Deciding...

riptricket · **Posted:** Wed Apr 29, 2009 12:23 am

Not to get the extended warranty for my KJ.
I just don't see the justification, considering I plan on keeping this thing for a very very long time!!!

Just thought I'd let you all know!

CRD Joe · **Posted:** Wed Apr 29, 2009 7:36 am

What does is cost?

riptricket · **Posted:** Wed Apr 29, 2009 8:12 am

$1300 with a $100 deductible

jeepkj02 · **Posted:** Wed Apr 29, 2009 9:06 am

riptricket wrote:

$1300 with a $100 deductible

I don't know how much longer Chrysler is going to be around to warrant that warranty... Don't know what the policy is on that if they file for Ch.11

CRD Joe · **Posted:** Wed Apr 29, 2009 10:00 am

That's a tough one. My only concern would be the transmission I guess.

tjkj2002 · **Posted:** Wed Apr 29, 2009 12:58 pm

CRD Joe wrote:

That's a tough one. My only concern would be the transmission I guess.

The gassars don't suffer the same fate as the CRD's do in the transmission area.

JJsTJ · **Posted:** Wed Apr 29, 2009 5:33 pm

Better off putting the $1300 in the bank and slowly adding to it as you can then you have what you need for any emergency situations and breakdowns. Being self insured for stuff like that is better than Betting that $1300 on needing it. More often than not it is only the insurer that wins.

dieselenthusiast · **Posted:** Wed Apr 29, 2009 5:58 pm

JJsKJ wrote:

Better off putting the $1300 in the bank and slowly adding to it as you can then you have what you need for any emergency situations and breakdowns. Being self insured for stuff like that is better than Betting that $1300 on needing it. More often than not it is only the insurer that wins.

Life is a gamble, and I seem to play the risky side of the financial game. I never buy extended warranties, and I move my insurance from full coverage to liability the first chance I get. I'm not saying it's the best idea for everyone, but I know that insurance companies and auto manufactures make money or they wouldn't be offering those deals. Like JJ said, I would pocket that money and put aside a safety fund. The money that people fork out for insurance and warranties amazes me. :shock:

jeepmedic46 · **Posted:** Wed Apr 29, 2009 7:25 pm

I never got the extended warranty either. Just put the money in the bank in case we have any breakdowns on either 1 of our Liberties

oddball · **Posted:** Wed Apr 29, 2009 8:16 pm

Putting the money in the bank rather than buying a extended warranty is a great idea. Unless you don't have the cash and were planning on adding this to your finance charges. Then you'll have to find a way to come up with the money should something happen during that extended time frame.

Oh and even if Chrysler files chapter 11, doesn't mean they're going away.

I generally don't buy extended warranties for automobiles. I do buy them when it comes to other items. For example, each time I buy a new Apple Mac computer, I buy Applecare (3 yrs support and repair warranty). Why? Back in 2003, we had a logicboard (motherboard for you peecee's) in a 15" PowerBook go bad -- twice within 7 months. Mind you the second time was with five months remaining on the warranty. Apple did the repairs. Didn't cost me a dime. But the invoice did include the cost of the parts. Logicboard price - $250.00 They did this twice. Applecare cost me $350.00 But it doesn't end there. With two months remaining on my warranty, that dang board failed again! Apple said, "enough is enough, because I had Applecare, we're going to replace your G3 PowerBook with a brand new comparable G4 PowerBook. And they did just that.

Bottomline -- Sometimes it pays to buy factory extended warranties.

hollysprings · **Posted:** Wed Apr 29, 2009 11:52 pm

Google "extended warranty profit margin" - on the first page, without even going to the links, you'll see things like:

"Instead, they're counting on the extended warranty contracts that ... They figure that profit margins on contracts are between 50% and 60%"

"Profit margins are as high as 70 percent for extended warranties compared with about 10 percent for the products they cover."

"The profit margin on the extended warranty contract is unusually high in comparison to the profit margin on the product."

"Extended warranties are the bread and butter of most electronics retailers. Profit margins on electronics are decreasing with each product release..."

"Extended warranties are a high-profit item for sellers, which means they are a .... to dicker on price since the profit margin is anywhere from 60-80%."

They're like cokes at restaurants, or insurance waivers at car rental companies - things that sound so good that they can be way overcharged for and still sell. They're so profitable they help keep prices down on the main items, because the retailers can count on them for so much of their profits.

I never buy extended warranies, but I'm glad other people buy them.

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