Need to purchase lifetime warranty

[Willwork4truck]

Just to muddy the waters a bit, from website creditkarma.com:
(Begin copied portion of article)
“While it may sound like a good idea in theory, extended warranties often come with a high price tag and don’t necessarily cover everything that could go wrong.

Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return. According to a Consumer Reports survey, 55% of respondents who bought an extended warranty didn’t use it and only a quarter of survey participants said they’d buy one again.

And the cost for repairs among respondents who used their warranty was typically less than the cost of the warranty.

Instead of purchasing an extended warranty, it may make more sense to set aside the money you’d spend on it — and use the funds instead for needed repairs.“. (end of copied portion)

i know some people swear by or swear at Consumer Reports, it’s just information for the reader.

 

[securityguy]

Just to muddy the waters a bit, from website creditkarma.com:
(Begin copied portion of article)
“While it may sound like a good idea in theory, extended warranties often come with a high price tag and don’t necessarily cover everything that could go wrong.

Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return. According to a Consumer Reports survey, 55% of respondents who bought an extended warranty didn’t use it and only a quarter of survey participants said they’d buy one again.

And the cost for repairs among respondents who used their warranty was typically less than the cost of the warranty.

Instead of purchasing an extended warranty, it may make more sense to set aside the money you’d spend on it — and use the funds instead for needed repairs.“. (end of copied portion)

i know some people swear by or swear at Consumer Reports, it’s just information for the reader.

Yep...Consumer Reports has been saying that same old thing for years and years. It's just an insurance policy. With all of the electronics in cars/trucks today, just to replace one module can be the cost of the entire warranty. It's all based on the following thanks to Dirty Harry..."do you feel lucky today punk?"

 

[User_3336]

People still rely on Consumer Reports???

 

[Willwork4truck]

Be nice if we could get some kind of poll but who knows how accurate It would be? All I know is I’m 0/1 on using extended (auto) warranties. While the RAM is full of fancy gizmos and options, so far in 18 months and 12K nothing has gone wrong. It’s just a roll of the dice.

 

[SpeedyV]

Be nice if we could get some kind of poll but who knows how accurate It would be? All I know is I’m 0/1 on using extended (auto) warranties. While the RAM is full of fancy gizmos and options, so far in 18 months and 12K nothing has gone wrong. It’s just a roll of the dice.

I will say that we’ve used 100% of our road hazard policies in Texas...lots of construction = lots of sharp debris.

As for extended warranties, they’ve saved us a bundle on household appliances, but this is my first on a vehicle. I bought the Lifetime MaxCare just before it was discontinued. I don’t put enough miles on the truck to justify any of the other terms. And it’s still a gamble on whether I sell the truck (which I control), have an accident (which I don’t necessarily control), or actually use the warranty.

 

[securityguy]

Be nice if we could get some kind of poll but who knows how accurate It would be? All I know is I’m 0/1 on using extended (auto) warranties. While the RAM is full of fancy gizmos and options, so far in 18 months and 12K nothing has gone wrong. It’s just a roll of the dice.

They aren't designed for 18 months or 12K miles. They are designed to protect you long after the factory warranty is up and, as the truck ages...**** starts to happen.

 

[Willwork4truck]

Big $ difference between tire road hazard insurance and a $2-3K ext factory warranty.

My brother got all of his 2004 Jeep Cherokee extended warranty cost back due to it’s crap quality by the 70K mile limit. His next new vehicle (VW) he got nothing back. Then the 2014 DMax extended warranty saved him due to it’s many diesel dpf and other fuel injection issues. Now he decided against getting one on the new 20’ RAM 2500 Cummins. It’s hard to know.

If I had a spare $2500 I’d likely have bought one. Those unlimited RAM/FCa warranties sure were nice while they were available.
Still looking down on the sidewalk for the pile of cash laying there.

They aren't designed for 18 months or 12K miles. They are designed to protect you long after the factory warranty is up and, as the truck ages...**** starts to happen.

i fully understand that. I’m going based on nothing has happened yet and we will age out way quicker than mileage out. She has driven about 600 (exactly an average of 571) miles a month on the RAM. It’s in the garage 25 days out of every 30. In my case it’s the tires losing air and the battery needing recharging.

