GreyFox
Well-Known Member
Lol you gotta love autocorrectWhoa, try the "edit" option here, " herd" and "roomers " made me snort my coffee...
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Lol you gotta love autocorrectWhoa, try the "edit" option here, " herd" and "roomers " made me snort my coffee...
Does this person even work for FCA?Whoa, try the "edit" option here, " herd" and "roomers " made me snort my coffee...
Thanks for the reply, I am not in any way trying to contribute to the abuse of caffeine products!Whoa, try the "edit" option here, " herd" and "roomers " made me snort my coffee...
This was the very reason I bought extended warranty. Peace of mind and basically I don't want to deal with problems that may pop up down the road.I received my Jeep on 10/21/2019. Opted for the Extended Warranty (7yr/Unlimited miles) from a different dealership as I could save nearly a thousand dollars on it. As I mentioned in an earlier comment, I worry with how much stuff gets interconnected to the UConnect. The Wrangler has more "hard" buttons to do things than my Ram does, but I still worry that if the UConnect breaks, I'm going to be stuck with a paperweight.
This totally makes sense. You're right. I hear it on TV all the time.Investments are a Sine Wave, 10% ? Plus, costs associated with buying, trades, taxes.
The Warranty is a better gamble than the stock market. Warranty is transferable, and if not used, refundable...
Whoa take it easy Cliff ClavinA warranty is a form of insurance and the sum of premiums are more valuable than the sum of claims or the company would be out of business. Remember this.
For a few, their claims exceed the premium and they receive value from the warranty. This is a very small fraction. For many their claims are less than premiums and they lose value possibly with the exception of piece-of-mind. But piece-of-mind can be achieved another way. Most would be better off putting that premium in an investment in the event they have a repair that would have been covered in the future after the base warranty expires. This is a form of self insurance.
A quick search on here turns up this;
Mopar Max Care $100 deductible lifetime unlimited mileage extended service contract is $2745, (MSRP is $4045)
Rather than buy the Mopar Max Care for $2745 invest it. If we use the long-term growth rate of the S&P500 the initial $2745 compounds at 10% per year and would be worth a little more than $3600 before the base 3-year warranty expires and you'd actually use it. At year 10 the $2745 would be worth a little more than $7K if invested. At year 15 the $2745 would be worth a little more than $11K if invested.
Do you expect to have at least $7K of covered claims between years 3 and 10? Or $11K between years 3 and 15?
Remember covered repairs in years 1 - 3 are not covered by the extended warranty. They are covered by the base warranty that was included with your purchase.
When you look at it this way the covered repairs in the distant future actually cost you more than if you'd have paid out of pocket. You just don't connect the dots because you paid for them many many years ago and still view the expense as the $2745 you paid and forget to add the opportunity cost of investment growth that you gave to FCA. FCA thanks you!