Warranty ending soon... What would you do...?

[40Caliber]

So, based on my experience, I bought a manual trans 3.6L Jeep, actually two of them (2021 and 2022, although I sold the 2021). I don't expect to have any major failures in a 10-year period. If I expected to have a failure outside the warranty period, I know (well enough) that I'd be much better off to put $50 - $100 in a "savings" account. In ten years I will undoubtedly have much more saved than an extended warranty would pay out in claims.

So I have been reading your debate with theraven and I have generally agreed with his logic (and yes i have an EW).

you did hit on an interesting point.

are you saying

1. that in your experience the cars won't break enough to collect as much as you pay in? (i find that unlikely and agree with the raven)

2. or that in your experience, the EW is generally such Sh*t that they won't support the warranty and work to weasel their way out?

if it's 2 based on your experience, that's worriesome and I understand your point.


I had put $700 down on a kitchen full of Lowes appliances and a washer. Over 4 years, they have paid me $2700 to repair 3 of those appliances but are fighting me and dragging their feet on the washer.
(it seems Lowes has changed administrators on the warranty and they do everything possible to lose the reciepts, request new receipts, say they will get back to you and never do..rinse wash repeat. What they didn't count on was an old retired guy like me to call them everyday and haunt them and tie up one of their reps constantly just for fun )

I can see how they can fight you until you give up

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[mwilk012]

I bought the Mopar extended warranty on my 2019 Sahara mainly because I only have 9500 miles on it. It cost me $1850.00 for 6 years coverage with a $120.00 deductible. I don't have a feel for this being a good or bad deal but with the 2.0L with BSG I figured if my battery pack goes south it will cost way more than that to replace..

The battery already has an 8 year warranty. You got swindled.

 

[ErAcEr]

I vote #1, however that is because I have a great local repair shop that has treated myself and my brother well for the past decade for our auto repairs. And even still I have the extend warranty, but now that im out of the main, ill take it to them first and pay for a diag to find out if it could fall under the extended. I dont want to have to take it to dealer and fight them not to perform the latest "clutch recall" by modifying the software. 36k miles so far and no issues, will upgrade to CF when that time comes.

 

[OBD]

I'm with you,on not paying what the new Jeeps cost.Considering your feelings about your local dealership,I would pass.

 

[AcesandEights]

...
you did hit on an interesting point.

are you saying

1. that in your experience the cars won't break enough to collect as much as you pay in? (i find that unlikely and agree with the raven)

2. or that in your experience, the EW is generally such Sh*t that they won't support the warranty and work to weasel their way out?

if it's 2 based on your experience, that's worriesome and I understand your point.
...

It's going to be a bit of both, and that's (one way) how a company that offers extended warranties can afford to make money.

An extended warranty company is basically an insurance pool (as theraven points out). But all companies need to take in more revenue, or make money through investments to supplement revenue, than they pay out.

To answer your questions:

1. In my experience the cars won't break enough to collect as much as you pay in, generally. They can't cost more to repair than the company takes in. You can't write more checks than you have cash in the bank. That being said, they can pay 95% out in claims and make enough profit to have a good business (generally, the margins are about that). That means if you pay $1,500 in premiums, they can pay $1,425 - $1,500 in warranty claims (depending on their investments) and make money.

Most cars, even Jeeps, don't have $1,500 (or whatever you paid) in warranty claims in the period. Jeeps are not significantly less reliable, or have significantly higher warranty claims, than other brands. There are folks that review this stuff, just like that do with insurance, that can tell you the "average" claims for any given vehicle, model year, trim, etc. The premiums for an extended warranty are based on that information and claims information.

You'll often have a company/manufacturer offer the warranty for an amount, say $3,500, then quickly lower the price, then lower it again to some amount, say $1,500. They'll hold firm at that price and tell you they just can't go lower, that you're getting a great deal, and that they're offering it for less than half of what it typically costs. That's a hook, line and sinker selling technique, but they already know that make, model, trim has an average of $1,325 in warranty claims. You think you just got a $3,500 value for $1,500 bucks, and the warranty company knows they'll make $175, plus investment revenue on each warranty sold for that make, model, trim.

