Mopar Maximum Care. Good deal?

[00 Trans Ram]

No, its not a good deal. No extended warranty is ever a good deal. How else do you think they make money off of them?
There is an aftermarket for every component on your Jeep. If something breaks, upgrade it!
Take that 2k and put it in an interest earning account. If you never have to use it, GREAT! If you do, its there and youve earned a little on it.

Quoting for visibility and agreement.

Chrysler Warranty Direct is NOT a Chrysler company. They are a for-profit service plan company. The typical profit margins for extended service companies is 15-20% (link at bottom). So, if you pay $3000 for a service plan with a $200 deductible, on average, they will only pay ~$2400 in repairs.

So, the questions are:

1. Are you the type of person that thinks that $600 is a good price to not have to worry about the small chance that you will have to pay >$3000 for a repair?
2. Or, are you the type of person that can't stand wasting money?

Again, chances are that the average person buying these service plans will NEVER need repairs that exceed $2400.

Moreover, don't forget that you aren't paying "just" $3000. The formula for how much you are actually paying is (C=number of claims made)

= $3000 + ($200 * C)​

So, if you make 3 claims, then you have actually paid $3000 + ($200 * 3) = $3600. Of course, whether or not that $3600 is more or less than the cost of repairs depends entirely upon what kinds of repairs are made.

The bottom line is that, just like people who visit a casino, SOME people will come out ahead, but MOST people will lose money. All you are doing is figuring out if you want to spend hundreds of dollars for peace of mind.

One last thing - these warranties cover labor, which is usually 2x the cost of parts alone. Many of us are at least somewhat adept at working on cars. The vast majority of things that go wrong with a car are things that can be fixed in your garage with minimal specialized tools or prior experience doing that repair.

So, when you figure that fact into the equation, now you are paying $3000+($200*C) for a something that is 1/3 something you can't do (make parts) and 2/3 something you CAN do (install those parts).

https://www.consumeraffairs.com/new...g-youll-buy-the-extended-warranty-010715.html

Sponsored

 

[entropy]

I have the Geico "mechanical breakdown insurance". Theyre charging me very little a month, $5.5. thats only $462 for 7 years, and I am still on the fence about it. Issue is you have to pay as you have your standard warranty as well, but it would kick in if dealer denied warranty for X reason. And also, you have to have geico insurance...

The experience people have had with Geicos warranty is pretty good. And supposedly very good for modified vehicles, they dont ask much when something breaks. And it covers more than the mopar warranty covers.

The biggest issue? You are locked with Geico. You leave Geico and you lose it. Also if your rate increases, due to speeding ticket or accident, your MBI rate increases too.

I hate extended warranties. i think theyre a waste of money, more likely than not I would lose that money. But Geico made it so cheap that I went for it. And they gave me a very low rate on my regular policy too. If something does happen and i need to switch insurances, the 5 year powertrain warranty is enough for me.

Everything in life is "what if". And the only tool we have to predict a certain outcome is statistics/probabilities. If you play life trying to "get lucky" and going by low probability outcomes, you will end up losing in the end. So I like to have good odds, i like to be the house and not the player.

I have never needed or purchased an extended warranty before. And I keep my cars for at least 7 years. Things very rarely fail before 100k miles. Thats why these warranties are good business. Id suggest you keep your money. And sure, something could happen, but it is unlikely. And thats just life, shit happens. If you can afford a 40~60k jeep, then an unlikely 2~4k repair shouldnt be keeping you awake at night. If it does, id revisit your choice of vehicle.

 

[TheRaven]

Ok I keep finding myself repeating this over and over again...

Warranty companies only get a commission off the sale of the warranty. Once the sale is done they are no longer involved monetarily. They don't care how many claims you make because they don't make or lose money off that part of the transaction. The warranty is backed by a "fund" that backs warranties across the spectrum of automobiles, from FCA and Jeep all the way up to Toyota/Honda/GM. The warranty company's job is to simply get your money (the "cost" of the warranty) into the fund. More than likely the fund also has other non-insurance related assets in it also. This is how they are able to cover something like a JL and not lose their asses.

So the phrase "warranty companies would be out of business if they weren't making money" is irrelevant to the question of whether or not you should get a warranty.

