Total Lifetime Coverage VS Chrysler Survival
Veteran
Joined: May 2009
Posts: 482
Likes: 1
From: Texas
the factors you should consider included:
*financial viability of chrysler/fiat - certainly a topic worth a conversation. i personally don't think the chances of catastrophic financial failure is 50/50 but they are definitely greater than 0.
*length of ownership - i think you need to believe you will be in this truck for at least 5 years before considering the extended warranties (IMO).
Record Breaker
Joined: Jan 2010
Posts: 1,400
Likes: 5
From: San Pedro, California
Read this
http://blogs.consumerreports.org/car...-warranty.html
Extended car warranties - don't be a pushover
Most people don't buy a new car without hearing the dealership finance manager warn about "how foolish it would be" not to protect your investment from unexpected repairs as you put on the miles. What comes next is a persistent sales pitch for a solution to your new fears: an extended warranty. "You could save the amount of the plan cost with just one covered repair!" says a brochure for Ford's Extended Service Plan.
But extended warranties sell costly "peace of mind" for repair nightmares that probably won't occur, according to a survey of more than 8,000 readers in December 2007 by the Consumer Reports National Research Center. We have long advised that extended warranties are a poor deal for almost every product. Now we have the first data showing that this advice applies to most new cars, as well.
To raise public awareness on the issue, Consumer Reports is launching a national advertising campaign this week targeting the car-buying public.
Sixty-five percent of the survey respondents said they spent significantly more for a new-car
warranty than they got back in repair cost savings. On average, dealers collected around $800 on each extended warranty they sold.
Respondents cited warranty costs of $1,000 on average that provided benefits of $700; an average $300 loss. Some 42 percent of extended warranties were not used, and only about a third of all respondents used their plan to cover a serious problem. About one in five respondents (22%) said they had a net savings. Seventy-five percent did not buy extended warranties at all.
Extended warranties were, however, a better deal for those who bought more troublesome cars
scoring lower in Consumer Reports' reliability Ratings, such as those from Mercedes-Benz. Still, only 38 percent of Mercedes-Benz owners said they saved money. The average loss was $100. Lexus and Toyota owners lost the most money: $600 on average for Lexus and $550 for Toyota. Owners of Pontiacs and Jeeps broke even because on average they had covered repairs that equaled the warranty cost.
Our advice
http://blogs.consumerreports.org/car...-warranty.html
Extended car warranties - don't be a pushover
Most people don't buy a new car without hearing the dealership finance manager warn about "how foolish it would be" not to protect your investment from unexpected repairs as you put on the miles. What comes next is a persistent sales pitch for a solution to your new fears: an extended warranty. "You could save the amount of the plan cost with just one covered repair!" says a brochure for Ford's Extended Service Plan. But extended warranties sell costly "peace of mind" for repair nightmares that probably won't occur, according to a survey of more than 8,000 readers in December 2007 by the Consumer Reports National Research Center. We have long advised that extended warranties are a poor deal for almost every product. Now we have the first data showing that this advice applies to most new cars, as well.
To raise public awareness on the issue, Consumer Reports is launching a national advertising campaign this week targeting the car-buying public.
Sixty-five percent of the survey respondents said they spent significantly more for a new-car
warranty than they got back in repair cost savings. On average, dealers collected around $800 on each extended warranty they sold.
Respondents cited warranty costs of $1,000 on average that provided benefits of $700; an average $300 loss. Some 42 percent of extended warranties were not used, and only about a third of all respondents used their plan to cover a serious problem. About one in five respondents (22%) said they had a net savings. Seventy-five percent did not buy extended warranties at all.
Extended warranties were, however, a better deal for those who bought more troublesome cars
scoring lower in Consumer Reports' reliability Ratings, such as those from Mercedes-Benz. Still, only 38 percent of Mercedes-Benz owners said they saved money. The average loss was $100. Lexus and Toyota owners lost the most money: $600 on average for Lexus and $550 for Toyota. Owners of Pontiacs and Jeeps broke even because on average they had covered repairs that equaled the warranty cost.
Our advice
- Don't feel pressured to buy an extended warranty at the same time as buying a new car. Instead, shop about six months before the vehicle's factory warranty runs out.
- Ask for and have a trusted mechanic review sample contracts before buying.
- Bargain hard, sales commissions can be large.
Veteran
Joined: Feb 2010
Posts: 296
Likes: 1
From: East TN
I dont know about Chrysler's extended (yet), but I have always had the GM extendeds on cars/trucks I bought new. Most cars I sold well before the 3/36 and when you cancel the warranty you get a good chunk of the money you paid back.
As far as hassle and fine print, it was no different than taking the car/truck in to a GM dealer under 3/36, you drop it off, get a rental or loaner and they called you when it was done - I imagine its no different for the Chrysler extended. I always get zero deductible, on loaded new cars with a ton of electronics its well worth it IMO.
