[SecondTJ]

It could make sense in some rare occasions. The way the lifetime warranties are, if the value of your jeep is less then the cost of the repair, they buy you out. So lets say you had a ragged TJ with 400,000 miles that was only worth $1,000.00 and the motor goes out. They are going to give you the value of the jeep and you no longer have the warranty. So if someone has an old jeep with a lifetime warranty it might be worth cashing in. Some people buy the lifetime warranties thinking they can get new parts on their jeep for the rest of their life. Once the value drops you are SOL.
I have a sneaky feeling that if they offered to buy you out and you declined, it might be real hard to get a claim through in the future. Not that an auto company would act that way, just saying...... I've heard some bad stories from people getting stuff covered under their warranties, it might be even harder now. I myself only had to make a claim once on an aftermarket warranty for a transmission and I had not problems, paid the $100.00 and got a new transmission put in. That was on a used Durango, years ago.

They didn’t start offering the Lifetime MaxCare until 2009, so no TJ’s are covered.

 

[dlivry7]

are they going to put in writing that they will replace the heater core, free of charge, when it plugs up ? lol
if they offer 3k, ill ask for 6k ! pretty obvious why they want to take it back

i have to use the dealership next week, kind of curious to see if they offer a buyout

 

[Jay2011JK]

Found this posted by a dealership:
$3000 - MOPAR MVP Select Owner Bonus Cash Offer
Details:
#43CMZ This program offers eligible consumers the option of $3,000 cash allowance to be applied toward the retail purchase (Type Sale 1 or B) or lease (Type Sale L or E) of an eligible vehicle.

 

[m998dna]

Let's get this straight. Jeep releases and markets for 11+ years poorly designed products (relatively speaking) so they offered at a cost to the consumer, a MaxCare Lifetime warranty (insurance policy) to cover the potential failure of those poorly designed parts -- and now they want to buy the insurance policy back? What else do they want back?

I bought the MaxCare Lifetime warranty due to their declining reputation and engineering practices -- knowing at some point I'm going to have to replace the oil cooler housing, right and left heads, perhaps a total engine replacement due to piston slap... not to mention the heater core and everything that connects to it.

Yeah right.

Perhaps this is more about an obsolescence and discontinuance strategy so they can provoke demand for the new generation Jeeps. This could backfire on them.

Ford will be positioned to take significant market share starting Q2 2021.

 

[H8SPVMT]

FCA is now actively trying to get rid of remaining Lifetime policies. The rebate on a new vehicle purchase is called “MVP Select Owner Bonus Cash Offer” , good for $3,000

And, you don’t even have to trade the vehicle in to get the rebate. Just agree to forfeit the Lifetime service contract coverage.

I CAN BELIEVE THAT!
Just now getting my 5th rear main seal replaced along the 5th Throw-out bearing replacement( MOPAR warranty). Two weeks before that, my eangine oil cooler started leaking and was replaced.

I think they'll get rid of my engine (92,000 miles) before I get rid of my warranty.

 

[Canyonero02]

What about the lifetime power train warranty? I opted for that over the max care when I bought in 2016. It was $1000, max care was about $2500 if I remember correctly.

 

[Arkhams Finest]

To quote the astronaut that went ahead in time to fight apes...

"From my cold dead hands"

Seriously though I wouldn't give mine up at this point being that I got mine for my Jeep about a year before they discontinued them so I am pretty fortunate (also one for my Ram as well). Thankfully I haven't had to use either but it is a nice piece of mind to have. We also intend to keep both the Jeep and Ram for a very long time. If we were going to be in the market for replacing them then I would consider the offer.

 

[YnotAJeep]

They are just trying to level the playing field. Not fair that some older ones are covered and some are not. I wonder how many of those ticking time bombs are out there. I would be keeping it very stock cuz they will be looking for mods to cancel them.

 

[Muffin Top]

It sounds like the company has stopped trying to preserve the future of the brands. I would not want to buy a new vehicle from a company that wants to buyback the lifetime service plan. If they think it's going to need more than a present value of $3,000 repairs, then it will be a miserable ownership experience. It's like they think today's generation is acclimated to putting up with garbage, like defective office software.

