What are you seeing in the way of current extended warranties

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HAL9001

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Extended warranties are always a gamble.

Basically, you're paying upfront for repairs that may never happen. For example, the 8 Year/100,000 Miles $0 deducible Mopar Maximum Care warranty currently costs $3,365 for a 2021 RAM 1500 with under 12,000 miles.

upload_2021-1-16_10-38-13.png

So, in order for it to pay off, you would have to incur more than $3,365 in repairs from year 3 to 8 for the basic portion and from year 5 to 8 for the powertrain portion, or until you exceed 100,000 miles, whichever comes first.

More than $3,365 in repairs may or may not happen in this time frame, especially now that FCA reduced the maximum warranty period to only 8 years (which is why they did that). Keep in mind that FCA knows from years and years of carefully recorded data precisely what all the repairs from all the extended warranties will cost them and then adds a sizable profit. This means that the majority of extended warranty purchasers will not receive a payout greater than the cost of the warranty. It doesn't matter which term plan or deductible you choose, FCA precisely calculates the price for each to ensure that they always make a sizable profit overall.

For the minority of those who do receive back more than they paid, they'll be very happy and recommend these warranties to everyone. For the majority who lost money on them, they'll be pissed off and are likely to keep this bad experience to themselves. No one brags about losing money.

So, it's a gamble, and just like real gambling, the house always wins. That's what makes both casinos and extended warranties a very profitable business for the owners but a considerable risk for the customers.

I'm not telling anyone not to buy one, I'm just trying to convey what the actual odds are. There is still a chance that it may pay off for you, especially if you drive your truck hard, pull a trailer, or do anything else that might wear the vehicle out faster. The old 12 year and lifetime warranties were a much better bet, which is exactly why you can't get them anymore.
 
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pacofortacos

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Where are you seeing a 12-year warranty? The maximum the warranty now goes is 8 years.

As said above 12month/12k miles new vehicle warranty - it is different vs. the 3/36 factory warranty.
 

pacofortacos

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I have a good chance of winning the extended gamble, I hope I lose but if not, it isn't a big deal.
And I have unlimited time and miles to play with.
 

huntergreen

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Extended warranties are always a gamble.

Basically, you're paying upfront for repairs that may never happen. For example, the 8 Year/100,000 Miles $0 deducible Mopar Maximum Care warranty currently costs $3,365 for a 2021 RAM 1500 with under 12,000 miles.

View attachment 234118

So, in order for it to pay off, you would have to incur more than $3,365 in repairs from year 3 to 8 for the basic portion and from year 5 to 8 for the powertrain portion, or until you exceed 100,000 miles, whichever comes first.

More than $3,365 in repairs may or may not happen in this time frame, especially now that FCA reduced the maximum warranty period to only 8 years (which is why they did that). Keep in mind that FCA knows from years and years of carefully recorded data precisely what all the repairs from all the extended warranties will cost them and then adds a sizable profit. This means that the majority of extended warranty purchasers will not receive a payout greater than the cost of the warranty. It doesn't matter which term plan or deductible you choose, FCA precisely calculates the price for each to ensure that they always make a sizable profit overall.

For the minority of those who do receive back more than they paid, they'll be very happy and recommend these warranties to everyone. For the majority who lost money on them, they'll be pissed off and are likely to keep this bad experience to themselves. No one brags about losing money.

So, it's a gamble, and just like real gambling, the house always wins. That's what makes both casinos and extended warranties a very profitable business for the owners but a considerable risk for the customers.

I'm not telling anyone not to buy one, I'm just trying to convey what the actual odds are. There is still a chance that it may pay off for you, especially if you drive your truck hard, pull a trailer, or do anything else that might wear the vehicle out faster. The old 12 year and lifetime warranties were a much better bet, which is exactly why you can't get them anymore.


Fixing manifold bolts and the 8.4 radio, will pretty much cover the cost of the warranty. Both seem extremely common.
 

indept

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Extended warranties are always a gamble.

Basically, you're paying upfront for repairs that may never happen. For example, the 8 Year/100,000 Miles $0 deducible Mopar Maximum Care warranty currently costs $3,365 for a 2021 RAM 1500 with under 12,000 miles.

View attachment 234118

So, in order for it to pay off, you would have to incur more than $3,365 in repairs from year 3 to 8 for the basic portion and from year 5 to 8 for the powertrain portion, or until you exceed 100,000 miles, whichever comes first.