I would never use an aftermarket extended warranty though, most dont cover wear and tear and some you have to pay up front and wait to get reimbursed. Not to mention they will use junkyard parts if available, I assume thats what most consumer groups advise against. I used to work for Ford as a warranty administrator and the Ford extended warranties were a good product, but most aftermarket warranties were crap.
As far as Chrysler staying around it probably wont matter, like Ford and GM I think Chrysler extended is handled by separate company. Only problem if they go under would be the availability of parts, I dont see the light trucks going anywhere for a while unless gas goes way over 5.00 a gallon and stays there for a long time. If that happens your extended warranty will be the least of your concerns.
As far as hassle and fine print, it was no different than taking the car/truck in to a GM dealer under 3/36, you drop it off, get a rental or loaner and they called you when it was done - I imagine its no different for the Chrysler extended. I always get zero deductible, on loaded new cars with a ton of electronics its well worth it IMO.
I would never use an aftermarket extended warranty though, most dont cover wear and tear and some you have to pay up front and wait to get reimbursed. Not to mention they will use junkyard parts if available, I assume thats what most consumer groups advise against. I used to work for Ford as a warranty administrator and the Ford extended warranties were a good product, but most aftermarket warranties were crap.
As far as Chrysler staying around it probably wont matter, like Ford and GM I think Chrysler extended is handled by separate company. Only problem if they go under would be the availability of parts, I dont see the light trucks going anywhere for a while unless gas goes way over 5.00 a gallon and stays there for a long time. If that happens your extended warranty will be the least of your concerns.
Thread Starter
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Rookie
Joined: Mar 2010
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After initially buying the warranty, I started reading the terms and I didn't like them. So after thinking about it, and the fact that they get my money for 3 years before the warranty comes into effect, I canceled it. Most financial advisers tell you that extended warranties are a waste of money unless you keep the vehicle about 10 years.
I rolled the dice and figured that the lifetime power-train warranty would cover the big expenses and that whatever else went wrong in the future, I cold cover with the money I saved.
I have heard from others that the warranties are really hard to collect on. Read the fine print, if your car breaks down somewhere, you have to call them and jump through hoops before you get the truck repairs authorized and if you screw up, they have a reason to not honor the warranty.
It is just a matter of comfort. Some people prefer the feeling of having the extra coverage.
I rolled the dice and figured that the lifetime power-train warranty would cover the big expenses and that whatever else went wrong in the future, I cold cover with the money I saved.
I have heard from others that the warranties are really hard to collect on. Read the fine print, if your car breaks down somewhere, you have to call them and jump through hoops before you get the truck repairs authorized and if you screw up, they have a reason to not honor the warranty.
It is just a matter of comfort. Some people prefer the feeling of having the extra coverage.
Thread Starter
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Rookie
Joined: Mar 2010
Posts: 64
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My opinion on the matter of survivability is that Fiat will keep Ram and the minivans.... and everything else will be gone. They will turn some of the plants into FIAT plants and the workers will make $14 tops. The writing is on the wall and I think it will happen in the next couple years. Chrysler is in bad shape. Outside of this forum..... most people are extremely unhappy with Chrysler and refuse to buy them..... even if they DID have the money.... which not many people do.
Also, if the worst happened and a company shut down.... I believe federal law mandates that a certain amount of replacement parts be available for years to come.
Also, if the worst happened and a company shut down.... I believe federal law mandates that a certain amount of replacement parts be available for years to come.
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Rookie
Joined: Mar 2010
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haha I only ride on the track now and it will take more than a pebble to put me down. Tracks are relatively safe...especially when compared to the street. I stopped riding crazy on the street about 6 years ago. I have crashed on the track numerous times and walked away unscathed. I have crashed on the street and broke numerous bones. The track is safe!
Veteran
Joined: Feb 2010
Posts: 296
Likes: 1
From: East TN
My opinion on the matter of survivability is that Fiat will keep Ram and the minivans.... and everything else will be gone. They will turn some of the plants into FIAT plants and the workers will make $14 tops. The writing is on the wall and I think it will happen in the next couple years. Chrysler is in bad shape. Outside of this forum..... most people are extremely unhappy with Chrysler and refuse to buy them..... even if they DID have the money.... which not many people do.
Also, if the worst happened and a company shut down.... I believe federal law mandates that a certain amount of replacement parts be available for years to come.
Also, if the worst happened and a company shut down.... I believe federal law mandates that a certain amount of replacement parts be available for years to come.
Either way I wouldnt lose sleep over it, not much you can do about it if you already own one except sell it off and lose your ***
Record Breaker
Joined: Jan 2010
Posts: 1,400
Likes: 5
From: San Pedro, California
"It's not just extra coverage.... it's LIFETIME coverage. That's a bit different than... say an extra 3-6 years. It was relatively cheap too."
OK, so you got "lifetime extended coverage". What I was offered was a 10 year 100,000 miles plan and they wanted $1800.
