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Factory extended warranty worth it?

linuxos77

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We have Geico for insurance and for like $9/month we have their mechanical breakdown coverage for 10 years/100k miles. Covers typical power train things, plus all cooling (both engine and AC), and all electrical (including the head unit). So it's not a bumper to bumper and there's a $250 deductible for covered work but it's pretty cheap and we used it once on our Renegade for a drive shaft and they made it painless, they just called our mechanic and paid via the phone (doesn't need to be dealership). We haven't had to use it on our Wrangler yet.
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JeepViking13

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The math goes like this - extended warranties are backed by large funds that cover plans across the whole spectrum of automakers. The front-end brokers that sell the warranty take a commission from the sale and then the liability goes to the fund. That fund will have FCA warranties, GM warranties, Honda warranties, Toyota warranties...etc. Some of those warranties are massive losers for them (like the Jeep plans) and some of them are big wins (like Silverados, Camrys and Accords). In the end, the fund makes big bucks and Jeep owners with extended warranties save a ton of cash.

This is why the ancient saying "if extended warranties were worth it, the companies would go out of business" needs to die.
My issue is for me this doesn't seem like the extended warranty is worth it at this time. It's basically similar to stock warranty at the exact same time. I'm sure it would be worth it once my stock factory warranty is ready to run out.
 

TheRaven

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My issue is for me this doesn't seem like the extended warranty is worth it at this time. It's basically similar to stock warranty at the exact same time. I'm sure it would be worth it once my stock factory warranty is ready to run out.
No you definitely want to get it now. Keep in mind - regardless of when you get it, you are only paying for the "extension". So if you get 5/75 right now, you are actually paying for 2/39 (tacked on the end of your factory 3/36, plus a few other little goodies). The problem with waiting is that that price continues to go up. So all you do by waiting is massively up your cost for the exact same product. Right now 5/75 should be something like $800...if you wait until you are 2.5 years in and at 30k miles you'll be paying something like $2500...for the exact same thing.
 
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JeepViking13

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No you definitely want to get it now. Keep in mind - regardless of when you get it, you are only paying for the "extension". So if you get 5/75 right now, you are actually paying for 2/39 (tacked on the end of your factory 3/36, plus a few other little goodies). The problem with waiting is that that price continues to go up. So all you do by waiting is massively up your cost for the exact same product. Right now 5/75 should be something like $800...if you wait until you are 2.5 years in and at 30k miles you'll be paying something like $2500...for the exact same thing.
Yeah but they charged me $1,780
 

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Old Dogger

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Most third party warranties, aren't worth the paper that they are written on...IMO. MOPAR, is the real way to go. Plus your Jeep Dealers will honor them.
 

gato

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It makes zero sense to buy the MaxCare extended warranty at the time you buy a brand new Jeep. (if you need to finance a $1,500 expense, you should not be buying a new Jeep)

A - If you decide to sell your Jeep before 3yr/36K, you just have to deal with the cancelation, etc.
B - If your vehicle is totalled before 3yr/36K, same you have to deal with the cancelation, etc.
C -If your vehicle is a lemon and you have to have a return/buy back, same.
D - The local selling dealer will NEVER have the best available price on MaxCare.
E - It is much easier to say NO to all extras that they are pressuring you on, at time of purchase.

The way I do it is, as my vehicle approaches the end of 3yr/36K, I make a realistic assessment of how much longer I'll keep it, I research on the forums who has the best deals at that time, and buy it. (note, sometimes they will tell you that you can save some money if you buy it before 12mo/12K miles, and it is true, you can save some money specially on GM vehicles - but it is typically not a lot)

I have bought MaxCare (and Chevy's EXP) over the internet at ˜70% discount from what local dealers offered. They are both great. Stays on the system for all dealers to see, and you can see it on the Mopar site. If you have problems after warranty it gets handled exactly as if the vehicle was under warranty. No hassle, no bill.

The only thing I'd say is that if you mod your vehicle, make sure you take it to a mod-friendly dealer that you have a prior relationship with.
 

Nitehawk92

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The mark up is insane for all finance department “add ons” and warranties. I sold cars for a few years and left the industry due to the general lack of morality and the brutal hours. We sold “paint protection” for $1,000 and so many people bought it. It got applied to every new and used vehicle during delivery prep, whether people paid for it or not. People literally paid $1,000 for something that they would’ve got for free just by refusing, but we were trained to sell it well. The catch was that if they tried to make a claim, they were pretty much always shown a stone chip etc that voided the warranty. Dealerships make the bulk of their money on new car deals on the “back end”, which are warranties, add ons, gap insurance, service plans, etc. If you had agreed to pay the original price prior to discount, you would have essentially added close to $4k after taxes to the price of your vehicle, and they 100% would’ve been ok with selling you something that has stupid mark up and little value for full price. The tactic is to hit them with a crazy price over and over and over, then offer a “50%” discount and the consumer assumes its a great deal and takes the bait.
There is NOTHING in this world I trust less than a car dealer.
 
