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-   -   do I need to purchase a Chrysler Group Service Contract? (http://www.wranglerforum.com/f274/do-i-need-to-purchase-a-chrysler-group-service-contract-143065.html)

redirysae 02-29-2012 08:45 AM

do I need to purchase a Chrysler Group Service Contract?
 
This is my first Jeep and in April I will have owned it one year. I have received several notices wanting me to purchase a additional service contract to extend coverage past 3 years/36,000 miles. My question is, Is it worth it? I do plan on keeping my Wrangler but am uncertain if I should lay out extra dollars for something I may not need. What do you fellow forum members think?

daggo66 02-29-2012 08:48 AM

IMO they are a total waste. People pay for them and then think they got a repair for "free." It's insurance pure and simple. Sometimes you win, but most times you don't. I prefer to self insure for repairs.

mnikc 02-29-2012 08:52 AM

i think theyre a waste
the 3yr/36k is bumper to bumper and then theres the 5yr/whatever for powertrain...
since i have a barebones - no bells n whistles - im not concerned with anything other than the powertrain

keep in mind, depending on what insurance company you have...they offer new car "warranty" plans

i have geico, and it costs me roughly $15/every 6 months for a 7 yr, 100k mile bumper to bumper...granted theres a $250 ded (instead of the dealer $100)...but hey, its still cheaper than buying the service / warranty package from chrysler

shrkbyte731 03-03-2012 01:48 PM

The choice to purchase a warranty is def. an individual one. I have owned alot of vehicles over the years. Some I have had good success with, others not so much. If you plan on trading every 3-5 years you can probably skip it. I work at a dealership and thats what I usually say to customers. If you plan on holding it for quite a while, maybe worthwhile. I had the Geico warranty, have to disagree with mnikc. Seemed like it was more like $75-$90 every 6 months. Then when I went to use it on one day with three repairs I got nailed with a $750 bill. ($250x3) Jeep warranty one small deductible, per visit, not per repair. Always go with manufacturer if you can, IMHO..

lolpetewtf 03-03-2012 01:59 PM

Quote:

Originally Posted by mnikc (Post 2087044)
i think theyre a waste
the 3yr/36k is bumper to bumper and then theres the 5yr/whatever for powertrain...
since i have a barebones - no bells n whistles - im not concerned with anything other than the powertrain

keep in mind, depending on what insurance company you have...they offer new car "warranty" plans

i have geico, and it costs me roughly $15/every 6 months for a 7 yr, 100k mile bumper to bumper...granted theres a $250 ded (instead of the dealer $100)...but hey, its still cheaper than buying the service / warranty package from chrysler

I have geico as well; might look into this.

zuber 03-03-2012 02:16 PM

Quote:

Originally Posted by mnikc
i think theyre a waste
the 3yr/36k is bumper to bumper and then theres the 5yr/whatever for powertrain...
since i have a barebones - no bells n whistles - im not concerned with anything other than the powertrain

keep in mind, depending on what insurance company you have...they offer new car "warranty" plans

i have geico, and it costs me roughly $15/every 6 months for a 7 yr, 100k mile bumper to bumper...granted theres a $250 ded (instead of the dealer $100)...but hey, its still cheaper than buying the service / warranty package from chrysler

I am putting this on my insurance once I run over the 60,000 mile warrenty I have on my 2010jkus. I purchashed my jeep and then the next day the previous owner told me I would get a extended warrenty. He had forgot he paid $1700 for the warrenty, and people say lawyers are smart.

12JKUR 03-04-2012 06:23 AM

Chrysler guy told me if I didn't have nav, I didn't need it.

Got a refund of my $1,500 or so within 30 days of purchasing it (sold to me at cost).

Chris@bosak 03-04-2012 07:32 AM

I would say it depends on how much stuff you have in the Jeep. If you have a loaded up Jeep with MyGig, heated seats, Nav, etc.... Then it's a good idea but it's like the other guy said..Its a choice for you and yes it is just like insurance. If you plan on keeping it and not getting crazy with mods then spend the extra $1,200 and cover it for 75k.. At the end of the day its up to you. I pay $1,000 a month for health care which as far as I can tell is a waste of money since I never use it but I still have it just in case.

Megafriday 03-04-2012 08:00 AM

Why don't you skip the warranty and stick $20 to $25 away each month in a savings account as a just in case fund? You'll have a decent chunk of change at the end of the warranty that could cover most repairs and, if nothing ever breaks, then you still have a chunk of change instead of the dealer having it.