If you have an entertainment unit fail, it's going to cost more than $1,500 and you made out. But, it's not likely to fail, so on average the company will make money; even though when it does fail, it'll be a $2,500 claim and you'll feel like you pulled one over on the company. The law of averages has all been worked out before they sold you the warranty.

Your Jeep is not likely to have more in claims than you paid for your extended warranty. That is one of my points, whether folks agree with it or not. My experience is all manufacturers have warranty claims, and Jeep is not more or less likely to have those claims that are covered by an extended warranty.

2. Secondly, yes, sort of. Where it really bites people is when they think something is covered, but it isn't. So, the transmission fails, or that's your "complaint". The technician finds the clutch failed and it's a wear item. You're pissed because how do you know the difference, because in your mind you can't shift. That's an excluded item. If the technician found the pilot bearing failed, well that's a mechanical part and covered, but is that the failure, or is the clutch the failure. Depending on the failure, it could be one of the other, covered or not.

Or, the throttle body has to be replaced because the throttle position sensor failed. The $85.00 throttle position sensor isn't covered because it's considered an electrical item (covered on the higher tier plan) and is below your deductible, of $100. The throttle body isn't covered because it's not the part that failed, but needs to be replaced because the throttle plate is now stuck wide open because it was tweaked at wide open throttle.

The extended warranty, in my experience is playing with averages. If you get cancer, man it'll be great having insurance. If you eat bacon and eggs every day and drink whiskey for breakfast and live to be 100 years old, well, maybe you could have used your insurance premiums on hookers and blow instead. The insurance actuaries, and the extended warranty companies, have done the research to know the house always wins in the end. You may hit a jackpot, but all the folks before you put their silver dollars in and walked away with empty pockets.

I'm not trying to get into a back-and-forth, but you asked.

 

[aldo98229]

In my experience, the infotainment is indeed likely to fail.

My 2012 JK went through three head units, my 2013 JK through four, my 2015 through two. All replaced under the original bumper-to-bumper warranty.

Granted, JL uses a different unit that JK did, but JL’s head unit reboots out of the blue; sometimes several times in one week. And it’s happened that the navigation got stuck loading up. So far everything has gone back to normal overnight, but I don’t get a warm and fuzzy feeling about it.

Everything else on the Jeep has been solid —knock on wood. The mechanicals seem robust: the V6 engine hasn’t given me anything as much as a hiccup, the automatic is reliable and refined, the 4WD system is stout, the axles are...well, solid, the coil springs should last forever. The ESS hasn’t given me any more issues since I replaced both batteries myself.

But once in a blue moon the backup camera will go dark, or the backup lines will disappear and reappear the next day, etc. The blind spot monitor goes offline whenever I hit the trails...and comes back on as soon as I am back on the road.

It is all the electronics more than anything else what give me pause.

 

[00 Trans Ram]

To the 58 people who said "buy the extended warranty", I've got a service that you might like.

Find the lowest priced extended warranty, and I'll charge you HALF of that amount to provide the exact same service that the other company will*.

* - service consists of denying all payments until you prove all recommended service was performed, vehicle has never been driven offroad, no aftermarket parts are installed, and monkeys fly out of my ass.

 

[40Caliber]

It's going to be a bit of both, and that's (one way) how a company that offers extended warranties can afford to make money.

An extended warranty company is basically an insurance pool (as theraven points out). But all companies need to take in more revenue, or make money through investments to supplement revenue, than they pay out.

To answer your questions:

1. In my experience the cars won't break enough to collect as much as you pay in, generally. They can't cost more to repair than the company takes in. You can't write more checks than you have cash in the bank. That being said, they can pay 95% out in claims and make enough profit to have a good business (generally, the margins are about that). That means if you pay $1,500 in premiums, they can pay $1,425 - $1,500 in warranty claims (depending on their investments) and make money.

Most cars, even Jeeps, don't have $1,500 (or whatever you paid) in warranty claims in the period. Jeeps are not significantly less reliable, or have significantly higher warranty claims, than other brands. There are folks that review this stuff, just like that do with insurance, that can tell you the "average" claims for any given vehicle, model year, trim, etc. The premiums for an extended warranty are based on that information and claims information.

