Mopar MaxCare warranties vs Dealer extended warranties

[Floyd1979]

So, I've been reading through the forum and have seen the MaxCare warranty come up a lot in subjects. My 2024 Ram 2500 is due in before the end of the month and I'm looking for some schooling on the difference (besides cost) of the MaxCare and the Dealership warranties.

I'm not going to be driving my truck a WHOLE lot, so I had them (dealership) give me a price on the 8-year / 60,000 mile bumper-to-bumper extended warranty. Dealership made a little mistake and to make up for it, quoted me $2,000 even for the warranty (down from $3,200). I haven't researched the MaxCare yet as I wanted to turn to you guys and gals on here to get your opinions. Any help would be appreciated! Thanks!

Adam

Back in 2009 on Dodge Ram ( last yr dodge) 1500 Lonestar crewcab . Came with lifetime power train , bought lifetime max care .
Put 442,150 on that hemi , original power train.
But once the mileage got over 375,000
Like wheel bearings again they would come back and say wear and tear .

The representative actually told me on the phone my truck had out lived its expected time .

Sold it in 2019
Bought 2020 ram 1500 Lonestar in December of 2019
Bought Maxcare ( no more lifetime)
7 years unlimited mileage
I have 145,500 on it now .

 

[Sherman Bird]

You can also think of this way, can you trust a 3rd party not to go out of business?

That... and several other variables... The warranty company IS an insurance company, period. This means that they CAN and DO total vehicles out if the repair costs exceed vehicle value. I've witnessed this 3 times over the years.

Additionally, they CAP the total amount spent on a single vehicle over the life of the warranty period/ mileage; in other words DENY any further claims. I've witness this several times as well...

When my customers ask me about extended warranties, I discourage the warranties and advise the customer to set up a special savings account for these occasional large capital expenses and add a few hundred dollars a month . That way, the CUSTOMER has control over the money and the final word on whether or not to fix the car... This way, they have a substantial down payment on a future car, if they need to. With the warranty company, if you reach the end of the contract with no claims, THEY keep the money.

If they cannot afford that, I do like Dave Ramsey and advise buying a hoopty until finances DO afford the ability to make these choices.

 

[jimboschnitz]

Who is underwriting the "dealership" warranty? They sell both factory (Mopar MaxCare) and 3rd party extended service plans (ESPs). There is no such thing as an extended warranty as that implies that the basic warranty is extended...which is not true. Lots of stuff covered by an ESP but nowhere near as much as the basic new-vehicle warranty (3 years/36K miles).

The dealership makes w-a-y more money selling 3rd party ESPs so that would be my guess, but ask to be sure. If it's not Mopar MaxCare then it's a 3rd party.

Yes the MaxCare new vehicle ESP goes into effect retroactively to the day the truck was first bought and driven off the lot...but it's still cheaper than a used vehicle MaxCare ESP. If you went based on time only - a 7 year new vehicle ESP is cheaper than a 4 year used vehicle ESP and both end at the 7 year point.

If you wait to purchase a new vehicle MaxCare ESP there is a price bump at 12 months and another at 24 months. In the end the least expensive MaxCare ESP is a new vehicle ESP purchased within the first year of buying a new truck. The price only goes up from there.

Correct, the price goes up as the mileage is accumulated on your vehicle. I purchased 8yr/125,000 mile Mopar Service Contract, not an extended warranty at the time I bought the vehicle. If I had waited until the basic warranty was expired the contract would have been more expensive. To me it has been worth it so far as at a little over 60,000 miles my radio, gps etc failed and the whole tech console had to be replaced. Cost to me was the $200 deductible but if I would have had to pay for it myself the cost would have been around $2 Grand.

 

[CaptCurt]

Thank you, I’ll be sure to do that! I see your profile says Waynesburg. Is that Waynesburg, PA??

Adam

Yes Waynesburg, PA

 

[Drummin4jc]

Yes Waynesburg, PA

That’s awesome! I’m near Uniontown!

Adam

 

[turkeybird56]

From what I've read, they start from day one of ownership. I could be wrong though.... great question.

