Doing some back-reading here from December 2024. I used to price extended warranties. Circa 2004, about half of the retail price of an extended warranty was dealer mark-up and powertrain-only coverage was about 1/2 the cost of bumper-to-bumper.
Warranties are given in terms of time & mileage, such as 7 years 100,000 miles. So at the earliest of seven years after you bought the car or 100,000 on the odometer the warranty coverage has terminated. Companies don't necessarily know when you will hit 100,000 miles but they will know when 7 years are over.
If you really want to buy an extended warranty, choose the best time/mileage option for your anticipated driving habits. They initially tried to sell me a 5 year 100,000 mile warranty, but we hardly put 10,000 miles on a year. Turns out the 7 year 70,000 mile warranty was about the same price. So knowing our driving habits got me two extra years of coverage.
Another item to be aware of for pricing is the deductible. The higher the deductible, the lower the cost should be as the lower cost fixes are no longer covered.
In the event that you sell the vehicle (or it gets totaled), you can look into cancelling the warranty and getting some of the money back.
There is hope. Toyota dealerships. Years ago I found a used Honda Accord (I think they were much bigger 2,000 years ago, when Jesus' disciples were all in one Accord), at a Toyota dealership in my hometown, Muncie. Technically I lived rural, but you get the picture. I now live out of state just across the Indiana state line in Ohio.
Long story short, the initial test drive and negotiation took less than 10 minutes. I asked the OOTP (Out the Door Price). It was the price listed on line, plus sales tax+ $99 handling fee. They asked if I wanted to trade-in, I said no. Did I need financing, no. Waiters in restaurants sell appetizers harder than they sold those two.
I then explained which bank I banked with. I needed to go funds to pay for the vehicle. Did they have a type of check they required, a cashier's check? They said they'd take a personal check. I laughed, said I didn't bring it with me, as I couldn't imagine they'd take it. The sales guy said they have protections in place, so they don't worry about dishonest customers. He mapped the nearest branch for me, we drove, got a cashier's check for the exact amount, and returned. Maybe ten minutes of paperwork later.
Being a B-School prof, I asked why so low key service? "People hate buying a car, so if we make it friendly they're more likely to return for service". He added "I know you live out of state, so we won't see you much, but pop in for a free car wash sometime". They noted I needed a front license plate holder; they'd have to order it. I asked if my brother (who lives in Muncie) could pick it up, he could, and did.
There's a Toyota dealer between Cincy and Dayton, a similar experience. I took the checkbook with me. When I go to buy another vehicle I always check their inventory first.
Just spent three weeks in Spain. It was two days in Madrid, then took a train to Toledo. After two days, I showed up to pick up my rental car as we were striking out for many a city in Central Spain. The customer reps were concerned I couldn't drive a stick shift. My wife laughed at them and said "he'll have no problems." I had no problems. I call my stick shift the best anti-theft device I have on my car (well, I only have two, but you get the idea.)
The other story was, back in the mid-80s I went to buy my first new car (it was also a stick, I had no money). Haggling with the closer who was trying hard to sell me the "gleeze" of rustproofing and undercoating, I ended the conversation with "I trust Ford cars. I guess you don't," then got up to walk away. Ballsy move for a 24 year old. We closed the deal then and there.
In January, my VW Golf having reached 110k and starting to have some issues due to age , a nasty wreck when it was new, and someone backed into it in a parking lot, I decided to get a new car. I wanted a convertible, and I didn’t want to spend six figures, so I settled on the Audi A5 cabriolet. My research told me what price I should expect to pay. Walked into the dealer in Tyson’s Corner, presented my research to the salesman, walked out an hour later with a car on order. Which came in last week. One of the options I selected was now standard, which dropped the price, and they offered middle blue book for my old car, and an hour or so later I drove home.
Ordered it with smaller wheels, and thus larger tires, for pothole resistance.
Also, for several years I’ve been setting aside a car payment every month, so I was able to pay cash. Well, I used the debit card. I’m old enough that I remember when a nice house in McLean Va cost less than what I paid for that car.
I understand that, by any reasonable not in Northern Virginia definition, I’m rich. If you think new car prices are bad, take a look at old house prices around here. Yikes!
A good used car these days is probably a better car than a new car was 20 years ago. My first car, in 85, was a 20 year old Beetle that ran and passed inspection. Taught myself stick on that car. Then I taught myself how to replace a clutch.
