Mopar Extended Warranty with 100% Refund Option

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22,056
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CA
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I am looking for some input on an extended warranty option from Mopar. For an extra $210 (on top of the normal cost of a 8/125k extended warranty), Mopar will give you a 100% refund after the 8 year term if you do not file any claims. The downsides I can see are: 1) FCA goes out of business 2) FCA holds my money ($2785) for 8 years 3) If I do have a catastrophic failure and have to file a claim anyway, the "normal" 8/125k warranty would have been $210 cheaper. 4) If I have multiple small repairs that I pay out of pocket for and later have a large catastrophic repair, I would not be coming out ahead. The plan would be to fix any minor issues myself and to only use the warranty for any catastrophic issues. Here are the terms of the contract: https://www.chryslerfactoryplans.co...ey_Back_Maximum_Care_Plan_Provisions.pdf Thoughts?
 
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987
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NC
If you do end up having any catastrophic failures (whether it is the famous HEMI issues, or maybe the eTorque isn't fully "ironed out", etc.) I am sure that the warranty will very quickly pay for itself after the first failure or two. I'd throw the $210 in there and hope for the best. If nothing breaks - you get it back. If something breaks - you're off the hook for all or most of the repair bill, which I am sure could make that $2785 look like chump change over the next 8 years.
 
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Originally Posted by Vladiator
If you do end up having any catastrophic failures (whether it is the famous HEMI issues, or maybe the eTorque isn't fully "ironed out", etc.) I am sure that the warranty will very quickly pay for itself after the first failure or two. I'd throw the $210 in there and hope for the best. If nothing breaks - you get it back. If something breaks - you're off the hook for all or most of the repair bill, which I am sure could make that $2785 look like chump change over the next 8 years.
Fair point. Oh, and eTorque is excluded from the warranty. It is only covered under 8/80k Federal Emissions Warranty.
 
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3,204
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Northern Ontario, Canada
The $210 is insurance on the insurance. Just like if you cause a crash, car insurance forgives the 1st one at fault, if you buy that rider. I would do it if it was my $.
 
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NJ
Here's the downside. Say you are 7 years and have a $1500 repair. Do you pay out of pocket or use the insurance? Either way, you lose out. If you use the extended warranty, you lose out on the refund. So, you might be tempted to pay out of pocket in order to get the warranty refunded. Warranty is only good if the repair is more than you paid for the warranty and that's rare a repair would cost that much. They know most cars can make it 125K with a real expensive repair.
 
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Originally Posted by Leo99
Here's the downside. Say you are 7 years and have a $1500 repair. Do you pay out of pocket or use the insurance? Either way, you lose out. If you use the extended warranty, you lose out on the refund. So, you might be tempted to pay out of pocket in order to get the warranty refunded. Warranty is only good if the repair is more than you paid for the warranty and that's rare a repair would cost that much. They know most cars can make it 125K with a real expensive repair.
Fair point. I have never owned a FCA product and from what I have been advised, I am in for a slightly different ownership experience than my prior cars.
Originally Posted by ragtoplvr
If the etorque was excluded, I would not pay that much for the warranty. rod
Hybrid/mild hybrid systems really don't scare me (210k on my Toyota one without issues), but I see your point.
 
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texas
Ask yourself what was the reason to buy an extended warranty in the first place? Are you concerned about the quality of the car and expect a failure after the factory warranty runs out? If that is true then the odds are likely that you will need the warranty and will lose your $210. What about sneeky stuff like recalls. Are these covered under warranty? smile gottcha! Are you getting an oil change at the dealership? Sir we found a (insert low cost warranty item here) defect and replaced it free of charge. gottcha! What are the chances that you sell the care before 8 years and 125K miles? You are betting $210 that you don't need the extended warranty. You could effectively raise the stakes and bet 2785+210 that you don't need the warranty and don't buy the warranty at all. You win on day one and get both the 210 and 2785 back. The car comes with a 60Kmile warranty for power train. If the car has a reputation for blowing up between 60K and 125K miles, I look for a different car.
 
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USA
"if you do not file any claims." I would make sure what that means. If you have an issue under the standard warranty is that a claim, since 8/125 means from new?
 
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Answers below:
Originally Posted by danez_yoda
Ask yourself what was the reason to buy an extended warranty in the first place? Not familiar with FCA products, not tooled to work on them. Are you concerned about the quality of the car and expect a failure after the factory warranty runs out? If that is true then the odds are likely that you will need the warranty and will lose your $210. Somewhat, mostly due to reputation. What about sneeky stuff like recalls. Are these covered under warranty? smile gottcha! Recalls, campaigns and items covered under 3/36 or 5/60 do not count against the refund. Are you getting an oil change at the dealership? Sir we found a (insert low cost warranty item here) defect and replaced it free of charge. gottcha! True, but I have no plans of letting the dealer do maintenance. What are the chances that you sell the care before 8 years and 125K miles? Zero. You are betting $210 that you don't need the extended warranty. You could effectively raise the stakes and bet 2785+210 that you don't need the warranty and don't buy the warranty at all. It is $2575 (normal 8/125K) + $210 (for the 100% refund option). You win on day one and get both the 210 and 2785 back. The car comes with a 60Kmile warranty for power train. If the car has a reputation for blowing up between 60K and 125K miles, I look for a different car. True. But I bought the truck because it was significantly cheaper than all of my other options and I am trying to manage my risk exposure.
Originally Posted by Farnsworth
"if you do not file any claims." I would make sure what that means. If you have an issue under the standard warranty is that a claim, since 8/125 means from new?
Claims under the 3/36 or 5/60 do not count against the refund.
 
