Certified pre-owned and extended warranty

[jejb]

I bought a Certified Pre-owned (CPO) 18 Laramie CTD 2500 in April of this year. Only had 14K on it. Because it was CPO, the power train warranty is automatically extended out to 7 year/100K. It also tacks on 3 months/3K onto the bumper to bumper part of the warranty.

I'm thinking about getting an FCA extended warranty for it. I only average 7500 miles a year on my trucks, so I really don't need any extension on the power train part of the warranty. I can get an FCA extended warranty that takes the above into consideration, but it's still $1880 to extend the Max care out to the same 7yr/100k mark with $100 deductible.

We'd pay cash, and it's not a heart stopping amount of money or anything. But I still hate to waste money. If the markets keep doing what they're doing, that could easily turn into much more money over the next few years. I kept my last new truck 16 years, and would like to see that or more out of this one.

So the question is, is it worth that much money? There are a lot of things outside the power train that can go bad and be expensive to fix. But $2K worth, plus the deductible for each claim? Like all insurance, it's a gamble. Just trying to get a feel for the odds. The truck is loaded. Factory air suspension, ramboxes, sun roof, the topend nav stereo, sliding rear windows, heated seats/wheel, etc. I will not be lifting/leveling, deleting, or any other major mods like those.

So what say the collective? For folks that keep the trucks 7 years, have you had enough non-power train issues to make you wish you had, or glad you had, Max Care?

 

[danoday]

I would. You only need about one semi serious break down and it will pay for itself.
However, if you think that money will do better in the market and you financially can handle any problem the truck throws at you in the future. Then save the cash. It is almost a personal thing, it's probably not about the warranty cost as it is security on future repairs. If you do buy it, It's not the warranty cost that matters, it's the coverage of repairs. Is the warranty comprehensive enough to cover high dollar repairs and common repairs. Good luck

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[LeeD]

I think in your case it's more about peace of mind. I'm considering picking up an extended warranty as my factory warranty is almost up just as I said for my peace of mind.

 

[avantiguy]

If I read the power train warranty correctly it covers the engine, trans and the rest of the lubricated drive train parts. My worries generally are not with those components (although they can fail) but the ancillary electronics and other control and sensor items associated with the drive train. It may not even cover the exhaust manifold bolts if I'm reading correctly.

QUOTE:

The Powertrain Limited Warranty varies depending on the powertrain. On gasoline-powered Ram trucks, the warranty period is 5 years or 60,000 miles, whichever comes first. Diesel-powered Ram pickups offer a warranty for either 5 years or 100,000 miles, whichever comes first as well. What does the powertrain warranty cover? The engine, transmission, transaxle, transfer case, vehicle drive system, and any internal lubricated parts.



That's why I purchased the extended "warranty".

 

[RLJ10X]

Please "Google" Dave Ramsey on extended warranties.

That way you can hate up on him, rather than me, for telling you the truth.

Nice truck btw!

 

[danoday]

Please "Google" Dave Ramsey on extended warranties.

That way you can hate up on him, rather than me, for telling you the truth.

Nice truck btw!

Ramsey says "take the risk or don't buy" in his final words. What's the risk? There are no cheap repairs any more unless you are DIY kind of person and that is relative.

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[jejb]

Some great input above, thanks. It is largely for peace of mind. Nice to know now that pretty much no matter what happens, it's covered. Maybe I spend too much time reading threads here, but that 'big ticket' failure does seem to come around now and then.

But I get what Dave Ramsey says. Lots of smart folks agree that extended warranties generally do not pay off. The companies would not make money if they did, so that's an obvious fact. OTOH, lots of folks get stuck with expensive repairs.

Still on the fence. Wife says go for it, but that's no surprise. Maybe I'll go read some more threads here and scare myself into it.

 

[RLJ10X]

Dave is saying: Take the risk of buying the vehicle without an extended warranty or don't buy the vehicle. If you can't afford to fix the vehicle, you cant afford to own the vehicle.

Think about it......if warranties were a good deal, warranty companies wouldn't be able to exist. If they constantly paid out more money than they take in, they'd be broke. And that is exactly what everybody is betting on. That you the warranty buyer will get free money.

And everybody's heard of someone to whom it has paid off. But the odds are against you

The guy selling the warranty is getting half of your check. Oonly 12% of your money actually goes towards the "repair" portion of the warranty. The rest I'd fees and profit.

Usually what gets me into trouble is this next statement. And it is so true, I wish I had thought it up myself, but I'm just repeating what I've heard. Ready? Extended warranties are an emotional purchase made by broke people.

I wish you the best. You do whatever you want. Congrats on the new truck.

PS invest in yourself. Put that $1800 into the stock market. That's what I do.