Doing some back-reading here from December 2024. I used to price extended warranties. Circa 2004, about half of the retail price of an extended warranty was dealer mark-up and powertrain-only coverage was about 1/2 the cost of bumper-to-bumper.
Warranties are given in terms of time & mileage, such as 7 years 100,000 miles. So at the earliest of seven years after you bought the car or 100,000 on the odometer the warranty coverage has terminated. Companies don't necessarily know when you will hit 100,000 miles but they will know when 7 years are over.
If you really want to buy an extended warranty, choose the best time/mileage option for your anticipated driving habits. They initially tried to sell me a 5 year 100,000 mile warranty, but we hardly put 10,000 miles on a year. Turns out the 7 year 70,000 mile warranty was about the same price. So knowing our driving habits got me two extra years of coverage.
Another item to be aware of for pricing is the deductible. The higher the deductible, the lower the cost should be as the lower cost fixes are no longer covered.
In the event that you sell the vehicle (or it gets totaled), you can look into cancelling the warranty and getting some of the money back.
There is hope. Toyota dealerships. Years ago I found a used Honda Accord (I think they were much bigger 2,000 years ago, when Jesus' disciples were all in one Accord), at a Toyota dealership in my hometown, Muncie. Technically I lived rural, but you get the picture. I now live out of state just across the Indiana state line in Ohio.
Long story short, the initial test drive and negotiation took less than 10 minutes. I asked the OOTP (Out the Door Price). It was the price listed on line, plus sales tax+ $99 handling fee. They asked if I wanted to trade-in, I said no. Did I need financing, no. Waiters in restaurants sell appetizers harder than they sold those two.
I then explained which bank I banked with. I needed to go funds to pay for the vehicle. Did they have a type of check they required, a cashier's check? They said they'd take a personal check. I laughed, said I didn't bring it with me, as I couldn't imagine they'd take it. The sales guy said they have protections in place, so they don't worry about dishonest customers. He mapped the nearest branch for me, we drove, got a cashier's check for the exact amount, and returned. Maybe ten minutes of paperwork later.
Being a B-School prof, I asked why so low key service? "People hate buying a car, so if we make it friendly they're more likely to return for service". He added "I know you live out of state, so we won't see you much, but pop in for a free car wash sometime". They noted I needed a front license plate holder; they'd have to order it. I asked if my brother (who lives in Muncie) could pick it up, he could, and did.
There's a Toyota dealer between Cincy and Dayton, a similar experience. I took the checkbook with me. When I go to buy another vehicle I always check their inventory first.
There's hope.
Just spent three weeks in Spain. It was two days in Madrid, then took a train to Toledo. After two days, I showed up to pick up my rental car as we were striking out for many a city in Central Spain. The customer reps were concerned I couldn't drive a stick shift. My wife laughed at them and said "he'll have no problems." I had no problems. I call my stick shift the best anti-theft device I have on my car (well, I only have two, but you get the idea.)
The other story was, back in the mid-80s I went to buy my first new car (it was also a stick, I had no money). Haggling with the closer who was trying hard to sell me the "gleeze" of rustproofing and undercoating, I ended the conversation with "I trust Ford cars. I guess you don't," then got up to walk away. Ballsy move for a 24 year old. We closed the deal then and there.
In January, my VW Golf having reached 110k and starting to have some issues due to age , a nasty wreck when it was new, and someone backed into it in a parking lot, I decided to get a new car. I wanted a convertible, and I didn’t want to spend six figures, so I settled on the Audi A5 cabriolet. My research told me what price I should expect to pay. Walked into the dealer in Tyson’s Corner, presented my research to the salesman, walked out an hour later with a car on order. Which came in last week. One of the options I selected was now standard, which dropped the price, and they offered middle blue book for my old car, and an hour or so later I drove home.
Ordered it with smaller wheels, and thus larger tires, for pothole resistance.
Also, for several years I’ve been setting aside a car payment every month, so I was able to pay cash. Well, I used the debit card. I’m old enough that I remember when a nice house in McLean Va cost less than what I paid for that car.
I understand that, by any reasonable not in Northern Virginia definition, I’m rich. If you think new car prices are bad, take a look at old house prices around here. Yikes!
A good used car these days is probably a better car than a new car was 20 years ago. My first car, in 85, was a 20 year old Beetle that ran and passed inspection. Taught myself stick on that car. Then I taught myself how to replace a clutch.
I’d pay extra for the Safe Shield option on Mr Easterbrook’s Substack columns. I might also spring for VIN etching on the windows.
No rustproofing, though. I live in a dry climate.