Khang Auto
- Thread starter angbrian
- Start date
Re: Khang Auto
U always say about zhang jui..
Anyway, volume is understandably important to reduce cost but at the same time this brings out the consequences of poor services and control.
My real point is, the cheap warranty looked too good to be true when vehicles inspections aren't mandatory.
MW;722756 said:
U always say about zhang jui..
Anyway, volume is understandably important to reduce cost but at the same time this brings out the consequences of poor services and control.
My real point is, the cheap warranty looked too good to be true when vehicles inspections aren't mandatory.
Re: Khang Auto
I find it strange on prevalence of the self-blame logic "oh you should know that model wouldn't work, why you believe in TWM" rather than a positive damage control frame of thought "what can we do now?"
Are we still harping on the decision to go PI or get extended warranty or are we gonna do something more concrete and constructive?
I find it strange on prevalence of the self-blame logic "oh you should know that model wouldn't work, why you believe in TWM" rather than a positive damage control frame of thought "what can we do now?"
Are we still harping on the decision to go PI or get extended warranty or are we gonna do something more concrete and constructive?
Re: Khang Auto
What's the point of a hindsight evaluation of how CDO and CDS brought down Lehman and the banking sector in the US when you cannot foresee it yourself and warn the whole world about it?
To prevent one more Lehman? But it is too obvious now, isn't it?
What's the point of a hindsight evaluation of how CDO and CDS brought down Lehman and the banking sector in the US when you cannot foresee it yourself and warn the whole world about it?
To prevent one more Lehman? But it is too obvious now, isn't it?
vivocity2006
Active Member
Re: Khang Auto
I am just wondering if the landlord open the gate and I go in to drive my car away is it an offence??
I am just wondering if the landlord open the gate and I go in to drive my car away is it an offence??
Re: Khang Auto
Well, you can do your homework...isn't that what some people are good at, especially you?
For the same insurance package that is quoted at half the premium vs the others and god knows maybe no health declarations are required etc....
Doesn't this worth raise some questions?
Ok, It's a lot of hindsight talking but it has relevance for future prevention or at least, it gives us a second thought before taking up something similar again.
Now good luck to all those affected, more voices are more powerful to seek recourse.
Well, you can do your homework...isn't that what some people are good at, especially you?
For the same insurance package that is quoted at half the premium vs the others and god knows maybe no health declarations are required etc....
Doesn't this worth raise some questions?
Ok, It's a lot of hindsight talking but it has relevance for future prevention or at least, it gives us a second thought before taking up something similar again.
Now good luck to all those affected, more voices are more powerful to seek recourse.
Re: Khang Auto
Well, first you have factory warranty and that's basic.
PI dealers who don't have workshops may tie up with others e.g Vincar with KBS and the latter is there to handle your paperwork and claim. This is pretty straight forward IMO.
Anything pass warranty period, either live without it or if you want extended warranty..buy at least from the shop that has given you or covered your warranty and the claims before
hitmee;722787 said:
Well, first you have factory warranty and that's basic.
PI dealers who don't have workshops may tie up with others e.g Vincar with KBS and the latter is there to handle your paperwork and claim. This is pretty straight forward IMO.
Anything pass warranty period, either live without it or if you want extended warranty..buy at least from the shop that has given you or covered your warranty and the claims before
Re: Khang Auto
Homework requires symmetrical information, comparison requires some benchmark - both were impossible in the extended warranty scenario.
(1) For new car warranties, how do you price the warranties? The answer lies in the margin of the selling price. New car warranties are assumed by AD or PI. For ADs, they have their internal workshops to undertake the repairs. For PIs, they work with their affliliated workshops, example MBM or Boss. The warranty "premium" was priced into the selling price - no way you could compare against. At best, it reverts back to a PI vs AD comparison. But implied in the selling price is a warranty undertaken by the car dealer, not TWM. PIs, in turn, MIGHT (not in every case) hedge that warranty out on a back-to-back basis with TWN, the extended warranty platform of Khang. If your agreement is "2 years warranty against dealer", then what happened to Khang has no impact.