 

[danoday]

Don't get me wrong, I am Ramsey believer and bought his books. But he would also have you driving a beater car to keep the envelopes full....lol

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[Sandevino]

Buy the warranty. Look up the cost of replacing failed injectors or the CP4 injector pump. $1800 won’t make much of a dent in that repair bill. It’s my experience with Dodge / Ram that most failures wait until 36,000.1 miles to occur.

I bought 2500 from Dodge City in McKinney, Tx where they provide a LIFETIME power train warranty for as long as you own the truck. It covers ANYTHING that rotates, is greased, lubricated or propels the vehicle. Think engine, transmission, transfer case, axles, knuckles, hubs, fuel system, cooling system, etc... It also covers related electronic and mechanical systems directly connected to the aforementioned systems and components.

Before you go thinking this is ******** and they won’t stand behind it, think again. The 2002 Dodge Ram I bought from them blew the 12 year old engine in 2014. They replaced the engine no questions asked.

I paid $500 more that the other closer dealer but their warranty offerings don’t compare.

 

[danoday]

Dave is saying: Take the risk of buying the vehicle without an extended warranty or don't buy the vehicle. If you can't afford to fix the vehicle, you cant afford to own the vehicle.

Think about it......if warranties were a good deal, warranty companies wouldn't be able to exist. If they constantly paid out more money than they take in, they'd be broke. And that is exactly what everybody is betting on. That you the warranty buyer will get free money.

And everybody's heard of someone to whom it has paid off. But the odds are against you

The guy selling the warranty is getting half of your check. Oonly 12% of your money actually goes towards the "repair" portion of the warranty. The rest I'd fees and profit.

Usually what gets me into trouble is this next statement. And it is so true, I wish I had thought it up myself, but I'm just repeating what I've heard. Ready? Extended warranties are an emotional purchase made by broke people.

I wish you the best. You do whatever you want. Congrats on the new truck.

PS invest in yourself. Put that $1800 into the stock market. That's what I do.

I totally agree with your position on this providing you have the financial means. However, I would bet Ramsey don't know crap about assessing risk and probability of failure of a mechanical, electrical or paint. Then factor new or used, make model, milage, usage, preventative maintenance and so on, just to many factors. If you buy new every 4 years probably don't need it. If you buy used every 10-15 years maybe it makes sense.

While some extended warranty buyers may never submit a claim under the plan is a credit to the automaker and doesn't constitute a bad buyer decision or warranty rip off. it is stressful and emotional because no one wants to $$ thousands on a engine or tranny replacement on a newer vehicle.

Warranty prices are definitely inflated and totally negotiable do the research first like anything else. I have bought 5 new cars since 2007 every one had at least one major mechanical failure within my 48 month payment plan.

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[RLJ10X]

I'll bet anything anyone want to lose that Dave Ramsey knows a lot about risk assessment than 98% of the guys on this forum. You don't accumulate a lot of wealth by being careless. A fool and his money were lucky to get together in the first place.

I drove a beater for years. Didn't kill me. Eventually, I was able to save enough money buy new, and pay cash.

It always seems odd to me that most people don't think a thing of paying interest on a loan, for a depreciating vehicle, which to me, is money pissed away; yet they're scared enough of a repair bill, that they're willing to pay for a bill that may not occur, in advance; Which is even more money pissed away.

it's all Dave's fault........lol.

 

[jejb]

Dave is saying: Take the risk of buying the vehicle without an extended warranty or don't buy the vehicle. If you can't afford to fix the vehicle, you cant afford to own the vehicle.

Think about it......if warranties were a good deal, warranty companies wouldn't be able to exist. If they constantly paid out more money than they take in, they'd be broke. And that is exactly what everybody is betting on. That you the warranty buyer will get free money.

And everybody's heard of someone to whom it has paid off. But the odds are against you

I do get that. But it's not like playing the lottery or going gambling. It does pay off a significant amount of the time. But in the end, as I said above, the companies would not be in business if the plans were not profitable.

Usually what gets me into trouble is this next statement. And it is so true, I wish I had thought it up myself, but I'm just repeating what I've heard. Ready? Extended warranties are an emotional purchase made by broke people.

I assure you I am not broke. But it is somewhat an emotional thing. That peace of mind thing we discussed above.

I wish you the best. You do whatever you want. Congrats on the new truck.

Thanks

PS invest in yourself. Put that $1800 into the stock market. That's what I do.

It's already there. That's where it would come from if I decide to go for it. And it wouldn't make a dent. But still.....

 

[tron67j]

I bought a Certified Pre-owned (CPO) 18 Laramie CTD 2500 in April of this year. Only had 14K on it. Because it was CPO, the power train warranty is automatically extended out to 7 year/100K. It also tacks on 3 months/3K onto the bumper to bumper part of the warranty.

I'm thinking about getting an FCA extended warranty for it. I only average 7500 miles a year on my trucks, so I really don't need any extension on the power train part of the warranty. I can get an FCA extended warranty that takes the above into consideration, but it's still $1880 to extend the Max care out to the same 7yr/100k mark with $100 deductible.

