Premium Essay

Importance Of Extended Warranty

Submitted By
Words 443
Pages 2
Is Purchasing an Extended Warranty Necessary?
Millions of cars are sold each year within the United States. One of the benefits of purchasing a new car is the fact that the owner gets the manufacturer’s warranty for a number of years or a certain amount of miles following their purchase. Once the manufacturer’s warranty is about to expire, many people contemplate whether they should purchase an extended warranty for their vehicle, since auto repair can get expensive. However, everyone shouldn’t purchase an extended warranty for their vehicle, simply paying for their auto repairs in Lansing may be more cost-effective. Owners can forgo the extended warranty if the following applies.
They Only Want to Own Their Car for a Year or Less
People who plan to own their car or truck for a year or less shouldn’t purchase an extended warranty. Extended warranties can cost thousands of dollars, and the driver won’t be able to recoup the money they’ve spent on the extended warranty in a year or two. Drivers should get all of their problems fixed while they are still covered by their warranty so that they know they won’t have problems with their vehicle in the short term. …show more content…
However, it’s important to note that they may not provide the same service with an extended warranty. In fact, car owners may find that for the cost of the extended warranty, they only get a few systems covered. A warranty that offers reduced protection shouldn’t be purchased by vehicle owners. Instead, it may be cost-effective for owners to pay for their car repairs as they arise. Expert Financial Advisor Dave Ramsey suggests that owners refuse the extended warranty and set aside monies for car repairs in

Similar Documents

Free Essay

Assignment 2.1 Bad News Letter

...System from our company on October 25, 2010 for the amount of $1,000.00. I further reviewed with our warranty department head the guidelines of refund or replacement. I found that at the time of purchase, each stereo system that we sold automatically came with a 14 day money back guarantee as well as a 2 year warrantee. Because our company understands the importance of protecting your investment, we offered extended warrantee coverage to you both at the time of purchase and 10 days before the manufacturer warrantee expired. Both of these offers were declined. I regret that we are unable to offer a refund or free replacement at this time. The reasons for this are as follows: * The stereo is currently over 1 year past the warranty expiration date. * Extended warranty has not been purchased for the unit. * The manufacturer no longer makes your model of stereo system. Because of the situation, and our desire to continue our relationship with you, I have been authorized to offer the following to help alleviate the situation: * If you purchase a replacement unit from our company within the next 30 days, we will give you an additional 20% discount. * You can exchange your current unit for a manufacturer refurbished unit for $599.99, which is almost half the price of a new unit. * On either of the options above, we will be able to add extended...

Words: 367 - Pages: 2

Premium Essay

Tech Writing - User Manual Critique

...User Manual Critique Munchkin Baby Gate User Manual Critique INTRODUCTION Almost any parent can attest to the importance of a good baby gate. The right gate can help keep your little one safe from many of the potential hazards around the house. In addition to protecting your child, a wall mounted baby gate is easier to use than a pressure mounted gate, typically looks better, and can be used safely at the top of a staircase. In order to reap the benefits of a wall mounted baby gate, it must be properly assembled, installed, and mounted. Most customers that buy a baby gate rely on the user manual included to help guide them through this assembly. Unfortunately, the majority of those that purchase the Munchkin Extended Baby Gate will find themselves very unsatisfied with the included user manual instructions. I know all too well how frustrating a poorly written user manual can be because I purchased the Munchkin Extended Baby Gate, and I had to suffer through the poor excuse of a manual provided. While the guide had some of the important pieces we expect from a solid user manual such as warranty information, hazard details, and equipment information; the manual does not however properly consider its audience. The manual also fails in its ease of use, and its document design. THE GOOD Ethical Instructions It is important for any successful user manual to be ethical. A key factor in doing this is to highlight the potential hazards and warnings involved in...

Words: 749 - Pages: 3

Premium Essay

Autonation: Now Offering Navigational Service Plans and Agreements

...Marketing Incorporation has been in business since 1956 and has provided marketing plans to all types of businesses with great success. The following market plan sets the foundation to a successful project deployment. AutoNation is the top automotive retail industry with a strong brand name. Applying a new service for GPS systems will enhance the operation and provide an extra service to its customers. The additional service is in-line with AutoNations mission objectives. The GPS system is a hot commodity that gives customers an additional feature and benefit. Establishing a partnership with the top GPS manufacturers (TomTom, Garmin, and Magellan) increases the success rate of the marketing plan. Then the additional servicing programs of extended warranty, replacement program, upgrade program, installation, and set-up gives an added incentive with competitive pricing. Strategic development of the plan identified strengths and weaknesses. The strengths are magnified to a higher level in customer service and immediate value to the customer. Weaknesses are counteracted by a strong branding presence and control measures placed in the plan to overcome obstacles and early detection for swift adjustments. The main distribution channel strategy will come from wholesalers, and manufacturers. Pricing is competitive and comparable to the market; and the...

