For those of us considering buying an extended warranty

[berb]

There have been some questions on the forum about which extended warranty to get. I would like to take a different approach to this question.
Please post any out of warranty work you needed done to your gladiator, not self-inflicted. Also, include the price. For those of us who like to play the odds, I think it would be helpful to know what forum members have had to fix and at what cost.

So, for those of us who don't like to read:
1) Post your out of warranty repairs
2) How much those repairs cost

This could be interesting.

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[Jeeperjamie]

I've got a tailgate latch issue and I'm gonna have to fix it out of warranty. I'll let you know what the cost is after I figure out the part I need and if I can tackle it or if it's something I'm gonna let the dealership handle .

 

[HooliganActual]

At the end of day, getting an extended warranty is just a gamble not unlike health insurance, car insurance, or even not carrying a spare tire.

I own a 2016 JKUR, a 2018 JKUR, and a 2020 JTR: the 2016 JKUR is the only one I got the extended warranty on (mainly because I got such a deal on the initial price).

So far, I have only had 2 warranty claims across the 3 vehicles: an ECU issue on the 2016 within the first month of ownership and the typical broken visor on the JTR within the first 3 months of ownership.

I am a retired Reliability Engineer and spent my career working across the nuclear power, oil processing and manufacturing industries and there is a little "concept" that we like to refer to as infant mortality. Basically, the typical defects that occur in machinery stem from long term failure modes such as wearout (age related issues) or short term failure modes such as assembly issues. If something doesn't fail in a very short period of time due do an assembly or manufacturing defect, then it probably won't fail until it wears out or until it is taken apart for whatever reason and a new defect is created; as an example, think of replacing a worn out tire but then not getting the lug nuts tightened down, thus "installing" a defect and resetting the infant mortality curve. There is some truth in the old saying "If it ain't broke, don't fix it."

My diatribe is just to point out that if things don't fail and need replaced within the initial warranty period, there's a good chance that they won't fail until they reach their end of useful life which will likely be outside of the extended warranty period. The auto manufacturers have reliability engineers working for them as well and they take everything that this discipline understands and play that to their advantage. The initial warranties are there to cover the infant mortality items and they know that if they are getting buried with failures within the first year or so, then they won't be losing money for the rest of the warranty period. They also know that people tend to swap out cars every couple of years (if people didn't, there wouldn't be such a large new car market), so the warranty really only has to last until the person decides to trade in next year.

I plan on driving the wheels off of my vehicles and honestly don't see myself buying another new car for many years, if ever. So an extended warranty might not be bad for that scenario, understanding that one may never need to make a claim in the last few years of the warranty period. But if you tend to buy a new car every 3 to 4 years, then buying the extended warranty is just throwing good money after bad...just my $0.02 USD

 

[jeepers29]

On my 14 JKUR, I had both the head unit and the oil cooler housing replaced under extended warranty. The 2 combined save me about $500 over cost of warranty.

 

[BearFootSam]

At the end of day, getting an extended warranty is just a gamble not unlike health insurance, car insurance, or even not carrying a spare tire.

I own a 2016 JKUR, a 2018 JKUR, and a 2020 JTR: the 2016 JKUR is the only one I got the extended warranty on (mainly because I got such a deal on the initial price).

So far, I have only had 2 warranty claims across the 3 vehicles: an ECU issue on the 2016 within the first month of ownership and the typical broken visor on the JTR within the first 3 months of ownership.

I am a retired Reliability Engineer and spent my career working across the nuclear power, oil processing and manufacturing industries and there is a little "concept" that we like to refer to as infant mortality. Basically, the typical defects that occur in machinery stem from long term failure modes such as wearout (age related issues) or short term failure modes such as assembly issues. If something doesn't fail in a very short period of time due do an assembly or manufacturing defect, then it probably won't fail until it wears out or until it is taken apart for whatever reason and a new defect is created; as an example, think of replacing a worn out tire but then not getting the lug nuts tightened down, thus "installing" a defect and resetting the infant mortality curve. There is some truth in the old saying "If it ain't broke, don't fix it."

My diatribe is just to point out that if things don't fail and need replaced within the initial warranty period, there's a good chance that they won't fail until they reach their end of useful life which will likely be outside of the extended warranty period. The auto manufacturers have reliability engineers working for them as well and they take everything that this discipline understands and play that to their advantage. The initial warranties are there to cover the infant mortality items and they know that if they are getting buried with failures within the first year or so, then they won't be losing money for the rest of the warranty period. They also know that people tend to swap out cars every couple of years (if people didn't, there wouldn't be such a large new car market), so the warranty really only has to last until the person decides to trade in next year.

I plan on driving the wheels off of my vehicles and honestly don't see myself buying another new car for many years, if ever. So an extended warranty might not be bad for that scenario, understanding that one may never need to make a claim in the last few years of the warranty period. But if you tend to buy a new car every 3 to 4 years, then buying the extended warranty is just throwing good money after bad...just my $0.02 USD

Exactly, well said! Another way to think about it is this - Extended warranties are a product, the seller must have a lower average cost (claims) than sale price to be profitable. Objectively, this means that on average, the average person will not reach payback on their extended warranty.