Adam

The date of the time length on a warranty starts the Day you take possession of the truck. SO if U purchase a 5 year warranty, when it kicks in at the end of your 3 year period (or maybe mileage, on that I do not know), you have 2 years left. I bought my Maxcare from Ziegler, which is a 8 year, 85K warranty for $1725. But of course, in reality, buying the 8 only gives U 5 years on the back side.

 

[stevieb92]

That’s awesome! I’m near Uniontown!

Adam

I'm just north of Pittsburgh, near Wexford. Small world!

 

[Drummin4jc]

I'm just north of Pittsburgh, near Wexford. Small world!

I was just there today for work. Haha! Small world, indeed!

Adam

 

[Drummin4jc]

SO, I talked to my dealer over the past two days and asked what plan they offer for the service contracts. I confirmed that it's Maximum Care by Mopar. They MATCHED the offer from www.buymoparwarranty.com! I could not believe it! We mentioned it before but I wanted to let the forum know that dealers WILL work with you on the pricing if you confront them about it.

Also, I'm picking her up tomorrow!

Adam

 

[Alaskaman]

Just for an idea what a new truck dealer might charge for Maxcare 8/100, $200 deductible, my dealer finance guy put the cost in at $5,550...I turned it down!

I'll shop for a warranty after I take delivery, waiting for insurance to officially total my Limited.

 

[Drummin4jc]

$5,500?!? WOW! I calmly would have showed them that link and say “I can get it for this”. That’s what I did. I calmly called them out on it (after I negotiated my APR). If you beat them up on the warranty, they will more than likely try to make up the difference on APR.

But that’s crazy that they tried to charge $5,500 for the coverage.

Adam

 

[brian42]

Not crazy. Dealership (finance department) fully expects to make $2000+ profit per ESP sold. They make the most on 3rd party ESPs which is why they push them instead of MaxCare.

Bought a used car a year ago for my kid to drive. Wasn't a very expensive car so the finance guy told me he would "cut me a break". He usually makes several thousand per ESP but, in my case, he would only charge me the $1000 minimum he had to make per policy. He showed me the policies and said pick the one I liked the best then he'd add $1000 to it and then we could start the paperwork. I said no thank you.

 

[Scottly]

The warranty company IS an insurance company, period.

You're wrong, period. First off, it's not a "warranty", it's a service contract. Second, these service contract companies buy CLIPs from insurance companies to cover their programs. Look in the terms and conditions...it'll tell you who insures it.

 

[Scottly]

I wanted to let the forum know that dealers WILL work with you on the pricing if you confront them about it.

The only dealers that can't do this are Florida dealers because the retail price is filed with the State.

 

[DILLIGAF]

Weird my friend is a Sales Manager at Nissan, He told me never buy extended warranties.

 

[Drummin4jc]

The only dealers that can't do this are Florida dealers because the retail price is filed with the State.

Did not know that. Thanks!

Adam

 

[madtrucker2016]

I had Geico car insurance and they have a warranty called mechanical breakdown has to be added before 1800 miles. it covered everything and the Ram dealer took it. The cost was 35 bucks every six months, if you have Geico call about it.

 

[brian42]

Weird my friend is a Sales Manager at Nissan, He told me never buy extended warranties.

"Back in the day" I would agree with that. My previous truck to this was a 2003 Ford F-250 diesel. In the 11+ years I owned it I turned every wrench that touched it. It had no emissions equipment, minimal sensors, only had 3 computers (of which only 1 needed to be programmed for the VIN by the dealership), and was 95% physical tools and 5% laptop to work on.

My 2019 Big Horn seemed like exactly the opposite. While I could at least save on the labor costs for repairs from before I don't have the software to program, VIN-match, etc., even if I could replace modules. I have AlfaOBD but that only gets you so far.

My Ford had physical relays, wires, and functions that I could repair and modify whereas my RAM was all modules and wiring harnesses. You want fog lights with your high beams? For my Ford you traced the circuit and cut a wire behind the headlight switch; for my RAM you have to go into the BCM and change a setting.