More than $3,365 in repairs may or may not happen in this time frame, especially now that FCA reduced the maximum warranty period to only 8 years (which is why they did that). Keep in mind that FCA knows from years and years of carefully recorded data precisely what all the repairs from all the extended warranties will cost them and then adds a sizable profit. This means that the majority of extended warranty purchasers will not receive a payout greater than the cost of the warranty. It doesn't matter which term plan or deductible you choose, FCA precisely calculates the price for each to ensure that they always make a sizable profit overall.

For the minority of those who do receive back more than they paid, they'll be very happy and recommend these warranties to everyone. For the majority who lost money on them, they'll be pissed off and are likely to keep this bad experience to themselves. No one brags about losing money.

So, it's a gamble, and just like real gambling, the house always wins. That's what makes both casinos and extended warranties a very profitable business for the owners but a considerable risk for the customers.

I'm not telling anyone not to buy one, I'm just trying to convey what the actual odds are. There is still a chance that it may pay off for you, especially if you drive your truck hard, pull a trailer, or do anything else that might wear the vehicle out faster. The old 12 year and lifetime warranties were a much better bet, which is exactly why you can't get them anymore.
Was that $3365 at the local dealer or ths Ziegler cost? If it is local dealer I would bet Ziegler is a bit under 2k for that plan. If 3365 is Zieglers price then DAMN things have gone up
 

huntergreen

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Was that $3365 at the local dealer or ths Ziegler cost? If it is local dealer I would bet Ziegler is a bit under 2k for that plan. If 3365 is Zieglers price then DAMN things have gone up




That’s 0$ deductible, the 100$ deductible would be cheaper. My lifetime coverage was 2400$ at warranty direct. Dealer wanted over 4000$. I bought mine a couple days before it Chrysler discontinued that coverage.
 

HAL9001

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Fixing manifold bolts and the 8.4 radio, will pretty much cover the cost of the warranty. Both seem extremely common.
Again, FCA knows what the total amount of repairs will cost them, and then prices the warranties accordingly so that they will make a sizable profit on them overall. Everyone knows this, right? I hope I'm not telling anyone something that's so obvious.

Yes, some will do well with an extended warranty, but in order for them to be profitable for the company offering them, most cannot. This is the gamble. Some will win, most will lose. That's how casinos, insurance companies, lotteries, and extended warranties work. The house never sets itself up to lose. The odds are never in your favor.

Does anyone here really think that FCA is going to subsidize the repairs for all of our vehicles?

Again, I'm not telling anyone not to buy one, you may luck out. Just do so knowing full well that it is a gamble and with eyes wide open.
 
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HAL9001

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That’s 0$ deductible, the 100$ deductible would be cheaper. My lifetime coverage was 2400$ at warranty direct. Dealer wanted over 4000$. I bought mine a couple days before it Chrysler discontinued that coverage.
The $100 and $200 dollar deductible warranties are less expensive to buy upfront, but FCA has carefully calculated those too to be just as profitable. The total amount of deductions cost as much or more than the up-front price over the life of the warranties overall. Again, I'm talking overall, not anyone's specific individual experience. Some will win, most must lose.

The lifetime warranties were more likely to pay off which is precisely why FCA eliminated them. An 8-year maximum warranty, which is all you can get now, is far less likely to pay off.

That is FCA adjusting the odds in their favor based upon the latest data.
 
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huntergreen

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Again, FCA knows what the total amount of repairs will cost them, and then prices the warranties accordingly so that they will make a sizable profit on them overall. Everyone knows this, right? I hope I'm not telling anyone something that's so obvious.

Yes, some will do well with an extended warranty, but in order for them to be profitable for the company offering them, most cannot. This is the gamble. Some will win, most will lose. That's how casinos, insurance companies, lotteries, and extended warranties work. The house never sets itself up to lose. The odds are never in your favor.

Does anyone here really think that FCA is going to subsidize the repairs for all of our vehicles?

Again, I'm not telling anyone not to buy one, you may luck out. Just do so knowing full well that it is a gamble and with eyes wide open.


All true, but for 2400.00, I believe I will at least break even. Much of the gamble tilts toward owners that keep their vehicles for 10 plus years. I believe the average person trades every 4 or 5 years. That’s where Chrysler makes their profit. Of course that average may have changed which may be the reason they no longer offer the lifetime warranty.
 

HAL9001

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All true, but for 2400.00, I believe I will at least break even. Much of the gamble tilts toward owners that keep their vehicles for 10 plus years. I believe the average person trades every 4 or 5 years. That’s where Chrysler makes their profit. Of course that average may have changed which may be the reason they no longer offer the lifetime warranty.
I don't know if that is true since I think the extended warranties are transferable.