Words: 6006 - Pages: 25

Premium Essay

Assesment

...Assessment 1 Establish and Adjust the Marketing Mix Warso Sumarja Student ID: 1553 Diploma of Business Evening Class Braaap organisation is a motorcycle manufacturing company driven by motorcycling more enjoyable and more accessible. The Marketing Mix are many items or situations that require a well-balanced mixture in order to be successful. For instance, a cake mix requires a specified amount of each item, otherwise the cake might be too sweet or just not good at all if the ingredients aren't mixed right. The same is true with marketing. Marketing requires a good mixture in order to be successful in the final sale of the product at a profit. The following will discuss what the marketing mix is and a brief history of the marketing mix. It will also discuss further in detail the four P's of the marketing mix, as well as, show the relation of the marketing mix to a product offered by Verizon Communications. Research the marketing of Braaap The aim of Smith was to provide fun seeking customers with an ebullient bike riding. Evermore determined Smith set about designing his own bikes and researched the market extensively. He frequently travelled to mainland Australia where he participated in motocross events to build his reputation and accumulate knowledge from the best motocross riders. At the time Smith was a provisional driver and could not hire rental cars, so to overcome this limitation he sponsored riders to participate in the events he was...

Words: 2436 - Pages: 10

Premium Essay

Michael Porter

...QUESTION: Choose an industry in which you would like to compete. Use the five forces method of analysis to explain why you find that industry attractive. Porter’s Five Forces Method Industry: Car service industry Introduction Michael Porter is a professor at Harvard Business School and is a leading authority on competitive strategy and international competitiveness. Five forces uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the industry profitability. Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: 1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are. In the car service industry, for company owned players the bargaining power of suppliers is less as it can get constant supply of spare parts including OEM parts (Vehicle manufacturer’s brand) and OES parts (reputed brands of component manufacturer’s either domestic or international, supplying to vehicle manufactures or aftermarket)....

Words: 1334 - Pages: 6

Premium Essay

Us Automobile Industry

...automobile manufacturers are General motors, Toyota, Ford, and Chrysler, who account for about 70% of the total automobile sales. US based automakers face rivalry problems with foreign companies such as Toyota, Honda, and Nissan because of their cheap labor cost and no union problem. However, these companies also have their assembly lines in US, and hold around 45% of the US auto industry. US automakers are also taking advantage of NAFTA by assembling autoes in Mexico and Canada with lower labor costs (Automobile Manufacturing, n.d.). Usually 75% of the materials account for the selling price of a US made car. US companies have also increased importation of parts from abroad which helps them increase their profitability. Features like extended warranty, extended service plan, safety features, and fuel efficiency help attract consumers and increase sales. US retail sales have increased 7.00% in 2015 (Automobile Manufacturing, n.d.). Adapting with popular operating system, technologically enable safety, and low material costs are helping to raise the profits of automobile industry rapidly. PEST analysis is an essential factor of automobile industry. Government wants manufacturers to focus on fuel efficiency car to reduce dependency on foreign oil. Federal government set a fuel...

Words: 1535 - Pages: 7

Premium Essay

Tesca

...Tesca Works Introduction Michael Burton has recently been hired as the CEO of Tesca Works, Inc. Previously he had been the marketing manager for a large manufacturing company and had established a reputation for identifying new consumer trends. Tesca Works Inc. is a California-based generator manufacturing company. The company is well known for manufacturing large, heavy-duty generators at a reasonable cost. One of its greatest achievements is that its generators can be easily modified or customized for different applications. Also, Tesca Works currently builds commercial appliances. The company is considering an expansion of its current product line to include refrigerator and maybe, sometime in the future, consumer appliances. Mr. Burton feels that due to high energy prices, consumers will be more willing to consider purchasing new efficient appliances. Tesca Works Inc. is a California-based generator manufacturing company. The company is well known for its innovation and ability to produce high quality products at a reasonable cost. One of its greatest achievements is that its manufacturing processes are adaptable to other durable goods. Also, Tesca Works currently builds commercial appliances. 2 Profile of Tesca Works Tesca Works, Inc. was established by the Smith brothers in 1880 as the Logging Saw Company. The firm started manufacturing large steam saws to serve the logging industry which processed lumber. Their customers were construction companies...

