Did your extended warranty pay off?

[Dgriffi2]

Like has been previously stated, insurance companies and dealers wouldn’t peddle these policies if they weren’t money makers. Buying a policy comes down to sort of playing the lottery- you might get lucky and get your money’s worth but more often than not you’ll come up short. If you’re the nervous nelly type, perhaps paying for piece of mind will help you sleep at night. People pay a lot of money for therapists and sleep aides, so if an extended warranty eases your mind look at it like an investment in yourself. Personally I purchased I believe 3 extended warranties over the years, used them all but never got out what I paid in, so I stopped and in the last 10 years or so have never “kicked myself” and said “damn I wish I’d bought the extended warranty.” (I’ll probably blow a motor in one of my cars tomorrow)

 

[Rick Gabler]

I bought my first new Ram 1500 Classic 1 year ago in January. 3.5 year lease, fulll warranty. Love the truck. I put very little miles on it because I drive a sports car rest of year. That said, truck will be a year old in a few weeks. Only 3500 miles on it. Once lease is up, I will probably purchase a good warranty. Peace of mind is a beautiful thing.

 

[2019RamInSC]

I never got extended warranties in the past. But I was always able to do my own repairs. I don't recall the last time I took a vehicle in to a shop.

But now I am 72. And even if I was inclined to do my own work. The massive amount of electronics in my RAM would preclude me from doing my own work. So after the factory warranty expires. I will get a extended warranty.

I still change my oil. And recently installed a catch can.

But not digging any deeper under that hood lol

 

[eddie046]

I have the Maxcare lifetime warranty on my 2017 Ram. I have never had to use it but it gives me great peace of mind as I basically plan on keeping this truck for many, many years. Way back in 2000 I had a 60K extended warranty on my 1997 GMC 3/4 pickup. With less than 100 miles left on it the distributor drive gear decided to tear itself up. That required a complete engine teardown and replacement of the cam, lifters and flush of the whole engine including removing the pan. A 3K bill 20 years ago. That made me a lifetime believer in extended warranties!

 

[hounddog66]

Everyone loves to brag when they come out ahead. And no one wants to admit they got skinned. So how do you think this thread is going to play out? Probably like the 100 before it.

We've already heard the horror story of the $12,000 engine. That one is pretty much a staple.

Then there is always that dude who got his ass saved. But said dude never discloses what the Extended Warranty (plus finance charges) cost him.

And there's always the guy who thinks his repair cost him only $100. Again, conviently omitting what the EW cost him in the first place.

We haven't yet heard from "The Piece of Mind Guy" yet, tho.

I listen to a lot of talk radio. My friend Dave Ramsey says if you can't afford to fix your vehicle, you can't afford to own that vehicle.

Well said...

 

[Dizzi121]

Get them to give it to you at cost plus 10% as they make alot off the warranties contracts if they want your buisness they will sell it to you for that but negotiate that after you have agreed on cost then trade in and financing as they also get a percentage of the financing so line that up also so you have negotiations with the stealerships

 

[FriedDumpling]

Some of these comments are beyond silly. The mere suggestion that a dealer shouldn’t make money on warranty sales is ridiculous. It’s a product and a business.

Any repair not covered by a warranty is a kick in the d*ck. People don’t buy warranties for a common $100 repair. I don’t subscribe to the savings account and a rainy day fund is cute until your TIPM needs to be replaced.

Most warranties don’t get fully exercised in comparisons to the investment a buyer has made. Especially when you consider how many are bought/sold en masse resulting in margin/profit.

Additionally, unclaimed warrantable repairs, failure to cancel warranty at time of trade or resale, vehicles being totaled and other reasons a warranties aren’t fully utilized is referred to as “breakage” and also part of the business model. (Ever wonder what happens to gift cards that aren’t fully used or lost? Big dollars, same idea.)

The electronic components and big ticket items are worth the price of the warranty. Some basic things people can do to ensure they get the most cost effective warranty coverage.

1. Don’t buy the warranty when you take delivery of the vehicle. There is a ton of markup for the selling dealer.

2. When you buy a warranty, buy it branded by the manufacturer. (Not the dealer). A manufacturer is more likely to stand behind their product. I purchased mine based on recommendations in this forum, and strongly suggest shopping around for best price. Many dealers won’t sell or they will discourage people from manufacturer warranties, there’s lower margins.

3. Service your vehicle at the dealer, build a relationship with your service advisors. (Save your breath as to why I should change my own oil, support local businesses or telling me that the dealer is a ripoff.). I want recourse when something goes wrong. MOPAR’s warranty on repairs is also excellent.

4. If you keep your cars for a long period of time/miles, a warranty benefits you more than someone who chases new vehicles with frequency.

5. Some warranties have a prorated value if you cancel it before the term ends, of if you don’t use it.

6. Read the covered items, know what it covers and how much deductible is your responsibility.

7. Warranties are not insurance, don’t get this mixed up or twisted. They are designed to protect a specific set of components, not everything YOU think should be covered.

