Need to purchase lifetime warranty

[BigD]

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

Don't u kind of take it in the shorts trading in every 2 years ? I think the magic number is about 4 years or more to max out your trade in value. After 2 years they lose a ton of value, but in years 4,5, & 6 they are almost worth the same as year 3 in my experience. The trade in value really levels out after that intial 2 year hit.

 

[securityguy]

Don't u kind of take it in the shorts trading in every 2 years ? I think the magic number is about 4 years or more to max out your trade in value. After 2 years they lose a ton of value, but in years 4,5, & 6 they are almost worth the same as year 3 in my experience. The trade in value really levels out after that intial 2 year hit.

Actually I don't. My vehicles are always in mint condition, I buy and sell at the right time and my average cost per month of ownership is typically between $400-$500 based on the vehicle. On my 2019 trade/2021 purchase, it cost me around $8K. $8K/22 months = $364 with the high trade values and Employee Pricing and additional incentives. That is far less than some leases and purchases. I am fine with having a $500/month payment, per say (I typically pay cash for my vehicles unless I can get 0% and use someone else's money so that I can continue to invest my own at 7+ percent), and getting into a new state-of-the-art vehicles every 1.5-2.5 years.

 

[HAL9001]

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.

I can't speak to everyone's specific situation of course, but overall, in addition to the risk, it's by far one of the most expensive insurance policies you can possibly buy. It's anything but cheap insurance. Please allow me to explain.

When you pay for auto insurance, it may cost you $1,000 or more per year, however that policy protects you against hundreds of thousands of dollars or more in losses. It will pay to replace your vehicle, the vehicle you hit, any structures that were damaged, as well as the medical expenses of everyone who may have been hurt. That can cost many hundreds of thousands of dollars or in some cases even more.

When you pay for health insurance, that policy provides protection for potential medical expenses again potentially costing hundreds of thousands or even more, over a million in some cases.

And again, the same is true for home insurance. If your home burns to the ground with everything in it, you're again paying a few thousand dollars in insurance to protect many hundreds of thousands or more.

You can't do without any of these policies. They all can save you from financial ruin. They can pay out well over 100 times to 1 than what you pay in.

Now, take a close look at a motor vehicle extended warranty policy. Depending on your specific policy and what it covers, you're paying several thousand dollars on average to protect you against only up to several thousand dollars at most, a payback ratio of 1 to 1, 2 to 1, 3 to 1, not much more. Compared to the protection provided by other policies, it doesn't even come close. Anyone would gladly pay $1,000 or more per year for a homeowner's policy that could protect them from potential financial ruin, but is it really worth it to spend several thousands of dollars to protect against a total potential expense of several thousands of dollars? Isn't that a risk most of us could afford? Does it even make sense to spend and risk several thousand dollars to protect the risk of only potentially paying several thousand dollars? Would you buy a lottery ticket that cost $2,500 with only a potential payout of say $4,000 when the odds of winning were considerably less than 50% of winning?

All insurance policies are a gamble in that you can and often do lose money on them, but those that save you from potential financial ruin are far and away a much better deal than those that only save you from merely a very annoying but affordable expense. Motor vehicle extended warranty policies are extremely costly for the meager financial protection they provide and they require almost as much financial loss to purchase as they protect against.

Again, I'm not telling anyone not to buy them nor would I ever cast any judgment on those who do. I too have purchased extended warranties before I reconsidered. If you're lucky (or some would say unlucky) they just might pay off. However, the profitable business of selling them unfortunately requires that the majority of people buying them must pay more than they will ever receive back. If that wasn't enough, the protection that they provide is meager at best for what they cost.

Those are the facts everyone must know. If you chose to buy one, then do so with eyes wide open. It may work out, it may not, but at least you knew the risks and level of financial protection they offer going in and then made an informed decision based upon what you feel is best for your own circumstances. I just purchased a truck for over $60,000. Some would think me not too bright for doing so, but it's my money and I'm happy about it, and that's all that really matters. Buy whatever you want based on your own decisions.

 

[securityguy]

I can't speak to everyone's specific situation of course, but overall, in addition to the risk, it's by far one of the most expensive insurance policies you can possibly buy. It's anything but cheap insurance. Please allow me to explain.

When you pay for auto insurance, it may cost you $1,000 or more per year, however that policy protects you against hundreds of thousands of dollars or more in losses. It will pay to replace your vehicle, the vehicle you hit, any structures that were damaged, as well as the medical expenses of everyone who may have been hurt. That can cost many hundreds of thousands of dollars or in some cases even more.

When you pay for health insurance, that policy provides protection for potential medical expenses again potentially costing hundreds of thousands or even more, over a million in some cases.