With the cost of parts these days for newer vehicles (you can't replace the failed function - you have to replace a whole computer module that it's part of) I had already budgeted for a MaxCare ESP. I paid a tick over $3000 (7 years | unlimited miles | $100 deductible), had several repairs done, and then got a pro-rated refund as I only used a little over 1/2 of the policy time (sold the truck at 4 years). $3000 to buy the policy, $300 for my deductible (3 visits), and ~$1300 refund when I sold my truck. For $2000 I got a new gas tank (and filler neck), A/C TSB, front suspension work, and a host of software updates. Biggest thing for me was that no matter what expensive thing might fail, break, or brick, it was only going to cost me $100.

This has always been a heated debate and people are fairly entrenched on their side of the conversation but, after seeing how much stuff was on the truck and how much it costs to replace (parts and labor), I was going to get a MaxCare ESP and I was glad I did. I also drive 25K+ miles a year so I knew my basic warranty was going to run out in 1/2 the time so I effectively got an extra 18 months out of my ESP. YMMV

 

[DILLIGAF]

But your stuck brining your truck to the dealer ... that in itself is a big No No for me... lol. But your right , I needed AlfaOdb/HP Tuners/Custom Tuning to get these truck working properly. But I agree with your point of view. There's not many people that do what guys on here do. We are just fortunate to all be at the same place. 99% of others are clueless on how vehicles work. So Extended warranties for those folks are gold !

Im buying a 2025 Toyota Tacoma TRD next year MANUAL, Guess what im not buying ... lol... And yes ill be selling the RAM, ( actually I already have someone that wants it! ) Im done with these. The TIPM was the last straw and I want lockers anyways as I want to go higher in the mountain range. And it will pull my little RV perfectly. Will be nice to have a Vehicle thats fully factory but trail ready. All I need is a winch!

I hang with Taco's anyways, Might as well join them. And Our family has a 2005 3500 Cummins 6 speed manual with 150xxx rust free... So im covered in the towing department.

Wife said shell keep the JK a few more years and trade it in for a Rav4!

Getting Old Sucks, And I guess she wants comfort all of a sudden, And its getting harder for me by the day constantly wrenching ... lol. The Rat Rod should be the only wrenching I do. And on that note, I got my parts and installing the cam , crank , timing gear today in the Rat Rod

 

[truck2014]

"Back in the day" I would agree with that. My previous truck to this was a 2003 Ford F-250 diesel. In the 11+ years I owned it I turned every wrench that touched it. It had no emissions equipment, minimal sensors, only had 3 computers (of which only 1 needed to be programmed for the VIN by the dealership), and was 95% physical tools and 5% laptop to work on.

My 2019 Big Horn seemed like exactly the opposite. While I could at least save on the labor costs for repairs from before I don't have the software to program, VIN-match, etc., even if I could replace modules. I have AlfaOBD but that only gets you so far.

My Ford had physical relays, wires, and functions that I could repair and modify whereas my RAM was all modules and wiring harnesses. You want fog lights with your high beams? For my Ford you traced the circuit and cut a wire behind the headlight switch; for my RAM you have to go into the BCM and change a setting.

With the cost of parts these days for newer vehicles (you can't replace the failed function - you have to replace a whole computer module that it's part of) I had already budgeted for a MaxCare ESP. I paid a tick over $3000 (7 years | unlimited miles | $100 deductible), had several repairs done, and then got a pro-rated refund as I only used a little over 1/2 of the policy time (sold the truck at 4 years). $3000 to buy the policy, $300 for my deductible (3 visits), and ~$1300 refund when I sold my truck. For $2000 I got a new gas tank (and filler neck), A/C TSB, front suspension work, and a host of software updates. Biggest thing for me was that no matter what expensive thing might fail, break, or brick, it was only going to cost me $100.

This has always been a heated debate and people are fairly entrenched on their side of the conversation but, after seeing how much stuff was on the truck and how much it costs to replace (parts and labor), I was going to get a MaxCare ESP and I was glad I did. I also drive 25K+ miles a year so I knew my basic warranty was going to run out in 1/2 the time so I effectively got an extra 18 months out of my ESP. YMMV

On the other hand , I’m ten years in on my 2014 and $2300 in repairs out of pocket . $2000 of that 2300 was past the eight year mark . Glad I turned down the offers for any extended warranty. Money ahead at this point.