Do Land Cruiser folks fret over extended warranties like the Land Rover boards ..??? !!! Doubt it....

Jwestpro

Explorer
because it came up in another forum and my mini rant should give good pause to many folks, not all, but most.

I'm going to use this opportunity for a mini-chat on cash flow ;)

There are of course many factors that are different for everyone but if you could get coverage to 100k as well as a time frame that would be used in order for YOU to get it to 100k, then I'd consider the warranty with no deductible and only if it's under $5000.

The thing with many people and these extended warranties is people either blow through the miles too soon by racking up highway time (which is easier on all the systems) which then leaves them with paid time but no benefit. Then some people drive so few miles they never realize that potential for items typically going out close to 90-100k while hitting the end date before miles limit.

I was lucky to have a very good average miles/yr to rely on as well as a cheap enough warranty to make the math work almost without pause.

People often forget the cost of money out of service as well. For other people reading, consider if you have any debt and that cost annually, sometimes even monthly if it's higher interest such as a 12-24% credit card. If you elect to let go of $5000 on a warranty, 1st you have to get that much in coverage to even feel like you broke even, but it's not actually an "even" unless it occurs the next month or you have zero debt, zero. If your coverage doesn't occur say for a year, that's 1 yr lost for that $5000 to work in another way to save or make you $.

$5000 @ 12% interest like on a 'decent' credit card these days, or 24% on a bad one LOL costs $50-$100 / month to cover the interest.....

So with buying a warranty, at any point actually, you're taking a gamble AGAINST the house that you might just win and break even. You're actually hoping to at least BREAK EVEN LOL By you, I mean WE in the past ;) I got lucky with the timing on mine and some insider knowledge that my rear diff was getting toasted towing a and there were a few other hints of it being a good idea plus the ability to exactly run up to 8yrs /100k. That timing hit within weeks for 100k and ending the warranty period!

So, a $5000 warranty costs you first the gamble you will at least break even, next it costs what any other debt costs because you're having to let that debt sit by having used $ from an apparently non-infinite budget.

Want to see how much a bad idea the expensive warranties over $5000 can be? Consider that right now you could search for a few weeks or less to find a decently maintained lr3 for not much more than the cost of that extended warranty.... hmmm, hope to break even on ******** falling apart on your lr4 when you could just buy an ENTIRE REPLACEMENT lr3 for roughly the same as the worst possible catastrophic lr4 repair....

Being your own 'warranty plan' is almost always the winning choice in the big picture. ;)

Mini chat turned into mini rant is now over.
 

krick3tt

Adventurer
Thanks for your thoughts.
My LR3 is over 10 years old and if it is involved in an 'accident' I expect that the cost of repair will very well make the cost of that repair more than the blue book value of the vehicle. So it will probably be 'totaled' by the insurance company. This leaves me with a vehicle that is now a very large paperweight. I don't think blue book even goes past 10 years.
I recently removed the deductible from my insurance to lower the cost of the insurance policy. Keeping the things that I am legally required to carry on the policy. I figured that anything that is going to happen to it will no doubt be far and away more than the deductible. I haven't discussed with the insurance people a cost of replacement. Seems rather pointless. Just get another vehicle and perhaps scavenger some parts and perhaps sell some. Might even be time to entertain the idea of a different type of vehicle, who knows? Of course I have to live through the incident.
 

Jwestpro

Explorer
Yes, insurance is a whole other aspect. I'm not sure how removing the deductible reduces an insurance premium though. Usually, the higher the deductible on insurance, the lower the total cost of coverage.

Insurance is not to be toyed with though. I have the highest possible coverage for where I could be at fault hurting a family or other high 'value' such as a single person not hurt but somehow my fault and they're in a new Mercedes SLS and I was in my rover and their's is totaled which could easily cost more than your favorite vacation cottage at a lake ;)

However, on the older rovers that are harder to damage than say my Audi, I don't have collision (my fault into tree, wall, etc) but I do have comprehensive which covers things like tree falling, animal related run offs, theft, fire, crap that's not directly my fault or caused by bad driving. On those though, I carry $1000 deductible figuring they're very rare and the collision is the one that drives your cost way up.
 

krick3tt

Adventurer
Even if it is not apparent there is a decrease in cost. Actually, removing the deductible lowers the cost (two vehicles combined) by almost $400. Being that the policy comes due every 6 months, so $800, this is what I call significant.
 

Blaise

Well-known member
Extended warranties are a business. I always tell people - they HAVE to make money, which means they MUST pay out less than you put in (as a whole).

Soooo I don't use warranties. Period.

Like Mr West said tho, insurance is another beast. I carry a LOT of coverage. I can deal with a repair, I can't deal with a Mercedes SLS or the possible medical costs of a hurt party.
 

jadmt

ignore button user
Even if it is not apparent there is a decrease in cost. Actually, removing the deductible lowers the cost (two vehicles combined) by almost $400. Being that the policy comes due every 6 months, so $800, this is what I call significant.
Your rates would surely be higher with 0 deductible otherwise nobody would have a deductible.
 
Extended warranties are a business. I always tell people - they HAVE to make money, which means they MUST pay out less than you put in (as a whole).

Soooo I don't use warranties. Period.

Like Mr West said tho, insurance is another beast. I carry a LOT of coverage. I can deal with a repair, I can't deal with a Mercedes SLS or the possible medical costs of a hurt party.

