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  #1  
Old 08-26-2007, 12:27 PM
guids guids is offline
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Default Extended Auto Warranty companies

Im about 99% sure within the next 6 weeks, Ill be a partner in a sales shop dealing in extended auto warranties, my partner knows the sales, laws, and business aspect, I have connections with car dealers, auto parts store owners, and Ill be doing the IT, a long with actually handling sales calls (if I have time), and meeting with people face to face to work out deals. Its a numbers game really, we mail out a ton of mailers, our sales guys answer teh phones and try to sell at a clip of 8 to 15%. I have heard a ton of buzz about the industry, and know there is a lot of money in it. Anyone have anything to say on the subject? Anyone in the industry? Anything I should be on the lookout for? I wont be investing much other than my time, for a 60/40 split (40 on my end). I will probably putting out a small amount of cash to purchase the pbx, file the LLC, piddly stuff compared to my partner.
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  #2  
Old 08-26-2007, 01:31 PM
BradleyT BradleyT is offline
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Default Re: Extended Auto Warranty companies

Ugh, do car dealers sell lists of customers?

Some of those mailers do a good job of looking like they're from the manufacturer. In my case they sent them to me last year when my car was only 1.5 years old and still had a few years of warranty so a little bit early.
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  #3  
Old 08-26-2007, 02:04 PM
guids guids is offline
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Default Re: Extended Auto Warranty companies

[ QUOTE ]
Ugh, do car dealers sell lists of customers?

Some of those mailers do a good job of looking like they're from the manufacturer. In my case they sent them to me last year when my car was only 1.5 years old and still had a few years of warranty so a little bit early.

[/ QUOTE ]

no, they dont sell lists. dealer sells a used car, and they go through us to get the warranties.
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  #4  
Old 08-26-2007, 06:15 PM
Preem Preem is offline
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Default Re: Extended Auto Warranty companies

No offense intended, but I would never buy an extended warranty from a third party. I would only buy it from the manufacturer.

I just purchased an Acura Care extended warranty from American Honda. Even though I live in California, I got a very good price from a dealer in Massachusetts.

If you purchase from the manufacturer (in my case American Honda), then you can have your car serviced at any authorized dealer in the country. Also, you can purchase the extended warranty from any dealer in the country (unless you live in Washington or Florida where you must purchase from an in-state dealer). I got a quote from my local dealer that was over $500 higher than the quote I got from the Mass dealer, for exactly the same coverage.

The problem with third-party warranties is that you never know if they are any good, until it's too late.

Stick with manufacturer warranties.
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  #5  
Old 08-26-2007, 07:59 PM
guids guids is offline
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Default Re: Extended Auto Warranty companies

[ QUOTE ]
No offense intended, but I would never buy an extended warranty from a third party. I would only buy it from the manufacturer.

I just purchased an Acura Care extended warranty from American Honda. Even though I live in California, I got a very good price from a dealer in Massachusetts.

If you purchase from the manufacturer (in my case American Honda), then you can have your car serviced at any authorized dealer in the country. Also, you can purchase the extended warranty from any dealer in the country (unless you live in Washington or Florida where you must purchase from an in-state dealer). I got a quote from my local dealer that was over $500 higher than the quote I got from the Mass dealer, for exactly the same coverage.

The problem with third-party warranties is that you never know if they are any good, until it's too late.

Stick with manufacturer warranties.

[/ QUOTE ]

no offence taken, this is purely a numbers game, not all cars are eligible for extended warraties from the factory, with 3rd party after markets you can have your car serviced at any shop, dealer or non-dealer, so 3rd party warranties are as good if not better in that regard. If you would have went with a GOOD 3rd party warranty you probably would have saved a lot more than what you paid w/ honda, but you are right there are pitfalls if you dont do your homework as there are a lot of operations that arent as solid as others. Plus w/ 3rd party co's you have more of a range, from drivetrain only to bumper to bumper. In all reality 3rd party companies if they are reputable are a lot better than manufacture warranties, the only real problem is that there are tons of people who would be better off w/o any warranty in general and just put that money in a savings account, but for people who dont want the hassle of worrying about their car, or in certain situations depending on the cars age, its a better option

and saying "with 3rd party warranties is that you never know if they are any good, until its too late" just means that you dont want to do your homework. Yes, manufactuer warranties are pretty much 100% reliable, 3rd parties are 75//25 in general, but finding a good 3rd party co will save you a lot more money, and be just as reliable, just for doing a little homework.
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  #6  
Old 08-26-2007, 11:03 PM
BradleyT BradleyT is offline
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Default Re: Extended Auto Warranty companies

[ QUOTE ]
[ QUOTE ]
Ugh, do car dealers sell lists of customers?