Words: 1538 - Pages: 7

Premium Essay

Road King Trucks

...Road King Trucks Introduction Michael Livingston has recently been hired as the CEO of Road King Trucks, Inc. Previously he had been the marketing manager for a large manufacturing company and had established a reputation for identifying new consumer trends. Road King Trucks Inc. is a California-based truck manufacturing company. The company is well known for manufacturing large, heavy-duty trucks at a reasonable cost. One of its greatest achievements is that its trucks can be easily modified or customized for different applications. Road King Trucks also builds school buses. The company is considering an expansion of its current product line to include transit buses. Mr. Livingston feels that due to high gasoline prices, commuters will be more willing to consider using mass transit instead of using their cars to commute to work. Company Profile Road King Trucks, Inc. was established by the Smith brothers in 1880 as the California Wagon Company. The firm started manufacturing horse-drawn wagons to serve the growing population in California. The brothers quickly realized that the times were changing, so they started looking for the technologies that would keep them at the forefront of their field of business. In 1915, the Smith brothers decided that they needed to make trucks as replacements for the wagons, because trucks were starting to serve the same uses as wagons, and the wagon industry was not going to be viable in the longer term. The company started...

Words: 1663 - Pages: 7

Free Essay

Insurance Fraud

...Insurance Presentation Report Report on: The Development of the Brazilian Insurance Industry Submitted to: Dr. Bogusław Bamber Presentation date: BBA Finance & Accounting Semester 5, Academic year 2013-2014 Jamir Issa de Oliveira 25139 ......................... Vinicius Appolinario 25545 ......................... Executive summary The aim of this report is try to evaluate how the insurance industry has developed in Brazil since it began its operation in 1808, operating in the begging only with maritime insurance through company named Boa Fé. During that time Brazil was still a colony of Portugal and Boa Fé Company had the role to insure ships transporting valuable goods such as gold and precious woods extracted from Brazil and sent to Portugal. In 1850 was when the Brazilian insurance industry started to develop due to creation of law specifically to the Brazilian Insurance industry. These new law and regulations made possible the raising of new company in the market which operated not merely in the maritime sector but also in other kind of insurance such as property insurance for example. The attractiveness of the Brazilian market took attention of multinational corporations. The first foreign insurance companies arriving in the Brazilian market was in1862 and in the following years many other foreigner companies kept come to Brazil and from 1950 to 1990 the Brazilian insurance industry got slower its pace...

Words: 1937 - Pages: 8

Free Essay

Brazzers

...Buyer attempted to rescind, several months after the closing, its $500 million purchase of F&W from Seller. Shortly following the transaction’s closing, Buyer began to identify a number of serious financial and operational problems that let Buyer to conclude that it had been defrauded by the Seller and F&W. Buyer alleged that Seller and F&W’s management manipulated F&W’s financial statements in order to fraudulently induce Buyer to purchase F&W’s at an excessive price. Buyer claimed that because of these manipulations, F&W’s historical financial statements contained material misrepresentations and did not accurately depict F&W’s financial condition, which constituted a breach of F&W’s representations and warranties. Finally, Buyer alleged that the failure to implement technological systems and the lack of notification of these problems in an officers...

Words: 1631 - Pages: 7

Premium Essay

How to Case Brief

...HOW TO BRIEF A CASE [OR–WHY DIDN’T I CHOOSE TO GO TO MEDICAL SCHOOL] By Dana L. Blatt, Esq. You are just about to start law school. You buy all of your required casebooks [they are about two feet thick–only “slightly” intimidating], and you receive your first assignment. You are simply told, “read the first 100 pages in each book and BRIEF all of the cases!” O.K., you know how to read [hopefully], but what does it mean to “brief” a case? You have heard of “briefcases,” but that is something that you carry around. The last time you sang at a karaoke bar someone may have asked you to be “brief,” but instinctively you know that that is not the kind of brief that is being discussed here. And you may even be wearing “briefs.” But, what is a brief of a case? For that matter, what is a case? The purpose of this article is to teach exactly what briefs are, why they are important, and how to draft them. You will learn most of the various ways to brief a case, the basic elements of each brief, and how briefs are used in various contexts. Additionally, you will read sample cases and briefs of those cases in every format. By the time you finish reading this, you will be so sick of briefs, that you will wish this writing were much briefer! So, now let’s get down to business. What is a case? A “case” starts out as a lawsuit between two or more people. The parties to the lawsuit have a trial and one party wins while the other loses (or possibly there is no...

Words: 17675 - Pages: 71

Premium Essay

Lwen 2621 Essay Alan & Ben

...any first edition copies of the Bruce book and told him that he was willing to pay $1,500 for one. Ben agreed to sell a Bruce first edition to Dan and immediately phoned Chris to say that he would accept his original asking price of $1,000. However, Chris informed him that he had already sold the book to Eve for $1,250. Subsequently, Ben wrote to Eve offering her another rare book for $1,000. Eve replied to Ben by return of post stating that she agreed to buy the book on offer at his asking price. However, after posting the letter of acceptance she decided that she had already spent too much money on books and sent Ben a fax telling him to ignore her letter when it arrived. Explain the different types of business agreement and the importance of the key elements required for the formation of a valid contract . (1 a) You are required to...

