait on the warranty. He told me there is no way he would give me the car without a warranty.
Thank God I listened to him and purchased it
It was great advice.
04-08-2012, 09:40 AM
#54
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Join Date: Jan 2008
Location: california high desert
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2003 S500, 03 C240, 03 E320, 03 tahoe
Fraser, ownership vs obligated
Pentagon Federal offer 2% APR (!!) on used car loans and if you're not getting 2% on your investments you need a better investment advisor! Heck, that's cheaper than drawing on a lot of HELOCs, after you've taken the tax deduction!
Secured lending rates are so cheap at the moment that I think most people are better off having a car payment than paying cash for something.
I used to be in asset management and routinely saw people with eight figure liquid asset portfolios, many of whom still had mortgages on their properties, and even car loans. If you're earning 6% on your investments (very conservative) and you're paying less than that on your car loan it's costing you money in the long run.
Secured lending rates are so cheap at the moment that I think most people are better off having a car payment than paying cash for something.
I used to be in asset management and routinely saw people with eight figure liquid asset portfolios, many of whom still had mortgages on their properties, and even car loans. If you're earning 6% on your investments (very conservative) and you're paying less than that on your car loan it's costing you money in the long run.
10-21-2012, 06:54 AM
#55
MBWorld Fanatic!
Nick
