Re: Minivan post-purchase extended warranty

One is able to purchase the Chrysler Extended Service Contract on a new vehicle up to the expiration of the 3/36 new vehicle warranty coverage - and as the vehicle approaches that deadline Chrysler sends a slew of information trying to get the owner to purchase the contract. Kinda tells you the profit they make on it, doesn't it?

When we purchased our '92 T&C we opted to purchase the 7/100,000 contract for $995.00. It paid for itself when we had to have both the ABS and tranny repaired after the initial 36,000 mile warranty expired. When we purchased our '93 LeBaron LX convertible we opted to purchase the 7/70,000 contract for $995.00 and never had to use it. When we traded both vehicles in for our '96 T&C LXi (no longer needed two vehicles and wanted to purchase a new house) we opted NOT to purchase the 7/100,000 contract. I think the price at that time was $1,495.00 but cannot recall. Nothing major went wrong with the T&C until it had almost 118,000 miles on it.

Before you pay the asking price for an extended warranty, check out this site:

This site has been around for about four years. It is run by a Chrysler dealer from somewhere in the midwest, and it offers genuine Chrysler service contracts. You can get a quote online. It might save you a few dollars.

I purchased an aftermarket warranty from Warranty By Net back when we got our '98 Intrepid in 2001. It had 32K miles at the time, and I bought a 6 year/100,000 mile basic policy. So far, I've recouped the $1000 purchase price in two repairs: replacing the steering rack and pinion, and replacing the ATC head unit. Actually, I've come out ahead by about $150, if my memory serves me correctly.

Warranty By Net is just a reseller of an insurance company's policy; when you (or really, the repair facility) go to make a claim, you deal with the insurance company, not WBN. So far, it's been reasonably nice to have. You're not required to patronize any particular repair shop, and you can perform your own maintenance as long as you retain records that it has been done. They pay the shop directly with a credit card over the telephone, so there's no fronting the cash, then making a claim. One exception to this is the rental vehicle coverage: you DO front the cash for the rental, then submit a written claim.

It IS a gamble to purchase these policies, and financially it MIGHT make more sense to bank the money as another poster has suggested. OTOH, there's no farting around trying to come up with the cash for a repair should you need one performed; just pay the $50 deductible and you're on your way. It's peace of mind, and risk management. The basic policy doesn't cover as much as the 3/36 Chrysler coverage does; it's really just powertrain coverage with a few other named systems added on. But it retails for about $4-500 less than the factory policy.

If this thing tosses its transmission within the 20K or so miles I have left on the policy, I'll come out WAY ahead. Worth considering.

--Geoff

Make sure it is a Chrysler warranty. The price, by the way, is negotiable just like the car price. So make some calls. Don't bother with the tire damage option.... it only covers orignal tires from the factory which are probably shot by now. And find out if it is bumper to bumper and what the deductible is. Note that is does not cover wind noise, wear out items, and trim like the dash vinyl.

Look into Warranty Gold. I have a 96 Voyager, and have a 36 month/36K no deductable plan. It covers wear and tear items in the powertrain, and have had to use it for a replacement A/C compressor, ignition switch, and coil pack. they pay by Credit card to the shop, and have no issues with them. I understand they are cheaper than the Chrysler plans, and will pay any shop you choose.

just a thought.

Thanks, Don