extended Warranty

Patrick SINY

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Would appreciate any input on extended warranty. First time Jeeper. 2021 Sahara altitude.
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SolarWizard

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Type extended warranty into that search box and click titles only there’s 30+ threads with all the info you could want
 

Gandor

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One of the coolest things about jeeps is that basically every part has a full on upgrade from stock. Personally I'd rather pay to upgrade parts than pay for a warranty to repair bad stock components.
 

JSFoster75

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GEICO MBI


*MBI Exclusions

Exclusions to this policy include regular maintenance services such as tune-ups, suspension alignment, wheel balancing, filters, lubrication, coolant and fluids, spark plugs, brake pads and linings, brake shoes, and tires. Also, breakdown repairs made necessary by intentional damage, corrosion, misuse, or improper maintenance are not covered. Mechanical Breakdown Insurance coverage is in excess of coverage provided by your manufacturer's warranty. Read the policy amendment for the complete terms and conditions of this coverage.
 

rickinAZ

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*MBI Exclusions

Exclusions to this policy include regular maintenance services such as tune-ups, suspension alignment, wheel balancing, filters, lubrication, coolant and fluids, spark plugs, brake pads and linings, brake shoes, and tires. Also, breakdown repairs made necessary by intentional damage, corrosion, misuse, or improper maintenance are not covered. Mechanical Breakdown Insurance coverage is in excess of coverage provided by your manufacturer's warranty. Read the policy amendment for the complete terms and conditions of this coverage.
These sound like the exclusions on every supplemental warranty.....ever.
 
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runningshoes

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Not sure why there's resistance to extended warranty options. There's a ton of electronics that can go bad randomly and are expensive to replace. I'd get one IF;
1. You know for sure you're keeping the Sahara for a period that matches the warranty
2. You don't have plans to heavily modify the vehicle

Lot of good info on the forum about which dealers sell them at a decent price, etc.
 

rickinAZ

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Not sure why there's resistance to extended warranty options.
I think that some on here are numbers people and we subconsciously analyze offerings - it's in our DNA. The question that always nags at me is: If the warranties are worth it, and the insurer pays out more to you than you put in, how do they stay in business? Seems like a simple enough question - right?

Studies show that extended warranties pay out an average of $.40 in claims for every dollar received in premiums. Lotteries pay out $.70 and slot-machines pay out $.98. In fact Consumer Reports claims that 55% of all extended warranty purchasers don't use the program AT ALL during the lifetime of the policy. I invite forum members to Google their fingers to the bone to refute these numbers.

There are some purchasers who benefit, but I suspect that we don't hear from the purchasers who are under water.
 

Fonzilla85

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Back in 18 when I picked up my rig, I picked up the lifetime warranty, which is no longer available. My reasoning for it was to have the engine/trans and electronics covered, mainly because I wanna keep this rig till it’s completely dead. I’m not a big fan of extended warranties, but I do enjoy the piece of mind it brings.
 

runningshoes

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I think that some on here are numbers people and we subconsciously analyze offerings - it's in our DNA. The question that always nags at me is: If the warranties are worth it, and the insurer pays out more to you than you put in, how do they stay in business? Seems like a simple enough question - right?

Studies show that extended warranties pay out an average of $.40 in claims for every dollar received in premiums. Lotteries pay out $.70 and slot-machines pay out $.98. In fact Consumer Reports claims that 55% of all extended warranty purchasers don't use the program AT ALL during the lifetime of the policy. I invite forum members to Google their fingers to the bone to refute these numbers.

There are some purchasers who benefit, but I suspect that we don't hear from the purchasers who are under water.
Completely get the numbers point and fall into that category (probably even extremely). However, given the large number of issues with the JL models, the increasing cost of parts, and the increasing % of electronics as a value of a vehicle, warranties make more sense today.
The payout numbers are averages - if the JL model has a lower than average "quality factor" the likelihood of using the warranty increase. Same if you tend to keep it longer or go off road more (I'm assuming increased wear on certain parts). The cost of an extended warranty can be absorbed by a single item going bad today. Adding less than $200 per year to a 10 year holding period is not a bad bet.
 

rickinAZ

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Completely get the numbers point and fall into that category (probably even extremely). However, given the large number of issues with the JL models, the increasing cost of parts, and the increasing % of electronics as a value of a vehicle, warranties make more sense today.
The payout numbers are averages - if the JL model has a lower than average "quality factor" the likelihood of using the warranty increase. Same if you tend to keep it longer or go off road more (I'm assuming increased wear on certain parts). The cost of an extended warranty can be absorbed by a single item going bad today. Adding less than $200 per year to a 10 year holding period is not a bad bet.
I totally get the peace of mind thing. In fact, watch CarShield commercials. Boomer scares the crap out of the listeners, and then he presents the solution - an extended warranty. Corny, but it obviously works. In fact, I wouldn't be surprised if CarShield spends more on advertising than on settling claims. :)

Extended warranties, of all types, have the largest profit margins in retail. 150 years ago it was lightning rods ("your house will burn down!!!"). Capitalizing on people's fears is generally a smart/profitable strategy.

Truth be told, I bought GEICO MBI for my first generation diesel for all the reasons that you cited for the JL. [Rick, you really should practice what you preach] But...it only costs $80/year, is cancelled when I sell the vehicle, and there is no question about Berkshire Hathaway being around if the shit hits the fan.
 

Dkretden

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Extended warranties are terrible. Until you need one. Exactly the same as an insurance policy. You pay and you pay and you likely will rarely need insurance. But, when you do, it’s money well spent.

OP, most likely you will NOT need the extended warranty. BUT, a Jeep is full of electronic gizmos these days and they can cost a lot to fix. If it sets your mind at ease, buy the warranty. You have insurance on your house right? Ever had your house burn down? No? ..... but that insurance may let you sleep a bit better..._ same with the extended warranty on the Jeep.

I had an extended warranty on a 1987 Ford Thunderbird. Glad I got it as it essentially covered power windows that fried 1x per year and an a/c unit that was toast 1x/year. The extended warranty more than paid for itself.

i have owned Toyotas, Audis, BMWs, Mini’s, and Acura’s since then. Never purchased another warranty —- until I purchased this Jeep. why? Jeep’s reliability leaves something to be desired.


your decision.
 

Craigzjeep

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Geico MBI costs me $22 year for my 2019 Rubicon, that was a no brainer decision when Larson Dodge wanted around $5000 for pretty much the same thing.
 

johnnyj

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I look at it this way - call your bank and open a savings account. Put 100 bucks a month in there. At the end of your 3 year period you will have about 3600 in there. Now, yes, high mileage drivers will hit this sooner but it is a general concept.

3600 is great seed money, keep adding to it since it's a discipline at that point. Honestly, the majority of people will find that the amount in the account will cover most things. Again - majority here. There are one offs. Personally, after 6 or so years you've either got the cash to cover anything you need or a big chunk towards your next down payment.

Warranties arent *scams* but they definitely are for very risk averse people who are probably better saving/investing the cost.
 
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