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Originally Posted by bmussatti
Glad it worked out for you, Chris. It was also worked out great for Warranty Direct!
For example, there are over 13,800 members on this Forum. What if they purchased an "engine warranty" from Brucelee for $1,000. And just 1/4 of us signed up for the policy.
In the years I have been a member, I can only remember a handful of expired engines. I can't even think of 10. But let's just exaggerate the number to 100.
Here are the potential financials:
3,450 "policy holders" (13,800 x 0.25)
$1,000 policy premiums
$3,450,000
-$1,500,000 for failed engine claims
-$50,000 (my business plan fee!  )
$1,900,000 potential profit.
Now imagine the profit if more members agreed to the policy and we did not exaggerate the number of failures. |
Not to be a butt-head, but Warranty Direct is in business to make themselves and/or stockholders a nice profit.
The 2,600 smackers considering the life threatening failures a Porsche can throw at you is some pretty cheap sleep, in my opinion.
Quite frankly, I hope I never have to use a penny's worth of the extended warranty on mine. It will still be worth the cost for the piece of mind.