(2) For extended warranty, there was NO competitor to TWN. Against which benchmark could you compare? It raised some eyebrows, sure, but the sheer size of TWM and its distribution network answered some of your queries, no? Some of the workshops listed here were authorised workshops of TWM, and were the distributors of TWM warranty packages. If so many of the workshops are snooked, how could the car owners know how TWM prices its option premiums?
There is NO complete information, since most if not all extended warranties are purchased through the "agents" rather than Khang direct.
There is NO benchmark of comparison, since TWM was the ONLY extended warranty provider. PIs do provide small extended warranty on the used cars they sold, but only on a short timespan. Example 6 mths from point of sale.
Assuming I wanted extended warranty, which workshop would I be buying from providing extended warranty, other than Khang via TWM?
Example - PML car, after 3 years, where can the car get extended warranty? Boss? BVO? J4C?
You sure there was an alternative to TWM?
Back to the case of monopoly scenario. After Lehman, we know of this term, counterparty risk. If only Khang is rated by rating agencies.
TripleM said:
Homework requires symmetrical information, comparison requires some benchmark - both were impossible in the extended warranty scenario.
kenntona said:
(1) For new car warranties, how do you price the warranties? The answer lies in the margin of the selling price. New car warranties are assumed by AD or PI. For ADs, they have their internal workshops to undertake the repairs. For PIs, they work with their affliliated workshops, example MBM or Boss. The warranty "premium" was priced into the selling price - no way you could compare against. At best, it reverts back to a PI vs AD comparison. But implied in the selling price is a warranty undertaken by the car dealer, not TWM. PIs, in turn, MIGHT (not in every case) hedge that warranty out on a back-to-back basis with TWN, the extended warranty platform of Khang. If your agreement is "2 years warranty against dealer", then what happened to Khang has no impact.
(2) For extended warranty, there was NO competitor to TWN. Against which benchmark could you compare? It raised some eyebrows, sure, but the sheer size of TWM and its distribution network answered some of your queries, no? Some of the workshops listed here were authorised workshops of TWM, and were the distributors of TWM warranty packages. If so many of the workshops are snooked, how could the car owners know how TWM prices its option premiums?
There is NO complete information, since most if not all extended warranties are purchased through the "agents" rather than Khang direct.
There is NO benchmark of comparison, since TWM was the ONLY extended warranty provider. PIs do provide small extended warranty on the used cars they sold, but only on a short timespan. Example 6 mths from point of sale.
TripleM said:
Assuming I wanted extended warranty, which workshop would I be buying from providing extended warranty, other than Khang via TWM?
Example - PML car, after 3 years, where can the car get extended warranty? Boss? BVO? J4C?
You sure there was an alternative to TWM?
Back to the case of monopoly scenario. After Lehman, we know of this term, counterparty risk. If only Khang is rated by rating agencies.
Re: Khang Auto
Did u try KBS again who did the tie up with VC?
And honestly, even if you did and let's assume KBS said yes, they should not give extended warranty to modified cars. Too much drama.
TWM did it so easily for just about any cars, that's a freaking bad sign to begin with coz complications arising from modified cars which were not done by them could potentially end up in dispute and massive delays.
PML cars after 3yrs...can always ask if they sell extended warranty. I know at least one AD has this program and I can name it.
and I bet with you if they do and if one's car is heavily modified, I am sure they will reject the adoption or at the very best, they might just give warranty on certain parts.
Did u try KBS again who did the tie up with VC?
And honestly, even if you did and let's assume KBS said yes, they should not give extended warranty to modified cars. Too much drama.
TWM did it so easily for just about any cars, that's a freaking bad sign to begin with coz complications arising from modified cars which were not done by them could potentially end up in dispute and massive delays.
