Extended warranties suggestions?

[Ratbert]

Wow the cost has nearly doubled since I got mine.

That's another reason to buy it early. The price is pretty much guaranteed to rise over time.

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[Punkn89]

Wow the cost has nearly doubled since I got mine.

More like quadrupled, sounds like you got a great deal considering new 8 year/125k miles is now $4380 and you paid $1100.

 

[MidMiHunter]

Any windshield specific plans out there? That one may pay for itself, I put 4-5 windshields in my '12 JKU. I'm sure the Gorilla glass on my "24 JLUR wont be cheap to replace.

 

[TheRaven]

Not sure if this is what you meant but the clock on the extended warranty starts the moment you purchase it. If you were to sell the Jeep while it was still under the factory warranty, you get a prorated refund, not the entire purchase price.

It comes down to how you look at it. Really when you buy MaxCare, no matter WHEN you buy it, you are buying only the "extended part". You aren't paying anything for coverage while your factory warranty is intact. As illustrated, if you buy a brand new 2025 today and purchase 7/100 coverage, you are paying $2800 for an additional 4/64 warranty tacked onto your factory warranty. If you wait until a month before your factory warranty is up, you pay $3800 for the exact same thing.

If they actually do pro-rate it the way you claim, they're cheating. I can't say you're wrong cause i'd never sell out of a warranty on a Stellantis product.

That's another reason to buy it early. The price is pretty much guaranteed to rise over time.

Yeah but that's a lot...enough to change the balance of the "should I get a warranty" equation.

More like quadrupled, sounds like you got a great deal considering new 8 year/125k miles is now $4380 and you paid $1100.

I actually bought 5/75 for $800. The 8/120 price I quoted is from my paperwork from Tom. But that's what i'm saying - those prices really change the equation. $1100 is a no-brainer. $4380 is a different story.

 

[jadmt]

if your new wrangler is like mine and spends 45 days in the shop getting repairs Jeep cares will give you a 6 year $0 deductible warranty free of charge for your troubles.........one thing is with mopar maxcare it will not allow you to lift your jeep.....this was verified by Granger who is a sponsor here and sells for $0-25 over cost on a regular basis.

 

[Old Dogger]

Extended Warranty Insurance Policies are only needed if one plans on keeping ones Wrangler long term, way past the new Vehicle factory warranties. IMO..they then are definitely needed! The kicker is, as already mentioned above, the longer that you wait to purchase one, the more expensive the warranty will cost you. Please purchase only MOPAR Extended warranty policies..........Many of the third-party warranties are scams, plus the Dealers won't accept them.

 

[Ratbert]

Extended Warranty Insurance Policies are only needed if one plans on keeping ones Wrangler long term, way past the new Vehicle factory warranties. IMO..they then are definitely needed! The kicker is, as already mentioned above, the longer that you wait to purchase one, the more expensive the warranty will cost you. Please purchase only MOPAR Extended warranty policies..........Many of the third-party warranties are scams, plus the Dealers won't accept them.

I agree with all of that with one caveat: a given dealer might not accept them instead of won't accept them.

Note that, unfortunately / shockingly, a dealerships isn't even required to honor a Mopar warranty. Fortunately it seems to be insanely rare where they refuse.

 

[TheNewGuy]

If they actually do pro-rate it the way you claim, they're cheating. I can't say you're wrong cause i'd never sell out of a warranty on a Stellantis product.

Yeah there are people who make the mistake thinking they are getting 8years/ 125k miles on top of the factory warranty which isn't the case.
I bought my Maxcare from Tom and I can tell you with 100% certainty that if you sell your Jeep or cancel the warranty while it's still under the 3/36 warranty, you get a prorated amount back. Not sure if that changes if you only have the 5/60 power train remaining but I'd bet it does not.

 

[AndySpill]

You have $100. Here are 2 ways to invest it.

One will earn you, on average, 7% a year after inflation, and it involves investing in the stock market, in an index fund that reflects that market.

Sure, that's an average. There will be years that you earn more or or less than that but historically it's close to 7%. And that means, by the "rule of 7's," in about 10 years you'll double your money.

Alternatively you can invest that $100 another way, and at the end of the year I'll give you back somewhere between $50 and $60, (not the prior investment's $107) pocketing $40 and $50 dollars of that $100 investment for myself. That's a rate of return between -40% and -50%.

In about 10 years you'll have less than 10 cents left.

Which would you take? The latter is an extended automobile warranty. Industry averages suggest that warranty providers tend to pay out only about 50-60% of the premium collected in claims.

Wouldn't it make sense to make a rainy day fund for repairs invested at 7% in the stock market and use it for those repairs as needed? Sure, the occasional owner comes out ahead with a warranty if they bought a lemon. But the vast majority make the insurance company money, which happens when your premiums plus interest exceed what the insurance companies pays in repairs; i.e. the insurance company only wins when you loose, which is far more than 1/2 the time.

 

[Kracka]

Just put this one on our new GC; the price rises with age/miles. Wrangler won't get one since it's modded. Granger is a sponsor here and is currently offering them at cost to meet some sales goal.

https://www.jlwranglerforums.com/jeep-warranty-dealer-cost-now-through-march-31st/

 

[SmokyMtnsJeepGirl]

My quote from Granger for a '21 JLU Sahara with 29k miles is below.....

I'm getting a better deal with Tom Winkle though - $200.00 less than Granger. Although this kinda washes as Tom requires an inspection of a clean bill of health from a dealership which cost $179.00. Granger sends a tech to you for a free inspection.
Another difference between Granger and Tom is that Tom is offering a $100.00 deductible vs. only the $200.00 I can get from Granger. This is why I say Tom is a better deal.
Total cost for MaxCare warranty from Tom is $2465.00
So about the same total cost except I get to choose a $100.00 deductible with Tom.

