Price Paid: Extended Warranty

[oneframe]

Can you guys share how much you paid for the extended warranty on your Journey.

What was the warranty term that you selected and how much?

Here in Canada I didn't purchase the Chrysler extended warranty that my dealer was offering. There was a lot and I think the highest plan was the Gold Plus which came with 120,000 miles, free oil change/tire rotation while in warranty, and rental car if the vehicle is in the shop. Price was ridiculous like $2,600 but I was able to haggle down to $2,100 and she pretended she couldn't offer it any lower because it was Chrysler's pricing. Then she finally gave in, but I still didn't take it because I didn't know how low she can really go and I can take it anytime while the factory warranty is in effect.

How about you guys?

[diggit]

Can you guys share how much you paid for the extended warranty on your Journey.

What was the warranty term that you selected and how much?

Here in Canada I didn't purchase the Chrysler extended warranty that my dealer was offering. There was a lot and I think the highest plan was the Gold Plus which came with 120,000 miles, free oil change/tire rotation while in warranty, and rental car if the vehicle is in the shop. Price was ridiculous like $2,600 but I was able to haggle down to $2,100 and she pretended she couldn't offer it any lower because it was Chrysler's pricing. Then she finally gave in, but I still didn't take it because I didn't know how low she can really go and I can take it anytime while the factory warranty is in effect.

How about you guys?

Sounds about right. Remember you got the full parts coverage AND oil changes for the term. Althouogh they say its free, oil changes are what drives the price up. As for the rental, it won't take effect until its at the dealership for at least 24 hours (day) unless the car is undriveable then its immediate. All in all, get the extended cause you never know.

[oneframe]

Will save up for the this Extended. Didn't also want to add it to the financing of the vehicle. If I can afford it soon, will definitely take it. Thanks again for feedback.

[atreides]

I have to add this, I did the full gold extended warrenty with my 2004 Caravan, used the car program once had to jump through hoops to get it.. servicing was a horrible experiance, pushy sales guys the works.. halfway through lease moved to another dodge dealership a little out of my way but a world of change.. the old one is no longer there shocking..lol

On my 2008 Caravan we declinded it and brought from a better dealer, now over all i think i saved with not getting the package, due to haggling the first 6 services free and that the cost of oil and tire rotation isnt too high, car went in under a warrenty fix they gave me a car no questions asked..

Now have a Journey happy with it, haggled the free sevices declinded the warrenty only plan to keep it 4 years possably 5.. between end of old lease and buying new car arriving was given a loaner over a period of 3 weeks so i will be sticking to my dealer for years to come. Its all about service, and they are good.

[oneframe]

Wow. If I only knew I could haggle for free services when I got this car. I hate the car buying experience because the price isn't set. You haggle this and that and lower the price, etc. I think buying a car should be easy. The price is set reasonably low than start high and then start bluffing your way through a deal. It's like playing chicken or who blinks first.

[atreides]

I cant do it either, It's my wife she the one that throttles the sales guy to a good deal... and that its a great dealership

Me i look go "oh its so shiny where do i sign" lol

[Jerith]

Okay, first post here. If you wish I can add some details about the dealer costs for Canadian prices for the extended service contracts. It is easier for me if you know plan numbers. It could be a difference between the countries but I there may be some warranty coverage that is offered down in the States, but not up here. So here we go.

I'm not trying to sell anything so lets let the info fly.

So there are a few types of plans.

Gold - Extra mechanical repair protection on non-powertrain items. (Steering, A/C, cooling and fuel, suspension, electrical brakes.. etc)

Powertrain - Engine, transmission, front wheel drive, rear WD, 4X4, AWD.

Gold Plus - The oil changes, allowances, rotations...

Gold + Powertrain

Gold Plus + Powertrain (A single stand alone program with the single most expensive but most comprehensive package)

All prices in Canadian Monopoly money.

And the final issue is the surcharges. A plan could have more than 1 surcharge added to the price. Dealer cost in brackets.

+200 (150) for Hemi, Cummins, V10, turbo or super charged.

+250 (175) if plan purchased beyond 1 year or 20,000 kms past in-service date.

+450 (325) if registered as Commercial Light-duty uses

+650 (525) for Prowler, Crossfire, Grand Cherokee Diesel and 3500's

+1425 (1275) for Viper, Sprinter, ALL SRT's and 4500/5500's

Some sample numbers.

The cheapest plan is what they call the 412 plan. 3yrs/80K km's Gold plan 2WD $550 (275) / 4WD AWD $820 (410)

So it only gives you an extra 20K km's protection. Can only be purchased up to 2 yrs &/or 40,000km. The dealer can sell the plan at any price they want but the bill to the dealer is non-negotiable.

Plan 415 - 5 yrs/100k km's Gold plan. Adds 40K km's and 2 years to the basic warranties. 2WD $1450 (725) / 4WD $1555 (780) only available up to 4 yrs &/or 80K km's.

I mostly sell trucks so there is a Gold & Powertrain plan is what many take.

Plan 418 - 5yrs/160K km's. That is an extra 2 years and 100K km's on the basic warranty, and 60K km's added to the powertrain. The Cummins already has a warranty until 160K km's. - 2WD $3350 (1775) / 4WD $3665 (2090) only available up to 4 yrs/80K km's. Still incurs the $250 fee if purchased after the first 20k km's or first year.

