Credit union ext drivetrain warranty??

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RLJ10X

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JS, ^That was one of the best posts I've ever read anywhere.

I totally concur. I try to convince anyone who will listen, do not buy an extended warranty. But I don't have the eloquence you possess.
 

Lucy Girl

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JS, ^That was one of the best posts I've ever read anywhere.

I totally concur. I try to convince anyone who will listen, do not buy an extended warranty. But I don't have the eloquence you possess.
I bought it once and then canceled and it took me 6 months to get my money back. Most people don’t use it while in force. JMO.
 

RLJ10X

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Lucy, they could have given your money back the next day. It didn't take them 6 months to take your money, did it? That alone should tell you something.

They were making money on your money, when you could have been making money on your money.

Google: "How long does it take to double your money in the stock market"
 
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El Comandante

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That tick noise you mentioned...oil starvation. Make sure you have correct viscosity!!
 

BWL

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I've had off brand extended warrantys twice and both times when I had a bigger problem they refused coverage. Once the Nissan dealer that sold me the warranty did the work for free because they sold me the warranty and agreed it should have been covered. The second one also denied me when I needed an exhaust manifold saying in the fine print they don't cover fasteners. The Ford dealer was no help to me in that case. Also denied coverage of my sway bar link because the link was gone. It fell out somewhere on the road and my faulty power window because they argued since it had been repaired under ford warranty it wasn't fixed correctly and not their problem.
 

El Comandante

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When I buy my next truck I’m buying the longest most complete coverage Dodge offers beyond factory warranty.

When we bought my wife’s Chrysler van I got 7 years and 100k bumper to bumper back in 2003.

Did we use it much? Nope.
Did I care? Nope.

We were leaving all packed up for long drive vacation when the sliding door decided to lock up. Right when we were going to pull out of the driveway.

Drove to the dealership and they fixed it in 2 hrs and fortunately they had the parts in stock. This is on a Saturday.

That bill would have been $600. Instead it cost me $100 deductible.

Well worth it to me.
 

RLJ10X

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It cost you $100 deductible PLUS the cost of the warranty.

For people who don't care where their hard earned money goes, extended warranties work just fine.
 

mtofell

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Run from 3rd party for all the reasons mentioned.

Factory backed are okay and I have the lifetime. Yes, I care where my hard earned money goes which is EXACTLY why I have a warranty. My business owns my truck and I can't afford to have unexpected HUGE expenses so, if not for the factory backed warranty, I'd be trading in every 3-4 years. Something tells me that would cost far more than the $2200 I paid for the warranty. Even if I don't use the warranty I've still received value by having the protection and not having to make expensive alternative decisions.
 

RLJ10X

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$2200 for something you may not use, isn't expensive?

Thats $2200 you could have invested in your own business.

The warranty company is investing the money you gave them. They're making money on your money.
 

indept

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I sold cars for about 11 years. First, to clarify a big misconception. Manufacturers arent allowed to sell an extended warranty for their own product. They arent warranties, they are service contracts. They are ALL aftermarket. Some are labeled like "(Manufacturer name) extended service contract by Acme" or the like.

With that said, NEVER finance a service contract, prepaid maintenance contracts, or if you can help it, sales tax because it doesnt add value to the vehicle, and should you sell it before its paid off, you'll be that much deeper in the red. The average length of ownership of cars in the US is 39 months. The average car loan is 68 months.

Part 2:
If Your vehicle has a 3 yr/36,000 mile warranty, buying a 5 year/60,000 mile warranty is really a 2 year/24000 mile extension. Most service contracts start on the day you buy them, and not AFTER the manufacturer's warranty ends. Check the fine print. Ive heard Finance guys at a dealership say it begins AFTER the factory warranty, because they know theyll be gone and working at another dealership in 3 years when you find out otherwise. Good luck complaining, they'll just point to the fine print and say "Read here, the dealership cant be responsible for your mistake".

3. If you do have a claim, you'll almost always have a deductible to pay out of pocket. Most extended service contracts have a $100 deductible per ISSUE, (NOT service visit). Add that to your costs too. They count on this keeping you from claiming so many claims, especially those less than $100.