We'd pay cash, and it's not a heart stopping amount of money or anything. But I still hate to waste money. If the markets keep doing what they're doing, that could easily turn into much more money over the next few years. I kept my last new truck 16 years, and would like to see that or more out of this one.

So the question is, is it worth that much money? There are a lot of things outside the power train that can go bad and be expensive to fix. But $2K worth, plus the deductible for each claim? Like all insurance, it's a gamble. Just trying to get a feel for the odds. The truck is loaded. Factory air suspension, ramboxes, sun roof, the topend nav stereo, sliding rear windows, heated seats/wheel, etc. I will not be lifting/leveling, deleting, or any other major mods like those.

So what say the collective? For folks that keep the trucks 7 years, have you had enough non-power train issues to make you wish you had, or glad you had, Max Care?

I focus on the "hate to waste money". The first intention of companies who sell them are to make money. Second, to minimize payouts to make money. Third, to market the idea that they are selling peace of mind. If you have cash, put it in your retirement account and in 20 years it will be worth a lot more.

 

[Bigskyroadglide]

I bought a Certified Pre-owned (CPO) 18 Laramie CTD 2500 in April of this year. Only had 14K on it. Because it was CPO, the power train warranty is automatically extended out to 7 year/100K. It also tacks on 3 months/3K onto the bumper to bumper part of the warranty.

I'm thinking about getting an FCA extended warranty for it. I only average 7500 miles a year on my trucks, so I really don't need any extension on the power train part of the warranty. I can get an FCA extended warranty that takes the above into consideration, but it's still $1880 to extend the Max care out to the same 7yr/100k mark with $100 deductible.

We'd pay cash, and it's not a heart stopping amount of money or anything. But I still hate to waste money. If the markets keep doing what they're doing, that could easily turn into much more money over the next few years. I kept my last new truck 16 years, and would like to see that or more out of this one.

So the question is, is it worth that much money? There are a lot of things outside the power train that can go bad and be expensive to fix. But $2K worth, plus the deductible for each claim? Like all insurance, it's a gamble. Just trying to get a feel for the odds. The truck is loaded. Factory air suspension, ramboxes, sun roof, the topend nav stereo, sliding rear windows, heated seats/wheel, etc. I will not be lifting/leveling, deleting, or any other major mods like those.

So what say the collective? For folks that keep the trucks 7 years, have you had enough non-power train issues to make you wish you had, or glad you had, Max Care?

Factory air suspension = extended warranty. Enuff said

 

[jejb]

Factory air suspension = extended warranty. Enuff said

Yeah, honestly that is a concern. I read a lot more air suspension issues with the 1500's, and the 2500 system is not nearly as complex. But I still read about them going out, and being pricey to fix.

 

[Jim Bowker]

I am 50 years old, so I have been buying vehicles for over 30 years. In that time, I have NEVER purchased an extended warranty. And despite keeping vehicles 7-12 years, I have NEVER found myself in a situation where I regretted it and an extended warranty would have paid for itself. Ever.

Others dutifully throw money away for "peace of mind". Think about how much you've spent on extended warranties for everything from sofas to television sets, and when you finally get rid of them, does it ever occur to you how much money you wasted on protection plans and extended warranties?

If they are so great and so many people get their money's worth, then car companies wouldn't sell them. Only the house knows the true odds as they see ALL the actual warranty costs. And the house always wins.

 

[mtofell]

You don't accumulate a lot of wealth by being careless. A fool and his money were lucky to get together in the first place.

And if you're Dave Ramsy you don't accumulate it by practicing what you preach. Guys like Ramsey make most of their money selling books and ads on their radio shows with (admittedly) good/sound advice. But this idea that he's been eating cans of soup and taking the bus to arrive at his current financial position is laughable. Like any successful business person Ramsey has a good product, a good marketing plan and probably some good luck mixed in.

As for the OP's question, if all the advice about what a bad purchase an extended warranty is true, the entire concept of insurance is flawed. An extended warranty is just a form of insurance. We all have different tolerances and buy different types and amounts.

My experience is that my extended warranty allows me to keep a company vehicle for longer. (and therefore drive a nicer one than I otherwise would). I have a dedicated budget my company allows me for a vehicle and I can't be turning in receipts for a $2500 blown up Johnson sensor that is out of warranty. But add on a few thousand dollars to the purcahse price and I have no worries for 5, 6, 7 years. Otherwise, I'd be trading in every 3 years and guys like Ramsey tell us that the more often you visit the dealership cubicle the more you are spending, right? Of course, I realize that statistically it's a bad investment but so is every other form of insurance.

 

[Murphy Slaw]

Insurance is a racket.

Save your money.

 

[danoday]

It's a bit comical to read about the rationalization of a $2k warranty.

Anyway, has anyone seen the new AEV front bumber? Starts at $2300.

A good deal is a state of mind!

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