Some of those mailers do a good job of looking like they're from the manufacturer. In my case they sent them to me last year when my car was only 1.5 years old and still had a few years of warranty so a little bit early.

[/ QUOTE ]

no, they dont sell lists. dealer sells a used car, and they go through us to get the warranties.

[/ QUOTE ]

Well in July 2005 I bought a brand new 2006 Scion TC. In about April of this year I got some snail mail offer through some 3rd party to extend my car warranty (I think it may have even had my VIN on it). So someone sold my name...maybe it was Progressive after I switched to Geico.
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  #7  
Old 08-27-2007, 04:30 AM
Preem Preem is offline
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Default Re: Extended Auto Warranty companies

Most third party policies are a total scam especially the ones who advertise on the internet or through email.

Just like rental car insurance they sell you something for 10x what it's actually worth.

Have you ever fallen for the rental car gas scam?

Pre-buy a full tank of gas and return it empty. What they don't tell you, unless you ask, is that you're buying a full tank of gas, even if you only use one gallon.

Okay, back to third party extended warranty compaines,

Even if the third party warranty company follows through, you've probably paid a lot more than it's worth.

I will concede that there might be a few good ones, but in general, most are scams.

You even said that there is a certain hit rate that you're aiming for. That's pure scam talk.

It's not that people are lazy, it's just that they're too trusting, and that is what scam artists depend on.

Avoid third party warranty companies unless you have the time and the means to verify their integrity.

In terms of an investment, it will probably be profitable for you.

Just remember that a lot of scam artists eventually end up in jail, even if they didn't know they were scamming people.
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  #8  
Old 08-27-2007, 10:51 AM
guids guids is offline
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Join Date: Oct 2005
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Default Re: Extended Auto Warranty companies

[ QUOTE ]
Most third party policies are a total scam especially the ones who advertise on the internet or through email.

Just like rental car insurance they sell you something for 10x what it's actually worth.

Have you ever fallen for the rental car gas scam?

Pre-buy a full tank of gas and return it empty. What they don't tell you, unless you ask, is that you're buying a full tank of gas, even if you only use one gallon.

Okay, back to third party extended warranty compaines,

Even if the third party warranty company follows through, you've probably paid a lot more than it's worth.

I will concede that there might be a few good ones, but in general, most are scams.

You even said that there is a certain hit rate that you're aiming for. That's pure scam talk.

It's not that people are lazy, it's just that they're too trusting, and that is what scam artists depend on.

Avoid third party warranty companies unless you have the time and the means to verify their integrity.

In terms of an investment, it will probably be profitable for you.

Just remember that a lot of scam artists eventually end up in jail, even if they didn't know they were scamming people.

[/ QUOTE ]

meh, you dont really know what you are talking about, I have no doubt we heve a plan that does the exact same as a dealers plan for a lot less money. The companies that take care of the claims etc, are basically the same type of entity between us and a dealer. Saying there is a "certain hit rate" is scam talk is laughable, from now on do not comment on subjects you are completely oblivious on, since it is obvious you have never been in sales before. Avoid third party warranty companies unless you have the time and the means to verify their integrity---this is VERY true, but I would add that you want to do the research also to save a bunch of money.
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  #9  
Old 08-27-2007, 02:23 PM
guids guids is offline
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Join Date: Oct 2005
Posts: 12,908
Default Re: Extended Auto Warranty companies

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Ugh, do car dealers sell lists of customers?

Some of those mailers do a good job of looking like they're from the manufacturer. In my case they sent them to me last year when my car was only 1.5 years old and still had a few years of warranty so a little bit early.

[/ QUOTE ]

no, they dont sell lists. dealer sells a used car, and they go through us to get the warranties.

[/ QUOTE ]

Well in July 2005 I bought a brand new 2006 Scion TC. In about April of this year I got some snail mail offer through some 3rd party to extend my car warranty (I think it may have even had my VIN on it). So someone sold my name...maybe it was Progressive after I switched to Geico.

[/ QUOTE ]

I should have clarified, we arent getting our info from dealers, some do, insurance companies do, a lot of people do, but we arent getting them from dealers. You can actually get in some trouble having the VIN on the mailers in some states, due to privacy issues, so we arent doing that either.
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