Statistics show these warranties don't pay off in the long term for most, though you can always find people who swear by them. It's just gambling.

McClary85 03-04-2012 09:24 AM

x2 ^

JayHawker45 03-04-2012 05:48 PM

Quote:

Originally Posted by Megafriday (Post 2100838)
Why don't you skip the warranty and stick $20 to $25 away each month in a savings account as a just in case fund? You'll have a decent chunk of change at the end of the warranty that could cover most repairs and, if nothing ever breaks, then you still have a chunk of change instead of the dealer having it.

Statistics show these warranties don't pay off in the long term for most, though you can always find people who swear by them. It's just gambling.

This is exactly what we have done with each of our vehicles.

mnikc 03-04-2012 08:54 PM

Quote:

Originally Posted by shrkbyte731 (Post 2098620)
The choice to purchase a warranty is def. an individual one. I have owned alot of vehicles over the years. Some I have had good success with, others not so much. If you plan on trading every 3-5 years you can probably skip it. I work at a dealership and thats what I usually say to customers. If you plan on holding it for quite a while, maybe worthwhile. I had the Geico warranty, have to disagree with mnikc. Seemed like it was more like $75-$90 every 6 months. Then when I went to use it on one day with three repairs I got nailed with a $750 bill. ($250x3) Jeep warranty one small deductible, per visit, not per repair. Always go with manufacturer if you can, IMHO..

its def an individual choice.

i for one dont keep cars long, so i dont need the dealer plans. if i were to keep the car, id go with my insurance co bc it saves me money in the long run

heres the issue with this...

1. you work at a dealership...so youyre biased. i know how it works with dealerships and warrents at point of sale...regarding interest rates on the loan vs. what the dealer gets for selling an extended warenty - and whatever kick backs the dealership gets.

you gotta make a living, i get it. :D

2. i just looked at my policy...i pay $25 every 6 months on my fiancees car and $20 fror my jeep/every 6 months. yes, it is $250 per repair (once my manufacturer warrenty expires)...but if your car is going in for 3 different repairs at one time...i think its time to have your employer hook you up with a deal on a new jeep! also keep in mind, the cost of the insurance coverage will vary per car.

--------------------

heres an example...even if you pay...100/every 6 months with an insurance co. thats 200/yr x 7 yrs = $1400.00.

i was quoted a 5 yr/60k extended chrysler coverage + 12 services (oil changes) for near $3k!

after my initial 3yr/36k mile jeep bumper to bumper...my chrysler plan kicks in...w/100 ded per visit.
(so i get another 2 yrs and 24k miles with 12 oil changes for $3k)

geico offers, 4 more years and 64k miles more for ~ $1400.00

yes, there is the $250 ded per repair but..
$1600 is new rims and tires on my jeep :dance:

also, when the initial coverage is about to expire, the manufacturer sends you offers to buy extended coverage then. (happened with my charger)

-----------------

i personally wouldnt get the dealers coverage, but it is a personal choice

-----------------


im just curious...what was the total amount for the bill for the 3 repairs? what were the repairs? what year was the yr/make/model of the vehicle?

mathjak 03-05-2012 03:45 AM

using an insurance company plan may get you one hell of an insurance increase if you want to switch companies.

all those mechanical claims with an insurarance company sponsered plan may be reported to CLUE.

while your own company may just drop you if claims are high any other company can consider those claims no different from any other comprehensive claim and either charge you a high rate for auto insurance or not take you on.


just like using an insurance companies road side service it can profile you as someone who drives an ill-maintaind vehicle and hats why the breakdowns.

those of you who have seen my previous warnings know im not a fan of anything insurance company sponsered.

take a look on your own CLUE report and see if those claims are there. your entitled to one free report a year.

if they are there those can and most likely will effect any changes in companies when you want to switch.

mathjak 03-05-2012 04:19 AM

if anyone has submitted mechanical break down claims to geico im curious if they appear on your report?

shrkbyte731 03-05-2012 11:02 AM

To answer your question, it wasn't a jeep. It was my wifes '02 Audi A6. When I purchased the warranty I specifically asked geico if it was per visit, or per repair. Definetely per visit, I was told. The coils went two at a time, plus a window regulator. (I believe $590 a coil, they all went event.) And of course, they wouldn't replace all at once because that would have been the logical thing to do. BTW it is not a dealer's warranty, it is a manufacturers warranty. Big difference. Chrysler, Ford, GM will always stand behind their warranties, dealers sometimes will not. Yes I do work at a dealership, and like most capitalist businesses, we do make a profit. I am sorry someone jaded you on warranties, but I stand by what I said. Geico sucks for coverage. If it costs you around $1400 over 7 years, plus the cost of repairs at $250 a pop? Then if you decide to sell your jeep the next guy can't get that great coverage unless he has geico. Or you switch insurance companies, and your coverage evaporates... Not good. BTW someone had to be yanking your chain trying to charge you $3k for that coverage. Shame you didn't work with a more reputable place..

