Life insurance salesmen are notorious for that. NEVER let a life insurance salesman come to your home! They try to pressure you into buying even more when they get in your house.
Not necessarily. That’s like saying if auto insurance were profitable to consumers, it wouldn’t exit. Nevertheless, I agree with David and callers take on “extended warranties”
@@dalwanagsan6784 First off: Auto insurance isn’t profitable to the consumer. It profits the insurance company, otherwise they’d go bankrupt. Secondly- The reason people have insurance is because it covers CATASTROPHIC RISK- like a risk of a $80,000+ in damage to a nice car, hitting a person etc. (And sadly also bcuz it’s legally required). With the extended warranty, it’s even more of a ripoff than car insurance AND it covers stuff that isn’t as risky- a $4000 engine replacement, is very rare/unlikely and if it does happen, it’s not gonna bankrupt you. So why even bother with the warranty which costs $2500 to begin with? Waste of money lol. It’s also not legally required so you don’t have to purchase it thankfully, since it’s a dumb purchase to begin with. And I own a business and I used to work in car sales back in the day. We all knew it was a ripoff. Financing and warranties are the ripoffs. The actual car is sold at a good price to you, nobody gets “ripped off” when buying the car even at MSRP it’s a reasonable price; the ripoff comes from the warranty and financing lol
a salesman actually argued with me that the extended warranty was not an option that I had to purchase it. I walked out out and got a car somewhere else.
Another good reason to have a large emergency fund. I self insure/warranty everything after the warranty that came with the product expires. No Amazon protection plans either.
On all products that I had in my life I never needed or used even factory warranty except once on samsung fridge. But I never bought new f150 either, Fords are junk
I don't remember the item I was buying, but a salesman was pushing really hard for me to buy an extended warrantee on a brand new item. I asked if the quality of the item was so poor that I'd be screwed without buying the warrantee. The dude was tongue-tied.
There is no comparison between those “we’re contacting you about your cars warranty” scams and a legitimate extended warranty you buy through a dealer. On my current vehicle, I bought an extended warranty through the dealer for $3200, it’s already paid for almost $6K in repairs, and the warranty is still in effect for another 12K miles. Modern vehicles are complex and expensive to repair.
Trust me Dave is right I’m fixing very basic and very expensive items just cause the insurance said no or you lost one oil change receipt out of 30 of them
Add that dealerships are always looking for an excuse to not honor the warranty in the first place. "What's this?" "Says here you went three miles too far between your third and fourth oil change and you didn't use OEM wiper blades." "Sorry."
Years ago bought lubrico warranty one time ,had a cracked cylinder head and they refused to pay, couldn’t get a straight answer as to why not covered,their authorized repair place just talked in circles , all the maintenance was followed ,never again extended warranty on a vehicle.
Definitely a ripoff. It's almost as bad as the extra insurance they try to sell you in case your car is totaled and your regular insurance company doesn't cover it. The odds are in your favor. They just play on your FEAR!!!
Actually GAP is worth it. If you finance a car you’re losing thousands as soon as you drive off the lot. If you get in an accident a few months after you buy it then you’re at a loss. Gap is like $300…
I never buy those either, and we're also 75 and 74. You get a pretty good warranty with any new car already and the probability of needing any significant coverage under one of those extended warranties is quite small. You and I can easily self-insure.
I am so glad my husband did purchase the extended warranty on his car. He bought a used Volvo paid 2700 for the extended warranty and he has had over 15k worth of work done on it and only has paid a total of 3100 (it has a $100 deductible) it may not be worth it for everyone, and not on a new car but they can be super beneficial. Also my husband brings it in for any little tiny issue the warranty covers since he has it so that car is still like new.
@@jeffwvu4602 yeah but technically, health insurance isn’t statistically a good deal. Same with car insurance. It’s not about statistics. You have health insurance and car insurance, not because you’re weak emotionally, but because you’re financially intelligent.
@@AlexPerazaTV no I have car insurance to protect the other driver and legally have to have it. Statistically I’ve lost 95% of the money I’ve spent on insurance. As for a house that is a huge investment if I had millions and a cheap house I may consider no insurance
@@jeffwvu4602 it the same concept regardless of whos paying for it or why you're paying for it. it's a gamble. money is being paid into a pool of money, just like a car warranty and then when a claim occurs, the insurance company pays for it.