With both Tom and Granger the maximum number of years/miles I can purchase is 6/60k.

 

[YGBSM392]

Based on what a service provider told me (take it with a grain of salt until someone more knowledgable than me confirms this), the downside is that the dealership must send (no more calls) detailed warranty repair information to Jeep. Jeep may ask for more information. They must then wait for approval and then order the parts. So warranty repair takes longer. The upside is that most dealer service is replace not fix. A bad wire on an expensive wiring harness requires the replacement of the wiring harness and associated labor time.

 

[TheRaven]

Alternatively you can invest that $100 another way, and at the end of the year I'll give you back somewhere between $50 and $60, (not the prior investment's $107) pocketing $40 and $50 dollars of that $100 investment for myself. That's a rate of return between -40% and -50%.

This is a terrible example. To make it even remotely relevant, you have to add in the fact that there is a 30-40% chance that your $100 investment could save you $5k+.

Wouldn't it make sense to make a rainy day fund for repairs invested at 7% in the stock market and use it for those repairs as needed? Sure, the occasional owner comes out ahead with a warranty if they bought a lemon. But the vast majority make the insurance company money, which happens when your premiums plus interest exceed what the insurance companies pays in repairs; i.e. the insurance company only wins when you loose, which is far more than 1/2 the time.

Your data is still at least a decade out of date. You need to stop this nonsense. Repairs cost A LOT more than you are accounting for and savings do not earn interest like you seem to assume. Most people are not interested in the active stock trading necessary to yield the sort of returns you are talking about...I know, because i've tried. It didn't go well for me.

If you can afford a "rainy day fund" of at least $5000 that you are ready to dedicate to repair at a moment's notice, and won't leave you without (or seriously deficient in) savings, then you COULD go this route. But again, MaxCare in most cases is half that cost (used to be 1/4th) and $5000 even in a money market account with the best interest rates available today would net you like $300 over 5 years.

 

[AndySpill]

This is a terrible example. To make it even remotely relevant, you have to add in the fact that there is a 30-40% chance that your $100 investment could save you $5k+.



Your data is still at least a decade out of date. You need to stop this nonsense. Repairs cost A LOT more than you are accounting for and savings do not earn interest like you seem to assume. Most people are not interested in the active stock trading necessary to yield the sort of returns you are talking about...I know, because i've tried. It didn't go well for me.

If you can afford a "rainy day fund" of at least $5000 that you are ready to dedicate to repair at a moment's notice, and won't leave you without (or seriously deficient in) savings, then you COULD go this route. But again, MaxCare in most cases is half that cost (used to be 1/4th) and $5000 even in a money market account with the best interest rates available today would net you like $300 over 5 years.

Kevin: this in an unalienable truth from someone who clearly has nothing to sell anyone here.

Vehicle extended warranties cannot statistically be worth it to both insurer and insured, only one.

This is an undeniable law of math.

Extended warranties are offered because, far, far, more the rule than the exception, they make the insurer money, which can only happen if the policy holder, on average, losses money, spending more in premiums than the present value of covered repair costs that is paid by the insurer.

If these types of policies were sold at cost they wouldn't statistically be worth it. Never mind that industry standard sales commissions are as high as 50%. That means that only 1/2 the money you put in for the policy can be allocated to your coverage, the other half goes to the salesperson who convinced you to buy it (yes, in fairness, warranty terms are negotiable, so too some extent you can control how much they suck, not whether they do or don't: they do.)

Does the occasional actuary/bean counter get the numbers wrong making the rare extended warranty policy statistically worth it; does the occasional customer buy a lemon making the insurance worth it? Sure.

People, put your money in an interest bearing index fund of the US stock market rather than spend it on these premiums. If you are like most, you'll put away more than you spend to help your down payment on your next vehicle. There is no management of these monies involved.

If you can afford a "rainy day fund" of at least $5000 that you are ready to dedicate to repair at a moment's notice, and won't leave you without (or seriously deficient in) savings, then you COULD go this route.

This is the essence of what fuels extended warranties. Thank you for so clearly nailing if for me. I'll detail that uncomfortable truth below. Ready?

As we all know vehicles have a cost of ownership, from repairs to loan payments. If you are living so close to the margin that you feel the need for a false sense of security in buying an extended warranty, thinking that you've put a cap on repair costs (wait until something isn't covered) then you've purchased a vehicle too expensive for your budget.

This isn't some arm chair warrior that fails to realize how some good people barely get buy with a 1973 Vega. This a Wrangler JL. It's a luxury with cheaper vehicles available.

Nothing I say above should be conflated with need to not have health, or home a vehicle liability insurance. Unless you're as wealthy as Warren Buffet, please, please have these even if not required by law. Insurance that protects against catastrophic loss is good and necessary.

If nothing I have said has sold you, then consider this. If vehicle extended warranties were such good investments for the policy holder someone on Wall St would bundle them into a security and insurance companies would by shares of this fund with your premiums. They don't. Rather, they invest it like I am suggesting you do.

Still not convinced? The average extended warranty commercial 30 second spot would probably require 2 hours of air time if testimonies from those who were glad they had it were equally represented by those who paid more than they got back: even if they didn't regret their decision.

Off soap box.

 

[TheRaven]

Vehicle extended warranties cannot statistically be worth it to both insurer and insured, only one.

I have repeatedly explained to you exactly how they absolutely can, and are.

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