If I had no need for the car, I would probably choose the $15K, rather than go thru the hassle of taking ownership and immediately attempting to sell the car.
Although I like the Accord, I will probably choose the $15k if I won.
Know what you mean - I am within a pound this month of what I made with double the units last month. I have a S/C RR that I hope I can deliver (he is due in today) that will put me over last month.
I want to work F&I in one of ya'alls high line stores. I just figured out what 1 point would pay on a 72 month loan financing $80K + tax. Hubba, hubba, hubba. :shades:
Ya, but if you're in a high end store, think of all the cash deals and leases. You can throw out your ideas for working in a finance office, but I don't think the best money would be made in high-end and I know from experience it isn't at a Honda store.
No semantics - extended and certified are 2 completely different animals. Only a cursory inspection is required to be done to a used car (if any) to sell an extended. An extensive recon even on non-warranty items (brakes, tires, etc)is required to certify. It cost the dealer more in recon, then a fee to the manufacturer, but the consumer winds up with a better car up front, and a longer warranty that cost less than an extended. Things have changed in our business since the 80's. Also, I am a believer in warranties on cars. If you saw some of the modern repair bills you might be too. The electronics on the modern car (even low end) can really run up repair costs. I have them on all my vehicles - even my Harley.
AMEN my brother...
From where I sit, I HIGHLY recommend to ALL my clients that if they plan on keeping the car past the 4yr 50K LIMITED Factory Warranty (notice how I wrote LIMITED) they invest in either an extended Mechanical Failure policy (see how I did NOT write extended warranty?) or if it is within the time frame, opt for a CPO manufacturer backed warranty.
Cureently I have an '02 S 500 with less than 40K in the shop right now. Car is OUT of limited factory warranty, no extended contract and the bill is close to 4K (multiple electrical control units failed) - the client has now opened up a comprehensive claim on their insurance. Now, had they purchased a contract, ALL of these components would have been covered!
I remember when I first started selling cars in the early 90's. My wife and I were barely getting by, struggling like allot of young couples with a baby do.
The hard thing for me to over come was the fact that just because I couldn't afford a $25K car or a $500 a month note didn't mean my customer couldn't.
I was scared to death when i started and had to tell people there car not would be $500+. In my mind I believed there was no way in the world some one would pay that much for a car. It hurt my sales until I learned just because I was broke did not mean every one was.
Did you guys that went from mid line stores to high line stores have that problem?
Very much so. I went from selling Jeeps and Chryslers, bumping people up to $400 a month, to this. My first big deal here was on a Jaguar XKR convertible in 2001. I stammered out to the guy that his lease payment would be $1500 per month and he said, "OK, thats what I pay now." It was very strange at first but you get used to it.
Wow, I'm not selling high lines, but I remember this as well. It's got easier as the years go by, but I did the exact same thing. I could not believe that people were interested in paying X amount / month for a particular vehicle. That sure brings back some memories.
Now I just like to go back to "It's just math folks".
Joel, when I first went to high end, I was doing a credit app and asked the customer his gross income. He said 300k. I said, "per year?". He said, "No, per month". That kinda set the tone. Just got another 1/2 deal and got a be back out driving. Need 9 for better %.
The hard thing for me to over come was the fact that just because I couldn't afford a $25K car or a $500 a month note didn't mean my customer couldn't.
Certified is a gimmick used to force an EW on a buyer. "Certified" cars cost more.
I have never bought an EW on any car, appliance, TV, Computer,
I have added up around $11,000 in "offered" EWs in 18 years. I have spent approx $3500 in repairs on all the items that would have been covered, I am way ahead.
I rarely have had an issue with a car that would have paid off. I rarely go to the dealer for service. We have a 2001 Izuzu Rodeo with 95,000 miles on it which we plan to trade (if we can get a decent trade in offer I recently replaced a gas pump/sending unit for $425 (non dealer). That has been the only non maintenance issue we had. We also had them change all the belts and hoses, Timing belt, Brakes and plugs, Transmission and coolant flush, oil and filter. I cannot imagine what a dealer would have charged for all this work but it came to $1487.00 The sending unit alone was over $400. My Explorer just went out of warranty and I looked forward NOT to have to go to the dealer for service. They are impersonal and charge far too much unlike our mechanic and I just don't trust them because everything is about the bottom line. They charge a friggin RAG FEE!!!!
The costs the F&I guy shows of repairs is a hoot. I have always lived by this in commerce.
If they HAVE to resort to and use FEAR to sell it. Pass. YOu probably don't need it.
No semantics - extended and certified are 2 completely different animals.