I’m sure for others who actually use their trucks that the calculation is different. If the 12” screen, auto side steps or air ride has a “use by” date then I’m in trouble.

 

[HAL9001]

Yep...Consumer Reports has been saying that same old thing for years and years. It's just an insurance policy. With all of the electronics in cars/trucks today, just to replace one module can be the cost of the entire warranty. It's all based on the following thanks to Dirty Harry..."do you feel lucky today punk?"

In this particular case, Consumer Reports know what they're talking about. The part about do you feel lucky is correct, but it's the other way around. You're lucky if your extended warranty pays off. Here's a post I made on the other RAM forum in regards to this.

Extended warranties are always a gamble.

Basically, you're paying upfront for repairs that may never happen. For example, the 8 Year/100,000 Miles $0 deducible Mopar Maximum Care warranty currently costs $3,365 for a 2021 RAM 1500 with under 12,000 miles.



So, in order for it to pay off, you would have to incur more than $3,365 in repairs from year 3 to 8 for the basic portion and from year 5 to 8 for the powertrain portion, or until you exceed 100,000 miles, whichever comes first.

More than $3,365 in repairs may or may not happen in this time frame, especially now that FCA reduced the maximum warranty period to only 8 years (which is why they did that). Keep in mind that FCA knows from years and years of carefully recorded data precisely what all the repairs from all the extended warranties will cost them and then adds a sizable profit to calculate the cost of the policy. This means that the majority of extended warranty purchasers will not receive a payout greater than the cost of the warranty. It doesn't matter which term plan or deductible you choose, FCA precisely calculates the price for each to ensure that they always make a sizable profit overall.

The $100 and $200 dollar deductible warranties are less expensive to buy upfront, but FCA has carefully calculated those too to be just as profitable. The total amount of deductions cost as much or more than the up-front price over the life of the warranties overall. Again, I'm talking overall, not anyone's specific individual experience. Some will win, but most must lose.

For the minority of those who do receive back more than they paid, they'll be very happy and recommend these warranties to everyone. For the majority who lost money on them, they'll be pissed off and are likely to keep this bad experience to themselves. No one brags about losing money.

So, it's a gamble, and just like real gambling, the house always wins. Companies using this business model must always take in more than they pay out. That's what makes casinos, insurance companies, lotteries, and extended warranties a very profitable business for the owners but a considerable risk for the customers.

I'm not telling anyone not to buy one, I'm just trying to convey what the actual odds are. There is still a chance that it may pay off for you, especially if you drive your truck hard, pull a heavy trailer, or do anything else that might wear the vehicle out faster. The old 12 year and lifetime warranties were a much better bet, which is exactly why you can't get them anymore.

 

[securityguy]

In this particular case, Consumer Reports know what they're talking about. The part about do you feel lucky is correct, but it's the other way around. You're lucky if your extended warranty pays off. Here's a post I made on the other RAM forum in regards to this.

Extended warranties are always a gamble.

Basically, you're paying upfront for repairs that may never happen. For example, the 8 Year/100,000 Miles $0 deducible Mopar Maximum Care warranty currently costs $3,365 for a 2021 RAM 1500 with under 12,000 miles.

View attachment 79958

So, in order for it to pay off, you would have to incur more than $3,365 in repairs from year 3 to 8 for the basic portion and from year 5 to 8 for the powertrain portion, or until you exceed 100,000 miles, whichever comes first.

More than $3,365 in repairs may or may not happen in this time frame, especially now that FCA reduced the maximum warranty period to only 8 years (which is why they did that). Keep in mind that FCA knows from years and years of carefully recorded data precisely what all the repairs from all the extended warranties will cost them and then adds a sizable profit to calculate the cost of the policy. This means that the majority of extended warranty purchasers will not receive a payout greater than the cost of the warranty. It doesn't matter which term plan or deductible you choose, FCA precisely calculates the price for each to ensure that they always make a sizable profit overall.

