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-   -   When to purhcase extended warranty? (http://www.jeepgarage.org/f107/when-to-purhcase-extended-warranty-13419.html)

JoeSchmoe007 09-29-2010 12:32 PM

When to purhcase extended warranty?
 
From what I understand you can purchase it any time before your original warranty (3y/36K) expired, right?

Is there any advantage to purchasing it when car is purchased as opposed to some time later?

I am also somewhat concerned about long term - what if Chrysler does go belly up completely before extended warranty expires? Then I would just be SOL?

http://www.chryslerwarrantys.com/ asks if your vehicle is less that 12 month old - not sure what difference does it make

JoeSchmoe007 09-29-2010 12:39 PM

Re: When to purhcase extended warranty?
 
There is also 100% money back option from Chrysler (only for $100 deductible plans) - really interesting:

Chrysler will refund 100% of the purchase price of the service contract upon service contract expiration if the following four conditions are met:

(1) The contract term must run for full duration by time only,

(2) No mechanical repair claims may be made during the term of the plan,

(3) You must still be the owner of the contract and vehicle at the expiration of the contract, and

(4) You must submit your mail-in request to Chrysler to receive the refund. Money back plans are not available in Florida.

whatevrworks 09-29-2010 12:43 PM

Only real benefits of getting at purchase is you can roll it into your financing. Also sometimes are more willing to work with you on price because they have a serious profit margin on these warranties. I bought lifetime powertrain no mileage or time limit for 1000 down from where negotiations started at about double that.

HEMInator 09-29-2010 12:43 PM

Re: When to purhcase extended warranty?
 
Quote:

Originally Posted by JoeSchmoe007 (Post 276647)
From what I understand you can purchase it any time before your original warranty (3y/36K) expired, right?

Is there any advantage to purchasing it when car is purchased as opposed to some time later?

I am also somewhat concerned about long term - what if Chrysler does go belly up completely before extended warranty expires? Then I would just be SOL?

http://www.chryslerwarrantys.com/ asks if your vehicle is less that 12 month old - not sure what difference does it make

The advantage is that you pay a $150 fee after 12 months of ownership. Essentially, you'll save yourself $150 by purchasing it in the first 12 months of ownership as opposed to waiting until later. As far as what happens if Chrysler goes away, as long as your warranty is a Chrysler warranty, it will likely be guaranteed (somehow) through the Federal Government. President Obama made such a declaration to the American people when everyone was afraid to purchase vehicles for this exact reason. But I wouldn't ever think anything is 100% guaranteed in that case.

JoeSchmoe007 09-29-2010 12:53 PM

Re: When to purhcase extended warranty?
 
Quote:

Originally Posted by HEMInator (Post 276656)
...as long as your warranty is a Chrysler warranty, it will likely be guaranteed (somehow) through the Federal Government...

Has there ever been precedents of this? Government can declare anything but if company is not around to make replacement parts - how will vehicles be repaired?

HEMInator 09-29-2010 12:56 PM

Re: When to purhcase extended warranty?
 
Quote:

Originally Posted by JoeSchmoe007 (Post 276663)
Has there ever been precedents of this? Government can declare anything but if company is not around to make replacement parts - how will vehicles be repaired?

No precedent that I'm aware of. I just know what the administration stated. However, seeing as we all have become familiar with the phrase "too big to fail", I wouldn't bet on Chrysler ever going away.

GlowingGhoul 09-29-2010 12:57 PM

Re: When to purhcase extended warranty?
 
I am also somewhat concerned about long term - what if Chrysler does go belly up completely before extended warranty expires? Then I would just be SOL?

In theory yes, but it won't happen. The brand has a lot of value. If they went bankrupt again, and the new owners failed to honor warranties, damage to the company's reputation would lessen the value.

I would recommend searching the internet for "Chrysler Extended Warranties", and buy from one of the companies selling online. As long as it's an official Chrysler extended warranty, it'll be honored at all dealers in the US and Canada. It's also, much, much cheaper on line.

I'm buying the lifetime Maximum Care warranty, which is virtually bumper to bumper, forever. I had the 7/100 Maximum Care warranty for my WJ, and it paid for itself many times over.

I had things like a slowly seeping (not dripping) rear main seal at 90,000, which I would have lived with given the expense of changing it, changed under the extended warranty, along with blend doors ($$$$), differential seals, multiple seat heaters, cracked manifold (In Canada, while on vacation), the radiator, fuel pump ($$$$), etc. Just around $12,000 in repairs over 7 years. Free rental cars during repairs and the roadside assistance was also nice.

JoeSchmoe007 09-29-2010 01:30 PM

Re: When to purhcase extended warranty?
 
Quote:

Originally Posted by GlowingGhoul (Post 276666)
If they went bankrupt again, and the new owners failed to honor warranties, damage to the company's reputation would lessen the value.

I meant an extreme scenario when company just goes out of business. No new owners. I think it happened with a couple European car companies recently.

GlowingGhoul 09-29-2010 01:38 PM

Re: When to purhcase extended warranty?
 
Without going into all the technical details, that can't happen. You could burn all the factories down and fire all the workers and there would still be billions in assets left to be sold off, including patents and brand names.

However, to answer your question directly, the extended warranties are actually "service contracts" and not insurance policies. This means that if the Chrysler were somehow vaporized, there is nothing backing them up.

IMHO, for a vehicle as complex as a Grand Cherokee, and especially for the first year of a new model, the extended warranty is an absolute necessity unless you plan on getting rid of it before 36,000 miles.


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