But did he explain why he didn't want the warranty? Because he could save some money each month and be able to pay for repairs when needed...which may work out to be cheaper than paying for the warranty...
Good call on not buying it.. I know a few people who bought cars and bought the 2k extended warranties.. I just shake my head. Usually those extended warranties only cover certain items and getting them to warranty the item can be a pita at best.
Not looking forward to my next car purchase. They are at the top of my hate list along with child molesters and those irritating people the talk at the theater.
I never have a problem. Sit them down, shut them up, tell them what I WILL and WILL NOT purchase. Works EVERY time. If they don't play by MY rules, I get up and leave. Simple, foolproof.
It is surprising how many people lie about Dave Ramsey. I took this personal finance course at my community college only because this course was required in the Accounting program curriculum and this teacher straight up lied to my face that Dave Ramsey takes out mortgages all of the time. I immediately thought why would Dave Ramsey take out mortgages when he could buy several hotels with cash if he wanted to?
Extended warranties are an upsell and a waste, however a GAP policy is a MUST unless you are BOTH putting down 20 percent minimum and you are financing for 36 months or less. Here’s a hint, IF You can’t afford 20 percent down and 36 months financing or less, then You cannot afford the car (Kevin Hunter, The Homework Guy)
The only time your should buy a car warranty is if you're Broke. Which in that case you shouldn't be buying the vehicle anyways! -Top car salesman in the region of central NE and KS region talking here.
When you never need a warranty it sure seems like a scam. But when that engine goes out and you realize it takes $6,000 out of pocket to fix it. That warranty will be your saving grace.
Typical car stealership tactic. You think the salesman would actually sell you a product if it cost them money in the long run? They know it is unlikely to be used.
Doug DeMuro will disagree. He used the warranty on his Range Rover and covered more than the cost of warranty. It depends on the car and the cost of warranty.
@@stellarocquie7957 But he claimed he doesn't have an ego, which implies that he doesn't have a big over-inflated ego of himself, but he indeed does. It is obvious. So what where you saying about honesty?
@@percivalgooglyeyes6178 You've got too much time on your hands. . . . I couldn't care if he wears ladies' underwear, as long as he keeps doing what he's doing !
I tried to explain this to my significant other and the dealership got angry that he wasn't going to purchase it and he went ahead and purchased it never used it
Never buy something and allow the salesman to go to her. Be the man and control the attacks. I know all the techniques and they don’t work on me! Good video!
Go buy AAA plus RV towing that's all your going to need if Read the fine print on 90% of extended warranties in the front pages they list everything that's covered but in the exclusion area if you don't fallow the rules set forth in the Maintenance then your warranty is void. So for example you set out on a cross country trip when you arrive at your destination you better get the truck a oil change before heading home or your warranty is void.
I understand the law of averages, but with how much technology comes in newer vehicles an extended warranty is definitely worth it in my opinion. My 2k warranty has paid out almost 6k so far, and I still have 80k miles until it’s used up 😂. My ROI was definitely solid
I agree. Tech fails alot now and is expensive to repair. Even on a toyota. Ill end up getting the warranty when i get another car for the peace of mind mostly.
@@dexterm1285 perhaps. As long as the price stays reasonable I’ll always buy one I’ve had them pay off esp when you can get coverage from new 3-4x the mileage of the factory warranty for 2k. It’s a no brainer for me. Ymmv
@@dexterm1285 true. But even Toyota has issues now a days. I've seen new toyotas w less then 30k miles have issues and while under warranty u can only worry after warranty ends if another issue will break
@@carloscampos5469 Typically they are still pretty solid vehicles. Why I prefer used myself...can see if the car has a track record of reliability and buy for way cheaper than new and keep till 200k or so miles and still get a good resale with alot of miles.
your numbers are accurate dave.. i agree.... but if those repairs happen and he has no warranty those repairs might cost more than that. so its gambling. I bought a wheel and tire package for my car because it has happened to me before and it cost me $1200 to fix it.... should've bought the coverage. ( my coverage did not cost 2500 )
Man, a time share salesman tried that one me. He got wind that I didn't believe in a whole lot of debt, so he figured I'm a Dave Ramsey follower with no ability to think. He said something like Dave Ramsey owns timeshares with us, to which I responded "That does not make it a good idea for me."
