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Discussion Starter · #1 ·
Just got a letter from Jeep extolling the virtues of taking out a service contract for my 2010, which I can do until I crest 12k miles. I'm at 7k now with no problems.

Has anybody done these? Why? Whether you have one or not, do you think they're worthwhile?

I recall looking into them when I purchased and deciding they were pretty overpriced, but I didn't have access to the collective wisdom of the hive at the time. I figured I'd toss it out there.
 

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The Bad Guy
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Your first instinct was accurate.
 

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I think they're worth it at a decent price. But be careful side there are buttwipes that send people letters claiming they can extend your policy and it's a scam.
 

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You can purchase one up to 36 months or 36000 miles. Up to 12/12 if you want to skip the surcharge and inspection.

You'll get plenty of opinions here. I believe in them, if I planned on keeping a vehicle past the 3/36 I would purchase one. Only a Chrysler service contract as well. Reason being seen way too many other companies go out of business or not cover the repairs. Because of what I do I believe in them. It stinks when a customer is out of warranty and has a costly repair that could have been covered. And of course it's great when a customer has purchased the ext warranty and is happy they didn't have to pay all of it themselves.
And if you do any mods you have to remember what is and isn't covered.

If you do it, buy a Chrysler contract, negotiate the price or ask me and I will get you the cost. Purchase the maxicare warranty. Why do it if you aren't going to be extending everything. Maxicare covers pretty much everything. Not word for word but close "the only parts and labor not covered are labor and items used in maintenance services, glass, plastic lenses, soft trim, brakes, clutches, tow hitches, snow plows", etc

Like I said, at the right price it makes sense. For me, if my nav takes a crap and it costs about 2300 for a new one and I paid 1500 for an ext warranty than I am ahead.
Plus if you wait til you have a few things wrong you only pay the deductible amount once for all of the repairs if you get them done at the same time.

Sorry I'm rambling and sounding like a car guy.

You will definitely get plenty of help here making your decision.
 

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I've purchased extended warranties on two of my past vehicles. I owned each of them over 8 years and NEVER had a problem that would have been covered under the ext. warranty.

The first was a '93 Honda that only had issues with the clear-coat (not covered under ext. warranty), otherwise it was perfect. Sold it w/ around 130k miles.

The second was an '02 Chevy pickup that had a catalytic converter go bad after around 40k miles. The feds mandate that Cats are covered to 80k miles on any vehicle, regardless of the warranty, so Chevy replaced it even though both my regular and extended warranties had expired. I traded it in at 63k miles for my '10 JKU.

Heck, the warranty I got with the Chevy even gave me 'free' oil changes... that I never used, b/c the dealer closed up shop about 2 years after I bought it!

Your mileage may vary.
 

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The Bad Guy
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Like I said, at the right price it makes sense. For me, if my nav takes a crap and it costs about 2300 for a new one and I paid 1500 for an ext warranty than I am ahead.

Or you put in a better aftermarket unit for $1000 and save $500. Read the fine print and learn the true full cost. What is covered and what isn't. Are there deductibles? Can you do most small repairs yourself?
 

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What is the Maxicare warranty? That is offered thru Chrysler? I just bought my Jeep and for whatever reason, they used Zurich. Anyone hear of Zurich? Please help the OP with a NO you didnt purchase and why, or a YES and who it was thru, the warranty coverage period, how much you paid and if it was worth it.

All this warranty talk has me nervous; good and bad.
 

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Your best bet is to invest the $1500 and if there is an emergency you have it and if there isn't one you still get to keep your money. Any money manager will tell you that extended warranties are a big rip off and a huge cash cow for the companies selling them. That goes for any product selling them. Maybe 1 in a 100 will ever get their money back out of an extended warranty.
 

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I complained about the delivery process to Chrysler and they gave me a service contract for 3 years of LOF and a loaner car - paperwork doesn't get into specifics. Any idea what these are...? what type of loaner they will give me...?
 

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What is the Maxicare warranty? That is offered thru Chrysler? I just bought my Jeep and for whatever reason, they used Zurich. Anyone hear of Zurich? Please help the OP with a NO you didnt purchase and why, or a YES and who it was thru, the warranty coverage period, how much you paid and if it was worth it.