You'll often have a company/manufacturer offer the warranty for an amount, say $3,500, then quickly lower the price, then lower it again to some amount, say $1,500. They'll hold firm at that price and tell you they just can't go lower, that you're getting a great deal, and that they're offering it for less than half of what it typically costs. That's a hook, line and sinker selling technique, but they already know that make, model, trim has an average of $1,325 in warranty claims. You think you just got a $3,500 value for $1,500 bucks, and the warranty company knows they'll make $175, plus investment revenue on each warranty sold for that make, model, trim.

If you have an entertainment unit fail, it's going to cost more than $1,500 and you made out. But, it's not likely to fail, so on average the company will make money; even though when it does fail, it'll be a $2,500 claim and you'll feel like you pulled one over on the company. The law of averages has all been worked out before they sold you the warranty.

Your Jeep is not likely to have more in claims than you paid for your extended warranty. That is one of my points, whether folks agree with it or not. My experience is all manufacturers have warranty claims, and Jeep is not more or less likely to have those claims that are covered by an extended warranty.

2. Secondly, yes, sort of. Where it really bites people is when they think something is covered, but it isn't. So, the transmission fails, or that's your "complaint". The technician finds the clutch failed and it's a wear item. You're pissed because how do you know the difference, because in your mind you can't shift. That's an excluded item. If the technician found the pilot bearing failed, well that's a mechanical part and covered, but is that the failure, or is the clutch the failure. Depending on the failure, it could be one of the other, covered or not.

Or, the throttle body has to be replaced because the throttle position sensor failed. The $85.00 throttle position sensor isn't covered because it's considered an electrical item (covered on the higher tier plan) and is below your deductible, of $100. The throttle body isn't covered because it's not the part that failed, but needs to be replaced because the throttle plate is now stuck wide open because it was tweaked at wide open throttle.

The extended warranty, in my experience is playing with averages. If you get cancer, man it'll be great having insurance. If you eat bacon and eggs every day and drink whiskey for breakfast and live to be 100 years old, well, maybe you could have used your insurance premiums on hookers and blow instead. The insurance actuaries, and the extended warranty companies, have done the research to know the house always wins in the end. You may hit a jackpot, but all the folks before you put their silver dollars in and walked away with empty pockets.

I'm not trying to get into a back-and-forth, but you asked.

no back and forth,, I just wanted to understand your point of view for clarity. you are taking a chance either way.. as I am retired, the costs are important to me so the insurance seemed worth it.

How about we circle back in 2029?
as I have said, I hope I lose my shirt on it cause (hopefully) the jeep ran great

 

[TheRaven]

In my experience, the infotainment is indeed likely to fail.

My 2012 JK went through three head units, my 2013 JK through four, my 2015 through two. All replaced under the original bumper-to-bumper warranty.

Granted, JL uses a different unit that JK did, but JL’s head unit reboots out of the blue; sometimes several times in one week. And it’s happened that the navigation got stuck loading up. So far everything has gone back to normal overnight, but I don’t get a warm and fuzzy feeling about it.

Everything else on the Jeep has been solid —knock on wood. The mechanicals seem robust: the V6 engine hasn’t given me anything as much as a hiccup, the automatic is reliable and refined, the 4WD system is stout, the axles are...well, solid, the coil springs should last forever. The ESS hasn’t given me any more issues since I replaced both batteries myself.

But once in a blue moon the backup camera will go dark, or the backup lines will disappear and reappear the next day, etc. The blind spot monitor goes offline whenever I hit the trails...and comes back on as soon as I am back on the road.

It is all the electronics more than anything else what give me pause.

Your experience is right on. You don't have to go very far in this forum for proof. If that's not enough then just go to google and look up average 5-year repair cost for the JL...it ranges from $4000-6000 depending on the source.

There are a lot of folks here in for a rude awakening and a VERY expensive experience.

The only valid argument against getting MaxCare for the JL is if you can't find a dealer that will actually honor the warranty - but if you ask me, that's not just an argument against the warranty, that's an argument against the BRAND. I've said it before, if I didn't have a dealer I was confident I could trust to provide the services I paid for, I would not have a Jeep product in my garage. That sentiment stands for the future too - the first time I need warranty service and I get the run-around from my local dealer(s), this thing is GONE.

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