Quote:
Originally Posted by avanti
That is a distinction without a difference. The only thing that matters for each party is the total amount paid. It makes not the slightest difference how many transactions this is spread over. The elderly couple will, on average, come out ahead by putting their money in the bank.
If you actually believe that there are significant numbers of people who (a) Can afford a $100K vehicle, and (b) can afford a $3K service contract but (c) cannot afford an additional $3-5K (worst plausible case) in the unlikely event that something really bad happens to their vans mechanics, then I give up.
Over and out.
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Actually, its a distinction that makes a huge difference. Almost no one is average.
" It makes not the slightest difference how many transactions this is spread over."
It does to the person who has to come up with the money all at once this week instead of spread out over 6 years. Again, that is really the reason for any insurance. "On average" for the "average" person paying an "average" bill there is no need for insurance of any kind.
"Can afford a $100K vehicle"
You know, $100K is not the median price for an RV or even close. But yes, there are people who will take on a $1000/month payment and not have another $3-5K available to pay the bill if something goes wrong or it will involve some extremely painful choices. And the extra cost is nominal in terms of the monthly payment.
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