Convince a skeptic on Extended Warranty [but I am becoming less skeptical]

[Green_Gladiator]

Thank you all very much for the input - regret that I asked the question and then dropped away - ended up avalanched at work this week. Going to try to look into options on this. Appreciate all of the input.

Reading through this thread earlier today really sparked my interest. Went ahead and contacted Tom thanks to @punk'n and recieved a great proposal for a Mopar warranty .. something to consider for sure ... ?

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[CivilJeep]

Everyone is going to make their own value judgment on service contracts, but here are a few reasons I typically purchase one.

* The warranty company is able to make a "bet" on the repair cost over a sample rate of tens of thousands of vehicles. They look at things in the aggregate. I am making a "bet" on one single vehicle.

* I have no way to confirm this, but I imagine that Mopar does not pay list price for parts and labor. So while an out of warranty repair might cost a retail customer $2000, Mopar likely pays substantially less. Technically, this means that it's possible we both win. Mopar could make money on sale of the service contract, and I could save money on not paying for the repair.

* The fringe benefits of the service contract are nice, and I've made use of them. Lost your key fob? You get a replacement, no deductible. Break down 100+ miles from home? You get meals and lodging. Car in for service? You get a free loaner and don't have to cool your heels in the waiting area. Not worthy of the warranty cost on their own, but certainly nice to have.

In the end, how long you plan to keep the vehicle, your risk appetite, and cash reserves all play a part.

 

[kd1yt]

CivilJeep - excellent points that the company is rolling the dice across a large quantity of vehicles vs me rolling the dice on one vehicle, and also the differential in the company's cost to do work vs my 'retail pricing' if I have to have work done.

Subject to me finding out some more details, I think I am on my way to becoming a first-time extended warranty buyer....

 

[UnforseenWeather]

I used to skip extended warranties as most mechanical stuff I can fix, but with all the electrical crap in the new vehicles, I tend to get them now.

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Tom Winkels
Finance Manager
Hayes Jeep
3718 Stadium Drive
Kalamazoo, Mi 49008
TEL-269.488.2080

Tom was the cheapest I found by far. After a couple of emails back and forth and a 2 minute phone call to give him my credit card info, I was done. He immediately provided PDFs of the application, plan and coverage. And, then I received hard copies of everything in the mail. He quickly responded to my inquiries and was a pleasure to deal with. I'm on my second warranty with him.

Bought my JT and extended warranty from Tom and crew at Hayes. Like, sat in his office and everything. The best dealership experience I’ve personally ever had.

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