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Lakeville, MN
Its a $210 bet that you won't need the warranty. Yet reading between the lines, you are buying an extended warranty because you are concerned that based on what you bought, you'll need it. The fact you've decided you "need" the warranty answers the question for me... (Full disclosure - no more extended warranties for me. Got burned on one, and look at it as I have the money in the bank for repairs, period, rather than in the bank of whomever the warranty company is... And I've come out ahead that way in the long run average - somebody makes money on these - and it usually isn't the customer...)
 
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Somewhere in time
Any product in which the dealer sells insurance on the insurance and then declares it a feature is suspect at best. Put yourself in their shoes. I would speculate that they actually laughed out loud at the first guy on their team that suggested it. Then they realized he was serious.... banana Reputable consumer agencies routinely recommend against consumers purchasing extended warranties because they are designed to remove your money from your wallet. The idea of stacking these insurance policies is laughable. If the product quality is that concerning then maybe a different product is what is required here.
 
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1,249
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Basehor, KS
I have owned a variety of new cars since 1972. One was a Chrysler product. One other vehicle had a catastrophic engine failure that might have been covered under this type of warranty. My solution was to not purchase that brand again, ever. The Chrysler product might have had one warranty issue that would be covered under this type of extended warranty for about $1200 in repair costs today. That's it. All of the vehicles I owned go at least 100K and the number of extended warranty repairs are very small, as compared to the cost of the extended warranty. Consequently, I do not purchase them and take my chances.
 
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St. Charles County, Missouri
AFAIK all extended warranties provide approximately a 100% markup for the issuer. I would think the same thing would apply to the rider including that it might cause you to eat small claims to get your money back.
 
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4,147
Location
Los Gatos, CA
If you do not "overuse" your truck, keep the miles reasonable, etc. then the money back warranty seems to make sense. I know that Dodge will get the best of care. Personally, I dislike extended warranties. Companies sell them to make money, not to protect you. Since you decided on the warranty and you know how to take care of your vehicles, I would go for it. Worst case, you are paying an extra $210 for the warranty; a hedge. Good luck Michael.
 
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7,546
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MI
Quote
What are the chances that you sell the care before 8 years and 125K miles? Zero.
Ahh, the days of youthful optimism. My adult daughter recently decided to spend extra money on a metal roof vs. shingled, stating that she never intends to move out of that house. Yah, right. Life can and often does throw roadblocks into ones plans. Never say never. My life changed forever forward when my wife was hit head-on ten years ago. Retirement certainly won't be what we envisioned. Adapt and move forward with resilience. That warranty is tempting. I've had Mopar products for nearly 40 years and haven't really needed one, yet.
 
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979
Location
Colorado
I have never purchased a service contract until getting the Jeep and have the lifetime Maxcare with a $100 deductible. My Jeep is a 2012 with 85k (no air suspension). So far, I have had the following addressed: -Three sets of rear shocks -A/C condenser -Power steering rack I have paid a total of $300 for the repairs (plus the original $1800 for the plan) and definitely got my money back and then some. They look for items and order parts and have it ready to go -- the plan has been solid. If you have the air suspension, in my opinion, at a minimum, you will likely break even on the purchase.
 
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1,482
Location
Danville, Indiana
I have a factory lifetime warranty on my 08 Jeep. It has been great. They replaced the transmission at 116k miles because it was popping out of gear maybe twice a month or so. They had repaired it probably at 80k for that and it held until then. No fuss, no deductible, and they had it in and out within a couple days. They even gave me a free loaner vehicle (a really nice lifted Jeep). I had them put in a new clutch at the same time and they heavily discounted the labor since they were in there anyway. Ie had nothing but good experience with Chrysler or FCA. I have owned 5 Jeeps since 1993. The newest one has been trouble free for 33k miles. The 08 runs and drives like new. I would have to stretch to really find something to complain about with my ownership experience.
 
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Originally Posted by IndyFan
I have a factory lifetime warranty on my 08 Jeep. It has been great. They replaced the transmission at 116k miles because it was popping out of gear maybe twice a month or so. They had repaired it probably at 80k for that and it held until then. No fuss, no deductible, and they had it in and out within a couple days. They even gave me a free loaner vehicle (a really nice lifted Jeep). I had them put in a new clutch at the same time and they heavily discounted the labor since they were in there anyway. Ie had nothing but good experience with Chrysler or FCA. I have owned 5 Jeeps since 1993. The newest one has been trouble free for 33k miles. The 08 runs and drives like new. I would have to stretch to really find something to complain about with my ownership experience.
Needing a new tranny at 116k miles is something I'd complain about but I have different expectations than you.
 
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