Did your extended warranty pay off?

[Thornback]

I never buy extended warranties on anything. I don't understand the "peace of mind" knowing you paid for something you may never use. If you need a repair you have paid up front for it, someone else paid up front for it, or you are paying upfront for another's repair. Life is a gamble. Driving on the highway is a gamble. The odds are with you that you won't need an extended warranty. If you understand math then you will not purchase an extended warranty. But to each his own.

 

[HemiTO]

If they offered lifetime warranties in Canada I probably would've considered it as I tend to keep my vehicles and drive them into the ground. But they don't and like has been mentioned, the extended warranties offered tend to end just before the major components wear out. My 2010 Laramie CC 4WD needed its TIPM, WIN module and almost complete wiring replaced at 9 years. My truck's TIPM wasn't part of the recall.

 

[Larry Wald]

Don't waste your money. Take the money for the warranty and put it in the bank. Then ad 50 a month. By the time your factory warranty expires you'll have plenty for repairs and if you don't use it even better.

 

[dpinvidic]

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

So basically you lost the bet. This is for sure not a bad thing, because to you it was a worthwhile risk. I have never bought an extended warranty, and with the 100K mile drivetrain warranty to me it is less likely needed. However, I am one that is able to replace electronic modules. We are lucky in that Alphabod is available to help with any programming needs. I am driven this way because I hate dealer repair shops.

 

[ryan hart]

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

If the manufacturer will not warrant their coverage, why would you want the vehicle? I've owned several Dodge's (assuming this is still a Ram forum) and never had a worry. If you buy another brand, I can't say the same. I will get trashed by the insurance industry profiles/accounts on this forum, and that is fine by me.

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[Tracy in IL]

I buy one with every vehicle. 1987 Bronco: paid for a complete short-block engine replacement. 2006 Pontiac G3: paid for intake gasket and complete front end suspension rebuild. 2012 Nissan Versa: paid for two front suspension rebuilds, plus some wiring issues. Just now entering extended period for my 17 Ram 1500.

 

[DeckArtist]

Yep. Bought the extended warranty on my 2016 and it developed the rear axle noise at 80K [seals and bearings and axle replaced]. Mine was due to a bent axle and Fidelity paid it in full. I broke about even on that deal, but it was good to have as the cash wasn't there for the $2000 repair. Once that was done I traded the 2016 for the Rebel. Before mine gets to 12k I can extend the factory warranty with a seven year unlimited mileage warranty from Chrysler that will take me until it's paid for.

 

[RLJ10X]

^You said you broke even. But later you didn’t have the cash. Did it occur to you that you would have had the cash, had you not bought that extended warranty?

You don’t take diet advice from a fat dude. And you don’t take financial advice from an extended warranty buyer.

“I made my fortune by buying extended warranties “ said no Million EVER.

 

[michaelm_ski]

I have had two Chrysler warranties and I will never ever get another one as every time I tried to use it they said it wasn't covered under the warranty SO why throw your money away on it ? I had the extra coverage on drivetrain and I had to pay for a new transmission and an engine and before I signed for the extra warranty I asked IF EVERYTHING was covered in the transmission and engine and was told yes LESSONS learnt the hard way best thing you can do is put money away and pay for your own repairs as extra warranties are nothing more than legal rip offs .

 

[Docwagon1776]

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.

Who said dealers shouldn't make money on a warranty? That said, do you really think they add over $1k of value to the transaction by handing you a brochure and sorta-explaining it?

Do you buy a home warranty, too? What if you need a new furnace or some other major system? Unless you rent, then I suppose those are irrelevant concerns.

At what point do you decide to stop paying people to assume risk for you and self-insure? Smart money is only for catastrophic losses, and if you can't afford to repair your vehicle you couldn't really afford your vehicle. Instead of buying a new truck with a $3k warranty, buy a $3k truck and start saving...

Many Americans live paycheck to paycheck and find the idea of covering their own risks to be "cute" like you do. And they overpay for that "peace of mind" while being stressed about their finances, having no emergency fund, having no investments, and being dependent on SSI for any hope of a livable retirement. I used to be one and probably still would be except I learned two important lessons in 2003:

1) Poor people don't stay poor because of their income, they stay poor because they don't understand how money works.
2) No matter what you make, somebody is living on 10% less. Figure out how they do it, and save that 10%.


Since then, I went from a negative net value of roughly -$24k to over $400k in the past 17 years, and that's on a very middle class income in the best years, only part time employment in the worst. I made $86k this year in salary pre-tax and put $16k of it away in retirement funds. My wife doesn't work. As long as the market doesn't crash long term, I'll retire in my early to mid-50s (with the help of a defined pension plan, which I'm lucky to have). I take the family on vacations twice a year, every other year to Europe (except this year, thanks COVID). I am not a miser. I'll be "cute" and keep 6 months of living expenses in CDs and another 6 months in gov't bonds so I don't have to pay someone else for "peace of mind".

I say this not to say look how awesome I'm doing. I've been lucky as well. No major illnesses while I was uninsured. No divorce and child support that's financially crippled many men my age. It's just sad the notion of saving money to cover your own risks is deemed "cute".

