Posted by Paul Cook on Friday, December 12, 2003 at 11:39AM :
In Reply to: Dodge Service Contracts, are they worth it posted by Paul(in NY) on Thursday, December 11, 2003 at 10:25PM :
Buying any insurance is a bet that you will have a problem or even die. I wonder if all those who say "Don't buy" also have declined health insurance, life insurance, or collision coverage.
My experience with my '89, '94' 97' and '01 Dodge CTD has been that any problems within the standard warranty period have been with the basic vehicle, and any problems in the extended warranty period were with the "high tech" accessories - which are also the high priced repairs.
My '89 had no option beyond the CTD. I compare it to a POWER WAGON. It had no electric windows, door locks, trip calculator, etc. I did not and would not buy an extended warranty for the "plain brown wrapper" version.
There are many different plans available - even from Dodge. If you select a plan, make sure it is the best one for your truck as equipped. The major benefit of an extended warranty is coverage of the "high tech" electronic gadgets. Extended coverage of the major components is pretty much a "grand gesture" since they are very reliable with good service.
The corporate extended warranties are handled as a part. The dealer buys them and then "retails" them to you. In addition to finding the plan that matches your vehicle as equipped, you can "deal" for the extended warranty. And, there is a trade-in value to a corporate extended warranty. You credit the unused portion to a new extended warranty or receive a cash rebate. The dealer should tell you this.
My wife and I have extended warranties on all of our vehicles equipped above the POWER WAGON option level. We buy them below list. The rebate is based on the list price, not what we paid. On one of my wife's trade-ins, the rebate was close to what we originally paid for the extended plan.
Of course, I cannot get any dealer to give me a "Basic POWER WAGON Warranty" that promises what I buy these days will still be running in 50 years.