 

[Lee H]

A few years ago the service manager at my local dealership told me these are eating FCA’s lunch, even with the low reimbursement FCA pays dealers. Shortly after FCA announced they were going to discontinue the program.

 

[11th]

Let's get this straight. Jeep releases and markets for 11+ years poorly designed products (relatively speaking) so they offered at a cost to the consumer, a MaxCare Lifetime warranty (insurance policy) to cover the potential failure of those poorly designed parts -- and now they want to buy the insurance policy back? What else do they want back?

Well lets keep in mind they are not demanding them back, say like calling a callable bond, where once the costs rise enough (in the case of bonds, interest rates dropping enough) the mortgagee can just repay. In this case they are just making an offer. Seems like a good deal for the consumer who owns such an extended plan as they now have the choice of keeping it or selling it back. and it is the the owner of the plan that knows their driving habits and overall condition of vehicle.

What is going on is not so much about engineering as it is about
1) wording in certain of these older plans being affected by rulings in case law, and a bunch of regulatory law changes in many states converting what were profitable defacto "service plans" and not actually warranty, to warranty controlled by warranty law. For good or for bad, or for both, in recent years there has been a lot more regulation, and that includes changes that put these old plans more in warranty law, than their original/former regime of defacto extended service plan, which was quite different contract law.
2) FCA already recouped the most profitable aspect of these. for example cars totaled, cars sold on second hand market to people who don't know, cars with aspects voided due to modification or certain uses, and of course years and years of extended plans voided in broad and key aspects by people not doing required maintenance, and years of turning away people due to failure to prove that the problem was caused by a clear defect (and the warranty language clearly specified the part had to be a defect present at manufacture to be covered.

As others have mentioned, even with changes no issuer of a warranty or service plan has to repair anything above the value of the overall vehicle. Just like no normal insurance has to pay $8k in repair damages for a vehicle with a value of $4K.

I wonder if the lifetime warranties can be voided by the acquisition, similar to when a company goes bankrupt?

No. and if they could, their major liability they would shed is normal warranty. that is probably a much larger liability carried. Even in bankruptcy, warranty is fairly high ranked in obligations satisfied (after of course taxes and mortgaged debts). In an acquisition like we saw of FCA they cannot shed any liability/debt/contract obligations without agreement of the holding party. Then can of course offer renegotiation/purchase of that obligation, but not force it.

 

[Old Dogger]

Just one cylinder head replacement is a cost of about $3,400. Then about $800 for the oil filter housing, and lets not forget Radiator, thermostat housing and water pump, probably another $1,200. $3,000, just doesn't make any sense. Op's..almost forgot camshafts and cam rollers, OUCH.........

 

[11th]

FYI reading into this a conclusion that this "proves" value of these plans is a classic selection error in stats called the "survivorship bias." That bias is a classic logical error in statistics and problem solving, and a very persistent error.
Diagoras related by Cicero:

'But sometimes good men come to good ends.' Yes, and we seize upon these cases and impute them with no reason to the immortal gods. Diagoras, named the Atheist, once came to Samothrace, and a certain friend said to him, 'You who think that the gods disregard men's affairs, do you not remark all the votive pictures that prove how many persons have escaped the violence of the storm, and come safe to port, by dint of vows to the gods?' 'That is so,' replied Diagoras; 'it is because there are nowhere any pictures of those who have been shipwrecked and drowned at sea.' .

IE the fact that people who survived a storm at sea had prayed does not prove the effectiveness of prayer, since we are not including our data set those who died even though they prayed. n the case of service plan or warranty we are not including all the people who did not or were not able to use them to the present value of the original cost.

 

[m998dna]

@11th

My company obsoletes and accelerates discontinuance of product lines by offering discounts on the newer platforms. This is so we can shake off service plans and shut down manufacturing lines that supports the fielded base. It's not like trading in a Jeep for another because the customer needs to validate the newer system in their environment. We are only obligated to support the product line seven years after we obsolete the product -- then we can discontinue.

If the Jeep "MaxCare Lifetime" plans are 10+ years old and they are only obligated to maintain the majority of service parts for 10 years -- the way I see it, they will want to somehow start calling in those "MaxCare Llifetime" service plans. This is so they can purge service parts inventories.