 

[FriedDumpling]

Sounds like you’ve made some really good choices.

Most people don’t have the discipline to hold back the cash as an emergency fund, and that was the point I was trying to make. Best intentions aren’t always a common practice.

You don’t buy a warranty for a $28 sensor like some have suggested. You buy it so when electronics fail, like a TIPM, you’re not scrounging for a solution, and particularly if you don’t have the aptitude to fix a mechanical issue yourself.

So again, I hedged $2,800 against unlimited mileage and unlimited time. (Not sure why people don’t see the benefit of this given the terms of coverage.).

Since I keep my vehicles for a prolonged period of time (maintaining them as suggested) I expect that the warranty will be of benefit long term, as it has already proven to do so short term. (I would have already spent this given the repairs my vehicle required, and through no fault of my own.)

These vehicles have shown a propensity not to hold up. They fundamentally fail in costly areas they shouldn’t and the warranty and dealer performed work offers accountability and recourse.


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[ryan hart]

"These vehicles have shown a propensity not to hold up. They fundamentally fail in costly areas they shouldn’t..."

I'm not understanding why you bought the truck.


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[indept]

I have had two Chrysler warranties and I will never ever get another one as every time I tried to use it they said it wasn't covered under the warranty SO why throw your money away on it ? I had the extra coverage on drivetrain and I had to pay for a new transmission and an engine and before I signed for the extra warranty I asked IF EVERYTHING was covered in the transmission and engine and was told yes LESSONS learnt the hard way best thing you can do is put money away and pay for your own repairs as extra warranties are nothing more than legal rip offs .

A good lesson is read what's covered before buying the warranty so the lesson learned should be don't take ANY verbal promises, get it in writing before buying it.

 

[ryan hart]

A good lesson is read what's covered before buying the warranty so the lesson learned should be don't take ANY verbal promises, get it in writing before buying it.

If the guy selling it to you doesn't understand it, I'd walk away.

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[ArmyGrunt66]

Sounds like you’ve made some really good choices.

Most people don’t have the discipline to hold back the cash as an emergency fund, and that was the point I was trying to make. Best intentions aren’t always a common practice.

You don’t buy a warranty for a $28 sensor like some have suggested. You buy it so when electronics fail, like a TIPM, you’re not scrounging for a solution, and particularly if you don’t have the aptitude to fix a mechanical issue yourself.

So again, I hedged $2,800 against unlimited mileage and unlimited time. (Not sure why people don’t see the benefit of this given the terms of coverage.).

Since I keep my vehicles for a prolonged period of time (maintaining them as suggested) I expect that the warranty will be of benefit long term, as it has already proven to do so short term. (I would have already spent this given the repairs my vehicle required, and through no fault of my own.)

These vehicles have shown a propensity not to hold up. They fundamentally fail in costly areas they shouldn’t and the warranty and dealer performed work offers accountability and recourse.


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When I buy the wife a new car, if one of these unlimited time and mileage extended warranties is available, I’ll buy it. One thing I’ll point out about dealership service departments and various warranties, I’ve come across two in two different cities didn’t fully understand them, I brought my 2009 Ram in for warranty work, my Ram was the last year that Dodge(not FCA) gave you the Lifetime Powertrain Warranty, both service departments argued I was mistaken about this warranty being in existence, thats when I presented my window sticker, several head scratching happened, lol lol.

Kevin

 

[jejb]

You can get it up to 48 months and so many miles if I am correct, but the price goes up and if you bought the truck new or certified pre-owned, the extended warranty starts from 0 miles NOT the miles when you bought the warranty.
Used vehicles extended warranty mileage starts at mileage at purchase.
This is for the MOPAR service contract.

All official mopar extended warranties that I'm aware of start from mile 0. They just cost more on a used rather than certified pre-owned.

 

[jejb]

That's true. If I had to take a loan

Life insurance policies dont charge you interest if you paid one set price on warranties it would be great. but what's often done is you buy the warranty for let's say 3 grand. After they add it to the length of the loan you end up paying over 5.5 thousand for something you may or may not use smh

That's true. If I had to take a loan for it, it would have made less sense to me. But since it amounted to less than 1/10th of a percent of our savings, it didn't hurt us.

 

[Docwagon1776]

So again, I hedged $2,800 against unlimited mileage and unlimited time. (Not sure why people don’t see the benefit of this given the terms of coverage.).

That's no longer offered, so it's no longer a decision point. Like I said, I did buy the lifetime on my 2012 when I bought it new, but I shopped it and paid $2200 after tax. I already discussed the differences between the lifetime and the term policies. Lifetime is much more compelling than term.

Side note, I'm sort of glad they stopped offering the lifetime. It's yet another incentive for me to keep what I have even longer. 5th gen styling is another incentive...

 

[Lucy Girl]

Thankfully I had enough good sense to keep my money.

 

[pacofortacos]

All official mopar extended warranties that I'm aware of start from mile 0. They just cost more on a used rather than certified pre-owned.

Unless they recently changed it, only new and certified preowned start at 0 - used policies start at mileage at purchase (of the vehicle I think).