zmotorsports 03-05-2012 11:22 AM

I have NEVER been a fan of the service contracts. It is an insurance policy nothing more. You are rolling the dice on whether or not you will have a major problem. If you do have a major breakdown the insurance will do everything they can to weasel out of it such as insist on proof of your LOF intervals. If you perform your own maintenance (LOF) then this is one way for them to get out of it.

I think you are much better off to put money aside each week or month or whatever works for you and IF you ever have a problem you have some reserve. Chances are pretty good if you keep up on the regular required maintenance you will never have a major issue.

Just my 2 cents.

Mike.

mnikc 03-05-2012 11:57 AM

Quote:

Originally Posted by shrkbyte731 (Post 2105196)
To answer your question, it wasn't a jeep. It was my wifes '02 Audi A6. When I purchased the warranty I specifically asked geico if it was per visit, or per repair. Definetely per visit, I was told. The coils went two at a time, plus a window regulator. (I believe $590 a coil, they all went event.) And of course, they wouldn't replace all at once because that would have been the logical thing to do. BTW it is not a dealer's warranty, it is a manufacturers warranty. Big difference. Chrysler, Ford, GM will always stand behind their warranties, dealers sometimes will not. Yes I do work at a dealership, and like most capitalist businesses, we do make a profit. I am sorry someone jaded you on warranties, but I stand by what I said. Geico sucks for coverage. If it costs you around $1400 over 7 years, plus the cost of repairs at $250 a pop? Then if you decide to sell your jeep the next guy can't get that great coverage unless he has geico. Or you switch insurance companies, and your coverage evaporates... Not good. BTW someone had to be yanking your chain trying to charge you $3k for that coverage. Shame you didn't work with a more reputable place..

02 audi - evpensive car - expensive parts...youre gona pay for what you own, right? just like comp / collision coverage...its going to cost you more to insure that audi than say a honda. its the nature of the beast.

to me...dealer / maufacturer - same difference. its a chrysler product from a chrysler dealer - both to be bought at the dealer.

if i sell my jeep...and the next guy gets it w/o the coverage...not my problem. i wouldnt sell it privately anyway - im a fan of the trade in! mr re-sale can then go buy his own warrenty at that time through the dealer is he/she chooses to, right?

i cant sepak for you or aobut you, or for anyone else. ive never had an issue with geico - 7 yrs strong and stil lthe cheaperst and always there when i need'em. never any issues.


as far as yanking my chain - more like trying to rip the one off my neck as i sat there! trust me, i will never go back to that dealer ship - they suck. (town and country dodge/jeep/chrysler in levittown ny)

again, i dont keep cars long enough to need either coverage - dealer (manufacturer) or geico

mnikc 03-05-2012 11:57 AM

Quote:

Originally Posted by zmotorsports (Post 2105247)
I have NEVER been a fan of the service contracts. It is an insurance policy nothing more. You are rolling the dice on whether or not you will have a major problem. If you do have a major breakdown the insurance will do everything they can to weasel out of it such as insist on proof of your LOF intervals. If you perform your own maintenance (LOF) then this is one way for them to get out of it.

I think you are much better off to put money aside each week or month or whatever works for you and IF you ever have a problem you have some reserve. Chances are pretty good if you keep up on the regular required maintenance you will never have a major issue.

Just my 2 cents.

Mike.


