An Extended Warranty For Cars Isn’t Worth It

With the rise of online price-checking, the profit margins on new cars have fallen dramatically over the past ten years. In 1995, the average markup on a car was almost 17%. As in, if you paid $39,250 for a new vehicle back then, approximately $25,000 covers the dealer’s cost of purchasing the vehicle from the manufacturer, and the remaining $4,250 represents the dealer’s cut in the transaction for getting you the vehicle.

Because people comparison shop and prioritize the cheapest price over nearly everything else, profit margins in the sector have fallen to 2.8% in 2017. That is a punishing drop in profits. A similar transaction with a $25,000 base would only deliver $700 in profits to the dealership on cars that cost $25,700 pre-tax to purchase.

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The Legendary Mark McGwire Rookie Card

If you lived in St. Louis during the late 1990s, it is difficult to capture the hysteria that surrounded Mark McGwire after his trade from the Oakland Athletics at the 1997 trade deadline. In just 51 games as a Cardinal that year, McGwire managed to hit 24 home runs, a precursor to the home run record he would set the following year at 70 and the 65 to come the year after.

I was too young at the time to appreciate the ominous impending cloud of the steroid and performance-enhancing drug scandal, though my sense of the era was that hometown fans overlooked any speculation about steroid use concerning the players on their team but were quick to accuse the sluggers on rival teams.

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