The $100 and $200 dollar deductible warranties are less expensive to buy upfront, but FCA has carefully calculated those too to be just as profitable. The total amount of deductions cost as much or more than the up-front price over the life of the warranties overall. Again, I'm talking overall, not anyone's specific individual experience. Some will win, but most must lose.

For the minority of those who do receive back more than they paid, they'll be very happy and recommend these warranties to everyone. For the majority who lost money on them, they'll be pissed off and are likely to keep this bad experience to themselves. No one brags about losing money.

So, it's a gamble, and just like real gambling, the house always wins. Companies using this business model must always take in more than they pay out. That's what makes casinos, insurance companies, lotteries, and extended warranties a very profitable business for the owners but a considerable risk for the customers.

I'm not telling anyone not to buy one, I'm just trying to convey what the actual odds are. There is still a chance that it may pay off for you, especially if you drive your truck hard, pull a heavy trailer, or do anything else that might wear the vehicle out faster. The old 12 year and lifetime warranties were a much better bet, which is exactly why you can't get them anymore.

So, how exactly does this differ from what was said???

 

[User_3336]

I paid less than $1000 for the extra coverage I bought. I am sure at some point, there will be a repair costing at least $1,000.

You can look at buying an ESP in 1,000 different ways, pro/cons, etc etc etc.

Its cheap insurance for the long run. Make as many arguments against an ESP as you wish.

 

[brian42]

Yes, the house wins overall. For some it will pay out and most it won’t.

Everybody has the right to spend their money how they see fit. No matter what you spend your money on that company is a for-profit organization.

For me it is worth the piece of mind. I just went out of my basic warranty (37K miles) so will have another 5 years (and probably 130K miles) of “coverage”. That’s about $50/month, which is fine with me. I spend more than that on stuff I don’t “need” anyway.

Some consider it a good investment, some don’t. To each their own.

 

[securityguy]

Yes, the house wins overall. For some it will pay out and most it won’t.

Everybody has the right to spend their money how they see fit. No matter what you spend your money on that company is a for-profit organization.

For me it is worth the piece of mind. I just went out of my basic warranty (37K miles) so will have another 5 years (and probably 130K miles) of “coverage”. That’s about $50/month, which is fine with me. I spend more than that on stuff I shouldn’t anyway.

Some consider it a good investment, some don’t. To each their own.

What plan did you buy? The mileage of the warranty is not added to the 3/36...it is a part of the 3/36. So if you bought a 8 year/100K mile warranty, you only get 100K miles...not 136K.

 

[IvoryHemi]

What plan did you buy? The mileage of the warranty is not added to the 3/36...it is a part of the 3/36. So if you bought a 8 year/100K mile warranty, you only get 100K miles...not 136K.

Correct it’s from the original in service date. A 8yr/100k plan is essentially paying for 5yr/64k of coverage

 

[User_3336]

There are many benefits that you get from day one of buying an ESP, such a rental car reimbursement, key fob replacement, etc.

 

[BigD]

In this particular case, Consumer Reports know what they're talking about. The part about do you feel lucky is correct, but it's the other way around. You're lucky if your extended warranty pays off. Here's a post I made on the other RAM forum in regards to this.

Extended warranties are always a gamble.

Basically, you're paying upfront for repairs that may never happen. For example, the 8 Year/100,000 Miles $0 deducible Mopar Maximum Care warranty currently costs $3,365 for a 2021 RAM 1500 with under 12,000 miles.

View attachment 79958

So, in order for it to pay off, you would have to incur more than $3,365 in repairs from year 3 to 8 for the basic portion and from year 5 to 8 for the powertrain portion, or until you exceed 100,000 miles, whichever comes first.

More than $3,365 in repairs may or may not happen in this time frame, especially now that FCA reduced the maximum warranty period to only 8 years (which is why they did that). Keep in mind that FCA knows from years and years of carefully recorded data precisely what all the repairs from all the extended warranties will cost them and then adds a sizable profit to calculate the cost of the policy. This means that the majority of extended warranty purchasers will not receive a payout greater than the cost of the warranty. It doesn't matter which term plan or deductible you choose, FCA precisely calculates the price for each to ensure that they always make a sizable profit overall.