:thumb:

mnikc 03-05-2012 12:13 PM

Quote:

Originally Posted by mathjak (Post 2104403)
if anyone has submitted mechanical break down claims to geico im curious if they appear on your report?


let me start by saying - i used to work for geico. i hate the company with a passion and the only reason why i still have them, is bc they are the cheapest. if i found someone else cheaper - trust me - i would switch and would pomote everyone else to switch as well.

i stil lwork in the insurance industry at a smaller company now...a lot of us here, used to work together and we all left bc geico sucks.

they are great for coverage - but horrible to work for

anyway...MBI (mechainical breakdown) will not go on your CLUE report. it goes on your internal policy for tracking purposes. for those that dont know - the CLUE report is your claims report of accidents and comprehensive losses (fire/theft/glass,ect...), the underwritting department uses this along with your MVRR (motor vehicle report - license info - tickets, defensive driving class, dui's, suspensions, ect...) to determine your driving ability to asses your risk. basically, its part of what they use to figure what they are going to charge you for your policy.

again, using your MBI does not go your CLUE report - reason being - its only offered for a temporary time and is only valid through the one insurance company. whereas, collision, comprehensive is a standard coverage that as long as you pay for it..you have it

on a side note...
i jsut spoke with one of the new people here form geico from the sevice department...the mbi doesnt affect your rates and does not go on the clue report. also for the $750 ded for 3 services at one time...you should call and speak to someone about that.
she confirmed, it's $250 per visit, not per repair. so your window, shocks, ect...would only be the $250. if multiple visits are required for the same repair - its still only the one $250 ded.
if for a seperate visit, there is another issue seperate from the original, then trhe new repair has a new deductible

shrkbyte731 03-05-2012 12:16 PM

I'll amend my comments regarding Geico; warranty coverage sucks. I have had them for over 20+ years for comp and collision. (prior USAF) They are awesome when it comes to that. But mechanical breakdown is a waste. "We need to send an adjuster to inspect the broken part before payment" Three days later without a car...

mnikc 03-05-2012 12:23 PM

Quote:

Originally Posted by shrkbyte731 (Post 2105436)
I'll amend my comments regarding Geico; warranty coverage sucks. I have had them for over 20+ years for comp and collision. (prior USAF) They are awesome when it comes to that. But mechanical breakdown is a waste. "We need to send an adjuster to inspect the broken part before payment" Three days later without a car...


If youre in CT, sounds like youre dealing with someone from the Buffalo NY office. they are retarded there!

thank you for your service!
you should check out USAA - i hear they are better for military than geico

shrkbyte731 03-05-2012 12:25 PM

If it is $250 per visit, that is a change. I argued till I was blue in the face. "three individual repairs that are unrelated in nature and fixed same visit are a seperate deuctible" Sad part= 12 months later car recalled for same coils. Happy part=traded in for first JKU in '10

DaisyCutter 03-05-2012 12:37 PM

I've had extended warranties. I used to buy them. The problem was I never used them.

If you drive your vehicle hard, and tend to wear stuff out quickly, then I'd consider getting an extended warranty.

I drive mine nicely, I keep them in a garage, and they never seem to break down.



Once thing is for certain. The dealers make money on the extended warranties. They wouldn't offer it if it was a money loser. While some individual buyers come out ahead, the combined average of everyone results in profit to the dealers.

mnikc 03-05-2012 12:48 PM

Quote:

Originally Posted by shrkbyte731 (Post 2105477)
If it is $250 per visit, that is a change. I argued till I was blue in the face. "three individual repairs that are unrelated in nature and fixed same visit are a seperate deuctible" Sad part= 12 months later car recalled for same coils. Happy part=traded in for first JKU in '10

if you have 3 diff visits for 3 diff repairs - thats $250 a pop
if you have one issue - for example your coils...and you bring it back 5 times for the same thing...you only pay the $250 the one time. (kina like if your in an accident and the body shop doesnt fix something peroperly or to your liking..keep brining it back until its done right, you only pay the one ded)
in your case...the coils, window, hell - add on a fuel pump, alternator, transmission. if you broaught it in to the shop at the same time - you only pay the $250 one time. def call them up and see what happened

unless thing have changed in the past 2 years - it should just be the one ded

also keep in mind...wear and tear items are not covered.
brakes for example - if the pads n rotors need to be replaced from usage, its wear and tear but if the caliper falls apart or the pad snaps in half (somehow), thats covered.

JDsDream 03-05-2012 12:58 PM

You all make valid points and granted if I were mechanically inclined enough to make repairs on my Jeep I would not have purchased the Chrysler extended warranty. But I did and I don't regret it for a moment. It extended my bumper to bumper to almost the 100K mile mark. The cost was $1,300.00. So far I have had my rear axle seals, rear main seal, manifold, shifter cable, serpentine belt and all O2 sensors replaced for a grand total of $100.00. Okay so now I'm out $1,400.00 but how much would those repairs have cost me out of pocket? I'm not sure, but I believe that I have at least broken even and I still have 30,000 more miles to go. Even if I had not used it, it sure is nice to know that I have it in case I need it.


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