Now, that said, there are some risks that are so high that even though they are unlikely to occur, the impact of occurrence warrants purchasing 'insurance' (warranty) regardless. Homeowners, health insurances - the potential costs reach into six-figures and thus the yearly average 'loss' on the policy is far worth the avoidance of catastrophic chance. It comes down to risk tolerance.

For a vehicle what is your risk tolerance? If at 60+k miles, you can afford a few hundred to a few thousand dollars in repairs if one occurs, you are unlikely to benefit on average from an extended warranty. If you do not have the cash flow to make said repair, then financing a warranty provides you another option to mitigate risk. Personally, I have never purchased on and would never have benefited from one. I think it is far better to set aside a sufficient emergency fund with the cost of a warranty than to buy one. That, and I know that I am capable of performing a great majority of likely warranty jobs mitigating a large portion of cost.

I also understand that some folks place a lot of value on "peace of mind", as in not wanting to experience a sense of stress related to a mechanical failure. Even if the odds are not in your favor that you will reach payback.

 

[berb]

At the end of day, getting an extended warranty is just a gamble not unlike health insurance, car insurance, or even not carrying a spare tire.

I own a 2016 JKUR, a 2018 JKUR, and a 2020 JTR: the 2016 JKUR is the only one I got the extended warranty on (mainly because I got such a deal on the initial price).

So far, I have only had 2 warranty claims across the 3 vehicles: an ECU issue on the 2016 within the first month of ownership and the typical broken visor on the JTR within the first 3 months of ownership.

I am a retired Reliability Engineer and spent my career working across the nuclear power, oil processing and manufacturing industries and there is a little "concept" that we like to refer to as infant mortality. Basically, the typical defects that occur in machinery stem from long term failure modes such as wearout (age related issues) or short term failure modes such as assembly issues. If something doesn't fail in a very short period of time due do an assembly or manufacturing defect, then it probably won't fail until it wears out or until it is taken apart for whatever reason and a new defect is created; as an example, think of replacing a worn out tire but then not getting the lug nuts tightened down, thus "installing" a defect and resetting the infant mortality curve. There is some truth in the old saying "If it ain't broke, don't fix it."

My diatribe is just to point out that if things don't fail and need replaced within the initial warranty period, there's a good chance that they won't fail until they reach their end of useful life which will likely be outside of the extended warranty period. The auto manufacturers have reliability engineers working for them as well and they take everything that this discipline understands and play that to their advantage. The initial warranties are there to cover the infant mortality items and they know that if they are getting buried with failures within the first year or so, then they won't be losing money for the rest of the warranty period. They also know that people tend to swap out cars every couple of years (if people didn't, there wouldn't be such a large new car market), so the warranty really only has to last until the person decides to trade in next year.

I plan on driving the wheels off of my vehicles and honestly don't see myself buying another new car for many years, if ever. So an extended warranty might not be bad for that scenario, understanding that one may never need to make a claim in the last few years of the warranty period. But if you tend to buy a new car every 3 to 4 years, then buying the extended warranty is just throwing good money after bad...just my $0.02 USD

Thank you for the info, but this thread is for people who have had out of warranty repairs and their costs. Not looking for a debate about to get one or not in this thread.

 

[berb]

Exactly, well said! Another way to think about it is this - Extended warranties are a product, the seller must have a lower average cost (claims) than sale price to be profitable. Objectively, this means that on average, the average person will not reach payback on their extended warranty.

Now, that said, there are some risks that are so high that even though they are unlikely to occur, the impact of occurrence warrants purchasing 'insurance' (warranty) regardless. Homeowners, health insurances - the potential costs reach into six-figures and thus the yearly average 'loss' on the policy is far worth the avoidance of catastrophic chance. It comes down to risk tolerance.

For a vehicle what is your risk tolerance? If at 60+k miles, you can afford a few hundred to a few thousand dollars in repairs if one occurs, you are unlikely to benefit on average from an extended warranty. If you do not have the cash flow to make said repair, then financing a warranty provides you another option to mitigate risk. Personally, I have never purchased on and would never have benefited from one. I think it is far better to set aside a sufficient emergency fund with the cost of a warranty than to buy one. That, and I know that I am capable of performing a great majority of likely warranty jobs mitigating a large portion of cost.

I also understand that some folks place a lot of value on "peace of mind", as in not wanting to experience a sense of stress related to a mechanical failure. Even if the odds are not in your favor that you will reach payback.

I agree completely, which is why I wanted to start a thread on people's out of warranty repairs and costs so we can see exactly how cost effective the extended warranties are. It is about the odds. How likely are we to incur $3,000 - $5,000 in repair costs beyond the factory warranty.

 

[Gvsukids]

I agree completely, which is why I wanted to start a thread on people's out of warranty repairs and costs so we can see exactly how cost effective the extended warranties are. It is about the odds. How likely are we to incur $3,000 - $5,000 in repair costs beyond the factory warranty.