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That salesman pitted his wife against him and he stood his ground.
Yup that's a tactic they use.
Life insurance salesmen are notorious for that. NEVER let a life insurance salesman come to your home! They try to pressure you into buying even more when they get in your house.
@ they start off with something along the lines of "i just met with a widow yesterday that didn't plan well...it's heartbreaking..."
Good on the caller for standing his ground and straight up saying no. Sad that his wife couldn't see what the salesman was doing.
If warranties were profitable for the consumer they wouldn't exist
Not necessarily. That’s like saying if auto insurance were profitable to consumers, it wouldn’t exit. Nevertheless, I agree with David and callers take on “extended warranties”
@@dalwanagsan6784 on average, you will pay in more than is paid out to you. How else would the business make money?
Bingo!
Exactly, if they didn’t Make any money off of it they wouldn’t be doing it
@@dalwanagsan6784 First off: Auto insurance isn’t profitable to the consumer. It profits the insurance company, otherwise they’d go bankrupt. Secondly- The reason people have insurance is because it covers CATASTROPHIC RISK- like a risk of a $80,000+ in damage to a nice car, hitting a person etc. (And sadly also bcuz it’s legally required). With the extended warranty, it’s even more of a ripoff than car insurance AND it covers stuff that isn’t as risky- a $4000 engine replacement, is very rare/unlikely and if it does happen, it’s not gonna bankrupt you. So why even bother with the warranty which costs $2500 to begin with? Waste of money lol. It’s also not legally required so you don’t have to purchase it thankfully, since it’s a dumb purchase to begin with. And I own a business and I used to work in car sales back in the day. We all knew it was a ripoff. Financing and warranties are the ripoffs. The actual car is sold at a good price to you, nobody gets “ripped off” when buying the car even at MSRP it’s a reasonable price; the ripoff comes from the warranty and financing lol
😂🤣 "I love my wife and she is wrong sometimes." So funny. I've been wrong living in fear, never again.
Congratulations, Ellen!!
a salesman actually argued with me that the extended warranty was not an option that I had to purchase it. I walked out out and got a car somewhere else.
Walking out is ALWAYS the best remedy.
😂😂😂
Tell the wife that he will put the $2,500 in the bank and use THAT for repairs. See if it runs out before the warranty would have run out.
Great idea. And at the end of the warranty period, they can take the money they saved, and go have some fun.
I bought an extended warranty once…end of story because it was a big waste of money and I never used it.
Exactly. My experience from bumper to bumper warranties cover nothing between the bumpers.
Extended warranties are an upsell.
Exactly.
Another good reason to have a large emergency fund.
I self insure/warranty everything after the warranty that came with the product expires.
No Amazon protection plans either.
On all products that I had in my life I never needed or used even factory warranty except once on samsung fridge. But I never bought new f150 either, Fords are junk
Congrats to saying "No"! We all need to say "NO" more often!
I don't remember the item I was buying, but a salesman was pushing really hard for me to buy an extended warrantee on a brand new item. I asked if the quality of the item was so poor that I'd be screwed without buying the warrantee. The dude was tongue-tied.
Hello, we're calling to inform you about your car's extended warranty. a.k.a. HANG UP
There is no comparison between those “we’re contacting you about your cars warranty” scams and a legitimate extended warranty you buy through a dealer. On my current vehicle, I bought an extended warranty through the dealer for $3200, it’s already paid for almost $6K in repairs, and the warranty is still in effect for another 12K miles. Modern vehicles are complex and expensive to repair.
The guy saying Dave Ramsey buys the extended warranty story made me laugh out loud.
Would have loved to see that go down lol
"Please don't talk about us on the radio. . ." HAHA HAHA HAHA!
"Sell the wife, buy the house."
-Dave Ramsey, probably
Extended warranties are a joke. Pay up front for the privilege of fighting later to get them to pay for a possible future claim.
Sometimes you win, but you usually lose. Buying an extended warranty is like going to the casino.