PML cars after 3yrs...can always ask if they sell extended warranty. I know at least one AD has this program and I can name it.
and I bet with you if they do and if one's car is heavily modified, I am sure they will reject the adoption or at the very best, they might just give warranty on certain parts.
Re: Khang Auto
Dude, for 3 years at that price, it is absolutely fuck all. Car gets older, warranty on it shouldn't be cheap in the first place.
If expensive, no one would subscribe. I agreed with MW on the volume logic but that in itself was a process of aggregation on their part hence low premiums to attract masses.
Dude, for 3 years at that price, it is absolutely fuck all. Car gets older, warranty on it shouldn't be cheap in the first place.
If expensive, no one would subscribe. I agreed with MW on the volume logic but that in itself was a process of aggregation on their part hence low premiums to attract masses.
Re: Khang Auto
I think you do not understand the intrincacies involved. Things are not so simple.
KBS is just a workshop affiliated to VC. For new cars, the warranty is provided by VC, not MBM/KBS. Once the new car's warranty's expired, there is no insurance arm within VC who could quote a premium on extended warranty. And MBM, unlike Khang, do not, and perhaps do not want (I am speculating on this), to be involved in the extended warranty trade. Hence no one was quoting on extended warranty programmes.
Whether my car was modified or stock, it does not change the fact on the matter - which is COUNTERPARTY RISK rather than a case of WRONG OPTION PRICING. Furthermore, not all cars undertaken by TWM are modified.
Since you are in this trade, you should think of it in this way - you bought an option against the wrong counterparty, and go back and trying to rationalise on the option costs, which looks cheap on hindsight, does not help a bit. Had the option been fairly priced, it does not change the fact that you took on the wrong counterparty.
So the crux of the matter is - would you have been able to assess the counterparty risk of Khang few years back, when they have so many affliated workshops working with them? Let's be honest here, would you have seen these back then?
TripleM said:
I think you do not understand the intrincacies involved. Things are not so simple.
KBS is just a workshop affiliated to VC. For new cars, the warranty is provided by VC, not MBM/KBS. Once the new car's warranty's expired, there is no insurance arm within VC who could quote a premium on extended warranty. And MBM, unlike Khang, do not, and perhaps do not want (I am speculating on this), to be involved in the extended warranty trade. Hence no one was quoting on extended warranty programmes.
Whether my car was modified or stock, it does not change the fact on the matter - which is COUNTERPARTY RISK rather than a case of WRONG OPTION PRICING. Furthermore, not all cars undertaken by TWM are modified.
Since you are in this trade, you should think of it in this way - you bought an option against the wrong counterparty, and go back and trying to rationalise on the option costs, which looks cheap on hindsight, does not help a bit. Had the option been fairly priced, it does not change the fact that you took on the wrong counterparty.
So the crux of the matter is - would you have been able to assess the counterparty risk of Khang few years back, when they have so many affliated workshops working with them? Let's be honest here, would you have seen these back then?
Re: Khang Auto
Are we supposed to feel better had the premium been much higher and closer to the "fair" value?
Imagine the packages were $5K or $6K for 3 years? Am I supposed to be feeling better now?
Or does an option premium change the counterparty risk?
TripleM said:
Are we supposed to feel better had the premium been much higher and closer to the "fair" value?
Imagine the packages were $5K or $6K for 3 years? Am I supposed to be feeling better now?
Or does an option premium change the counterparty risk?
Re: Khang Auto
Well, if something that looks too good to be true, I can only raise two questions : Product risk (inferiority and after sales issue) and Counterparty Risk (Probable Scam)
In TWM case, it's simple product they sold at attractive price that didn't make sense. I am not arguing here for the fact that I am not a victim in this case but I simply believe in the first line above.
If I want to buy a genuine extended warranty, I would have been more comfortable in doing so upon original inception of the transaction e.g. Extended warranty from Harvey Normal for LED TV. Why bother sourcing to XYZ repair shop which more often than not, you hardly know their expertise?