Yes, this isn't forced, however... aren't they in essence putting the consumer's feet to the fire by obsoleting and discontinuing OEM parts?

 

[Mudman1]

Haven’t had too great experience with the one time I needed them but better to have it and not need it than to need it and not have it!

Damn good question.

 

[Mudman1]

I bought my Lifetime Mopar Added Care Plus warranty literally the last Friday they were offering it online from that Ziegler place. Paid about $2,140 for it. $200 deductible. I have 69k on my '18 JKRR 6spd. Used it for a new swaybar disconnect motor and entire chassis wire harness. Also used it for a new AC compressor with new compressor clutch and refrigerant. My warranty has already paid for itself.

 

[11th]

Yes, this isn't forced, however... aren't they in essence putting the consumer's feet to the fire by obsoleteing and discontinuing OEM parts?

Well yes and no. I think we all know that for the same reason a cars body repair goes from a) initially moderately high cost, to b) low cost as lots of takeoffs come onstream and as third parties make parts, to c) final stage when body repairs for say a 1995 car get way more expensive than a 2015 car due to parts costs or total unavailability.

With the example in your industry there may well be explicit terms to how long a product is supported with spare parts etc. A shorter period and presumably you pay less initially for the product than you might for a competing product that has a longer guaranteed parts support period.

I get what you are saying about obsoleting, but really I do not think they are making that calculus to intentionally disqualify people, but rather on extreme changes in cost. I mean how long should jeep be making, or paying someone to be making say the glove compartment door for my JK? more than 10 years after production stops? If they were forced to then we would all be paying more for cars.

In the case of cars we know that the makers can't infinitely be supporting them with parts. And that there may be parts no third party sees a profit in making (3d printing will change this for many parts, making them infinitely available as long as specs for them exist in some data form). We can't say ford has to be makin parts for a 1964 Falcon. I think what is fair is support until a lot of units pass a certain threshold of actual cash value. After all as an example, that is settled insurance law. Unless you have a highly specialized and specific (and very expensive) replacement cost policy, no insurer is going to pay much more to repair a car than ACV. They are looking at their secret sauce version of KBB. if it comes to $4,000 and the repairs are $6,000 they will write off the vehicle as totaled and cut you a check for $4k (ish).

I mean you see people with TJs here of years that are clearly very low ACV, like for example $1,200, who are calculating all kinds repairs including engine replacements and assuming going to be under "lifetime warranty" when car makers usually does not do such a repair and can just cut a check for $1,200.

Overall there are generally a couple of logical fallacies, including survivorship bias involved in rationalizing these plans. The people here saying it is worthwhile are survivors. Firstly 55%of buyers of extended plans never ever once use them. They sell or total their car, or more commonly simply do not need covered repair during ownership period. those that post here about value to them exceeding cost are a tiny minority.

Obviously FCA has made the calculation that at this point it is worth it to offer a buyback or credit. I just want to point out that this does not mean FCA has not gotten way more money from the plans than the plans cost them. They still probalby made significant money and most buyers were net losers in the deal. Among hte buyers it is the small amount of survivors that are net winners

 

[11th]

Haven’t had too great experience with the one time I needed them but better to have it and not need it than to need it and not have it!

Respectfully that is the case for your fire extinguisher, your handgun, your seatbelt and airbags, extra supply of granddad's blood thinner, liability insurance if you have assets, your CPR course, ie protection or risk reduction of very high consequence events. It is exactly not the case for the huge amount of people when it comes to with paying for extended warranty on your car or smart phone, paying more for low deductibles on your car insurance etc.

 

[11th]

5th Throw-out bearing replacement( MOPAR warranty).

I got throw-out bearing replaced by FCA for free after my standard warranty expired. I think they know they are a class action risk.

 

[H8SPVMT]

I got throw-out bearing replaced by FCA for free after my standard warranty expired. I think they know they are a class action risk.

I have an issue with the motor I think. I have never seen one go thru 5 rear main seals and throw-out bearing. I replaced one clutch assy on the TJ in the 13+ years I owned it.
This new motor has got to be costing FCA a bundle in repairs I am thinking it is bad main journals or bad cranks. I don't feel any extra vibrations tho.