friends! what’s your take on these PowerTrain warranties for pre-owned used cars? Good idea? Good,bad or otherwise i’m interested to hear.
It depends on who is offering it and the cost. When I bought my Pacifica, I paid $150 to transfer the remainder of the 7/70 Chrysler powertrain warranty (it was 2 years old with 30K miles at the time). However, third-party “warranties” (they are actually insurance policies with LOTS of fine print) are usually sucker bets.
whats a 3rd party warranty???
One that is not a factory warranty; usually it is arranged by the dealer from a private company and the cost vs benefits are usually very poor, as mentioned.
A friend of my wife was offered a Toyota Matrix with high mileage, but the dealer was offering an extended warranty for $1200. It covered mostly things that normally do not break within the 4 years. This was not a Toyota factory warranty.
So, draw your own conclusions!
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^^^ What Docnick said.
Like Docnick said, these are not factory warranties. They are actually insurance policies. We’ve had plenty of discussions about these policies on this forum. The general opinion is that they are a sweet deal for the insurance companies (and also the car salesman who gets a commission for the sale) but the purchaser seldom recovers the cost of his premium.
I don’t love Consumer Reports however they have some good info here and there.
NYBo… I’m curious. Why would you have to pay to transfer the warranty? I thought factory warranties should transfer to new owners at no cost.
My experience is mostly with the 3 year/36000 mile warranty and I know that it transfers without a cost. Does Chryslers 7/70 warranty require a charge to transfer?
It’s one that you’re drunk enough to sign up for only after you’ve been at your third party that day.
Their April New Car Issue has a good article on extended warranties. It confirms all the thinggs we have discussed on this website.
The 3/36K bumper-to-bumper warranty transferred without cost. The 7/70K powertrain warranty cost $150 to transfer.
The new Chrysler lifetime powertrain warranty is NOT transferable to any subsequent owner; Hyundai has the same deal for their 10/100k powertrain warranty (i.e. not transferable).