Trust me Dave is right I’m fixing very basic and very expensive items just cause the insurance said no or you lost one oil change receipt out of 30 of them
Lol that anecdote was hilarious
What anecdote?
@@izgil7541 Story.
His wife should be mad he didn't buy a better phone...
It's a Radio Shack "Go Phone" from 2004.
NOKIA 3110
It’s a giveaway for wealthy people !
a used DynaTAC that cost $2,500
😂😂
Well done Dave from Santa Maria. It is time that men stand their ground even when it is against their wifes.
*wives
@@stellarocquie7957 Thanks.
@@nchinth Get to know yourself first. 😀
💪🏽💪🏽💪🏽💪🏽
Add that dealerships are always looking for an excuse to not honor the warranty in the first place. "What's this?" "Says here you went three miles too far between your third and fourth oil change and you didn't use OEM wiper blades." "Sorry."
Truth.
😑😑😑
I must be lucky. My wife hates extended warranties even more than I do.
Years ago bought lubrico warranty one time ,had a cracked cylinder head and they refused to pay, couldn’t get a straight answer as to why not covered,their authorized repair place just talked in circles , all the maintenance was followed ,never again extended warranty on a vehicle.
TOYOTA, no warranty needed, best resale value.
YEP! I bought my truck in 2009. I figure that truck will outlast ME!
Never buy the extended warranty
Definitely a ripoff. It's almost as bad as the extra insurance they try to sell you in case your car is totaled and your regular insurance company doesn't cover it. The odds are in your favor. They just play on your FEAR!!!
Gap insurance? Only need that if you owe more than car is worth but otherwise yeah dont get that.
Actually GAP is worth it. If you finance a car you’re losing thousands as soon as you drive off the lot. If you get in an accident a few months after you buy it then you’re at a loss. Gap is like $300…
@@kevdog1298 Yea actually i think in some situations its required actually.
The 2nd part about the salesman was funnier than the call. Need more of that.
They are hardcore lairs and manipulator to the weaker types.
Always bothered me.
THIS IS A GREAT CLIP. Watch all the way, great story.
"Please don't talk about us on the radio". Awesome!
I never buy those either, and we're also 75 and 74. You get a pretty good warranty with any new car already and the probability of needing any significant coverage under one of those extended warranties is quite small. You and I can easily self-insure.
That's generally true.
i'm in software sales and worked with one of the largest automotive companies in the world - they told me themselves. DO NOT BUY THE WARANTY
The only extended warranty that actually helped me was tires. Because from doing deliveries I was going through tires like mad.
Agreed. I end up using my warranty 8-9 times in the life of my tires.
You're a special situation. Warranties work for you, not the average person.
@@IceColdProfessional I never been average. Lol. But I had the worst luck with cars and tires.
@@Rashaadthegr8 Same. I had three flats in one year once.
How did they cover tires? Most extended warranties do NOT cover consumable items on vehicles. Tires, brake pads, batteries etc.
It was easier to share this video than to have the debate. LOL Thank you!
I get robocalls for extended car warranty almost everyday. They are making a killing!!
I am so glad my husband did purchase the extended warranty on his car. He bought a used Volvo paid 2700 for the extended warranty and he has had over 15k worth of work done on it and only has paid a total of 3100 (it has a $100 deductible) it may not be worth it for everyone, and not on a new car but they can be super beneficial. Also my husband brings it in for any little tiny issue the warranty covers since he has it so that car is still like new.
We had our dryer, a covenction/mocrowave oven combo, and the battery in our hybrid toyota ($7,000) replaced because we had extended warranties.
Stealership. Not dealership.
Get a FLEECE at the stealership!
Never get extended warranty on anything…..appliances, vehicles etc
A patronizing finance manager's tears are sooo tasty ...after you tell them to pound sand.
Deloney would have bought the warranty just so wife can be right...
Two great stories in one call! I love it.
Way to go my friend. We do not need those offers from dealerships (warranties).
Car warranties are statistically not a good deal
@@jeffwvu4602 yeah but technically, health insurance isn’t statistically a good deal. Same with car insurance. It’s not about statistics. You have health insurance and car insurance, not because you’re weak emotionally, but because you’re financially intelligent.
