I had an "acquaintance" who worked as a car salesman and he confirmed that
the commission is high on an extended 3rd party warranty.  He also had to
find another job because the place he worked for didn't always turn in the
paperwork and payment they collected for the warranties they sold.
Apparently the law caught up to em when customer's repairs weren't being
covered.  (who could see that coming?)  If you buy one, confirm with company
that you are indeed covered.

Ryan
----- Original Message -----
From: "Allan Streib" <streib@CS.INDIANA.EDU>
To: <vanagon@GERRY.VANAGON.COM>
Sent: Wednesday, January 30, 2008 11:23
Subject: Re: NVC Re: Stevens Creek Volkswagen in Santa Clara

> Michael Sullivan <sandwichhead@YAHOO.COM> writes:
>
>> Customarily...new parts are used only when under the factory
>> warranty.  Under the EXTENDED warranty, reman parts may be used.
>> This is in the fine print and this is the hook that the dealer
>> uses. The DEALER, not the factory, warrants the EXTENDED
>> portion. FYI.
>
> Factory warranties are for marketing.  Extended warranties are best
> thought of as an "insurance policy" you buy to protect yourself from
> large unexpected repair bills.
>
> Generally the dealer is acting as a salesperson for an unrelated
> extended warranty company.  The commission on these extended warranty
> sales is high, that's why they push them a lot.  Depending on the
> warranty, it may be useable at any repair facility, not just the
> dealer shop where you bought it.
>
> Allan
> --
> 1991 Vanagon GL
>