What matters is this - how expensive is the vehicle in question going to be over the period you intend to own it? To answer that question, you cannot cite your experience with your 2012 JK or any other vehicle made nearly (or more than) a decade ago. Not relevant. The JL is a whole new ballgame, and one that's infamous for extremely expensive repairs. All it will take is one 8.4 Infotainment system replacement or one "pull over soon vehicle will shut down" months-long try-this-part-and-then-that-part ordeal to blow right past even the most over-inflated MaxCare plan cost.

We need to stop using obsolete thinking when it comes to JL purchases.

 

[rickinAZ]

If the warranty is financially beneficial for the owner then it is not a money maker for the warranty company.

Ask yourself this question: is the warranty company in business to lose money? It is boneheadedly simple math. BTW, virtually everyone who buys a policy claims they've saved money. If so, how is it possible for the companies to stay in business?

GEICO is the lone exception. Berkshire Hathaway is not going out of business anytime soon.

 

[00 Trans Ram]

Ok I keep finding myself repeating this over and over again...

Warranty companies only get a commission off the sale of the warranty. Once the sale is done they are no longer involved monetarily. They don't care how many claims you make because they don't make or lose money off that part of the transaction. The warranty is backed by a "fund" that backs warranties across the spectrum of automobiles, from FCA and Jeep all the way up to Toyota/Honda/GM. The warranty company's job is to simply get your money (the "cost" of the warranty, into the fund). More than likely the fund also has other non-insurance related assets in it also. This is how they are able to cover something like a JL and not lose their asses.

So the phrase "warranty companies would be out of business if they weren't making money" is irrelevant to the question of whether or not you should get a warranty.

What matters is this - how expensive is the vehicle in question going to be over the period you intend to own it? To answer that question, you cannot cite your experience with your 2012 JK or any other vehicle made nearly (or more than) a decade ago. Not relevant. The JL is a whole new ballgame, and one that's infamous for extremely expensive repairs. All it will take is one 8.4 Infotainment system replacement or one "pull over soon vehicle will shut down" months-long try-this-part-and-then-that-part ordeal to blow right past even the most over-inflated MaxCare plan cost.

We need to stop using obsolete thinking when it comes to JL purchases.

Interesting. Do you have any other information showing that extended service companies (specifically, Chrysler Warranty Direct) is only involved in the sale of the extended service plan, and not its execution?

The reason that I ask is that I was an exec at an insurance company for a number of years. Very familiar with re-insurance, which is what it sounds like you're talking about. But, that's not how re-insurance works. So I'm interested to know how this is working.

Also, a replacement 8.4" radio is only $1469, so less than half the cost of the extended service plan. As for labor to install . . . installation is a 2 beer job. You pay anyone any more than that, and you've been had. https://parts.allmoparparts.com/oem-parts/mopar-radio-68295725ai?c=az0xJnE9NjgyOTU3MjVBSA==

 

[TheRaven]

Interesting. Do you have any other information showing that extended service companies (specifically, Chrysler Warranty Direct) is only involved in the sale of the extended service plan, and not its execution?

Huh? You do realize that CWD is just a dealership right? There are probably a hundred different similar websites on the net that are just fronts for dealers...just like the online "discount" parts sites. CWD is actually C. R. Motor Sales in Hudson, MI. They get a commission on the sale of the warranty that CCAP brokers, and then CCAP gets a brokerage fee too.

Very familiar with re-insurance, which is what it sounds like you're talking about. But, that's not how re-insurance works.

No, re-insurance is for insurance companies. Completely different.

Also, a replacement 8.4" radio is only $1469, so less than half the cost of the extended service plan. As for labor to install . . . installation is a 2 beer job. You pay anyone any more than that, and you've been had.

Uh...I paid $860 for five years of MaxCare. One google search and like three clicks will get you the same plan I got for around $1200. If anyone is paying almost $3k they are getting anally raped.

Ask yourself this question: is the warranty company in business to lose money? It is boneheadedly simple math. BTW, virtually everyone who buys a policy claims they've saved money. If so, how is it possible for the companies to stay in business?

C'mon man, really? I literally JUST answered this question...directly above your post.