@@AlexPerazaTV no I have car insurance to protect the other driver and legally have to have it. Statistically I’ve lost 95% of the money I’ve spent on insurance. As for a house that is a huge investment if I had millions and a cheap house I may consider no insurance
@@jeffwvu4602 Good thing I think with my wallet.
@@jeffwvu4602 it the same concept regardless of whos paying for it or why you're paying for it. it's a gamble. money is being paid into a pool of money, just like a car warranty and then when a claim occurs, the insurance company pays for it.
On a camper, always get the warranty. They all have issues from the factory that will pop up.
But did he explain why he didn't want the warranty? Because he could save some money each month and be able to pay for repairs when needed...which may work out to be cheaper than paying for the warranty...
Good call on not buying it.. I know a few people who bought cars and bought the 2k extended warranties.. I just shake my head. Usually those extended warranties only cover certain items and getting them to warranty the item can be a pita at best.
Thank you for sharing about extending warranty some sales man tried to sell me one when I got my car!!
This is my favorite Dave Ramsey video of all time
The only car where you need to buy an extended warranty for is a used Land Rover (learned that from Doug Demuro).
Yep, I used to sell them.
Or you could just avoid a garbage vehicle like Land Rovers
@@MrJimmy3459 agreed
I want to hear a mathematical breakdown like this for life insurance for a healthy young person
You only need life insurance if you have dependents that rely on your income, other than an enough to cover your funeral.
I’m in the car Business Dave is 100% right
Amtone else fell like they have to take a shower after dealing with insurance agents or car dealerships?
Not looking forward to my next car purchase.
They are at the top of my hate list along with child molesters and those irritating people the talk at the theater.
I never have a problem. Sit them down, shut them up, tell them what I WILL and WILL NOT purchase. Works EVERY time. If they don't play by MY rules, I get up and leave. Simple, foolproof.
Hahahaha Dave Ramsey needing to prove he's Dave at the dealership.. WOW.
Put the warranty money in the bank just in case
My wife pressured me into buying her lexus gx. At least no extension warranty or stuff like that and way under msrp
Extended warranties are bogus🙄!!!
It is surprising how many people lie about Dave Ramsey. I took this personal finance course at my community college only because this course was required in the Accounting program curriculum and this teacher straight up lied to my face that Dave Ramsey takes out mortgages all of the time. I immediately thought why would Dave Ramsey take out mortgages when he could buy several hotels with cash if he wanted to?
Lol, I guess you got an "F".
way to go.....unreal a REAL MAN.....
They are a complete joke they don’t cover squat and majority of cars don’t tear up under the 36k to 60k miles of extended warranty it’s a joke
Can barely understand the guy on the phone. Sounds like he's making the call with a string and tin cans at each end.
That is hilarious 🤣🤣🤣
Extended warranties are an upsell and a waste, however a GAP policy is a MUST unless you are BOTH putting down 20 percent minimum and you are financing for 36 months or less. Here’s a hint, IF You can’t afford 20 percent down and 36 months financing or less, then You cannot afford the car (Kevin Hunter, The Homework Guy)
The only time your should buy a car warranty is if you're Broke. Which in that case you shouldn't be buying the vehicle anyways! -Top car salesman in the region of central NE and KS region talking here.
When you never need a warranty it sure seems like a scam. But when that engine goes out and you realize it takes $6,000 out of pocket to fix it. That warranty will be your saving grace.
Unless it’s a Kia or Hyundai don’t get warranty
My wife pressured me into buying extended warranty for my mini van 😖
this guy is awesome haha. Didn't give in. Three cheers for caller Dave!
Typical car stealership tactic. You think the salesman would actually sell you a product if it cost them money in the long run? They know it is unlikely to be used.
Smart guy
Sometimes you gotta make sacrifices
I pray for this guy that there is no repair needed that costs over $2,500
HIGHLY unlikely. Outside of a cracked block, or a blown transmission, it's a pretty safe bet to do without the extended warranty.
@@stellarocquie7957 I agree, but speaking from a husbands perspective, if there is a cost over $2,500, he will never hear the end of it.
SO DAVE IS OBVIOUSLY A FORD GUY!!!!
