Originally Posted by dames7
You are probably right, as a Disabled Veteran the USA is a non-profit organization
1st, thank you for your service. I have stood in awe of our military my entire life. No intention to offend.
As a retired automobile dealer I just get a little frustrated with so many people believing that dealers somehow either make outrageous profits or don't deserve to make a profit. Many have invested millions of dollars in facilities, equipment, training and personnel. They donate large amounts to charitable organizations, support the USO and other military support organizations, Little League teams, Pop Warner teams, schools, etc. and pay hefty corporate income taxes, plus they hire a lot of veterans.
The average dealer makes between a 2% and 4% net profit on sales. Not what one might call exorbitant. Many have EARNED a bad reputation and stained the reputation of the industry, even for good ones, I admit. But most work hard everyday trying to satisfy their customers. As customers we want them around when we need service and support. It takes profits to sustain a business and reinvest in training, equipment and new technology. An extended service plan is nothing more than an insurance policy. If something bad happens it pays for the repair and you have little or no out of pocket expense. I've had home insurance for 40 years and never made a claim. Can't imagine how much money they have made on me but I wouldn't own a home without it.
Extended Service Plans are not for everyone for sure, including me in most cases. Each person much determine their risk tolerance and financial situation. They work for a lot of people...I've seen it many times. Some people never use them. There is no right or wrong choice here.