Extended Warrenty Questions/ Opinions

[SSlevin]

I am really enjoying this site.

I bought a 03 SRW 3500 4X4 with 24,000 miles . Its almost broken in. I was offered an extended warranty to 100,000 miles for 1,800. 00 from the dealer I passed on it. What are the opinions on extended warranties. I have always passed and never had a problem.

Thanks Steve

 

[PJ]

Sounds like it was not the D/C warranty. I bought the extended warranty for mine. Actually I bought it 3 times before the dealer gave me the one I wanted. . Mine was $2500 for the chrysler 7 year 100k miles with zero deductable. Personally, I wouldnt buy the truck without one. You wont need it for the Cummins, but you most likely will need it for everything on the truck that Dodge built! Just my 2 cents worth

:--) :--) :--)

 

[SSlevin]

Mine was with a 50. 00 deductible.

 

[klenger]

I bought the 7/100 $100 deductable for $1995 when I bought the truck. If I use it, I'll be glad I had it. If I don't use it, I'll be glad anyway.

 

[Bill Stockard]

I'm on my fourth Dodge CTD. I drove two of them to nearly 100,000 miles before trading them in. So far, I have spent about $500 on all four trucks combined for out of warranty repairs, which isn't even close to the price of a warranty policy. I'll take my chances and spend my money on the things I like to do.



The extended warranty is an insurance policy that is sold "betting" the vehicle is going to cost the seller of the policy less than it is going to cost you to pay for that policy. Then there's the markup... from the seller to the dealer, the dealer to the buyer and the salesman's commission. I know how that works and have made good money selling them.



Bill

 

[Dean Upson]

I have had the extended warranties on my past 3 CTD's. The trucks have been relatively trouble-free and I have paid out more than I have gotten. However, I feel the peace of mind is worth the invertment, it does not take much to have to put out hundreds of dollars (at least) for a major repair and that could put a real damper on a trip. Also, with the complex electronics and diagnostic tools need to do many things your self, I feel the insurance is a good investment. Did I mention the outrageous price of parts?



Dean

 

[rbattelle]

Originally posted by Bill Stockard

I'm on my fourth Dodge CTD. I drove two of them to nearly 100,000 miles before trading them in. So far, I have spent about $500 on all four trucks combined for out of warranty repairs, which isn't even close to the price of a warranty policy. I'll take my chances and spend my money on the things I like to do.



The extended warranty is an insurance policy that is sold "betting" the vehicle is going to cost the seller of the policy less than it is going to cost you to pay for that policy. Then there's the markup... from the seller to the dealer, the dealer to the buyer and the salesman's commission. I know how that works and have made good money selling them.



Bill

Bill makes some excellent points. Extended warranties are a fickle kind of thing, from what I've heard. I listen to Clark Howard a lot (financial guy on the radio), and he says never ever ever buy an extended warranty on anything except automobiles... and even for automobiles he's rather neutral on the subject. Problem with these extensions is that they are mostly a HUGE profit scheme for the dealer. It's like saying "I bet you $2000 that more than $2000 worth of equipment will break on this truck". It seems like there's really no way to say clearly "yes" or "no" on the subject, so it all comes down to personal opinion.



The way I see it, we already have enough trouble with dealers voiding warranties (or just not honoring them) with the free factory warranty. Do you really want to have to spend another 7 years/100k worrying about "what's this going to do to my warranty"? I don't.

 

[DPKetchum]

Try negotiating with the dealer on one. I have in the past and paid 1/2 what they wanted for a factory policy.

 

[ChrisTucker]

before you buy from the dealer, try this, its right off the DC site: http://www.servicecontracts.chrysler.com/

 

[HOCummins04]

With the 2003 and newer, you have 7 Year 70,000 on the powertrain. That will cover the really expensive stuff. That is not to say that a particular repair could not run up a big bill, but with the powertrain covered, what could cost $2000?