Only proper way to say that you won a argument.
Booyah
What about CARSHIELD?
Doug DeMuro will disagree. He used the warranty on his Range Rover and covered more than the cost of warranty. It depends on the car and the cost of warranty.
Dave Ramsey doesn't have an ego... Yeah right!
As long as he is THIS smart and honest, WHO CARES ?
@@stellarocquie7957 But he claimed he doesn't have an ego, which implies that he doesn't have a big over-inflated ego of himself, but he indeed does. It is obvious. So what where you saying about honesty?
@@percivalgooglyeyes6178 You've got too much time on your hands. . . . I couldn't care if he wears ladies' underwear, as long as he keeps doing what he's doing !
I tried to explain this to my significant other and the dealership got angry that he wasn't going to purchase it and he went ahead and purchased it never used it
Never buy something and allow the salesman to go to her. Be the man and control the attacks. I know all the techniques and they don’t work on me! Good video!
This guy should use some of the savings from the warranty to purchase a phone built after 1962.
Go buy AAA plus RV towing that's all your going to need if Read the fine print on 90% of extended warranties in the front pages they list everything that's covered but in the exclusion area if you don't fallow the rules set forth in the Maintenance then your warranty is void. So for example you set out on a cross country trip when you arrive at your destination you better get the truck a oil change before heading home or your warranty is void.
I understand the law of averages, but with how much technology comes in newer vehicles an extended warranty is definitely worth it in my opinion. My 2k warranty has paid out almost 6k so far, and I still have 80k miles until it’s used up 😂. My ROI was definitely solid
I agree. Tech fails alot now and is expensive to repair. Even on a toyota. Ill end up getting the warranty when i get another car for the peace of mind mostly.
They could possibly be worth it on unreliable brands like BMW and LandRover. Toyota dont bother.
@@dexterm1285 perhaps. As long as the price stays reasonable I’ll always buy one I’ve had them pay off esp when you can get coverage from new 3-4x the mileage of the factory warranty for 2k. It’s a no brainer for me. Ymmv
@@dexterm1285 true. But even Toyota has issues now a days. I've seen new toyotas w less then 30k miles have issues and while under warranty u can only worry after warranty ends if another issue will break
@@carloscampos5469 Typically they are still pretty solid vehicles. Why I prefer used myself...can see if the car has a track record of reliability and buy for way cheaper than new and keep till 200k or so miles and still get a good resale with alot of miles.
Will the real Dave Ramsey please stand up....lol
I’m not disagreeing but could you make the same argument about insurance?
To some extent. Insurance can prevent a life-altering event from financially ruining you. There's a cost and risk analysis you need to do.
Dave, the caller only wanted to tell Dave about him standing his ground.,, I don’t think he cared about the facts.
Where do you get that from?
Happy wife, happy life.
Wait fo it...an uncle Dave story.
Imagine that wife knowing she is stupid now. That must hurt. Most people are though...
Only reason he won the argument was because his name was Dave
This man deserves a medal.
Take the truck back and tell your wife never again.
How did he save $600 thousand
Rice and beans.
Lol 😂 🤦🏽♀️
Sell the wife!
The wife is so loyal to the husband! I love it!
It's hard to believe this multi millionaire Dave Ramsey has to go out to a Lowe's store to buy his own appliances.
Buy a better phone Dave.
Not scams! Dave stop spreading wrong information
your numbers are accurate dave.. i agree.... but if those repairs happen and he has no warranty those repairs might cost more than that. so its gambling. I bought a wheel and tire package for my car because it has happened to me before and it cost me $1200 to fix it.... should've bought the coverage. ( my coverage did not cost 2500 )
Well, you're the exception, unfortunately. He's saying STATISTICALLY, it's unwise to purchase it because of the UNLIKELYHOOD of needing/using it.
Is this a repeat? Or maybe Dave's just repeating this story again.
Thou shalt not use Dave Ramsey's name in vain! it is engraved in stone
Man, a time share salesman tried that one me. He got wind that I didn't believe in a whole lot of debt, so he figured I'm a Dave Ramsey follower with no ability to think. He said something like Dave Ramsey owns timeshares with us, to which I responded "That does not make it a good idea for me."