Some victims of this TWM saga cited Khang auto mechanics know nuts bout BMW!!
Have u seen or been involved in MLM case yourself where you deposited 10K and every month they promised you 2K plus principal return?
I saw the popularity in the early stage in Indo in early 2000s and I warned all my family members not to bother with such things.
Mom didn't listen and lost her money the second time she deposited it after feeling over complacent about the handsome interest paid plus principal.
Well, if something that looks too good to be true, I can only raise two questions : Product risk (inferiority and after sales issue) and Counterparty Risk (Probable Scam)
In TWM case, it's simple product they sold at attractive price that didn't make sense. I am not arguing here for the fact that I am not a victim in this case but I simply believe in the first line above.
If I want to buy a genuine extended warranty, I would have been more comfortable in doing so upon original inception of the transaction e.g. Extended warranty from Harvey Normal for LED TV. Why bother sourcing to XYZ repair shop which more often than not, you hardly know their expertise?
Some victims of this TWM saga cited Khang auto mechanics know nuts bout BMW!!
Have u seen or been involved in MLM case yourself where you deposited 10K and every month they promised you 2K plus principal return?
I saw the popularity in the early stage in Indo in early 2000s and I warned all my family members not to bother with such things.
Mom didn't listen and lost her money the second time she deposited it after feeling over complacent about the handsome interest paid plus principal.
Re: Khang Auto
You are missing the point here dude.
U should know they couldn't command 5-6K. People got sucked in by this TWM trade simply because of the cheap premium, nothing else. I bet most never asked or understood their competencies. Look at all the responses that surfaced now.
If BVO inspects my BMW car and admits my car to their extended warranty program by paying certain premium, I will consider that option.
kenntona;723091 said:
You are missing the point here dude.
U should know they couldn't command 5-6K. People got sucked in by this TWM trade simply because of the cheap premium, nothing else. I bet most never asked or understood their competencies. Look at all the responses that surfaced now.
If BVO inspects my BMW car and admits my car to their extended warranty program by paying certain premium, I will consider that option.
Re: Khang Auto
So had the warranty been priced higher and you would not have suspected and bought it, your view will be changed?
Or does it still revert back to the fact that there was no way to check the counterparty risks of Khang?
Lemme remind you that many workshops were under their distribution network. Sure, there was poor reputation on Khang's competency, but bear in mind that there were affliated workshops on their authorised list servicing the cars under the TWM warranty. Hence, in many TWM purchasers's mind, Khang and its network do make $$$ from mandatory servicing under its affiliated network of workshops. That, perhaps, was the reason why people like me, bought the warranty - from Khang's affiliated workshop, and NOT from Khang.
Had Khang marketed the TWM direct to me, specifying that I can ONLY go to Khang for servicing, I would not have bought the TWM warranty. But this is not the case. It was Khang's authorised workshop whom I patronised who sold me the warranty. Not blaming them, but not changing the fact that Khang's expertise and competency were totally irelevant in that decision making process !!!
You understand that part?
TripleM said:
So had the warranty been priced higher and you would not have suspected and bought it, your view will be changed?
Or does it still revert back to the fact that there was no way to check the counterparty risks of Khang?
Lemme remind you that many workshops were under their distribution network. Sure, there was poor reputation on Khang's competency, but bear in mind that there were affliated workshops on their authorised list servicing the cars under the TWM warranty. Hence, in many TWM purchasers's mind, Khang and its network do make $$$ from mandatory servicing under its affiliated network of workshops. That, perhaps, was the reason why people like me, bought the warranty - from Khang's affiliated workshop, and NOT from Khang.
Had Khang marketed the TWM direct to me, specifying that I can ONLY go to Khang for servicing, I would not have bought the TWM warranty. But this is not the case. It was Khang's authorised workshop whom I patronised who sold me the warranty. Not blaming them, but not changing the fact that Khang's expertise and competency were totally irelevant in that decision making process !!!
You understand that part?