The $100 and $200 dollar deductible warranties are less expensive to buy upfront, but FCA has carefully calculated those too to be just as profitable. The total amount of deductions cost as much or more than the up-front price over the life of the warranties overall. Again, I'm talking overall, not anyone's specific individual experience. Some will win, but most must lose.

For the minority of those who do receive back more than they paid, they'll be very happy and recommend these warranties to everyone. For the majority who lost money on them, they'll be pissed off and are likely to keep this bad experience to themselves. No one brags about losing money.

So, it's a gamble, and just like real gambling, the house always wins. Companies using this business model must always take in more than they pay out. That's what makes casinos, insurance companies, lotteries, and extended warranties a very profitable business for the owners but a considerable risk for the customers.

I'm not telling anyone not to buy one, I'm just trying to convey what the actual odds are. There is still a chance that it may pay off for you, especially if you drive your truck hard, pull a heavy trailer, or do anything else that might wear the vehicle out faster. The old 12 year and lifetime warranties were a much better bet, which is exactly why you can't get them anymore.

You make some excellent points. I was debating on whether to get one or not. Thanks for helping me make up my mind !

 

[securityguy]

There are many benefits that you get from day one of buying an ESP, such a rental car reimbursement, key fob replacement, etc.

True, but that wasn’t the point of the reply.

 

[securityguy]

You make some excellent points. I was debating on whether to get one or not. Thanks for helping me make up my mind !

A lot depends on how long you anticipate keeping your vehicle. If you’re getting rid of it in 4-5 years, and don’t put excessive mileage on it, then it would make sense not to buy. If you do a ton of driving or plan to keep it for 8 years, it’s not a bad investment IMPO. Plus you can find these plans very cheap at times which make them more of a no brainer! No one in this forum will pay the price in the example he provided above.

 

[brian42]

What plan did you buy? The mileage of the warranty is not added to the 3/36...it is a part of the 3/36. So if you bought a 8 year/100K mile warranty, you only get 100K miles...not 136K.

I got the 7 years / unlimited miles / $100 deductible Max Care so I’m going off years since I don’t have a cap on mileage. By this time next year my power train warranty will expire or be very close to it.

Pre-COVID I was doing 30K miles a year. That went down drastically last year. I’m around 25K miles a year with my “new normal”. Once my office gets vaccinated that will go up.

I plan to have this truck well into the 6th gen lifecycle. I had my last truck for 11 years. I got speared by a Jeep on the freeway and my truck was totaled otherwise I would still have it.

 

[BigD]

Trucks in general have such high resale value, I've traded in my last 2 trucks after 6 years & have come out really good buying new again. I watch prices for about a year prior, when I know I'm planning on buying again & always buy at the perfect time. I get max for my trade in & I get rock bottom price on my new truck. I let the dealership make a little on the higher interest rate, just to give them something so everyone's happy, & then I pay off the loan in 1 or 2 years so I barely pay any interest. I never buy any of the add on garbage. I got a free roll up cover & I'm good. No point in trying to keep these trucks forever. After 6 years they are so outdated it's not even funny. That's my 2 cents on the extended warranty debate. Trade it in & buy new every 5 or 6 yrs.

 

[securityguy]

Trucks in general have such high resale value, I've traded in my last 2 trucks after 6 years & have come out really good buying new again. I watch prices for about a year prior, when I know I'm planning on buying again & always buy at the perfect time. I get max for my trade in & I get rock bottom price on my new truck. I let the dealership make a little on the higher interest rate, just to give them something so everyone's happy, & then I pay off the loan in 1 or 2 years so I barely pay any interest. I never buy any of the add on garbage. I got a free roll up cover & I'm good. No point in trying to keep these trucks forever. After 6 years they are so outdated it's not even funny. That's my 2 cents on the extended warranty debate. Trade it in & buy new every 5 or 6 yrs.

That's what I do...but, I trade mine in every 2 years give or take. Had my 2019 for 22 months. The vehicle before that about 18 months. Every time, I go into my purchase with the best intentions and say I'm going to keep this for 3-5 years...and then a TRX comes out, or something new I just have to have and just keep going down that road.....

I can guarantee you all this 2021 will not make it to 15K miles or 2 years