OK, no semantics you can call it what you like, extended or certified, my point was you pay quite a bit for either of these and I don’t want to pay for either.
I can see your point though, if I made my living selling something, I wouldn’t tell my customers not to buy it. I have never had the need for any extended or certified warranty on any used car I’ve ever owned. So if I’m ever in the market for another used car I’ll continue with my old ways. The money I’ve saved by not buying these types of warranties, is in a savings account, (which I’ve mentioned in a previous post on this subject) just waiting to be tapped if I ever need it.
There isn’t a repair bill that I couldn’t pay for from this account and still have a nice chunk left over.
Also, I am a believer in warranties on cars.
By now I'm sure you know I'm not.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
I'd take the cash. Put it in a cd at 7% with my local credit union and keep it there for a while. The cars depreciate plus you have to pay uncle sam which you also do on the cash but the cash is not depreciating. Mackabee
The hard thing for me to over come was the fact that just because I couldn't afford a $25K car or a $500 a month note didn't mean my customer couldn't.
It is a very humbling experience. I ditto that.
It is humbling when all my professional peers can do that. With a few exceptions, we all make roughly the same $$, and they have Lexuses (Lexi?) and Infinities (Infinitii?) and I have a 15 year old Honda and a couple year old Subie. It would be very challenging for me to take on their lease payment or down payment; I think my priorities are just different than theirs. One of the guys did come up and start asking financial questions on what to do about his 20k in credit card debt :sick:
that guy that came up to you and admitted 20K in CC debt is just the tip of the iceberg.
That is so true.
In the mid 80's I worked with a guy who was younger than a lot of the guys in the group and therefore was paid less than the more experienced guys but this didn't mean he didn't want the same things the other guys had. He came up to me one day and asked for a little bit advice as to how he should handle his finances. I told him I wasn't qualified to do that and he said he liked how I seemed to do things along these lines so I said I'd do what I could.
After talking to this guy for about 15 minutes, it's no longer the $6000 debt he had on one credit card, he also wanted to know what he should do about the $3500 he had on another credit card. Finally I said I really don't know what to tell you other stop using those credit cards completely. He said, "I can't do that I still need to buy stuff when my pay runs out around the middle of the month". :sick:
That's when I told him he needed real professional help. He then said, "about how much do you think that will cost me", and I said I had no idea but I was pretty sure he couldn't use his credit card for that.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
You would be surprised how deep in the hole many people who drive high end cars are. $20K in credit card debt is nothing, I have seen people with $125K in Credit card debt.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
This may be a dumb question but how do people actually get financed when they have so much credit card debt? Doesn't that count against their FICO score? or debt to income ratios or does some banks still finance as long as the consumer can make their payments on time?
Couple of things, first is that if you are making all your payments on time many places will finance you, especially if there is something securing the loan. Secondly no matter what your FICO score is there are places that will finance you, you may not like the interest (I once knew someone paying 24% on a used car) but you can get a loan. Finally many credit card companies will up your limit on a regular basis if you keep up with the payments.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I am not here to change your mind, just as either of our opinions are not correct for everybody. I guess that my pet peeve here is that everybody, including me, thinks that their opinion is the only prudent way. But I know for a fact (14 years in the biz) that certified warranties are completely different and less expensive for the consumer. Many times ZI have offered to reduce the price of the car by the amount we pay (not including the recon that has already been done) the manufacturer for the warranty. No takers yet. I also regularly see repair bills equal to or much much greater than the warranty cost. There is a value to many people.
I run any where form 40% to 50% penetration on Service Contracts each month. My penetration #'s have actually gone up since Ford went to the 5 year 60K warranty.
Here is my opinion.
For all of the folks here that say "just put that money in a savings acount, or just put a little aside each month". That is a fantastic idea if you can afford to do that. Not everyone is you and not every one has $1500 laying around to plunk in an account, plus if you have major problems $1500 will get you no where. One poster earlier mentioned he spent that much just doing major maintanence at i.e belts, hoses, timing belts etc.
Also the fact that you put that money aside says that you realize there is a possibility it will be needed.
I buy them, hell I prepay my maintanence for the first 60K so that way under fords plan my brake pads, belts, hoses, and windshield wiper blades are covered. So I know for a fact that for the first 60K miles my wife drives her 500 that all I will ever do is pay for gas and tires, and after that she is under the Premium car till 100K I also won't let my friends or family buy a pre owned car from me with out one.
