Extended Warranty Worth it?

[Sunflower]

Hello, so my Rubicon 4xe is about to be delivered any day now. I just got pre approved today for an auto loan at 5.79% APR. How ever I would like to know those who have purchased recently have you purchased an extended warranty or GAP? If so how much was it? I just want opinions whether it’s worth it or not and why and cost before I go to the dealership.
Thanks!

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[shooting4625]

I had a carmax warranty on our first Jeep a 2008 wrangler JK and it was a great warranty it covered $20k plus of repairs including and out of the blue engine change
So I did not think twice on our 2023 Jeep, our dealer had a lifetime warranty available grabbed it in a heart beat, my main concern is will they have parts when you need a warranty repair ? Probably why I got a 2.0turbo, they will be making it for a few years

 

[Eddiechi]

There are a couple of threads on the extended warranty - Mopar Max Care Warranty up to 8 years - there are 2 or 3 references for the best prices -

I used Tom Winkles at Hayes Jeep as many others have as he usually offers the lowest price or matches the best price you can find. I think when I bought my last Jeep I was offered the extended warranty for something like $4k but I purchased it through Tom at half that price for 8 yrs 100k miles. The Mopar warranty prices increase when your vehicle hits 12k miles or 1 year.

 

[NeilP]

I just purchased the Mopar MaxCare 8yr-85,000 warranty. $100 deductible for $1400.00.

You can get also buy another version of the Mopar MaxCare 8yr-85,000 warranty that is fully refundable at the end of the 8-85 term if you never have a warranty claim against it. It was in the $1600 range.

Check prices here.

 

[rickinAZ]

Hello, so my Rubicon 4xe is about to be delivered any day now. I just got pre approved today for an auto loan at 5.79% APR. How ever I would like to know those who have purchased recently have you purchased an extended warranty or GAP? If so how much was it? I just want opinions whether it’s worth it or not and why and cost before I go to the dealership.
Thanks!

It's simple math: In order for an extended warranty to be worth it, you must collect more from the warranty company than they initially collected from you. If so, how do they stay in business? In other words, on average, the warranty buyer comes up (way) short. There's a reason why CarShield can spend a fortune on advertising, and it's not because they pay out more than they take in.

Think about it.

BTW, you’ll will see posts from members claiming that it worked for them. In isolated instances, it does. Just because they got away with hitting on eighteen without going bust, doesn't make a good blackjack strategy.

 

[jc1003]

It was worth it for me on my 2019 Pacifica. The dealership quoted $4300 for suspension repair and strut replacements. I only paid the $100 deduct and the 4 wheel alignment which was $115 so $215
total payout.

 

[tomk62]

When evaluating a warranty, you have to evaluate the chance of needing the repair times the cost to repair, versus the full cost of the warranty.

For example, if over a 3 year period you have a 10% chance of needing a $1000 repair, then your "expected cost" of not getting the warranty is .10 x 1000 = $100.

If the warranty will cost you $10 per month for 3 years then the total cost of the warranty is $360. So if you bought the warranty, you chose a 100% chance of paying $360 over a 10% chance of paying $1000 ($100). In this example, if your repair is over $3600 then you come out ahead. Of course this is not taking interest into account.

The other thing to consider is your ability to pay the full cost of the repair w/o the warranty. $1000 might be affordable, $5k or more may not.

Some times it works out, other times it doesn't. For most, buying the warranty doesn't - this is how warranty companies make money. You will not always "win", but over the long term with this strategy, you will.

 

[JJ_WA]

Hello, so my Rubicon 4xe is about to be delivered any day now. I just got pre approved today for an auto loan at 5.79% APR. How ever I would like to know those who have purchased recently have you purchased an extended warranty or GAP? If so how much was it? I just want opinions whether it’s worth it or not and why and cost before I go to the dealership.
Thanks!

You ask about two different types of insurance. Others have already responded about the extended warranty. GAP insurance is meant to protect you from what you owe on the vehicle and the value of the vehicle if it's totaled. If you are financing the Jeep for any amount of time you might consider GAP as a form of protection - all vehicles go upside down in value nearly immediately after driving off the lot.
If you are planning on paying off the Jeep in a short while, GAP may not be your best option.

HTH

 

[azjl#3]

Mopar has improved, route 66 used to be my go to, cheapest for longest duration and jeep dealers take it, generally. Last check was buying my 23 last month, r66 wanted around $1200 for 7 years, 80k miles. I took mopars deal because it was pretty darn close to the same and included the rental car if needed, although most insurance companies cover that for almost nothing.

10 years ago a 7 year mopar warranty was something like $3,500, lifetime well north of $5,000.

 

[Chupacabra]

Check with your insurance company to see if they offer GAP insurance. The times I've added it, getting it from insurance company was WAY cheaper than they will grease you for in the F&I office.

 

[Valpo Jeep]

I have gotten an extended warranty on only 2 vehicles I have owned and I have been driving since 1984. Neither time I was able to get more value in repairs than the cost of the warranty. I have had good luck with cars so I will likely never get another extended warranty.

 

[Opus]

I admit I bought into the trope: I'd rather have it and not need it... than need it and not have it...

The extended warranty I bought will cover the length of the loan. I figure if it goes "toe-up" after that at least I won't be making payments on it.

 

[Dkretden]

Is an extended warranty worth it?

there are two answers and both are correct.

1) is it good for ALL people who buy a warranty? NO. If it was a good deal for everyone, then the insurer would loose money and would stop selling them. The warranty is a terrible deal for most people.

2) is it a good deal for YOU Personally? Maybe. Jeeps are certainly not the most reliable vehicles out there and if YOU got a troublesome one, the warranty would pay for itself (but only if you got a troublesome one). So, “you gotta ask yourself: ‘am I feeling lucky today?’ Well, do ya?”

 

[Deleted member 59498]

Yes they are worth it as long as you kept it under 2000 dollars under 1500 is even better. If the dealer doesn't offer a really good deal just buy after the fact.

Gap is generally not needed on Wranglers because they keep their value unless you are upside down because of trade in or something.

Its insurance that is all just stick with Mopar MaxCare.

 

[gdeyarmond]

I just purchased the Mopar MaxCare 8yr-85,000 warranty. $100 deductible for $1400.00.

You can get also buy another version of the Mopar MaxCare 8yr-85,000 warranty that is fully refundable at the end of the 8-85 term if you never have a warranty claim against it. It was in the $1600 range.

Check prices here.

That's cool that the dealer (seller) will quote without asking for every piece of PII available to eventually call you endlessly.

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