Words: 3327 - Pages: 14

Premium Essay

Sales Promotion

...Study of Promotional Strategies for Cars in India 1 Table of Contents 1. Objective 2. Scope of Work 3. Rationale 4. Theoretical Framework and Review of Literature i. ii. iii. iv. Promotional Strategy Promotional Mix Message and Media Strategy Communication Model- AIDA 5. Promotion Process For Cars i. ii. iii. iv. v. vi. vii. viii. ix. Selecting the target market Product and Brand Positioning Promotional Decisions Advertising Direct Marketing Interactive/Interactive Marketing Sales Promotion Publicity/Public Relation Personal Selling 6. Ford Fiesta and its Promotions i. Target Market 2 ii. Adopting offer to suit target segment iii. iv. Market Competition Strategic Promotion of Ford 7. Questionnaire 8. Analyzed Survey Report of the Questionnaire 9. SWOT Analysis 10. SWOT Analysis of Ford Fiesta 11. Conclusion 12. Bibliography 3 Chapter 1 Introduction 4 Objective  To study and analyze the elements of Promotional Strategies.  Study and analysis of promotional strategies of Ford India for its product Ford Fiesta.  Study the customer response regarding the promotions of cars in India. Scope of the Project  Study the basic aspects of Promotional Strategies such as Sales Promotion, Personal Selling, Advertising and Publicity.  Studying the customer response regarding promotions of cars in India through a questionnaire.  Study the promotional strategies of Ford Fiesta with all the tools of promotion.  Analyze and interpret the...

Words: 7080 - Pages: 29

Premium Essay

Management

...BTEC Level 7 Extended Diploma in Strategic Management and Leadership Unit 14 : Strategic Supply Chain Management and Logistics Unit Code : D/602/2357 Assignment No : 1 Assignment Title : Strategic Supply Chain Management and Logistics in an organization of your choice Date Set : 18/06/2014 Due Date : 22/08/2014 Learning Outcome Covered: 1. Understand the relationship between supply chain management (SCM) and organizational business objectives 2. Be able to use information technology to optimize supplier relationships in an organization 3. Understand the role of information technology in supply chain Management 4. Understand the role of logistics and procurement in supply chain Management 5. Be able to plan a strategy to improve an organization’s supply chain Grading Opportunities Available: Outcomes/Grade Descriptors | P 1.1 | P 1.2 | P 1.3 | P 2.1 | P 2.2 | P 2.3 | P 3.1 | | | | | | | | | Outcomes/Grade Descriptors | P 3.2 | P 3.3 | P 4.1 | P 4.2 | P 4.3 | P 5.1 | P 5.2 | | | | | | | | | Outcomes/Grade Descriptors | P 5.3 | | | COMMENTS: P (PASS) – Learner should able to demonstrate the ability to explain each outcome as per to the Assessment information page of this assignment. Assessor: Afzal Sayed Munna Signature: Date: IV COMMENTS: IV: Signature Date: Case Study General Motors, the world’s largest vehicle manufacturer, drives its business results by rolling out innovative vehicles...

Words: 1168 - Pages: 5

Premium Essay

Example

...International American University Shaping tomorrow’s leaders today! General Course Policies supplement this syllabus and are available through IAU Online as a digital soft copy. Please make sure that you review the General Course Policies so that you can be successful in this course. 4201 Wilshire Blvd., Suite #610 ♦ Los Angeles, CA 90010, CA, U.S.A. ♦ T: (323) 938-4428 ♦ F: (323) 938-4-4429 ♦ E: www.iau.la MGT 620a Operations Management & Supply Chain Syllabus Class Details Name: Email: Phone: Room: Method: Steve B. Young, Ph.D. (A.B.D.) syoung18@verizon.net (818) 360-6115 LA-Classroom C Hybrid Term/Year: Days: Time: Start Date: End Date: Spring Session 1 / 2015 Wednesdays 6:00pm-10:00pm January 05, 2015 February 27, 2015 Instructor’s Biography Steve Young graduated from Western Michigan University with a Bachelor of Science in Engineering and Business. He spent time as an HR director and consultant with many Aerospace firms. Steve has worked in numerous management positions for Boeing, Lockheed Martin, Eco Polymers, Hughes, and PM-10 Consultants specializing in the area of Human resource, business management, and business operations. Steve received his MBA from West Coast University with an emphasis in management and is looking to receive his PhD from Walden University in Applied Management and Decision Making with specializations in Organizational Change and Leadership in 2008. Steve is a senior faculty member and has been teaching for the University of Phoenix...

Words: 4036 - Pages: 17