So if I start out with the 3 year/36,000 bumper to bumper standard warranty, and add the lifetime power train warranty I feel pretty good about not spending the $1800.
For $1800 I get coverage from 36000 up to 100,000 miles (which I will probably reach in about 7 years). So I am gambling that I will not incur uncovered expenses during that time that exceed my initial savings.
Financially, when you buy the extended warranty, you finance it for the duration of the truck loan. My loan is at 3.5 % for 5 years. So $1800 comes out to be $2086 when you add the interest for the 5 years. If I take the same $1800 and get a 3 year CD for 2.3 % (to have the money available after the 3 year warranty runs out) I will have $1953 in the bank.
I bet I won't have to spend that kind of money to repair things like alternators, radiators, Air Conditioner, etc.
OK, so you got "lifetime extended coverage". What I was offered was a 10 year 100,000 miles plan and they wanted $1800.
So if I start out with the 3 year/36,000 bumper to bumper standard warranty, and add the lifetime power train warranty I feel pretty good about not spending the $1800.
For $1800 I get coverage from 36000 up to 100,000 miles (which I will probably reach in about 7 years). So I am gambling that I will not incur uncovered expenses during that time that exceed my initial savings.
Financially, when you buy the extended warranty, you finance it for the duration of the truck loan. My loan is at 3.5 % for 5 years. So $1800 comes out to be $2086 when you add the interest for the 5 years. If I take the same $1800 and get a 3 year CD for 2.3 % (to have the money available after the 3 year warranty runs out) I will have $1953 in the bank.
I bet I won't have to spend that kind of money to repair things like alternators, radiators, Air Conditioner, etc.
Thread Starter
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Rookie
Joined: Mar 2010
Posts: 64
Likes: 0
"It's not just extra coverage.... it's LIFETIME coverage. That's a bit different than... say an extra 3-6 years. It was relatively cheap too."
OK, so you got "lifetime extended coverage". What I was offered was a 10 year 100,000 miles plan and they wanted $1800.
So if I start out with the 3 year/36,000 bumper to bumper standard warranty, and add the lifetime power train warranty I feel pretty good about not spending the $1800.
For $1800 I get coverage from 36000 up to 100,000 miles (which I will probably reach in about 7 years). So I am gambling that I will not incur uncovered expenses during that time that exceed my initial savings.
Financially, when you buy the extended warranty, you finance it for the duration of the truck loan. My loan is at 3.5 % for 5 years. So $1800 comes out to be $2086 when you add the interest for the 5 years. If I take the same $1800 and get a 3 year CD for 2.3 % (to have the money available after the 3 year warranty runs out) I will have $1953 in the bank.
I bet I won't have to spend that kind of money to repair things like alternators, radiators, Air Conditioner, etc.
OK, so you got "lifetime extended coverage". What I was offered was a 10 year 100,000 miles plan and they wanted $1800.
So if I start out with the 3 year/36,000 bumper to bumper standard warranty, and add the lifetime power train warranty I feel pretty good about not spending the $1800.
For $1800 I get coverage from 36000 up to 100,000 miles (which I will probably reach in about 7 years). So I am gambling that I will not incur uncovered expenses during that time that exceed my initial savings.
Financially, when you buy the extended warranty, you finance it for the duration of the truck loan. My loan is at 3.5 % for 5 years. So $1800 comes out to be $2086 when you add the interest for the 5 years. If I take the same $1800 and get a 3 year CD for 2.3 % (to have the money available after the 3 year warranty runs out) I will have $1953 in the bank.
I bet I won't have to spend that kind of money to repair things like alternators, radiators, Air Conditioner, etc.
Yeah, everyone situation is different. For some, it's not worth it at all... especially if they don't plan on keeping it forever.
My truck is paid in full and now I have lifetime powertrain and lifetime bumper to bumper.... and it only cost me $1600. I thought that awas a pretty good deal since I basically plan on keeping the truck forever. I do still have my 2001 Dakota 4X4 with only 80,xxx on it. I will use that for a run around/beater/work truck. It will help keep miles off the Ram.
But yeah, everyone situation is different and it just isn't worth it for some people.
Captain
Joined: Jan 2009
Posts: 505
Likes: 0
From: Dayton, OH suburbs
I got green sheet on the warranty... that's why so cheap. I have worked for Chrysler since '98 until they shut down my St Louis plants and sent the work out of the country. I just took a buyout from the company.... right before they were gonna make me move far away from home. I didn't want to go and i don't have a lot of faith in the company. They have do ALOT of things right in order to succeed. PLUS, people can't buy product without money.... and even if they did... how many people are pissed at Chrysler(and GM)??? 
So, if the economy doesn't improve greatly for starters.... Chrysler will fail. I hate saying it but it's partly why I left. The truck came with the buyout. I did have to pay $5K out of pocket but that was it.
So, if the economy doesn't improve greatly for starters.... Chrysler will fail. I hate saying it but it's partly why I left. The truck came with the buyout. I did have to pay $5K out of pocket but that was it.