I do not nor have I ever owned a car will someone explain
In: Other
OK, a lot of scammers have hooked onto this, but in the original format:
Car (and white goods) manufacturers legally have to offer a minimum level of guarantee on new goods, so they build an average cost into a new car. Higher quality cars should be less likely to break down (and also less likely to be abused by the owner) so their guarantee costs would be smaller.
The manufacture can offer some breakdown insurance for a longer time than the standard one, either financing that risk themselves, or through a company that takes the risk on. So if it breaks, the auto dealer fixes it, and the risk company pays for it.
That all goes belly-up quite fast. The repairs are farmed out to a back-street mechanic, the warranty is limited by time or mileage or excludes major components, the insurer disappears, or the deal was fake from the start.
Personally, I never owned a car that I couldn’t afford to walk away from.
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