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Extended warranty

I bought a new PT Cruiser and it came with a lifetime warranty on the power train and a 3 year/36,000 mile warranty on all else. Chrysler has offered me a lifetime warranty on everything for $2100 with a $100 deductible. The car is garage kept and I dont drive much. Since July, I have only driven 1200 miles. Is this “wraparound” warranty worth it? Thanks!

If I were you, I would contemplate this question:

Is Chrysler Corporation (in any form) sure to be around in the future?

If I was a betting man–which I am not–I would not want to bet on their long-term survival.
I hope that my fears are groundless and that they will continue to exist and to employ Americans for many more years. Unfortunately, that is not assured.

No. Bank the money for repairs. Realize most repairs will be under $500 and your paying $100 to perform it.

I would not purchase this warranty. If you’ve got a spare $2,100 lying around put it in the bank and don’t ever spend it unless the car needs some major repair (not maintenance).

Who’s bank would you rather have your money in, yours Chrysler Corporation’s?

No, it isn’t.

Put the $2100 into a seperate bank account of your own and call it your “uncovered warranty repairs account”. Then if something breaks after the warranty is up you’ll have “warranty” money to cover it, and of not you’ll have enough for a nice trip.

With the amount you drive, and with care, I venture to say that the PT Cruiser will outlive Chrysler.

As others point out, it’s just very expensive insurance. Put the money in a high interest or other account, and you will come out ahead.

What is the plan’s definition of “lifetime”? Your lifetime, the car’s lifetime or the company’s lifetime? Is there a mileage limit on it? I have personally never heard of a lifetime warranty on a car. Steinway has it on their pianos, provided you ship the defective piano back to New York at your own expense!

Well any car can have major expensive repairs.

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some peop;le will get nothing back and some will get a lot more than they pay.  Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price.  They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.  

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?   

Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money.

First time I ever heard “lifetime for everything” If you had different driving habits (like planning on putting on 300K) it would be a no brainer to take the deal. Lifetime on all interior,accessories,paint,glass,that would be a deal.

Figure for the life of the car 2100 initaly and then 100 everytime you show up. You can limit those 100 if they are not per item but per visit.

You could keep every little thing looking brand new,slightest warpage or discoloration on a trim item,replace it.

Thanks so much for all of the great comments. That all makes a lot of sense and I kind of suspected as much. I will put the $2100 in the bank and keep up with the required maintenance. I plan to keep this car for as long as possible and it may outlive me!

“I plan to keep this car for as long as possible and it may outlive me!”

At less than 3000 miles per year, you may be right. When the factory warranty expires, you will have less than 9,000 miles on it. It will take you over 12 years to exceed 36,000 miles. If I could suggest one thing, have your oil changed twice per year.

Yes, I am having it changed in a couple of weeks. I’ve always been an advocate for regular oil changes. Thanks for the response!