 

[The_Irish_Weaver]

Anyone purchase one of these? I never have in past, but seems like a decent deal…

From this site…

https://chryslerwarrantydirect.com/

Yes i purchased this on my last Jeep (Renegade POS).....was not worth it. I had a million things go wrong and they were all marginally over the $200 deductible (usual repairs were in the $300-$400 range) so each time i had to pony up $200 in addition to the purchase of the warrantee. Definately not worth it....the big items that had to be fixed were covered under powertrain but because of the maxcare the $200 deductible kicked in...to kick me in the ass more!

no way again

 

[entropy]

Ok I keep finding myself repeating this over and over again...

Warranty companies only get a commission off the sale of the warranty. Once the sale is done they are no longer involved monetarily. They don't care how many claims you make because they don't make or lose money off that part of the transaction. The warranty is backed by a "fund" that backs warranties across the spectrum of automobiles, from FCA and Jeep all the way up to Toyota/Honda/GM. The warranty company's job is to simply get your money (the "cost" of the warranty) into the fund. More than likely the fund also has other non-insurance related assets in it also. This is how they are able to cover something like a JL and not lose their asses.

So the phrase "warranty companies would be out of business if they weren't making money" is irrelevant to the question of whether or not you should get a warranty.

What matters is this - how expensive is the vehicle in question going to be over the period you intend to own it? To answer that question, you cannot cite your experience with your 2012 JK or any other vehicle made nearly (or more than) a decade ago. Not relevant. The JL is a whole new ballgame, and one that's infamous for extremely expensive repairs. All it will take is one 8.4 Infotainment system replacement or one "pull over soon vehicle will shut down" months-long try-this-part-and-then-that-part ordeal to blow right past even the most over-inflated MaxCare plan cost.

We need to stop using obsolete thinking when it comes to JL purchases.

It sounds like you are trying to sell these warranties lol. Why would the infotainment system fail in 100k miles/7 years. Can it happen? sure it can. Is it likely? no, it isn't. The cost of replacing it isnt that bad either, and we also have aftermarket choices.

These horror stories of something failing and requiring so many repairs happens to lemons, in the first couple years of life of the vehicle. If your Jeep is fine, it will very likely survive 100k miles with minimal repairs. Even my 2011 Jeep Patriot with a POS CVT made it pass 100k/7years.

You are talking about extended warranty like it is insurance. it isnt. One of the worst case scenarios is losing your engine or transmission. In this very unlikely scenario the extended warranty will save you some money. But if you dont have the extended warranty, you can still fix it. If you believe the vehicle has some random and rare issue, then just sell it. If you can't sleep after the 5 year powertrain warranty expires, then just sell it.

These warranty companies are for profit. Of course there is a pool of money and some people benefiting from it. But those people are the minority, otherwise how would they make a profit? The fact that there is a minority of people benefiting from this means that it is very likely you will be the sucker who just threw his money away. Again, it is all about statistics, and the house ALWAYS wins.

That said. With the JL being as valuable as it is. It is not a terrible financial decision to buy one of these imo. I can agree to arguments from both sides. But I personally believe it is a waste of money.

 

[TheRaven]

It sounds like you are trying to sell these warranties lol. Why would the infotainment system fail in 100k miles/7 years. Can it happen? sure it can. Is it likely? no, it isn't. The cost of replacing it isnt that bad either, and we also have aftermarket choices.

You sound like you have a vendetta against warranties lol. The 8.4 infotainment system is known for failing...it's a fairly common issue not only on the Wrangler but all throughout FCA's lineup. I am a member over at Hellcat.org and you'll find the same thing over there. It's $1600 - $1800 to replace it. That's anywhere from nearly double to more than double the cost of MaxCare.

These horror stories of something failing and requiring so many repairs happens to lemons, in the first couple years of life of the vehicle. If your Jeep is fine, it will very likely survive 100k miles with minimal repairs. Even my 2011 Jeep Patriot with a POS CVT made it pass 100k/7years.