Same here, considering the reports I saw last year about how many people are actually carrying insurance in Cali; or should I say, how many people actually do NOT have insurance, ensuring my coverage is high enough all around is the only smart choice for me!
 

krick3tt

Adventurer
Quote...Your rates would surely be higher with 0 deductible otherwise nobody would have a deductible.

We don't know each other, so I don't mean this as an insult to your math skills, perhaps the battery in your calculator is in backwards. But the numbers don't lie, from $1700 down to $1300 is $400 less. Try the math on your own, or just call your insurance agent.
 

jadmt

ignore button user
we must have a different idea of what a deductible is. If my deductible is $1000 my premium will be lower for the same insurance coverage vs 0 deductible. perhaps you are dropping some coverage. I have been dealing with insurance for 54 years and raising deductibles makes premiums go down for same coverage otherwise everyone would carry 0 deductible. My guess is you are losing comp or some other coverage. who is your insurance company because if I can 0 deductible for cheaper than $500 deductible I will switch. Generally deductibles and premiums are related the higher the deductible the lower the premium the lower the deductible the higher the premium.. ie you don't usually get something for nothing.
 
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DzlToy

Explorer
Why would anyone 'fret' over an extended warranty?

If you made the very poor decision to buy any JLR product, you better either have deep pockets to pay for the service or to pay for the monthly note that goes along with purchasing a new JLR vehicle that is under factory warranty. Notice, there is not an option to own a JLR product and not have deep pockets. Yes, you can be your own mechanic on the older vehicles, however, this does not decrease the number of repairs required to keep the vehicle running properly. The only possible savings comes from not paying yourself for your time to effect said repairs.

Buy a top dollar, well cared for, well serviced, used Toyota of almost any model or vintage and you will be head and shoulders above the masses in headaches and repair bills, with nary a need for a warranty of any kind. They are the most reliable vehicles one can buy for a reason, build quality.

I have put many hundreds of thousands of miles on Honda and Toyota commuter cars, as well as Nissan and Toyota trucks, without a single expense other than general maintenance, i.e. oil changes, brake pads, tires, fuel, etc.. This record spans more than 20 years of travel in those automobiles, without a majour repair of any kind. Try that in an EU car other than a W123 Mercedes.
 

LKLK

Member
Why would anyone 'fret' over an extended warranty?

If you made the very poor decision to buy any JLR product, you better either have deep pockets to pay for the service or to pay for the monthly note that goes along with purchasing a new JLR vehicle that is under factory warranty. Notice, there is not an option to own a JLR product and not have deep pockets. Yes, you can be your own mechanic on the older vehicles, however, this does not decrease the number of repairs required to keep the vehicle running properly. The only possible savings comes from not paying yourself for your time to effect said repairs.

Buy a top dollar, well cared for, well serviced, used Toyota of almost any model or vintage and you will be head and shoulders above the masses in headaches and repair bills, with nary a need for a warranty of any kind. They are the most reliable vehicles one can buy for a reason, build quality.

I have put many hundreds of thousands of miles on Honda and Toyota commuter cars, as well as Nissan and Toyota trucks, without a single expense other than general maintenance, i.e. oil changes, brake pads, tires, fuel, etc.. This record spans more than 20 years of travel in those automobiles, without a majour repair of any kind. Try that in an EU car other than a W123 Mercedes.


?????

No.
 

Red90

Adventurer
Quote...Your rates would surely be higher with 0 deductible otherwise nobody would have a deductible.

We don't know each other, so I don't mean this as an insult to your math skills, perhaps the battery in your calculator is in backwards. But the numbers don't lie, from $1700 down to $1300 is $400 less. Try the math on your own, or just call your insurance agent.

You must not know the meaning of deductible.
 

vintageracer

To Infinity and Beyond!
You must not know the meaning of deductible.


You are CORRECT! The poster does not know the meaning of "Deductible".

Definition of Deductible: A Deductible is the amount of money paid out of pocket by the Policy Holder before an insurance provider will pay any expenses for the loss.

If you have a low deductible you have more coverage from your insurance company therefore you have to pay less out of pocket (Lower Deductible) in the case of a claim. A higher deductible means a reduced cost in your insurance premium along with a higher out of pocket expense to you for your deductible expense in the case of covered loss.

RESULT:

Lowering your "Deductible" results in an INCREASE in cost for insurance to you as you are shifting more of the potential "Risk of Loss" to the insurance company

Raising your "Deductible" results in a LOWER cost of insurance to you as you are now taking on more of the potential "Risk of Loss" upon yourself the insured.

Pretty simple!!

If the poster lowered his insurance costs as they state they will have a higher insurance deductible as they have assumed more of the risk of loss by lowering their insurance premium.
 

bri

Adventurer
Extended warranties are a business. I always tell people - they HAVE to make money, which means they MUST pay out less than you put in (as a whole).

Soooo I don't use warranties. Period.

Like Mr West said tho, insurance is another beast. I carry a LOT of coverage. I can deal with a repair, I can't deal with a Mercedes SLS or the possible medical costs of a hurt party.

And low maintenance extended warranties subsudize the high ones.

I had one good extended warrranty on a rover and it paid out great. The D1 was in great mechanical condition at 120k miles. No leaks, no mechanicals because I could take it in for anything.
 

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