Last post on Oct 03, 2013 at 9:11 AM
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#3150 of 3172 Re: 84-months? [jmardi]
Mar 22, 2013 (3:46 am)
If a buyer is worried about the reliablity of a vehicle to the point they think they require a costly extended service contract, perhaps they should not buy the vehicle. Rather, buy a vehicle with a stellar reliability record. As a further benefit those vehicles will have a higher resale value.
A third party extended service contract is like a bad gamble, even worse. People should consider those old US Fidelis commercials pitched by Rusty Wallace and research how people found the actual experience of dealing with Rusty and US Fidelis.
The reality is an extended service contract is rarely a good decision. For a limited number of people there may be a benefit. However, for the majority money spent on such a warranty is money wasted. There is a reason most independent experts, not those with ties to dealers, advise against such contracts.
If a person really wants an extended service contract, they should only buy it from the manufacturer. Any other source represents an unacceptable risk and most likely a waste of money.
#3151 of 3172 Re: 84-months? [texases]
Mar 22, 2013 (4:07 am)
There are many instances when a longer loan can be valuable. They key is to make sure the financing rate is not too high with an extended loan period. People with a longer loan can pay it off early. However, they have the advantage of a lower payment should financial issues arise.
Than being said, I would never take a 84 month auto loan unless it was at zero percent. In that case an 84 month loan would be free money.
Owing more than a car is worth is not inherently bad. People only get equity in a vehicle if they have paid for that equity. Equity is not free. With a zero percent loan, for example, why pay upfront for equity when that money can be put into an interest bearing account resulting is a small profit?
The reality is each buyer is different and each has a different set of needs and desires. There is no single set of rules applicable to every person.
#3152 of 3172 Vehicle Protection Service Plan (Mopar/Chrysler)
Mar 27, 2013 (9:52 am)
So, I just bought a 2010 Jeep Grand Cherokee with 78,000 miles. I am looking into an extended warranty and trying to decide what to do. I plan on keeping the car for hopefully quite a few years. I have been quoted prices through the dealer and then directly through Mopar (Chrysler). I am leaning more toward the Mopar extended warranty since I can pay on them monthly with no interest. They are a few hundred dollars more than the dealer but I would not have to shell it all out immediately out of pocket. That's the hard part. With it having higher mileage I am just concerned about issues coming up as it keeps going up.
I know there are cheaper warranties through ChryslerWarrantys.com and another site that I found on here. Given the mileage on the car already I was thinking it would probably be smart to do the Max Care for 5 years which would cover me until just 140,0000. Based on the mileage the price would be 3,800 and would let me put 10% down and then pay monthly interest free. Which level would you recommend? I am leaning more toward the Max Care based on peace of mind and $100 deductible each time. Either that or the Added Care Plus. I am ok with paying a bit more for peace of mind but don't want to waste money. I know it's hard to say what will happen in the future but would this be worth it? The Maximum Care plan covers everything except things that are affected by normal wear (brake pads, shoes, rotors, drums, belts, glass, paint).
Any advice would be greatly appreciated.
#3154 of 3172 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [jmardi]
Mar 28, 2013 (9:25 am)
The price may have little to do with the value. No way to tell if the one you find will actually pay up.
#3156 of 3172 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [suzyr]
Apr 08, 2013 (11:57 am)
What I said was the only one worth getting is the factory-backed warranty (Ford, GM, etc.). I would not buy anything else, if I was to buy one.
But I won't, they're not worth the cost on average.
#3157 of 3172 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [spikael]
Apr 10, 2013 (2:32 am)
An extended service contract (aka extended warranty) on a vehicle with 78,000 miles has got to be riddled with exclusions. Best to read the contract completely.
Probably be better to skip the extended service contract and use the money to buy a vehicle with less mileage. Can not think of a valid excuse to justify spending $3,800 for a contract which is most likely useless. Not sure about you, but I can think of a lot better ways to spend $3,800.
#3158 of 3172 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [ken117]
Apr 11, 2013 (2:12 am)
And we should not forget that probably $1,900 of that $3,800 is dealer profit.
#3159 of 3172 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [ken117]
Apr 11, 2013 (8:40 am)
$3,800 is too expensive, i know that the price can be negotiated. Some people say that they were able to drop the price by 1.5 - 2K. Dealers are usually very pushy and want to sell the warranty to you, if they don't want to drop the price, just go to a 3rd party and get it cheaper from them. But make sure you pick a trustworthy company that "has been around for a while."