Warranties of any kind are similar to insurance in the way you approach them. You make a wager with the warranty guarantor - your bet is you are going to spend more than the cost of the warranty on your vehicle over the timeframe of the warranty and their bet is you wont. So in every single warranty purchase decision you need to weigh the likelihood of spending money on issues vs what you are spending on the warranty. For a Toyota Camry or Chevy Equinox, it's not a good bet. But for a Wrangler JL, it is. We have every single metric in agreement on this one - the JL is one of the more problematic vehicles out there.

You are talking about extended warranty like it is insurance. it isnt. One of the worst case scenarios is losing your engine or transmission. In this very unlikely scenario the extended warranty will save you some money. But if you dont have the extended warranty, you can still fix it. If you believe the vehicle has some random and rare issue, then just sell it. If you can't sleep after the 5 year powertrain warranty expires, then just sell it.

WARRANTIES ARE NO LONGER NEEDED BECAUSE OF ENGINES AND TRANSMISSIONS. They are no longer "worst case scenario" because they almost never fail. No, worst case scenario is something like the "pull over vehicle will shut down message" that results in your JL spending three months at the dealership while they throw every module they can at it racking up a $6000 bill. The list of things on the JL that are virtually guaranteed to fail (8.4 system, locker sensor, aux battery) is enough by itself to cover the cost of the warranty.

These warranty companies are for profit. Of course there is a pool of money and some people benefiting from it. But those people are the minority, otherwise how would they make a profit? The fact that there is a minority of people benefiting from this means that it is very likely you will be the sucker who just threw his money away. Again, it is all about statistics, and the house ALWAYS wins.

I've already explained how the house always wins...but it is obsolete thinking to believe that you can't also win. As i've said a billion times, the JL is not a Camry or an Equinox. So thinking about it the same way as you would think about those vehicles will get you into a world of pain. When you're talking about a warranty that costs less than any of almost all of the known issues with said vehicle - it really is a no-brainer.

 

[00 Trans Ram]

Huh? You do realize that CWD is just a dealership right? There are probably a hundred different similar websites on the net that are just fronts for dealers...just like the online "discount" parts sites. CWD is actually C. R. Motor Sales in Hudson, MI. They get a commission on the sale of the warranty that CCAP brokers, and then CCAP gets a brokerage fee too.

I had no idea! I can't really find anything that says that explicitly; however, the 2 companies list locations around 4 miles from each other, so I can 100% believe it. 5

No, re-insurance is for insurance companies. Completely different.

Did a bit more research on the CWD site, and on their FAQ it says that "Chrysler Group LLC backs our contracts, and pays for repairs." Now, that sure sounds like they are selling something that Chrysler itself is doing. Except that Chrysler Group LLC hasn't existed since 2014. Things may have changed since then. But, this is the first I've heard of any extended service plan being offered by the automaker itself. Maybe things are different here???

Also, CWD lists it's contact email address as "[email protected]" - that's a tad suspect. Obviously someone owns that domain - why not use it as the email domain, too. (Looked them up - both CWD and CRMotor domains are owned by GoDaddy.)

Uh...I paid $860 for five years of MaxCare. One google search and like three clicks will get you the same plan I got for around $1200. If anyone is paying almost $3k they are getting anally raped.

Thread is filled with people paying $2400-$3000 for these service plans. You got a banger of a plan. For $860, I'd probably buy it, too. In fact, I'm going to look around for it right now!

Thanks for the discussion!

 

[TheRaven]

Did a bit more research on the CWD site, and on their FAQ it says that "Chrysler Group LLC backs our contracts, and pays for repairs." Now, that sure sounds like they are selling something that Chrysler itself is doing. Except that Chrysler Group LLC hasn't existed since 2014. Things may have changed since then. But, this is the first I've heard of any extended service plan being offered by the automaker itself. Maybe things are different here???

By "Chrysler Group LLC" they are referring to the former Chrysler financial, now known as CCAP. CCAP is the broker which means they can legally say "Chrysler backs this warranty". And as far as the customer is concerned, they aren't lying, it's as legit as you can get when it comes to FCA vehicles.

Thread is filled with people paying $2400-$3000 for these service plans. You got a banger of a plan. For $860, I'd probably buy it, too. In fact, I'm going to look around for it right now!

Thanks for the discussion!