But again, this is why FCA has adjusted the maximum warranty period to 8 years. For every year after that, their profits probably went down so they eliminated that risk to themselves.

You purchased a good extended warranty if you plan to keep your vehicle for a long time, you should be happy about that. I would certainly consider an extended warranty if the lifetime option were still available and I planned to keep the truck over 10 years. But that's simply no longer an option.
 

HAL9001

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I have a good chance of winning the extended gamble, I hope I lose but if not, it isn't a big deal.
And I have unlimited time and miles to play with.
Any of you that were lucky enough to get a lifetime warranty for a good price were fortunate, you have a good chance of it paying off if you hold onto your truck long enough. My comments were aimed at what you can buy now, which is 8 years maximum.
 

pacofortacos

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I know, I just couldn't help be happy that I got in on the lifetime since I tend to keep vehicles for 15 yrs. min..

The best deal as far as a warranty coverage is buying a certified pre-own with low miles - it comes with an extended warranty and if you want to add additional coverage it is fairly inexpensive.
Of course you are limited in years and miles still.

The 7 year/unlimited mile option is decent if you put on a good number of miles per year.
 
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GORDONS

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The $100 and $200 dollar deductible warranties are less expensive to buy upfront, but FCA has carefully calculated those too to be just as profitable. The total amount of deductions cost as much or more than the up-front price over the life of the warranties overall. Again, I'm talking overall, not anyone's specific individual experience. Some will win, most must lose.

The lifetime warranties were more likely to pay off which is precisely why FCA eliminated them. An 8-year maximum warranty, which is all you can get now, is far less likely to pay off.

That is FCA adjusting the odds in their favor based upon the latest data.


The one offered locally has a $250 deductible which seems a good way for them to keep ahead of the odds over the long haul and I figure that's likely to be a loser.....unless something major goes out in that first 10 years or 100k miles. I do keep my vehicles for a while, a 1999 Dakota for 9 years and current 2004 Dakota for over 12 years and 156k miles. Extended warranties would have been losers on both of those, but they're pretty much stone axe simple compared to all of the systems and electronics now built into trucks.

It's a gamble, either way, for as long as I keep vehicles.
 

huntergreen

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I don't know if that is true since I think the extended warranties are transferable.

But again, this is why FCA has adjusted the maximum warranty period to 8 years. For every year after that, their profits probably went down so they eliminated that risk to themselves.

You purchased a good extended warranty if you plan to keep your vehicle for a long time, you should be happy about that. I would certainly consider an extended warranty if the lifetime option were still available and I planned to keep the truck over 10 years. But that's simply no longer an option.




My lifetime warranty is not transferable.
 

pacofortacos

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The one offered locally has a $250 deductible which seems a good way for them to keep ahead of the odds over the long haul and I figure that's likely to be a loser.....unless something major goes out in that first 10 years or 100k miles. I do keep my vehicles for a while, a 1999 Dakota for 9 years and current 2004 Dakota for over 12 years and 156k miles. Extended warranties would have been losers on both of those, but they're pretty much stone axe simple compared to all of the systems and electronics now built into trucks.

It's a gamble, either way, for as long as I keep vehicles.

On the Mopar plans like the one I have - $100 ded., but you can have several issues covered under the $100 - it is $100 per visit, not per repair. So the key, if possible, is to have several repairs done in one visit.
 

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Extended warranty victims, I mean buyers, often proudly proclaim they are going to keep their truck for a long time, thus justifying the money spent. But if you start looking at the Ram years of EW buyers, you'll see that's simply not the case.

Almost all EW proponents have trucks that are 5 or less years old. But the vast majority of EW owners have trucks that are 3 or less years old.
 

pacofortacos

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Probably because it is less expensive to buy it early. My truck will turn 5 years old this year, early in on it's 15-20 year stint.

I only consider an Extended service contract if the plan to keep the product justifies it.

My wife's Mazda doesn't have one on it, which when we bought it new in 2012, I didn't plan on keeping as long as my truck. Her cars usually go about 8 years, but currently have no plans to replace the 2012.

My Power tools have an extended service contract on them - I buy Ridgid power tools and the free lifetime service contract as well as the quality works for me. It include batteries, which I feel will fail before the tool does.

I almost never buy extended service contracts for anything else. Though I have had a few square trade warranties pay off on the few items I purchased it for - highly suspected the item wouldn't last the warranty term - usually due to heavy use.
 
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NOV87

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I had EW on two of my vehicles in the past. Didn't think they were worth it. However, there are a few local dealerships that offer lifetime warranties if you purchase a new vehicle through them. A repair would have to be done at their facility though. To me that would be a good incentive.
 
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