All this warranty talk has me nervous; good and bad.
Maxicare is the same as bumper to bumper coverage. It's the best warranty you can buy. Offered thru Chrysler only. Never heard of Zurich.
 

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I complained about the delivery process to Chrysler and they gave me a service contract for 3 years of LOF and a loaner car - paperwork doesn't get into specifics. Any idea what these are...? what type of loaner they will give me...?
It's 3 years of oil changes, usually a total of 6 oil changes since the logbook calls for lof every 6k. Loaner car means that they will probably rent a car for you.
My store has a fleet of loaner cars, if your dealership does then you will get one of those.
 

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Or you put in a better aftermarket unit for $1000 and save $500. Read the fine print and learn the true full cost. What is covered and what isn't. Are there deductibles? Can you do most small repairs yourself?
You are right I could do that, but what if the pcm goes out, or if the engine starts eating oil. What are my costs then?

I've read the fine print, that's why I suggest only the maxicare. No questions about what is covered then.

Deductibles can be 0, 50, 100 or 200.
 

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The Bad Guy
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I've got a '08 Liberty and '09 Wrangler, both with LTPTW. :D
 

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I've got a '08 Liberty and '09 Wrangler, both with LTPTW. :D
That's a good thing especially if you plan on keeping both of them for a long time. The lifetime is actually pretty comprehensive compared to GMs powertrain warranty.

Extended warranties are really a case by case option. I find that there aren't many people who can do repairs themselves and don't have the time. As a dealership we find that it enhances the ownership experience. the people who do buy it, use it and talk about how great their vehicle is, for some reason most don't remember any big issues because they only paid a small deductible to have their vehicle fixed.

i see what repairs all of the new CJD products need after x miles. I see how labor rates are skyrocketing, whether it be a dealership or independent shop and figure if I was going to keep my Wrangler I'd buy one.
Not trying to hijack this thread but I am holding off until 2012 model to see what engine is in the Jk and if there will be any design changes.

To each his own, just remember a lot of people on this forum have the tools and knowledge to do repairs themselves, so you might want to ask yourself if you have both to do it yourself.
 

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The thing is, folks try to sell extended warranties or service contracts because they make money off it. If they didn't make money off it, they wouldn't be selling it. From an actuarial standpoint, playing the odds, you're better off not buying it. Consider that during your lifetime, you'll be offered the opportunity to buy dozens or even hundreds of these things. If you buy them all, you'll be spending a huge amount of money. If you buy none of them, you'll pay for some repairs, but you'll be way more money ahead than if you bought all those contracts. It's just statistics, they make money off them, you are money ahead not to buy them.
 

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The thing is, folks try to sell extended warranties or service contracts because they make money off it. If they didn't make money off it, they wouldn't be selling it. From an actuarial standpoint, playing the odds, you're better off not buying it. Consider that during your lifetime, you'll be offered the opportunity to buy dozens or even hundreds of these things. If you buy them all, you'll be spending a huge amount of money. If you buy none of them, you'll pay for some repairs, but you'll be way more money ahead than if you bought all those contracts. It's just statistics, they make money off them, you are money ahead not to buy them.
Nothing is free, but you have to do your research just like you do when buying anything else and try to get a fair price.
 

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Discussion Starter · #20 ·
Great answers all around. Thanks.

Keep in mind that at the time of purchase, insurance policies are all actuarial losses. Statistically speaking you will probably lose money. However, whether this comes to pass for you will be determined on a case-by-case basis. Because most folks are ill-equipped to handle the consequences of a disaster, I expect we'd all gladly incur a likely loss and sign up for auto insurance even if it wasn't legally required.

In other words, the value isn't simply in recouping your investment. It's also in the risk mitigation.

Thus, for service contracts, I suppose it comes down to the terms of coverage, the costs of coverage, and the risk of failure in the absence of coverage. Plotting those points will, at some point, create a tipping point at which a service contract is a financially sound choice for both the consumer and the provider.

Pato, if I understood you correctly, one can get lifetime coverage for nearly anything mechanical, at any Chrysler dealer, for a retail price of $3200.

That's pretty steep. However, you also indicated that one could "negotiate the price," presumably no lower than the $1700 cost. Is that really true in the aftermarket scenario, such that I could go to a local dealer and say I want maximum lifetime coverage for $2k and he might say yes?
 
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