Personally, I would NEVER get one because they only repair the bare minimum to keep your vehicle going. Need a new transmission? Theyll replace the worn/broken component, not the whole thing.
They arent worth the paper theyre wrotten on .
Avoid.
I have a lifetime extended warranty on my wifes '07 Pacifica. It is $100 deductable / visit so I have had multiple things done in 1 visit and paid $100. This is a Chrysler warranty. Recent example, new intake manifold & both front struts replaced and tie rod end with alignment, $100 paid. I agree 3rd party ones suck, get the manufacturer warranty.
 

mtofell

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$2200 for something you may not use, isn't expensive?

Thats $2200 you could have invested in your own business.

The warranty company is investing the money you gave them. They're making money on your money.

You're missing the point - there is value in insurance and warranties beyond actually using them. Again, if not for the warranty, I'd be spending more upgrading my truck. There is a lot more to the concept than just using the warranty. If I'm saving money not buying a new truck, I've received value. I suppose a way of looking at it is that it's like an opportunity cost.
 

RLJ10X

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Me not agreeing with you, does not equate to me misssing the point.

"Opportunity cost"? That sounds like a $5 phrase for "gamble".

If your warranty company put your $2000 in the S+P500, they made an additional $13 on you today. That's just one day. If they're smart, and you can bet they are, they'll double your money in 6.5 years. And that doesn't count any interest you paid, if you financed the warranty, they got you coming and going. Add a deductible, if applicable.

If that makes you feel secure, I'm glad for you. I'm just presenting the other side of the argument.
 

mtofell

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Me not agreeing with you, does not equate to me misssing the point.

"Opportunity cost"? That sounds like a $5 phrase for "gamble".

If your warranty company put your $2000 in the S+P500, they made an additional $13 on you today. That's just one day. If they're smart, and you can bet they are, they'll double your money in 6.5 years. And that doesn't count any interest you paid, if you financed the warranty, they got you coming and going. Add a deductible, if applicable.

If that makes you feel secure, I'm glad for you. I'm just presenting the other side of the argument.


I totally understand all the points of the time value of money and the warranty company keeping/investing my money. Fine, I give them $2200 and they turn it into $2500 in 3 years (assuming normal interest - not S/P stock market ups/downs that warranty companies are too smart to invest in). Fine, so they have $2500 of mine after 3 years. This doesn't change my point in any meaningful way.

What you are not understanding (and it's not an arguable point - it's a provable fact) is that there is value in a warranty even if it is not used. Think of it like insurance. By your argument, the entire idea of insurance is a scam. After all, the insurance companies just take your money and invest it, and give you less back than you gave them.

Do you have auto insurance? Health insurance? Homeowners or renters insurance?

If so, why? Because you are receiving value by minimizing your exposure to risk. There is a value here. An extended warranty on an automobile is no different. As a business owner that wants to manage my risk, I am able to pay $2200 (or 2500.... whatever) and know what my exposure is for as long as I keep the truck. There is a value to that whether you believe it or not. More directly, in my case, there is value since I'm not trading my truck 2-3X that I would have to if not for the lifetime warranty. So, if you want a direct cost - what does it cost each time you trade/buy? 5K? 10K? Sure looks like less than $2200 to me.

Since you mentioned financing the warranty - no, I paid cash - also paid the truck off in 4 years (only took so long because the interest was deductible through my company), also own my house outright, my business and several other properties. Not trying to brag but my financial viewpoint is valid here since this is a financial debate. I'm not just some idiot throwing my money at an extended warranty and then bailing on it while trading my truck in in 2 years. It was a well planned out process and it's saved me a ton of cash. Ram offering a lifetime warranty is financially a terrible idea for them (likely why they stopped doing it). Luckily for them, most people sell, wreck or trade their trucks long before getting the benefit. I'm not doing the first or third. Hopefully, not the second.

I'm like the 400# guy who plants himself at the buffet on shrimp night and refuses to leave :)
 

MAJ_Charlie

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I also have used 3rd party warranties. Some have been good at paying claims...some have found every loophole possible to avoid paying for covered items. If going 3rd party do you due diligence and see which has the best reliability for paying claims. JMHO

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AT129

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I got mine from mercury insurance covers the same as mopar maximum care good thing about it is u can have a 6 inch lift kit.
 

RLJ10X

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Why do you keep telling me I don't understand? I understand perfectly. I simply do not agree. You can do whatever makes you feel secure.