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JeepViking13

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It makes zero sense to buy the MaxCare extended warranty at the time you buy a brand new Jeep. (if you need to finance a $1,500 expense, you should not be buying a new Jeep)

A - If you decide to sell your Jeep before 3yr/36K, you just have to deal with the cancelation, etc.
B - If your vehicle is totalled before 3yr/36K, same you have to deal with the cancelation, etc.
C -If your vehicle is a lemon and you have to have a return/buy back, same.
D - The local selling dealer will NEVER have the best available price on MaxCare.
E - It is much easier to say NO to all extras that they are pressuring you on, at time of purchase.

The way I do it is, as my vehicle approaches the end of 3yr/36K, I make a realistic assessment of how much longer I'll keep it, I research on the forums who has the best deals at that time, and buy it. (note, sometimes they will tell you that you can save some money if you buy it before 12mo/12K miles, and it is true, you can save some money specially on GM vehicles - but it is typically not a lot)

I have bought MaxCare (and Chevy's EXP) over the internet at ˜70% discount from what local dealers offered. They are both great. Stays on the system for all dealers to see, and you can see it on the Mopar site. If you have problems after warranty it gets handled exactly as if the vehicle was under warranty. No hassle, no bill.

The only thing I'd say is that if you mod your vehicle, make sure you take it to a mod-friendly dealer that you have a prior relationship with.
I didn't want it. I literally said no like 15 times. They talked me into it. I finally gave in. I never do that. It was a long day.

Also didn't need to finance anything. But i had to finance half because that was the stipulation the dealership gave to get the 6% below invoice. I plan on paying everything off after the 3 months.
 

beachbumm78

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I bought mine about a month before my factory warranty was up. About 1 1/2 years after I bought the jeep (yes I drive a lot haha). Got the Mopar warranty that covered everything including electrical. Kept for a few months then cancelled. Once I reach the fine print and a phone conversation I had with them. Discovered it would null and void the warranty if I went to any wheels that were more than 2” larger than what came on my Jeep. Also all aftermarket parts had to be Mopar. Since I had plans to do just this figured may as well cancel and get my $$ back.
so just make sure and read all the fine print, exclusions, etc when you do go tobuy one.
 

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xeon

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I was one of those people that bough the Lifetime Warranty - that covers just about everything. It cost me about $2K. So far at 57,000 miles it has saved me a ton, not including the saving on a rental car. I have had the following replaced: two front track bars, one rear track bar, one drag link, one front stabilizer, steering box, pitman bushings, two radios, one dash center console electrical panel(ac buttons etc), three USB controls, rear defroster button, fuse box, two aux batteries, two main batteries and that's just what I can remember of the top of my head. My JULR is an early 2018....and as the these get older, I watch my neighbors who have other Wranglers start to go through the journey as the rack up the miles. Some have traded in as things got difficult and restarted...the process but as the miles tick up...the odds are a warranty will pay for itself. Too many electrical things that can go wrong and take a very long time to diagnose and find the issue for a small inexpensive part. Its that labor that you would otherwise have to pay for to find the fault that a warranty can save you from.
 

TheRaven

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Once I reach the fine print and a phone conversation I had with them. Discovered it would null and void the warranty if I went to any wheels that were more than 2” larger than what came on my Jeep. Also all aftermarket parts had to be Mopar.
That's not the Mopar warranty...unless you're talking about like 10 years ago, maybe it was different then. The MaxCare warranty has no such stipulations. There are stipulations about lifting but it doesn't void the entire warranty, just the suspension coverage. Obviously, if you put 38s on your wrangler and break a u-joint or a steering link or something, that's not going to be covered (cause it's not a defect).
 

gato

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I didn't want it. I literally said no like 15 times. They talked me into it. I finally gave in. I never do that. It was a long day.

Also didn't need to finance anything. But i had to finance half because that was the stipulation the dealership gave to get the 6% below invoice. I plan on paying everything off after the 3 months.
I hear you. My post was not directed at you, btw. Was just sharing my thoughts for other potential buyers that search for these things.

If you can cancel your extended warranty, that would be best. If you can't, no big deal. Don't let that prevent you from enjoying your Jeep.
 

dogbreath650

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Do any of these extend the factory corrosion warranty? With the galvanic corrosion issues I'm seeing on some other threads that might be a big selling point if I was considering one...
 

Upnarms

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Didn't take the time to read all posts, but I was looking into it and if you put any lift other than 2"mopar bye bye coverage. Even if it's not related to suspension. Look at their fine print. That was a no go for me, but I was already leaning away from getting the extended warranty
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