8. Keep your records. Be steadfast in keeping your vehicle maintained.

9. Remind your service advisor you have a warranty. They will be more inclined to take a little extra time and find items that may otherwise be overlooked.

10. Be careful about modifications. Lift kits, air intakes, performance electronics like pedal commanders and exhaust modifications can affect the likelihood of a claim being honored.

11. Keep a copy of your warranty in your glovebox.

I have never regretted a warranty on any of my vehicles, but like any company, some are probably higher quality than others.


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[Marathon84]

The way I look at it - with the warranty you are capping your maximum costs at a reasonable and acceptable number for your budget. The warranty company has to come out ahead in order to have a business. The warranty company always wins. So there's a good chance you'll never have to use the warranty. And I am 100% comfortable with that outcome because the time involved in dealing with warranty repairs is more valuable than the money.

My previous extended warranty was never used. I bought a warranty for my latest truck and have not used it yet.

 

[mtwofeathers]

Still trying to make up my mind on an extended warranty from Mopar. I don't really want to get into the specifics about years/miles/company in this thread. I've read some great threads here about that kind of stuff already. Just looking for a real high level response. I expect it to turn out mostly that is has not paid off, but still curious. If you've had several over the years, just respond about your most recent Ram one, if possible.

Also, if you have had to use it, were you ever asked for maint records (oil changes, etc)?

Thanks

My 2019 i picked it up. But haven't used it yet. On my 07 it would have been a waste of time and money. Not issues till I hit 215,000 and I needed new injectors at 1200 apiece.

 

[ArmyGrunt66]

Buyer of an extended warranty- peace of mind, like life insurance.

Seller of an extended warranty- peace of mind knowing they made money from the buyers need of said peace of mind.

Kevin

 

[jejb]

I worked for an extended warranty company, both as an independent business and later as a subsidiary of Kemper Insurance. The 'high level response' you get here is nothing compared to the actuary charts the warranty companies have and will likely have self-selection bias toward those who believe it's paid off.

Of course not. I understand the results I get are extremely anecdotal.

if a warranty "made money" for the majority of users...how would warranty companies stay afloat? Let alone afford all the extra logistics and layers of profit vs just repair costs?

I certainly never said anything like that the 'majority of users' come out ahead. That is obviously not true. But as I said earlier, these full sized trucks are not the most reliable vehicles on the road. When you look at the list of least reliable vehicles in the USA, full sized trucks are usually right near the bottom.

I laughed when they tried to sell me a policy on my Toyota. Never had any problem ever with any of my long term Toyota's, and the reliability rankings back that up.

If you like anecdotes, I bought the lifetime (no longer offered) on my truck. After tax it was roughly $2200. Had I taken that money and invested in an S&P 500 index fund I would have an inflation adjusted $3900 today (minus any tax burden, of course).

The money to pay for this would come out of the crazy profits I got from the market this year. And it won't hurt us any. Bottom line, it's kind of my tight *** self fighting my "what if" self.

My wife likes the security of extended warranties, so she's pushing for it also. Which sets me up to be a loser. Women have that stuff figured out. Now if I don't get it and something expensive does happen out of warranty, I'll get the stink eye for weeks.

 

[FriedDumpling]

Buyer of an extended warranty- peace of mind, like life insurance.

Seller of an extended warranty- peace of mind knowing they made money from the buyers need of said peace of mind.

Kevin

So warranties, like life insurance, doesn’t benefit anyone outside of the need for peace of mind?

Guess the alternative is for no one to make money off the sale of goods and services because there’s no exchange of value? We’re not talking about a warranty on a $300 microwave here.

I’ve owned two RAMs, neither has shown the propensity to be of a high enough quality that I’d want to pay retail for any of the necessary repairs. All of which should not fail (manifold bolts anyone?)

Just want to make sure I am tracking...since my warranty has no limit of time or miles and clearly has the value of magic beans.


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[JS4024]

Get the extended warranty if you plan on keeping your ride. I have bought them on the last 5 vehicles and have come out AHEAD on everyone. If you get the max care you also get a free loaner and towing. Wife’s jeep had 142k on it, I had max care lifetime unlimited mileage. Cost like $2100 in 2011. She had the valve lifter failure and it took out the cam. 4800.00 out of pocket repair, cost me 100.00. If you want to keep it it’s worth every penny.

 

[FriedDumpling]

Get the extended warranty if you plan on keeping your ride. I have bought them on the last 5 vehicles and have come out AHEAD on everyone. If you get the max care you also get a free loaner and towing. Wife’s jeep had 142k on it, I had max care lifetime unlimited mileage. Cost like $2100 in 2011. She had the valve lifter failure and it took out the cam. 4800.00 out of pocket repair, cost me 100.00. If you want to keep it it’s worth every penny.

[emoji3595][emoji3595][emoji3595]


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[ArmyGrunt66]

So warranties, like life insurance, doesn’t benefit anyone outside of the need for peace of mind?

Guess the alternative is for no one to make money off the sale of goods and services because there’s no exchange of value? We’re not talking about a warranty on a $300 microwave here.