Many many variables, and we're just getting to the point where vehicles are passing factory warranties.

 

[HooliganActual]

Thank you for the info, but this thread is for people who have had out of warranty repairs and their costs. Not looking for a debate about to get one or not in this thread.

It’s the internet…everything is up for debate.

Seriously though, while I did not talk about warranty work in the time frame you specified I think the question you are asking is moot.

First, as @Gvsukids just said, there aren’t going to be that many Gladiators on the road right now that have hit the end of the factory warranty. The vehicle is just that new. You cannot get enough data points to be statistically relevant, period.

Second, since I am talking statistics, 168 people have viewed this thread and so far not one person has replied with a failure meeting your criteria. Let’s call that <1%. And this forum probably represents less than 1% of all Gladiator owners worldwide. So don’t try to make a decision based on <1% of <1% of Gladiator owners.

Your question, while interesting, can’t yield the data necessary to make an informed decision. Soooo…the discussion needs to be about other things such as I or @BearFootSam brought up (which by the way, you didn’t admonish him for not ATFQ, just sayin’)

 

[Free2roam]

When I bought my 95 Honda Civic I didn't even think about an extended warranty. Honda reliability and all.
Drove it past the warranty period in the first couple of years. When she did go she let loose. Blown engine at 301,000. Replaced it myself in 17 hours. Did the water pump and timing belt while the newer(30k Japan motor was out still) installed and ran the piss out of it to 580,000+

In the meantime I had small issues alternator went out. Easy 100$ fix. Auto zone and their lifetime warranty on parts. It finally failed again 12 years later. Took it back. The guy looked at me like REALLY?! WTF it's more of a marketing gimmick he said. Nobody really brings it back for replacement. The car paid for itself in 26 years. So....

The Jeep Gladiator. Bought the extended warranty at the dealer. Which I haven't had to use yet. Still under factory warranty. But I have it just in case. When my diesel fuel pump blew I got another extended warranty from Jeep cares or they upgraded mine to 125k bumper to bumper. Got 28k miles on it now. I'll just drive the piss out of this one too. Hopefully it's my retirement vehicle.

 

[Viper501]

At the end of day, getting an extended warranty is just a gamble not unlike health insurance, car insurance, or even not carrying a spare tire.

….

My diatribe is just to point out that if things don't fail and need replaced within the initial warranty period, there's a good chance that they won't fail until they reach their end of useful life which will likely be outside of the extended warranty period. The auto manufacturers have reliability engineers working for them as well and they take everything that this discipline understands and play that to their advantage. The initial warranties are there to cover the infant mortality items and they know that if they are getting buried with failures within the first year or so, then they won't be losing money for the rest of the warranty period. They also know that people tend to swap out cars every couple of years (if people didn't, there wouldn't be such a large new car market), so the warranty really only has to last until the person decides to trade in next year.

…

Manufacturers have many many many professionals involved in the statistical analysis of such failures and likelihood of future failures. The same actuaries who predict human life spans do the same work for warranties and other insurance policies. They know they will make money over time. If you want that peace of mind and you can afford the additional front loaded expense do it but reality and math say you are better off financially to save the money in a rainy day fund.

 

[Jeeperjamie]

Looks like my out of warranty repair to my broken tailgate latch is going to cost me $29.86 and my time to put it on which looks like less than a hour. I suspect about a $200 repair at the dealership since they wanted $52 for the part and they get $110 a hour for any work they do.

 

[HooliganActual]

Looks like my out of warranty repair to my broken tailgate latch is going to cost me $29.86 and my time to put it on which looks like less than a hour. I suspect about a $200 repair at the dealership since they wanted $52 for the part and they get $110 a hour for any work they do.

Now here’s the next important question…

Not everything is covered under the extended warranty. Did you happen to ask if that would have been covered?

 

[Charles 236]

A little over twenty years ago, I bought a new Dodge truck. I worked at the same dealership then that I do today, but the F&I person didn't know me and tried to sell me an MVP extended warranty. I said "Why? If this truck is that big of a piece of junk, I shouldn't buy it. Besides, I am the extended warranty." Since then I have bought several more vehicles, and the F&I people don't waste their time on pitching an extended warranty to me anymore.

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But I do understand some people feel that they need the security of an extended warranty, and that is okay. I just recommend that they get a factory (Mopar) plan in that case. I have had too much grief and wasted time in the shop dealing with aftermarket warranties. They often have to send an inspector to see what the problem is, and if the vehicle is worth fixing, of they choose to cover a repair.​

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Edit: I work in the service department, I don't sell or get any compensation for anyone buying a Mopar warranty. I just base this preference on the aggravation of dealing with other companies.​

 

[Jeeperjamie]

Now here’s the next important question…

Not everything is covered under the extended warranty. Did you happen to ask if that would have been covered?

It would of been covered but for $29.86 I still would have trouble justifying the extended warranty. Plus I think really it comes down to how long your planning on keeping a certain vehicle. If your plans are to keep it and trade it in or sell it before you get to 100,000 miles then one probably isn't worth it.

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