Warranty Question

[QwikKota]

Our friend Dave is a prime example of when I said extended warranties are an emotional purchase made by scared broke people.

You want to stop being scared and broke? Quit buying crap that you don't need with money you don't have. Then you won't be distraught over how to fix it, if it ever breaks.

Don't take financial advice from broke people. You do what broke people do, you'll get what broke people have.

If you believe so strongly in extended warranties, Why don't you start selling them? There's real good money in it. $800 of your $2500 went to the guy who sold that scam to you .

That's just the harsh reality.

You are fool if you don't think a lifetime warranty is a good purchase. I pay things with my credit card and make at least 4 monthly payments, never carry a balance. Letting you know since you seem so involved in other people's finances.

 

[Jrod]

Our friend Dave is a prime example of when I said extended warranties are an emotional purchase made by scared broke people.

You want to stop being scared and broke? Quit buying crap that you don't need with money you don't have. Then you won't be distraught over how to fix it, if it ever breaks.

Don't take financial advice from broke people. You do what broke people do, you'll get what broke people have.

If you believe so strongly in extended warranties, Why don't you start selling them? There's real good money in it. $800 of your $2500 went to the guy who sold that scam to you .

That's just the harsh reality.

ROFLMAO

This is the same **** you spew on all the warranty threads. Your assumption everyone is scared, broke, and buying **** they can’t afford is as dense as lead. I would be just as dense if I assumed you’re butthurt because you can’t afford such luxuries, so I won’t... /wink

 

[indept]

The other factor here is repairs. If I don't have a warranty I'm going to a local shop. Now finding a good mechanic that knows what he's doing is hard and I'll guarantee you that less than 1% ( if that many) understand the level of electronics in our vehicles and the firmware needed to run it. So as a cash customer I am very unlikely to go to a dealer. With an extended warranty I go to a dealer that has all of the specialized equipment to communicate and diagnose our trucks which most private shops don't have. Most private shops have a couple mechanics where the dealer has many, hopefully a few of the many are competent techs. Along with that the dealer has access to the design engineers that DO know the theory and design of these systems which the private shops do not.

Point being the extended warranty gives me affordable access to that which if I'm a cash customer, should a weird complicated problem arise, might make my 2017 Ram uneconomical to repair when it's 10 years old and gomer at the local shop is throwing parts at my truck at my expense to try and find the problem.

 

[Dave2018]

These member responses embody my thinking on extended warranties for what amounts to a computer on wheels. My 98 has a chiltons and a Haynes manual at hand. The 2018 will need a scan tool and software. In the past I tried to fix most everything I've owned myself. I've done engines, suspensions and body work on my vehicles over the last 40 years. I just don't have any interest in becoming an expert in automotive computers. It just isn't the same as rebuilding a carb or replacing a timing chain. Also, I'm older and would just as soon pay someone else to do it. I purchased one other extended warranty on a new vehicle, a honda goldwing. I think I ended up using it once. That's fine. At least I had the peace of mind knowing that while I was riding my wing, I had the entire dealer network out there to take care of any problems that might have arisen.

An extended warranty is peace of mind. At my age that's worth it. Maybe at your age, it isn't. To each his own.

 

[RLJ10X]

Who in the world takes out a loan to buy something if they already have money? When you borrow money, that called being broke, because you have no money. Being broke, in debt has become so prevalent, it's considered normal.

Indebt, Cash is king. It's taken everywhere. I guarantee a handful of cash trumps any repair contract. I have my own extended warranty. It's called money in the bank. That happened because I spend less than I take in.

In 10 years, your $2500, if invested wisely, on average is going to be aprox $6500.

Take you $2500 to a local Edward Jones office. Tell them you want to invest it. Let me know if they tell you to buy an extended warranty. Or better yet, go into an Edward Jones office and tell them you want to make payments on $2500 that they want to invest. Tell me how that comes out.

Like I said, if you believe in extended warranties, you need to be SELLING them. That's where the money's at.

 

[Jimmy07]

Who in the world takes out a loan to buy something if they already have money? When you borrow money, that called being broke, because you have no money. Being broke, in debt has become so prevalent, it's considered normal.

I have more than enough cash socked away to buy new vehicles (as do many others), but I would NEVER use it to buy a depreciating vehicle. I always use the bank’s money at a low interest rate. My cash can be used on something that will make me more in interest that can overcome the finance rate of the vehicle. But, something tells me, it doesn’t matter how anyone explains it to you...

 

[Jrod]

Who in the world takes out a loan to buy something if they already have money? When you borrow money, that called being broke, because you have no money. Being broke, in debt has become so prevalent, it's considered normal.

Indebt, Cash is king. It's taken everywhere. I guarantee a handful of cash trumps any repair contract. I have my own extended warranty. It's called money in the bank. That happened because I spend less than I take in.

