I've been seriously considering an aftermarket warranty for my Ram (01 4x4 ext. cab 5.9L) It has 82k miles on it, I just bought it so I don't know the past history of it.

I've seen a lot of tranny problems and I am wondering if it would be worth it. I would like to start towing soon and I am a little scared. (This is the first dodge I've had and to be honest, either the trannys just plain suck or mine is starting to go. It never ever seems to be in the right gear. The other day is the first time I got it on the highway...going downt the entrance ramp accelerating was THE WORST experience I have ever had in a vehicle....but I digress...this is a subject for another post...back to warranty)

I've gotten a quote for $1930 for a 5 yr 100k (additional) mile warranty - powertrain only...
Does anyone think it is worth it?

If a tranny rebuild is going to be more than that, I'm thinking I should do it, and drive it without any worries.

Thanks in advance

 

Well thats only 16400 miles a year avg... Did you get the carfax report on it sayin how many owners there were? That way you could see how fast the miles were racked up on your rig. Between 1997 and 2000 Dodges were bad about the transmission problem, but according to MSN reliability ratings 2001 is ok. But only paying $1930 for 5yrs and another 100k of worry free driving (atleast for the drive train) seems worth it to me. Just my two cents.

 

Hmmmm, I did not realize that the 01s had a better 'reliability rating'....

Thanks for the reply...i'm still thinking it over

-hoss

 

This dealer claims he sells 'official' Chrysler warranties at a discount:

http://www.chryslerwarranty.com/

Be aware that one trick of the aftermarket warranty sellers is to underprice the extended warranty, and then declare bankruptcy a year or two later. This goes on over and over.
------
Warranty Gold goes bankrupt


By Claudia Grisales
*** NEWS SERVICE



AUSTIN, Texas — Austin-based Warranty Gold, which claims to be the country's leading seller of extended car warranties on the Internet, has filed bankruptcy filings in the Austin area, turning 67,000 customers across the country into unsecured creditors.
The filing in U.S. Bankruptcy Court estimates the company's assets between $10 million and $50 million and put liabilities in the same range.
Customers made their frustrations heard on chat rooms and via e-mails. "I am so mad!" said a furious Melissa Walter, a Lakeland, Fla., resident who paid $1,500 for her policy in February 2003. "You have no idea how upset I am right now."
Warranty Gold blamed National Warranty, the company that it hired to pay claims on the service contracts, and plans to file a lawsuit against the Lincoln, Neb.-based company, which entered into bankruptcy-type proceedings on June 7.
Already, the company has told the bankruptcy court it won't have any money to pay unsecured creditors, which include customers who are out as much as several thousand dollars each for premiums and repair costs they had to pay out of their own pockets.
A lawyer representing Warranty Gold estimated that it would cost the company more than $30 million to refund all of the policies handled by National Warranty.
Despite the filing, Warranty Gold continued to sell policies last week.
----------
"Dealers caught in warranty war
Insurer's problems force tough choices

Donna Harris
Automotive News / June 30, 2003

Five thousand dealers who sold service contracts under the financially troubled Smart Choice program may have to choose between two evils - pay off hefty repair claims themselves, or tell angry customers to slug it out with insurers.

Either way, some dealers could lose.

According to DeltaGroup - a Dallas firm that markets Smart Choice - 5,000 dealers nationwide sold the contracts. Sales started in 1984 and recently were 15,000 per month, DeltaGroup says. "
---------------------

When Dieter Zetsche extended the factory warranty from 3 yrs/36,000 miles to 7 yrs/70,000 miles some years ago Chrysler estimated that it was only going to cost about $250 per vehicle average. See below:

http://www.detnews.com/2002/insiders...b01-534467.htm

sample quote:

"And now Zetsche's Chrysler is offering to guarantee new vehicles for seven
years and 70,000 miles. The move may smack of desperation, but it's actually a
cold calculation that Chrysler thinks its quality justifies the commitment.
Internal company estimates peg the cost per vehicle at roughly $250.
That's a small price if the warranty pledge helps convince would-be
customers that Chryslers, Jeeps and Dodges are more likely to deliver the kind
of quality they might expect from the American sister of Mercedes, whatever
its troubles. "
Chrysler Group warranty costs have taken a sharp tumble since the automaker
began a serious assault on long-running quality problems, according to Don
Dees, the automaker's "quality czar." From 1996 to 2001, warranty costs fell
an average five to six percent annually, but from 2001 to 2002, they plunged
21 percent. Based on early trends, says Dees, "We expect that to improve
(another) 16 to 20 percent this year." Ironically, he adds, improving quality
is actually causing problems for Chrysler dealers, who are having a hard time
finding ways to replace lost warranty repair business. Chrysler Group CEO
Dieter Zetsche has set out an explicit goal of being at least equal to the
best-in-class in terms of quality by 2007. That means, says Dees, "We've got
to catch Toyota." A critical indicator will come next week with the release of
the latest J.D. Power Initial Quality Survey. Internal measurements, hinted
Dees, suggest the number-three automaker will post about a five-percent
improvement compared to last year's IQS numbers. But he also cautioned that it
will become increasingly difficult each year to make gains, as it has already
picked the low-hanging fruit. To catch Toyota, Chrysler will have to only
accelerate efforts, such as its "Black Belt" program. It will not only have to
fix problems when they are found, said Dees, but anticipate and prevent them
in the first place. -Paul A. Eisenstein, The Car Connection

 

I bought an extended warranty when I bought my '99 Ram used, and I am glad I did. It cost a little over $1000 on the loan (something like less then $10 a month added to the payment), and it paid for itself the first time my trans went out. The trasmission bill came to almost $3000, and all I had to pay was my warranty deductible of $200. I used it a second time on the trasnmission for a bill that was about $1500. So I spent about $1400 for the warranty ($1000 plus two deductible payments of $200), and was covered for almost $5000 worth of repairs. It was worth it in my opinion. It just expired about 2 months ago though, so know I am on my own.

 

i bought my 98 ram with 72 thousand kms (near that anyways)
and got fll coverage extended warenty for 2500 bucks

ya it was worth it

gone through three motors 2 rear engine seals

have had to have the rear dif fixed twice
oild pump
water pump

all told about 12 grand in repairs

and even tho my warrenty says its good for another 6 months or 5000 kms

i cannot use it cus i have exceeded black book value in repairs

they always ind a way to F%^& you

 

Just make sure the warranty is backed by an A rated carrier. Any thing that says Risk Retention Group (RRG) is usually considered a bad risk. Also, check the non-covered conditions in your warranty because most of them will deny claims if you have any modifications to the vehicle. This includes exhuast, lift kits, PCMs etc.. Also, ALWAYS NEGOTIATE. These things usually have a 2-300% markup so it never hurts to beat the Finance dude up.





96 Red Ram 1500 - 5.2 79,000mi
Magnaflow system cat back
gibson headers

Planning on induction next!

 

a free article from the Wall Street Journal,
How to see if an extended warranty makes sense on any item:

http://online.wsj.com/public/article...s_inside_today

 

Aftermarket warranties are a pain in the ***. The promise you the world to get your money, but not always cover whay they claim. They'll find a way to say YOU caused it and there for not cover it. Take this from a guy that has delt with them from working at a Dodge dealer. If you're going to buy one, go to a dealer and inquire about one, much easier! And much less pain in the ***.