For those individuals that can afford not to have one that is great, but don't try to justify your blanket statement saying no one needs one. That could be very bad advice for some who read these forums.
i think the north american focuses were assembled in wayne michigan...at least mine is...i think they are a underrated car...mine gets 34 mpg...low price too
ford offers a 100k powertrain extended service contract on the focus...the 5 new cars i have owned have never needed anything cept regular maintenance.. CR reccomends against it(extended warranty) because the vast majority of cars wont need it..i have never bought one
To me a 6 year 100K mile bumper to bumper on the Focus is a no brainer. You can upgrade to that for as little as $420 + tax depending on the year model.
I don'tcare who your mechanic is they can't fix any major problem for $420
Personally I would advise against an extended warranty. Most cars if they make it past their standard warranty with no or little issues should make it past 100K with few, if any, problems. Out of all the new cars that I have bought none of them had anything happen to them that an extended warranty would have covered.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Personally I would advise against an extended warranty.
Normally I would agree with that, but the vehicles are getting so complicated electronically, at least the ones I am looking at, that I have begun to rethink it. Replacing those integrated nav, climate control and audio touch screen systems can't be cheap.
It's all about cost and potential benefit - like with most insurance cases, like most products acutally.
If the cost is reasonable (like Joel's mentioned $400+ for bumper-to bumper 100K), it may be a very good buy. Unfortunately in many cases dealers (or insurers) get too greedy and their premiums are simply too high.
I have had two of vehicles and several other large ticket products with ext. warranty. I used them in both vehicle cases, but neither actually paid off its cost (second will expire next year so will have to say then). Same with those other ones - of all products I have bought I needed to prematurely replace one major appliance and that one actually had no warranty, but it was only $400 built-in microwave.
Sometimes mere convenience may be worth money, at least to me, but I'm getting more and more conviced over time they aren't good buys after all, but I would still approach them case by case basis as potential cost to benefit.
Comments
Although I like the Accord, I will probably choose the $15k if I won.
-Moo
Also, I am a believer in warranties on cars. If you saw some of the modern repair bills you might be too. The electronics on the modern car (even low end) can really run up repair costs. I have them on all my vehicles - even my Harley.
AMEN my brother...
From where I sit, I HIGHLY recommend to ALL my clients that if they plan on keeping the car past the 4yr 50K LIMITED Factory Warranty (notice how I wrote LIMITED) they invest in either an extended Mechanical Failure policy (see how I did NOT write extended warranty?) or if it is within the time frame, opt for a CPO manufacturer backed warranty.
Cureently I have an '02 S 500 with less than 40K in the shop right now. Car is OUT of limited factory warranty, no extended contract and the bill is close to 4K (multiple electrical control units failed) - the client has now opened up a comprehensive claim on their insurance.
Now, had they purchased a contract, ALL of these components would have been covered!
Need I say more??
Well that LR3 is really just an explorer with a Land Rover badge
or that LR2 is really just a ford Escape.
:mad:
That S-Type is the same as my Lincoln LS..
The X-Type is a Taurus although that may be closer to the truth..
The hard thing for me to over come was the fact that just because I couldn't afford a $25K car or a $500 a month note didn't mean my customer couldn't.
I was scared to death when i started and had to tell people there car not would be $500+. In my mind I believed there was no way in the world some one would pay that much for a car. It hurt my sales until I learned just because I was broke did not mean every one was.
Did you guys that went from mid line stores to high line stores have that problem?
Now I just like to go back to "It's just math folks".
-Moo
now that Focus is a great car too....too bad Ford (USA) botched up the manufacturing in the USA.
Lots of high end leases. Here are the top lease 2007 models
Full article :Auto leasing revs up again
you do front and back eh?
It is a very humbling experience. I ditto that.
I have never bought an EW on any car, appliance, TV, Computer,
I have added up around $11,000 in "offered" EWs in 18 years.
I have spent approx $3500 in repairs on all the items that would have been covered, I am way ahead.
I rarely have had an issue with a car that would have paid off. I rarely go to the dealer for service. We have a 2001 Izuzu Rodeo with 95,000 miles on it which we plan to trade (if we can get a decent trade in offer I recently replaced a gas pump/sending unit for $425 (non dealer). That has been the only non maintenance issue we had. We also had them change all the belts and hoses, Timing belt, Brakes and plugs, Transmission and coolant flush, oil and filter. I cannot imagine what a dealer would have charged for all this work but it came to $1487.00 The sending unit alone was over $400. My Explorer just went out of warranty and I looked forward NOT to have to go to the dealer for service. They are impersonal and charge far too much unlike our mechanic and I just don't trust them because everything is about the bottom line. They charge a friggin RAG FEE!!!!
The costs the F&I guy shows of repairs is a hoot. I have always lived by this in commerce.
If they HAVE to resort to and use FEAR to sell it. Pass. YOu probably don't need it.