In 10 years, your $2500, if invested wisely, on average is going to be aprox $6500.

Take you $2500 to a local Edward Jones office. Tell them you want to invest it. Let me know if they tell you to buy an extended warranty. Or better yet, go into an Edward Jones office and tell them you want to make payments on $2500 that they want to invest. Tell me how that comes out.

Like I said, if you believe in extended warranties, you need to be SELLING them. That's where the money's at.

Oh boy! My favorite story telling, finance PI, market analyst is back! Please enlighten us some more with your eternal wisdom! Your financial prowess has us canceling our subscriptions to Forbes....

 

[Jimmy07]

Indebt, Cash is king. It's taken everywhere. I guarantee a handful of cash trumps any repair contract. I have my own extended warranty. It's called money in the bank. That happened because I spend less than I take in.

In 10 years, your $2500, if invested wisely, on average is going to be aprox $6500.

Take you $2500 to a local Edward Jones office. Tell them you want to invest it. Let me know if they tell you to buy an extended warranty. Or better yet, go into an Edward Jones office and tell them you want to make payments on $2500 that they want to invest. Tell me how that comes out.

Like I said, if you believe in extended warranties, you need to be SELLING them. That's where the money's at.

So, instead of buying the $2500 warranty, you take your $2500 and invest it where you are going to turn it into $6500 (you hope) in 10 years. At 5 years/ 110,000 miles, you have a catastrophic engine failure that would cost ~$10,000 that would normally be covered under extended warranty. What do you do, pull your money (probably at ~$4000 by this time), and say “but, hey, I got cash! Can you fix it for $4000?”

 

[Jimmy07]

Who in the world takes out a loan to buy something if they already have money? When you borrow money, that called being broke, because you have no money.

Remember those aptitude tests we had to take in elementary school? When it came to the deductive reasoning true/false questions? “Sally uses a red pen. Sally is a female. Therefore, all females use red pens.” You answered true, didn’t you?

 

[Jrod]

Remember those aptitude tests we had to take in elementary school? When it came to the deductive reasoning true/false questions? “Sally uses a red pen. Sally is a female. Therefore, all females use red pens.” You answered true, didn’t you?

Holy **** dude I’m dying! HAHA

 

[indept]

Holy **** dude I’m dying! HAHA

Sally, is that you....

 

[Jrod]

Sally, is that you....

Lol

 

[tap4154]

So, instead of buying the $2500 warranty, you take your $2500 and invest it where you are going to turn it into $6500 (you hope) in 10 years. At 5 years/ 110,000 miles, you have a catastrophic engine failure that would cost ~$10,000 that would normally be covered under extended warranty. What do you do, pull your money (probably at ~$4000 by this time), and say “but, hey, I got cash! Can you fix it for $4000?”

That's what the extended warranty company does with your money, they invest it. Plus they know that a large number of folks will never need any large repairs during the mileage-limited period after the factory warranty expires. Most owners that have small repairs will pay deductibles, that often come close to covering the repair, so in the end the extended warranty company always wins.

Then if you purchase and finance the extended warranty at the FCA dealership, that dealer gets a big fee and the finance company wins, while you pay interest over 5 years on $2,500 or whatever the cost is.

Not saying what anyone should do. I bought one many years ago that did pay for itself near the end of the warranty period, but I haven't since. But to each your own. None of my business what anyone does or buys.

My old 2000 Ford V6 engine never needed any major repairs over 300,000 miles. Only replaced the water pump once, and one alternator. It finally seemed to develop a valve seal leak that was fouling one plug, but was otherwise still mechanically sound.I suspect the Pentastar may even be better. We'll see...

The tranny failed at 140k because the dipstick came loose, leaking fluid and causing contamination before I noticed it. Had that not happened, who knows who long it may have lasted? The Ram 8 speed is sealed, so that won't happen.

 

[Jimmy07]

That's what the extended warranty company does with your money, they invest it. Plus they know that a large number of folks will never need any large repairs during the mileage-limited period after the factory warrant expires. Most owners that have small repairs will pay deductibles, that often come close to covering the repair, so in the end the extended warranty company always wins.

Then if you purchase and finance the extended warranty at the FCA dealership, that dealer gets a big fee and the finance company wins, while you pay interest over 5 years on $2,500 or whatever the cost is.

Not saying what anyone should do. I bought one many years ago that did pay for itself near the end of the warranty period, but I haven't since. But to each your own. None of my business what anyone does or buys.

My old 2000 Ford V6 engine never needed any major repairs over 300,000 miles. Only replaced the water pump once, and one alternator. It finally seemed to develop a valve seal leak that was fouling one plug, but was otherwise still mechanically sound.I suspect the Pentastar may even be better. We'll see...