Yes tons of people pay dealer markup on these warranties because they don't know any better...and if you are paying $3k for your warranty the value equation completely shifts. The point is that you don't need to (and shouldn't) pay that much.

If you are looking to get MaxCare, search "Tom Winkels" on the forum...his contact info is all over the place. He's the most known option but there are others too. Even the "Chrysler Factory Warranty" website gives great deals...just not as good as Tom.

Know that if your JL is over 12k miles, you are going to pay a higher price for the warranty. I got mine at 9500 miles. The price goes up significantly after 12k miles.

 

[entropy]

No, worst case scenario is something like the "pull over vehicle will shut down message" that results in your JL spending three months at the dealership while they throw every module they can at it racking up a $6000 bill. The list of things on the JL that are virtually guaranteed to fail (8.4 system, locker sensor, aux battery) is enough by itself to cover the cost of the warranty.

Maybe I have a vendetta lol. But youre living with paranoia.

In all seriousness. Youre being a bit dramatic. My aux battery failed very early because the dealer did not maintain the battery while the Jeep was seating on the lot for months. It threw an error and it got replaced. There was no tragedy. For the price of an extended warranty you can get a superb battery system upgrade. The locker sensor has a fix, and people who offroad their Rubis should do it, and that would be better than waiting for it to fail. And in case it fails out of standard warranty an upgrade would be more expensive than standard warranty but money well spent. I would personally throw a mechanical locker up front with 4 year warranty and an ARB rear with 5 year warranty, that would only cost about $1800 if you do the front locker yourself. And if I didnt want a mechanical locker up front, I would do 2 ARBs, money well spent.

In terms of the 8.4 system, if it is as crappy as you suggest and it failed on me i would swap it with a better aftermarket system or a more reliable 7inch one.

If all these 3 things happen to you, then you should see an astrologist asap, because the universe is trying to give you a message.

Owning these JLs is not nearly as dramatic as you make it sound for 99% of people.

With that said. I understand wanting to protect your expensive Jeep. And at the price you bought your warranty it is probably worth it to you. Again, i have MBI with Geico, currently at $66 a year. It is worth it to me at that price point. But over $1000. It isnt.

I can easily deal with the issues you mentioned. Others might not. It is different for everyone. But I would still suggest to most people to not buy it.

 

[TheRaven]

I can easily deal with the issues you mentioned. Others might not. It is different for everyone.

This is the key statement right here. All your excuses include YOU having to shell out cash and do lots of work to fix the problem. You assume everyone else would be fine with that...but most of us are not. Most of us don't want to be forced to replace something because it broke...whether or not we upgrade it as a result, we'd prefer to do that upgrade when we choose, and if we choose. Most of us want to not have to deal with unexpected problems. We just want our overpriced SUV to work as advertised. If you've almost got your $2500 saved up for a lift, and the infotainment system dies...how are you going to feel about having to rob your lift fund for a replacement system? That's the point.

 

[JABCAT]

I look at extended warranties, or service contracts, as insurance against costly repairs. I'm fairly capable of performing maintenance and many repairs on my vehicles, however, the more computer and software controlled systems are put into the newer vehicles, the less capable we are of diagnosing and repairing the issues.

Many manufacturers and/or models have known issues that occur, and many of those issues could become quite costly after the factory warranty has expired. For example, my wife puts about 25k miles/annually on her work vehicles, the newest being a '20 Grand Cherokee High Altitude with nearly every option. The air suspension alone, which I have already seen owners reporting issues with, is a very costly repair if beyond the factory warranty terms. Knowing we are going to keep this vehicle until 100k miles before we trade it in, we opted to purchase a MaxCare plan.

We're also going to purchase the longest-available MaxCare plan for our '22 Wrangler Sahara Altitude because that vehicle will end up being my son's in a few years, and when he goes off to college, it'll be much more peace of mind that he can simply take it to a nearby dealership for repairs instead of having to get the car home to me, or have to attempt to diagnose and repair himself.

On my '11 Z06, I didn't purchase an extended warranty because I can pretty much repair anything on that vehicle in my garage, and wouldn't take it anywhere near a Chevy dealership service department.

All that being said, yes the prices on them are grossly marked up by many dealers, so it is beneficial for the purchaser to shop around for the best price and terms.

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