Last post on Oct 03, 2013 at 9:11 AM
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#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."
#3160 of 3172 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [suzyr]
Apr 24, 2013 (3:20 am)
There are three concerns with an extended service contract.
First is obviously the price dealers attempt to charge. The contact probably costs the dealer $900 or so for a five year contract. The dealer will attempt to sell this to a buyer for $2,000 or more. I doubt many people would be happy with a dealer making more than 100% profit. After all those same buyers probably spent hours dickering over 5% profit on the vehicle itself.
Second is the limited length of the contract. A five year contract is really only for two years, one in some cases. Is it really smart to spend $2,000 for twenty-four months of coverage? Most likely a person would be better served to assume there will be no covered repairs during that period which would cost more than the cost of the contract. After all the contract is priced that way. If the service contract provider sells the contract to the dealer for $900, that provider is certain the amount it pays out on average will be far less than $900.
Third is the small print, which is always available for the contract provider to use not to pay. Example, the covered component failed because he noncovered component failed so, sorry, not covered.
If a service contract is desired, it should only be bought from the OEM. All third party contracts are inherently risky. Also, the contract should be bought after the purchase from a different dealer. The dealer selling the vehicle is counting on the convenience of adding the contract to the financing. This will almost always result in a person paying far too much for the contract.
Finally, as with the service contract, any F&I product kindly offered by the F&I manager is overpriced, can be purchased elsewhere for a fraction of the price, and is usually useless. And really, what does an F&I manager actually manage? It is the dealer's profit.
Any interested in the F&I goals of a dealership should research on the web. The man behind the curtain will be revealed.
May 03, 2013 (7:26 am)
"The Consumer Financial Protection Bureau has issued subpoenas to U.S. auto lenders over the sale of extended warranties and other financial products, according to people familiar with the investigation, expanding a civil probe that lenders say could slow the booming car-loan industry.
Add-on products, such as extra insurance, are a popular mechanism used by car dealers to boost profits.
Though such products are legal, regulators are probing whether terms and prices are adequately disclosed.
The Justice Department, meanwhile, is probing auto dealerships that make their own loans to customers with poor credit and charge higher rates."
Regulators Scrutinize Auto Lenders Over Add-Ons (Wall St. Journal - you may have to do a net search for the story if the WSJ link won't open for you)