OK, no semantics you can call it what you like, extended or certified, my point was you pay quite a bit for either of these and I don’t want to pay for either.
I can see your point though, if I made my living selling something, I wouldn’t tell my customers not to buy it. I have never had the need for any extended or certified warranty on any used car I’ve ever owned. So if I’m ever in the market for another used car I’ll continue with my old ways. The money I’ve saved by not buying these types of warranties, is in a savings account, (which I’ve mentioned in a previous post on this subject) just waiting to be tapped if I ever need it.
There isn’t a repair bill that I couldn’t pay for from this account and still have a nice chunk left over.
Also, I am a believer in warranties on cars.
By now I'm sure you know I'm not.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Mackabee
It is a very humbling experience. I ditto that.
It is humbling when all my professional peers can do that. With a few exceptions, we all make roughly the same $$, and they have Lexuses (Lexi?) and Infinities (Infinitii?) and I have a 15 year old Honda and a couple year old Subie. It would be very challenging for me to take on their lease payment or down payment; I think my priorities are just different than theirs.
One of the guys did come up and start asking financial questions on what to do about his 20k in credit card debt :sick:
Mackabee
Joel, all young couples struggle with baby doo.
Mack
I'd take the money; you would have to pay me to drive any of them...
Mine: 1995 318ti Club Sport-2020 C43-1996 Speed Triple Challenge Cup Replica
Wife's: 2021 Sahara 4xe
Son's: 2018 330i xDrive
that guy that came up to you and admitted 20K in CC debt is just the tip of the iceberg.
be humbled in the fact you have more financial savvy than many, and what they have is merely an illusion.
That is so true.
In the mid 80's I worked with a guy who was younger than a lot of the guys in the group and therefore was paid less than the more experienced guys but this didn't mean he didn't want the same things the other guys had. He came up to me one day and asked for a little bit advice as to how he should handle his finances. I told him I wasn't qualified to do that and he said he liked how I seemed to do things along these lines so I said I'd do what I could.
After talking to this guy for about 15 minutes, it's no longer the $6000 debt he had on one credit card, he also wanted to know what he should do about the $3500 he had on another credit card. Finally I said I really don't know what to tell you other stop using those credit cards completely. He said, "I can't do that I still need to buy stuff when my pay runs out around the middle of the month". :sick:
That's when I told him he needed real professional help. He then said, "about how much do you think that will cost me", and I said I had no idea but I was pretty sure he couldn't use his credit card for that.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Here is my opinion.
For all of the folks here that say "just put that money in a savings acount, or just put a little aside each month". That is a fantastic idea if you can afford to do that. Not everyone is you and not every one has $1500 laying around to plunk in an account, plus if you have major problems $1500 will get you no where. One poster earlier mentioned he spent that much just doing major maintanence at i.e belts, hoses, timing belts etc.
Also the fact that you put that money aside says that you realize there is a possibility it will be needed.
I buy them, hell I prepay my maintanence for the first 60K so that way under fords plan my brake pads, belts, hoses, and windshield wiper blades are covered. So I know for a fact that for the first 60K miles my wife drives her 500 that all I will ever do is pay for gas and tires, and after that she is under the Premium car till 100K I also won't let my friends or family buy a pre owned car from me with out one.
For those individuals that can afford not to have one that is great, but don't try to justify your blanket statement saying no one needs one. That could be very bad advice for some who read these forums.
You have probably never seen my Ford will rise to the top again and I will have a big ole box of I told you so's waitng rant have you.
But for those who have, we followed up the #1 JD Power rating with a $750M profit last quarter.
That object in your mirrior is as close as it appears and it is a great big Blue Oval.
I don'tcare who your mechanic is they can't fix any major problem for $420
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Normally I would agree with that, but the vehicles are getting so complicated electronically, at least the ones I am looking at, that I have begun to rethink it. Replacing those integrated nav, climate control and audio touch screen systems can't be cheap.
If the cost is reasonable (like Joel's mentioned $400+ for bumper-to bumper 100K), it may be a very good buy. Unfortunately in many cases dealers (or insurers) get too greedy and their premiums are simply too high.
I have had two of vehicles and several other large ticket products with ext. warranty. I used them in both vehicle cases, but neither actually paid off its cost (second will expire next year so will have to say then). Same with those other ones - of all products I have bought I needed to prematurely replace one major appliance and that one actually had no warranty, but it was only $400 built-in microwave.
Sometimes mere convenience may be worth money, at least to me, but I'm getting more and more conviced over time they aren't good buys after all, but I would still approach them case by case basis as potential cost to benefit.
2018 430i Gran Coupe