I’ve owned two RAMs, neither has shown the propensity to be of a high enough quality that I’d want to pay retail for any of the necessary repairs. All of which should not fail (manifold bolts anyone?)

Just want to make sure I am tracking...since my warranty has no limit of time or miles and clearly has the value of magic beans.


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Just as I stated, people buy extra coverage to feel protected(peace of mind) People that provide that coverage make a profit(peace of mind knowing they’re profiting in business to stay in business), nothing complicated here, if these businesses providing this coverage lost money on this service, they alter the terms or stop providing it. I agree if you have a lifetime no limit on mileage or years owned, I would purchase it, in my lifetime I only had one warranty at 5 years/72000 miles and I lost on this $2000 coverage back in 2001. In 21 years I’ve owned 5 new vehicles, never once did I have a catastrophic event needing warranty coverage, that’s my experience.

Kevin

 

[Fossil]

Paid off for me. At 72K the cam went flat on my 2012 Laramie. I got a new engine. Took over 30 days to get the new long block but fortunately we had another auto to use. Funny, it didn't include new spark plugs so I did have to pay for them.

 

[tututaka]

I had signed up for a 5 year plan and paid 1/2 the cost up front. I answered the email flyer they kept sending me. I got one just about every day. The flyer said it was on sale so I called Mopar, and I got a discount right off the top of $100. The total cost was $1000 and with the discount it would be $900. So I paid $450 as a down payment, that would leave $450 left to pay, right? Wrong, a day or two after agreeing to the extended warranty, I got copies of the contract and the rest of the paperwork. I first noticed the balance was $550. When they gave me the discount, they tacked on a $99 admin fee for writing up the contract. I was not told about this charge. I also found out I was enrolled in automatic deduction from my checking account to pay the balance that I never agreed to. That never came up in the conversation nor did the admin fee tacked on. So OK so far not that big of a deal. I was going to pay this off next payday. But I continued reading and discovered that they sold me a five year plan , and 2 of those years, was part of the 3 year warranty already in effect that came with the truck. What I am saying is I had 2 years left on the original warranty, they tacked on 3 years and called it a 5 year warranty. So they sold me 2 years that was already mine. I expected to have a 7 year warranty when I finished. But that didn't happen. So I called them to talk about this, I wasn't happy. But the person who sold me the plan was never there. I sent several emails and phone calls and got no response. So I called my bank and disputed the payment already made, and canceled their automatic payment plan they signed me up for. I was looking for a extended warranty, to add to my already had plan. I wasn't looking to pay them for 2 years of a plan I already owned. I have never heard of something like that. They might as well had tried to sell me the truck I already owned. I have a year left on the original warranty and will look for another plan with another company soon.

 

[2019RamInSC]

I’ve owned two RAMs, neither has shown the propensity to be of a high enough quality that I’d want to pay retail for any of the necessary repairs. All of which should not fail (manifold bolts anyone?)

I just wanted to stick in my one cent. So figured I would respond to your post. Seemed like a good place to stick.

"Paying retail for necessary repairs." I surely can not afford that. Example.

The parking sensors on my 2019 Ram Laramie are all the same according to my dealers' parts department. One of them is apparently acting up. So I figured well gee instead of taking the truck to the dealer and waiting on them to fix it and all the hassle that goes with it. I would buy a sensor and replace them one at a time until I found the bad one. Forgetting for the moment the hassle of getting to them

Morale of the story?
Sensors are $243 each from my dealer.
Sensors are $28 each from Rock Auto.

So if your rich and can afford retail more power to you.

If you think that someone who can't afford to pay for repairs should not own a vehicle. Well, enuff said.

 

[Gregory McKinley]

I purchased the extended warranty. For these reasons, Have 50 freak-n airbags, Electric park brake, Ready-alert braking?, Electronic roll Mitigation, Uconnect ( already had trouble with this..), A/C Auto temp control with dual zone, Power heated mirrors, control module for the transmission (had this updated also) and the big one MDS with etorque engine (how long will this battery last?). I have never had a truck with all these electronic systems on it. Now do not get me wrong, I really like this truck. It has made me really rotten. Just better to be prepared. Retirement is just around the corner!!!!!!!!

 

[leroys73]

It has been very beneficial for us since we keep our vehicles until there is no life left in them. If I traded for a new one every three years I would not get it.

I have the Max Care life time with $100 deduct on all three of my MoPars. The T&C has 200+ miles on it and over 12 years old. CV joints, struts, trans rebuilt, one head and both valve trains replaced, computer issues from time to time, sliding door issue, seat belt issue, radiator replaced, and some more stuff all covered for $100. The 2011 Challenger has only had a cooling fan problem so far with 65,000 miles on it. My 2018 Ram 2500, 6.4 so far has not had any issues at 30,000 miles.

It is too bad they discontinued the lifetime.

 

[Tizzy]

I bought a used Limited with 27000 miles. My local dealer (not where I bought it) convinced me to get an extended warranty. 600 miles AFTER 3/36 the air ride compressor failed. I’ve already got 1/2 of my money back.