I don't know the particulars of what is covered/not covered under the 7-70 yet, since my new rig is not here yet, so I am assuming the driveline is what they are referring to.



Another question that is harder to answer is: Though most of us here intend to keep our trucks for 200,000 miles, how many of us actually do? My better half points that out from time to time (about me). I would still be driving my 01 if it were not for the problems I had with it. When something newer and more powerful comes out 4 years from now, most of us will start to get the itch. Point being that with the 7-70, how many of us will get far past 100K? A good percentage will, but I suspect more won't. Just my . 02.

 

[TCDiesel]

WARRRNTIES

If major costs are involved the the carrier will send out a investigator and than will only replace parts or what is the less cost method. Their methods are questionable,I have seen where they tow the vehicle to a different facility for cost reason only,and when being tow had a accident and total the vehicle. The owner of the tow vehicle insurance had to paid on the policy collision,It was a big mess. {Needless to say thats one way not to pay a claim. }Also the carrier liability was remove as the vehicle was a total lost, and did not pick up on the new one that that policy residual that was left. THE POLICY IS ONLY AS GOOD AS THE COMPANY STAND BEHIND IT NO MATTER WHAT THE COST.

 

[Bob Fennema]

Originally posted by ChrisTucker

before you buy from the dealer, try this, its right off the DC site: http://www.servicecontracts.chrysler.com/

I bought a $100 deductable plan for my 2004 CTD and the dealer was $200 below the price on the site in your link.



I have a PT Cruiser that is in the shop and needs a part that may take up to 30 days to get. DC is providing a rental car because of the extended warrantee I have on that car. Should get 900 dollars of rental car free.



I have almost always done well enough on these plans in the past. But then again I owned F**ds.



Bob Fennema

 

[klenger]

I had an A/C compressor go out on my 01. 5 just before it went out of it 3/36 warranty. It would have cost me over $1000 just for that if the vehicle had been out of warranty.

 

[ChrisTucker]

Originally posted by RFennema

I bought a $100 deductable plan for my 2004 CTD and the dealer was $200 below the price on the site in your link.



If you go to the link and input getting warrenty within 12 months of purchase,less than 12k mi, keep for 7 yrs, and 60k mi, you get a 7 yr, 60k mi protection for a price like this:

$0 deductable: $1400

$50 deductable: $1280

$100 deductable: $1155

Most of you guys said you paid $1800+.

 

[PJ]

One thing to think about is that if you get the itch to buy a new truck in a few years, YOU CAN SELL THE WARRANTY back to Chrysler. I know as my 98 spent several MONTHS in the shop in Chico Calif and NEVeR fixed the problem. I traded the truck in on a new GMC Yukon XL and sold the balance of the warranty back to D/C. I got about $1200 and had used the heck out of it. Mostly in rental cars. I still say, BUY IT!

 

[Bill Stockard]

I bought a used 2000 GMC Jimmy 4-door with 8,000 miles on it from a relative at an excellent price about 18 months ago. It had an extended warranty on it. Did I pay the $35 to get the warranty transferred? You bet!!



There is nothing on that vehicle I would want to or even attempt to repair myself. I don't even do the oil changes myself! Being it's a GM product, has been trouble free so far, and gets 20+ MPG in town driving, I figure I'll eventually need that extended warranty.



Bill

 

[Bob Fennema]

Originally posted by ChrisTucker

Originally posted by RFennema

I bought a $100 deductable plan for my 2004 CTD and the dealer was $200 below the price on the site in your link.



If you go to the link and input getting warrenty within 12 months of purchase,less than 12k mi, keep for 7 yrs, and 60k mi, you get a 7 yr, 60k mi protection for a price like this:

$0 deductable: $1400

$50 deductable: $1280

$100 deductable: $1155

Most of you guys said you paid $1800+.

I should have said that I wanted 5 years 100K since I drive about 20k/year and paid $1840.



Bob Fennema