And again, the same is true for home insurance. If your home burns to the ground with everything in it, you're again paying a few thousand dollars in insurance to protect many hundreds of thousands or more.

You can't do without any of these policies. They all can save you from financial ruin. They can pay out well over 100 times to 1 than what you pay in.

Now, take a close look at a motor vehicle extended warranty policy. Depending on your specific policy and what it covers, you're paying several thousand dollars on average to protect you against only up to several thousand dollars at most, a payback ratio of 1 to 1, 2 to 1, 3 to 1, not much more. Compared to the protection provided by other policies, it doesn't even come close. Anyone would gladly pay $1,000 or more per year for a homeowner's policy that could protect them from potential financial ruin, but is it really worth it to spend several thousands of dollars to protect against a total potential expense of several thousands of dollars? Isn't that a risk most of us could afford? Does it even make sense to spend and risk several thousand dollars to protect the risk of only potentially paying several thousand dollars? Would you buy a lottery ticket that cost $2,500 with only a potential payout of say $4,000 when the odds of winning were considerably less than 50% of winning?

All insurance policies are a gamble in that you can and often do lose money on them, but those that save you from potential financial ruin are far and away a much better deal than those that only save you from merely a very annoying but affordable expense. Motor vehicle extended warranty policies are extremely costly for the meager financial protection they provide and they require almost as much financial loss to purchase as they protect against.

Again, I'm not telling anyone not to buy them nor would I ever cast any judgment on those who do. I too have purchased extended warranties before I reconsidered. If you're lucky (or some would say unlucky) they just might pay off. However, the profitable business of selling them unfortunately requires that the majority of people buying them must pay more than they will ever receive back. If that wasn't enough, the protection that they provide is meager at best for what they cost.

Those are the facts everyone must know. If you chose to buy one, then do so with eyes wide open. It may work out, it may not, but at least you knew the risks and level of financial protection they offer going in and then made an informed decision based upon what you feel is best for your own circumstances. I just purchased a truck for over $60,000. Some would think me not too bright for doing so, but it's my money and I'm happy about it, and that's all that really matters. Buy whatever you want based on your own decisions.

We get it Hal...we get it

 

[User_3336]

I can't speak to everyone's specific situation of course, but overall, in addition to the risk, it's by far one of the most expensive insurance policies you can possibly buy. It's anything but cheap insurance. Please allow me to explain.

When you pay for auto insurance, it may cost you $1,000 or more per year, however that policy protects you against hundreds of thousands of dollars or more in losses. It will pay to replace your vehicle, the vehicle you hit, any structures that were damaged, as well as the medical expenses of everyone who may have been hurt. That can cost many hundreds of thousands of dollars or in some cases even more.

When you pay for health insurance, that policy provides protection for potential medical expenses again potentially costing hundreds of thousands or even more, over a million in some cases.

And again, the same is true for home insurance. If your home burns to the ground with everything in it, you're again paying a few thousand dollars in insurance to protect many hundreds of thousands or more.

You can't do without any of these policies. They all can save you from financial ruin. They can pay out well over 100 times to 1 than what you pay in.

Now, take a close look at a motor vehicle extended warranty policy. Depending on your specific policy and what it covers, you're paying several thousand dollars on average to protect you against only up to several thousand dollars at most, a payback ratio of 1 to 1, 2 to 1, 3 to 1, not much more. Compared to the protection provided by other policies, it doesn't even come close. Anyone would gladly pay $1,000 or more per year for a homeowner's policy that could protect them from potential financial ruin, but is it really worth it to spend several thousands of dollars to protect against a total potential expense of several thousands of dollars? Isn't that a risk most of us could afford? Does it even make sense to spend and risk several thousand dollars to protect the risk of only potentially paying several thousand dollars? Would you buy a lottery ticket that cost $2,500 with only a potential payout of say $4,000 when the odds of winning were considerably less than 50% of winning?

All insurance policies are a gamble in that you can and often do lose money on them, but those that save you from potential financial ruin are far and away a much better deal than those that only save you from merely a very annoying but affordable expense. Motor vehicle extended warranty policies are extremely costly for the meager financial protection they provide and they require almost as much financial loss to purchase as they protect against.

Again, I'm not telling anyone not to buy them nor would I ever cast any judgment on those who do. I too have purchased extended warranties before I reconsidered. If you're lucky (or some would say unlucky) they just might pay off. However, the profitable business of selling them unfortunately requires that the majority of people buying them must pay more than they will ever receive back. If that wasn't enough, the protection that they provide is meager at best for what they cost.

