Purchasing Extended Warranties?

[JFirebaugh]

My Dodge CTD is about to be moved from its rail car, and trucked to my dealer. This means I will likely be doing the paperwork this coming week! Concerning the purchase of extended warranties (both the one DC offers and other third party “policies” that the dealer may offer) what is the advice and experience of my fellow TDR members



Here are my thoughts:

1. I have only bought an extended warranty once, for a new Honda Accord. I never was able to use it, as Honda always took care of everything. (Even beyond the basic 3yr/36K B-to-B period. )

2. I believe that these extended warranties are way overpriced, and basically a way for the dealer to increase their profit! Especially if #1 happens!

3. With one exception, I tend to keep my vehicles for over 10 years and at or over 100K miles. Therefore, I have been thinking of the 10yr/100K-mile coverage. Since the reason for an extended warranty is to prevent a large maintenance bill, I am thinking one only would need the highest deductible possible to lower the policy cost.

4. My main concern is with all of the computers, electronics, and expensive components, such as found in a ALB system (Honda has an ALB solenoid part which is over $1,200). Only the most expensive policies fully cover all of these costly/electronic systems!

5. The Dodge website extended warranty area says that you have up to 12 months from the in-service date to purchase a DC extended warranty for the same price as on day one! It also says the dealer is the one who really sets the policy price! Who has experience with a later purchase?

6. Recently, I heard the best thing to do (if you can) is to take the money you would have spent on an extended warranty and put it in a savings or CD account. Should you have a major mechanical expense after the factory warranty, draw from that special account. If you don’t have a large expense then you have a down payment saved up for your next vehicle.



I would welcome any of your insights and experiences . Thank you!



John

 

[jrollins]

on my current CDT i purchased a extended warrant through DC. It was called the diesel rap, it basically covered all drive train components excluding the engine (because the CTD has a standard 100k warranty). It cost me around 1000. 00 i think and only used it once to have a rear-end seal replaced, which i could have done myself for probably under $10. 00. the problem i found with the warranty is it covers major component failures but it doesn't cover items that are prone to fail. most sensors were not covered nor are ABS issues. I know there are some warranties that are offered that do a better job on coverage but the price goes up with it. in my opinion they are not worth it and would never own another. The way i look at it, if they actually didn't make money off of the warranties they wouldn't sell them, and if they are making money off them then either most people don't have issues or they are not fixing your truck. Also consider if you plan on doing any Bombing to your rig you can kiss any hope of extended warranty coverage goodbye

 

[TPCDrafting]

I feel both ways on this.



I bought my truck used and didn't know what I was getting into so I bought the extended warranty. The warranty company has been somewhat a pain to deal with, but they have honored their waranty eventually each time. I've had the truck in twice. First time was over a year ago for the rear pinion seal. The next was just last week for the dealer to replace the seal behind the gear case (big project) and to replace the rear axles seals. I paid the 100 deduct. and for a rear brake job. The whole bill was around $2200 this time. Can't remember what it was for the pinion seal. I only paid 1400 for the waranty. So in this case I have come out ahead. I just bought my wife a used car yesterday and bought another waranty, my credit union recommended it as they told me around 85% of all car buyers that purchase the extended waranty's use up all or more of the waranty cost. I'm not sure that they make any money at this, but they still offer'em anyway.



On the other hand, if you're buying a new CTD, don't they come with 7yr/70k B to B and 100k on the motor/drivetrain? I don't know for sure. Over the next 7 years you could stick $25 a month in savings and have over $2k or double it to $50 and have somewhere around $5k saved up for parts. If you don't need it you'll have down payment $$ as stated above.

 

[JoeDiesel]

I ordered my CTD a few days ago with the Dodge extended warranty for $1450. 00. It was the "Platinum Service" which is suppose to be the most comprehensive one they sell. The 7/70 is NOT bumper to bumper. It is only power train. I also plan to keep my truck for a very long time so that is why I purchased it. With the high cost of repairs and "stealers" always looking for a way not to honor the extended warranty, it is a gamble either way. I will do all the PM's at the stealer even though it goes against my grain to pay those high prices for rotation/ balancing and a lousy oil change. Have you priced the cost of a failure of a major part like the A/C compressor or the differential?? It is all about your personal tolerance of the "fear" of astronomical repairs. Good luck on your decision Sir.



* * *



I would respectfully request you avoid the generic reference, "stealer. " Please feel free to post experiences - good or bad - in detail.



Thank you.



Robin

TDR Admin

 

[Pit Bull]

I would only consider an extended warranty if I was buying used or if I beat the crap out of a truck and knew I would be breaking things often. Wait until DC sends you their warranty offers 6 months after you have owned the truck, then decide. At that time whatever the Dealer tells you he will sell it to you for offer him 1/2 that amount and they will take it.

 

[Sticks]

Another thought, If you plan on doing any BOMBing, why waste your money on something that the dealer will void anyway. I bought the extended on mine, and am starting to regret it, as I will certainly be doing some things that will void mine. If I had to do it all over again, $2k in a CD or savings for the same thing if it happens down the road would have been best.

 

[Pit Bull]

Originally posted by sticks



I bought the extended on mine, and am starting to regret it,

Sticks, I bought an extended on my 2000 that I bought used. Cost me $1700 for the 100K mile diesel wrap. Traded it in on a 2002 one year later so I canceled the extended warranty on the 2000. DC sent me back $1250. If you don't want it cancel it and get most of your money back.

 

[JoeDiesel]

"Pit Bull", I was not aware of the extended warranty that is offered six month after the purchase. Do you have a phone number to call someone about this? My contract has a $1,450. 00 charge for the Dodge factory warranty called "Platinum Max Care" coverage for 7 years or 70k miles, zero deductible. Is there a more comprehensive one direct from Dodge? Since I just ordered the truck, I'm sure I can remove it from the contract if I want. The truck wont be here for about six weeks.

 

[Pit Bull]

Joe I have had my 2002 truck for 6 months. I just got in the mail tody a offer from DaimlerChrysler with a number of warranty upgrades. They are called Powertrain Care 7year 100K mile coverage of engine/transmission/driveline 400+ components. Next step up is called "Added Care" then the next step up is call "Maximum Care" all of them adding more parts of the truck and all for up to 7 years and 100K miles. It says you can obtain more information on their website www.servicecontracts.chrysler.com



You will get this same thing 6 months after you buy your truck. If you want to finance it with your truck at time of delivery then you will need to decide before you take delivery. Just remember if they say it cost $1000 then you should be able to buy it from them for $500. Good luck.