I mentioned the most expensive is the Gold Plus Powertrain. Plan 434 5yrs/160K km's 2WD $4725 (3150) / 4WD $5055 (3480) Ouch.

The 3yr/60K km road side assistance is underused, in my opinion. There are rental/hotel allowances for breakdowns and roadside help.

There are some late fee's that the dealer will get charged. $50 if registered to the vehicle 15 to 45 days after the in-service date. $75 if 46 - 90 days.

Hope this helps someone. Or at least explain what margins the dealers are trying to hold onto. I'll also try to chirp up if I see questions in other threads. What can I say? I know how I'd like to be treated. Now I'm on the inside, I like to act like I'm still on the outside of the cage. Much to the displeasure of the Service Manager.

[franceW]

Making a serious home or customer electronics buy is absolutely a large decision. Many retailers are getting into the extended warranty sport and extended warranties are often costly. Essentially, the plans are insurance plans on your products. Extended warranties do not have to burn an opening inside your budget. In fact, you can now extend the warranty without extending your wallet considering the fact that many credit card companies already offer free extended warranties on your purchases.

[bramfrank]

Thanks for the info - clearly there is a 100% markup on the plans themselves . . . .

So, what would variations of the 7/115 and 7/150 plans cost a dealer - and how little margin would YOU accept to sell me such a plan for my less than a month old Journey SE PLus?

[Powdered Toast Man]

I used to work in banking - we also sold insurance for certain products. 95% of insurance plans never pay out. It's ridiculously profitable and that's why so many retailers have jumped into the extended warranty business.

I look at it this way. I've got 3 year bumper-to-bumper and 5 year powertrain included. So, really the extended warranty would be just to extend the bumper-to-bumper coverage to 5 years. Is $2000 worth of stuff going to go wrong with the vehicle - that's not in the powertrain - within that 2 years?

[Jerith]

@bramfrake

bramfrake sent me a message and I sent one back. It is relevant to this thread so I thought I'd edit it a little and post here too. 2 posts above I'm asked a question.

The Time Referenced Surcharge applies to New Vehicle Plans (Nothing certified used.) $250 will be added for vehicles entering program after 1 year or 20,000 kms. You would skip the charge. Safe with it being only one month old.

7/115 Powertrain (Plan 486) can be bought up to 4 years or 80,000 kms with only the surcharge added. (This is my understanding.) Suggested is $1660 with half of that going to Chrysler. So the dealer can play with $830. Personally it would be the individual customers who we know and service regularly that I would offer serious deals to. I wouldn't charge full price for walk-ins though.

How much of 800 would I give away? 20% off? $160. 25% for 200? I think giving away 200 bucks would be my max for regular customers. The 1660 less the 200 doesn't seem much but leaves the dealer making 25% less. That range is where I would offer my regular customers. Maybe 15% to 20% off of the 830 for walk-ins? It just doesn't get the price down with Chrysler forcing so much.

The 7/150... is that a typo? 7/160 (Plan 487) costs $2185. 20% on that would be $218 off the price. $1967 for the plan.

With Chrysler forcing so much of the cost of the plan to them it isn't really a gravy train for dealerships. It does give options to cement a deal where you could put in the 7/115 into a deal for free. The 800 could easily be recovered in some sort of dealership performance reward for boosting those sales.

Personally I think increasing power train warranty is a prudent idea. The bumper to bumper for the electronics and A/C and such. Well... those you can keep an eye on until the 20K mark. I HIGHLY recommend it if you are buying a truck. I EXTRA HIGHLY recommend it if you drive your Journey like a truck.

Cheers!

[Doug D]

I used to work in banking - we also sold insurance for certain products. 95% of insurance plans never pay out. It's ridiculously profitable and that's why so many retailers have jumped into the extended warranty business.

I look at it this way. I've got 3 year bumper-to-bumper and 5 year powertrain included. So, really the extended warranty would be just to extend the bumper-to-bumper coverage to 5 years. Is $2000 worth of stuff going to go wrong with the vehicle - that's not in the powertrain - within that 2 years?

PTM - it's a gamble you take or not. I view extended warranties as insurance. Nice to have if something breaks or fails. It's more or less for 'peace of mind'. Yes, the manufacturers have run the numbers and extended warranties are indeed big profit otherwise they would not offer them.

Alternatively you could sock away the amount you pay for the warranty in a CD or other investment vehicle, but how many would actually do that? I know it would not be easy for me.

We paid $1600 for the Add Care extended warranty on our '10 Journey SXT - good for 7 years or 85K miles (works out to $22/month). After the our '09 Journey SXT suffered a CAN C bus failure at 47K ($800 repair), it was a no brainer to get the extended warranty with the '10.

Looking back I wish I had opted for the extended warranty on my Ram. At 40K the pinion seal blew ($300 repair), then the pinion/carrier bearings went at 83K (another $800). Two of the HVAC doors have failed (estimated $800-$1000 repair) and have yet to fix. So even had I paid $2K for the extended warranty, I would have basically broke even. I'm guessing that an extended warranty at the time of purchase would have added $20-$25/month to the payment.

In general, extended warranties are a gamble, but on a $20K+ purchase I don't mind. On the other hand I'm not paying $5 for a extended warranty on a $50 dvd player. I'll just buy another cheap dvd player.

You pays your money (or not) and take your chances.