The tranny failed at 140k because the dipstick came loose, leaking fluid and causing contamination before I noticed it. Had that not happened, who knows who long it may have lasted? The Ram 8 speed is sealed, so that won't happen.

At least YOU make some logical points both for and against. They’re definitely not for everybody in every situation. For every person that the warranty didn’t work out for, there’s someone that it did. If I’m buying a warranty, the last thing I’m concerned about is how much money they’re making off of it. Anybody that runs a business selling services and products are doing it to make money. If they can’t figure out a way to make money doing it, then they deserve to go out of business. I consider the deductible a moot point, because you’re gonna pay that much in diagnostic fees whether you have a warranty or not, and whether you end up having them fix it or not. At the end of the day, it’s a gamble no matter which way you go. At least with the warranty, if you don’t use it by the time it expires by time, you get a full refund.

 

[Jrod]

That's what the extended warranty company does with your money, they invest it. Plus they know that a large number of folks will never need any large repairs during the mileage-limited period after the factory warrant expires. Most owners that have small repairs will pay deductibles, that often come close to covering the repair, so in the end the extended warranty company always wins.

Then if you purchase and finance the extended warranty at the FCA dealership, that dealer gets a big fee and the finance company wins, while you pay interest over 5 years on $2,500 or whatever the cost is.

Not saying what anyone should do. I bought one many years ago that did pay for itself near the end of the warranty period, but I haven't since. But to each your own. None of my business what anyone does or buys.

My old 2000 Ford V6 engine never needed any major repairs over 300,000 miles. Only replaced the water pump once, and one alternator. It finally seemed to develop a valve seal leak that was fouling one plug, but was otherwise still mechanically sound.I suspect the Pentastar may even be better. We'll see...

The tranny failed at 140k because the dipstick came loose, leaking fluid and causing contamination before I noticed it. Had that not happened, who knows who long it may have lasted? The Ram 8 speed is sealed, so that won't happen.

Needing it is definitely a coin toss to say the least. Longevity increases the likelihood it will be used. I’ve yet to see a minor repair job cost less than my deductible $100. I’m confident everyone buys into it for major repairs. I’d be a fool to think FCA loses money. Therefor I agree most people lose out with their purchase. So I can only focus on my usage and odds that it will benefit me.

As far as what FCA does with the money I pay I could care less. As long as the contractual agreement is honored when I need it.

 

[buddy guy]

What's the statistic? something like year 3 based on average mileage that the likelihood of expensive components start needing to be replaced? it's likely not coincidence that many manufacturers have a 3 year 60,000 mile warranty as the "free" warranty period. so in that sense, post year 3 ownership odds of needing an extended warranty probably rise quite a bit. for me it's simple...planning to lease or buy to trade in for a new vehicle no more than 4 years after getting? don't buy extra warranty. keep plus 4 years? warranty. i plan to be in the keep 7-8 years club with my Ram.

 

[indept]

I agree that it's a gamble that you need something major until you're over 100k miles. For me it was worth it since I got the maxcare lifetime. It's a shame they don't offer them anymore. And contrary to what Rlj10x thinks, I'm not broke, truck is paid for and paid cash for the warranty too. I just want peace of mind that if something expensive goes bad or something electronic that needs qualified people to fix, I have that for $100

 

[tidefan1967]

Well I'm certainly not rich like most of you guys but I always try to use somebody else's money if I can instead of cash(for large purchases) because if the **** hits the fan I can always give **** back rather than try to sell something that's already depreciated like a SOB. In the end I'll still have "my" money and in the end if you take your "anti warranty" money and invest it WISELY you won't have a hell of a lot more than you started with it and in many cases you'll have less.

 

[RLJ10X]

This is reality. I've had my truck for 8 years. I never bought a $2500 extended warranty. So I'm NOT $2500 down to start with. My $2500, invested has doubled, which means it is now $5000. I'm now $7500 ahead of where I would have been if I had been swindled out of my original investment.

$10,000 Catastrophic Engine Failure!! Glad you said that. That's what's is called a hypothetical situation, and an exaggeration. It's purpose is to scare people in believing there's justification for ******* away a lot of money for Piece of Mind.

Are you going to change my mind? Not a chance. Am I going to change yours? Nope! I'm using you guys to prove my point. There are people reading this, that are on the fence about wasting their money. Maybe they'll do a little more research and make a better informed decision.

You want to make a 5% interest payment while you're earning 10%? Ok. But why not pay off the truck. Take what you would have paid on the truck and invest it? I'll be damned if I'm going to some bank and ask somebody's permission if I can buy a truck. You'll negotiate a better CASH price, anyway. There won't be any hidden fees.

Jrod, you tell me your net worth, and I'll tell you mine.

 

[RLJ10X]

"When the **** his the fan". More scare tactics to justify bad decisions.