I purchased a new 2007 Dodge Ram Hemi last November so if I want the new lifetime powertrain warranty I have to pay $750/$900.
Typically, I trade trucks every three or four years but I put about 90,000-100,000 miles on them in this time period.
I talked to the service manager about the new warranty, he said for that “peace of mind” purchasing it for $750/$900 would be a good idea. But he also said that since the Hemis came out he has not had “to go into” any of the Hemi engines, he has dealt with no rear end problems and he has replaced only one transmission because of a bad pump. (Maybe this is why Chrysler can offer the new warranty. The other reason being that “lifetime” ownership by most of us is not all that long.)
Should I part with the $750/$900 to buy into the new program? I know there are others who are asking the same question.
Tom
If a Hemi engine and the vehicle power train can’t make it to 100K miles you shouldn’t even be thinking about buying the vehicle.
I will NEVER spend a penny for an extended warranty on any vehicle, and I can’t see any reason why you should spend $750-900.
Why is there a range? Can’t they even tell you the exact price? This thing is a profit generator, as are all such “warranties,” and I suggest you keep the money in your pocket.
If you can discipline yourself to keep the amount of money you would have spent on the extended warranty aside for future repairs, then don’t get the warranty.
I paid about $750 (+/-) for my Chrysler/Jeep extended warranty. I take excellent care of my vehicles, but sometimes things happen. About a month ago, I went to the dealer with an overheating problem (the vehicle is an 04’ Grand Cherokee with 57k on it) and they swapped out the thermostat (the source of the problem), changed the waterpump (because they were in there and it looked like it had leaked around the seal), changed a top hose (billed me $28 for the part)and also found some rear end bearing problem while they were inspecting the vehicle. They fixed that too.
Total cost for this work was the $100 deductible required for each repair visit. Maybe I was lucky and had a good mechanic with a conscience, but I think this one visit paid for the warranty cost.
So you paid for the repair several years in advance. The money could have been earning interest your you over those years. Instead it earned interest for the seller of the warranty.
There are cases where the purchase of an extended warranty pays off, but the vast majority of people who purchase them just end up with a bigger car payment.
Given that your trade-in period no skip the warranty. Its unlikely to hit $900 in repairs over 4 years. Remember you need to exceed the $900 and by far to get any benefit from an extended warranty. Otherwise you just flushed $900 down the toilet for I guess some peace of mind which I cannot put a price to.
?
Excuse me, but didn’t your truck come with a 7-year, 70,000-mile new car powertrain warranty? Or do you merely have the3-year 36,000-mile bumper-to-bumper warranty?
You see where I’m going with this. If your truck makes it past the normal warranty period without any manufacturer defect showing up it will probably run well for as long as you own it.
Pass up the extended warranty.
The new lifetime powertrain warranty went into effect for purchases made after July 26. Those of us who bought a 2007 model before then can buy the new warranty for $750 with a $100 deductible or $900 with no deductible. The truck has a three year/36,000 mile bumper to bumper warranty.
I’ve been buying new vehicles for over 45 years and have had to come up with the money for a major engine repair once – a complete rebuild on a 1972 Vega.
Yes, it definitely is a marketing gimmick. Chrysler was probably losing sales to other companies because they did not have an extended powertrain warranty. The dealers let them know this.
It appears that most of you say that I should keep my money in my pocket.
Tom
I would also pass, this appears to be a marketing move to increase new car sales. I suspect the new owners of chrysler are putting considerable pressure on them to increase cash flow. From the commercials, it does not appear that this warranty will transfer to other owners, so it will not increase your resale value either.
Typically, I trade trucks every three or four years but I put about 90,000-100,000 miles on them in this time period.
This doesn’t make sense at ALL to me. You’re going to pay $750 for a 20 - 30k warranty??? Doesn’t Chryco offer a 70k warranty on their vehicles?? Why do you trade the truck in after only 3-4 years??? If you buy the warranty then keep it for 10 years. If you don’t think the truck will last that long then buy a different vehicle.
Chrysler was probably losing sales to other companies because they did not have an extended powertrain warranty.
Or is it because Chryco’s quality is so poor they need to offer a warranty to entice people to buy one.
You said you owned a 72 Vega…In 75 when Chevy started to offer the 50k mile warranty on the engine was it because the engine was so reliable??? I’ll give you a hint…the 72 engine was the same engine as the 75 engine. It wasn’t until 76 that they started to add the steel sleeves that actually made the engine halfway reliable. But by then it was too late.