Auto extended warranty feedback, anyone got one and are you happy with it?
- Thread starter j-black
- Start Date
I recently purchased a 2022 RAM 1500 TRX pickup and did not purchase an extended warranty. This is the first time I have passed on this in 30 years for half a dozen vehicles. The reason for passing is I’ve spent many thousands of dollars on these warranties and never needed to use one dollar of them.
Well here is my two-bits.
Been driving for 55 years and have only purchased three warranties. And luckily all of them paid for themselves.
The first one when I bought a custom Dodge from Lynn Hickey himself. Went through 5 air conditioning units.
The second time was 8 years ago on a 2016 Jeep Cherokee. They offered lifetime for around $2000. I bought it and it has paid for itself on two fuel injection module problems, engine oil leak, transmission repair, and some kind of front end repair.
The third time was two years ago on my 2021 Jeep Grand Cherokee. They wanted around $3,500 at closing for their own dealership warranty, I refused. Then Mopar out of Michigan would call me every few months. I bought the extended last Fall for $2000 and my coverage is 85,000 miles of which I drive around 6,000 miles per year.
Dealerships make a killing on the warranty sales. If they use the manufacturer warranty, slimmer profits. That's why you will see them selling their own warranty programs. The financial people could make around 20% commission on the profit margin.
Either way it's all a gamble.
Been driving for 55 years and have only purchased three warranties. And luckily all of them paid for themselves.
The first one when I bought a custom Dodge from Lynn Hickey himself. Went through 5 air conditioning units.
The second time was 8 years ago on a 2016 Jeep Cherokee. They offered lifetime for around $2000. I bought it and it has paid for itself on two fuel injection module problems, engine oil leak, transmission repair, and some kind of front end repair.
The third time was two years ago on my 2021 Jeep Grand Cherokee. They wanted around $3,500 at closing for their own dealership warranty, I refused. Then Mopar out of Michigan would call me every few months. I bought the extended last Fall for $2000 and my coverage is 85,000 miles of which I drive around 6,000 miles per year.
Dealerships make a killing on the warranty sales. If they use the manufacturer warranty, slimmer profits. That's why you will see them selling their own warranty programs. The financial people could make around 20% commission on the profit margin.
Either way it's all a gamble.
There is a spin of the wheel or a toss of the dice element in the decision to buy the coverage or not. I hope the choice works out for you.
