09-24-2015, 02:21 AM
(06-03-2015, 01:31 AM)Elipten_imp Wrote: Gentlemen. This is a game of statistically probability. Over the full group of people that purchase these extended warranties if they all had serious failures Honda would lose money. Honda bets this is not the case and makes money on the deal. You however do not have the risk spread across all those motorcycles, your risk of component failure is to the motorcycle you have. I figure the odds are in my favor it will not fail, the same as Honda thinks, but my risk is higher as I only have one motorcycle to spread the risk across.Correct!
Does this make sense? So as Dirty Harry says "you feeling lucky punk?"
I don't buy and take the chance. Has always worked for me.
Today's electronics are better than ever, not the 1980s any more. But bad things can happen to good people.
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Quote:...but my risk is higher as I only have one motorcycle to spread the risk across. I follow the reasoning, but I factor in my two cars, fridge and dishwasher, laundry washer and dryer, a couple of TV-sets, two desktops and a laptop computer, some fancy sound toys and several "yard and shop" pieces in the garage; none of which I would dream of making the "extended warranty" bet on. This might be far from spreading the risk the way it works for Honda, but my risk-base is nevertheless considerably more than one $10K motorcycle.