Your house insurance analogy is flawed because my house is worth aprox 100times what a big truck repair is.

Extended warranties are pushed by telemarketers, who are the **** of the earth, if you ask me. Extended warranties are on late night tv commercials. I've gotten junk mail galore "warning" me my window of eligibility is about to expire. If you choose to do business with people like that, go for it.

I'm not going to change your mind, and you're not going to convince me to ever **** my money away on an extended warranty. Have a nice day.
 

JSMITH8505

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I lost track of this thread, and just found it tonight. let me chime in again.

Are extended warranties worth it?. It depends on your comfort level but for 95% of people, usually not. Unless they've bought a car that has known defects like the transmission on a 2000 era Dodge Grand Caravan, or the electrical system on a pre-1970's British sportscar.

Extended warranties count on people being uncomfortable with the possibility of repairs after the factory warranty runs out.

I've seen the price charts for extended warranties, for lots of different types of cars and trucks, and except for the first year of a model, the warranty companies have dialed in the likelihood of repairs on any particular model so well that they almost assure themselves of making money on 90% of the warranties, by not having to spend more money than they charged.

Other factors:
1. Most people who buy new keep their vehicles on average 39-42 months before getting the itch to buy a new one. On a basic 3 yr/36k warranty, The extended warranty company is off the hook 3-6 months into their "extended" term. You've just paid $2000 for a totally unused item, that when you sell the car adds ZERO value to the car because it's more than likely non-transferable to a different owner. Maybe you're lucky enough to get a warranty that can be "sold back" upon selling your car. Well, they've had use of your $2000 for 3 years. So you gave them an interest free loan that could have been in your bank or investment account for the past 3 years earning YOU interest or dividends.

2. If something is going to happen to your car, due to a design flaw, or defect which is covered by warranty, chances are it would go bad in the first 3 years.

Lets say you're one who keeps a vehicle 10 years:
1. Your factory warranty will last 3/36, or for some components- 5/100,000 miles, like the Ram 5 yr /100k powertrain warranty.
2. Your extended warranty starts on day one of your vehicle's ownership. NOT ON THE DAY YOUR FACTORY WARRANTY ENDS. So, the 5 yr /100,000 mile extended warranty you paid $2000 for at best buys you 64,000 miles and 2 years extra. and at worst- doesn't even come into play at all since the factory powertrain warranty on Rams is 5/100,000 anyway.

I've seen people raising holy hell in the service department with their extended warranties saying "The salesman told me that it adds 100,000 miles to my factory warranty!" "Right here, read the print on the back, it's a warranty that takes you TO 100,000 miles or 5 years, which ever occurs first.

Without any proof in writing from someone, it's just a "crazy customer trying to pull one over on the dealership".

And you're more likely to run out of time before you use up the full 100,000 miles (17500 miles per year is the U.S. average driven by people these days). So after 5 years, most people aren't even at 90,000 miles.

Are there stories of people who have benefited by Extended warranties? Yes. There are a few people who have the "lemon" vehicle with more issues than the other vehicles of that model. But there are ALOT more people who never use the extended warranties.

PLUS- most after market extended warranties have a "if you don't use this, we will buy it back after the term ends" clause. So, that makes people think about paying for "affordable" repairs and saving the warranty for "really big stuff later on" and hoping they can get a refund for the unused warranty. I mean, with the carrot dangling in front of you for a refund on your $2000 investment, why not pay for the $450 repair. Or the $850 repair 3 months later. Or the 1250 repair later on. Wait.. so now I'm $2550 into it, and I can't get reimbursed for my paid repairs, because they need prior authorization??? SO, Now I've paid $2550 in repairs, plus $2000 for a warranty? I'd better not use it, I NEED the $2000 refunded when I sell this car just to break even.

It's weird- the psychology that makes people buy peace of mind, then, when faced with getting money back if they don't use it, end up spending money on repairs anyway.

I've seen it repeat itself many times, first hand.
 

madtrucker2016

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Geico insurance on my truck they have a full repair bumper to bumper add on to your policy it cost me 30 bucks every six months you can add it to a new vehicle only if it has less then 5000 miles on it it covers every thing and my Ram dealer takes it very happy about the price
 
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