Those are the facts everyone must know. If you chose to buy one, then do so with eyes wide open. It may work out, it may not, but at least you knew the risks and level of financial protection they offer going in and then made an informed decision based upon what you feel is best for your own circumstances. I just purchased a truck for over $60,000. Some would think me not too bright for doing so, but it's my money and I'm happy about it, and that's all that really matters. Buy whatever you want based on your own decisions.

WOW! HAL9001 you are super overanalyzing this! We get it you're not a fan of extended warranties.
Are you super bored this evening?
(P.S. I paid $39K for my truck (not $60K), so spending another $1000 for my peace of mind was nothing).

 

[BigD]

WOW! HAL9001 you are super overanalyzing this! We get it you're not a fan of extended warranties.
Are you super bored this evening?
(P.S. I paid $39K for my truck (not $60K), so spending another $1000 for my peace of mind was nothing).

Actually I appreciate Hals responses. I was thinking maybe I should buy one before I hit 1 year/12,000 miles. After reading this thread I'm definitely going to skip the extended warranty. Waste of money. Even if u buy one, I guarantee they will find any loophole they can to wiggle their way out of paying for the repair. Didn't do every recommended maintenance & your getting rejected! The service department is the biggest money maker at a dealership. With an extended warranty that guarantees years of u coming back for all your routine maintenance.

 

[securityguy]

Actually I appreciate Hals responses. I was thinking maybe I should buy one before I hit 1 year/12,000 miles. After reading this thread I'm definitely going to skip the extended warranty. Waste of money. Even if u buy one, I guarantee they will find any loophole they can to wiggle their way out of paying for the repair. Didn't do every recommended maintenance & your getting rejected! The service department is the biggest money maker at a dealership. With an extended warranty that guarantees years of u coming back for all your routine maintenance.

Do as you will BigD. With the MOPAR MAX CARE plan, there are no "loopholes". It's a "what's "NOT COVERED" warranty versus a "WHAT IS" covered. I am a fan of these on certain types of vehicles if you plan on keeping it fo a while or putting a ton of miles on her. I still believe that with all of the electronics in these vehicles today, most folks will see return on a vehicle like ours. I think what @GregHBNA is saying is that we're not morons and there was nothing said that 99% of us don't already know or understand

 

[Condor757]

HAL brings up some very good points and I agree with everything he says. unfortunately it’s turning this thread into a “I bought one so screw you” vs “i didn’t buy one so screw you.”

That should have never been the point.

Extended warranties are very much a personal decision. I bought the Zeigler extended warranty TWICE and got a refund TWICE.. that’s how conflicted I was. Both times happened within weeks of buying it. For me the decision was simple: I was buying the warranty just prior to hitting 12,000 miles at a really good price ($1430 with $100 deductible for the 8/85,000.) Great price right? The only problem was, this extended warranty didn’t even kick in for two more years/24,000 miles later, because the factory warranty is good out to 3 years/36,000 miles. So, to me... a total complete waste of $1430 for two long years... thats $1430 that I could deploy into so many more investment opportunities/rainy day funds/kids college funds. That‘s $1430 that could potentially grow into a much higher amount when invested properly, or bail me out of a crappy situation where I need the funds today.

There is nothing worst than money being spent without any return, which is what this was to me.

That being said, I FULLY UNDERSTAND why so many folks buy the extended warranties... for simple peace of mind. It makes sense for a lot of folks and that’s what this conversation is really all about.... DO WHAT is BEST FOR YOU!

I plan on driving this truck for 10+ years... but I don’t drive more than 8000-10,000 miles/year, so I will time out looong before I mileage out. I don’t off road, I don’t tow barely at all, in fact I “treat ‘er like a Lady.” Thus, the extended warranty does not make sense for me and I am willing to gamble that I won’t be spending anywhere close to $1530 for the next 5 years on a repair after the factory warranty runs out... especially since most of those high priced repairs tend to come from the power train , and that factory warranty is actually good out to 5 years/60,000 miles. So to me it’s a reasonable gamble and I’m reasonably sure I’ll come out ahead, just based on how smoothly this truck has performed.

To each their own, there is no “right“ answer except for what your situation dictates. Good luck with the decision. Peace out!

 

[flyfingers]

I had never purchased any kind of extended warranty on anything I've ever bought until about a year ago. It wasn't until I had 2 refrigerators needing repair under orig manufacturer warranty to the tune of $1,700 combined, that I finally came to grips with that things aren't built like they used to be. Occasionally I still run some machine shop equipment from the 50's and they run flawlessly but there are zero electronics in them. The darn vehicles these days are simply too loaded with electronics and I feel that a couple grand now to pay for very likely electronic failures later, is worth it - to me anyway.

Today dealer shop labor runs right around $125 / hr in my neck of the woods and no doubt will continue to rise along with the cost of parts making my $2300 investment today worth more in the future.

Bottom line is although the odds may be in favor of the house, I certainly sleep better knowing I'm covered as best I can be. Besides, it was technically free as the past couple stimulus checks covered it.

 

[securityguy]

I plan on driving this truck for 10+ years... but I don’t drive more than 8000-10,000 miles/year, so I will time out looong before I mileage out. I don’t off road, I don’t tow barely at all, in fact I “treat ‘er like a Lady.” Thus, the extended warranty does not make sense for me.

So...because you treat her like a "Lady" she won't ever break??? You can treat your wife like a Goddess, but she can still get Cancer Everything else you said I agree with.

 

[Condor757]

Besides, it was technically free as the past couple stimulus checks covered it.

Your post made perfect sense right up to this last sentence. Don’t tell Dave Ramsey that NOTHING is ever “free”... and those two stimulus checks can do you wonders and net you many thousands more if invested properly instead of sinking them into something that “might break” while yielding you close to the original invested amount instead of several thousand dollars more.

Other than that, I agree 100% that buying an extended warranty is all about “peace of mind”, which is very important to many folks.

 

[Condor757]

So...because you treat her like a "Lady" she won't ever break??? You can treat your wife like a Goddess, but she can still get Cancer Everything else you said I agree with.

Of course it can break anytime. But statistically, if you have two owners where one off roads constantly, tows constantly, basically runs the truck much harder than the other who avoids all those things, the second owner will most likely have fewer issues. Just basic mechanics and statistics. Plus, given that I drive low miles/year, the time will expire long before the mileage, which is when most mechanical breakdowns occur.

 

[securityguy]

Besides, it was technically free as the past couple stimulus checks covered it.

Wish I would have gotten stimulus checks

 

[flyfingers]

Your post made perfect sense right up to this last sentence. Don’t tell Dave Ramsey that NOTHING is ever “free”... and those two stimulus checks can do you wonders and net you many thousands more if invested properly instead of sinking them into something that “might break” while yielding you close to the original invested amount instead of several thousand dollars more.

Other than that, I agree 100% that buying an extended warranty is all about “peace of mind”, which is very important to many folks.

Haha - I'm a huge Dave fan and am "Debt Freeeeeee". I was totally joking about the stimulus check thing. I sure wish there was a sarcasm font. Haha

Re; Dave Ramsey and nothing is ever free; about 5 yrs ago my kid and I were out looking at a local street here where every house was totally decked out for Christmas. One of the folks was handing out hot chocolate so we each got one. As we were walking away my son says "See dad, there are some things that are free". Of course I didn't have the heart to go into detail about how someone had to pay for it - I just let him have that one.

 

[securityguy]

Of course it can break anytime. But statistically, if you have two owners where one off roads constantly, tows constantly, basically runs the truck much harder than the other who avoids all those things, the second owner will most likely have fewer issues. Just basic mechanics and statistics. Plus, given that I drive low miles/year, the time will expire long before the mileage, which is when most mechanical breakdowns occur.

I understand your rationale and certainly have no cat in this fight as I don't sell warranties. Frankly Scarlet, I don't give a damn what ya' all do with your money because I waste mine all the time on a ton of **** I know I don't need...like a $73K truck

 

[flyfingers]

Wish I would have gotten stimulus checks

Wish my annual income rendered me ineligible too. Haha

 

[securityguy]

Wish my annual income rendered me ineligible too. Haha

Get the H3LL out of CA my friend and you may be surprised how much money you can make and not have your state suck you dry with all of the high taxes and the ridiculous price of fuel!

 

[PaulieWalnutz]

I’m not sure if it is the same for all extended warranty plans, but I did one on my Jeep GC and when I sell it next week I can cancel the warranty and get refunded unused portion. That could help in deciding whether or not to purchase one, knowing that if you sell you can recoup pro rated unused portion

 

[securityguy]

I’m not sure if it is the same for all extended warranty plans, but I did one on my Jeep GC and when I sell it next week I can cancel the warranty and get refunded unused portion. That could help in deciding whether or not to purchase one, knowing that if you sell you can recoup pro rated unused portion

Yes Sir...most all warranties can be cancelled and you pay a $50-$75 cancellation fee and the remaining portion is prorated back to you via a check.

 

[User_3336]

I’m not sure if it is the same for all extended warranty plans, but I did one on my Jeep GC and when I sell it next week I can cancel the warranty and get refunded unused portion. That could help in deciding whether or not to purchase one, knowing that if you sell you can recoup pro rated unused portion.

Depending on that year and mileage if your JGC, your refund might not be as much as you expect.