Extended Warranty

[STREET DOC]

Well it has come time to purchase an extended warranty on my 06 coupe, my question is , will the extended warranty be valid if or when dodge goes under ? Anbody have any suggestions or input thanks in advance.

 

[Newport Viper]

Yeah... you might want to wait a few days and see if there is even a company around to honor one.....

But if you must call Chuck Tator...do a search for number

 

[Bill Pemberton Woodhouse]

The Government has already reassured consumers that warranties will be covered and ext. service contracts are insurance instruments so they are already protected in a different arena. I would not have any concerns.

Best Regards,
Bill Pemberton

 

[Martin]

Bill is right - but there is additional risk with an extended warranty that you should consider. From personal experience, I've learned how an extended warranty can go **** on you if the underlying company and/or trustee goes insolvent. With Chrysler extended warranties I think that risk is less than with most aftermarket policies, but there is still a risk. I had several aftermarket extended warranties with a top-rated and very well known and reputable company - and virtually overnight those policies became worthless. Three years later, I'm still waiting for the courts to sort that one out so that I might get one penny on the dollar that I lost...

 

[Flexx91]

The Government has already reassured consumers that warranties will be covered and ext. service contracts are insurance instruments so they are already protected in a different arena. I would not have any concerns.

Best Regards,
Bill Pemberton

Wait a minute.....

Does this assurance include extended service contracts (warranties) offered by the manufacturer or just the initial 3/36 manufacturer's warranty? I don't think the government's assurance will include aftermarket service contracts.

 

[Martin]

Wait a minute.....

Does this assurance include extended service contracts (warranties) offered by the manufacturer or just the initial 3/36 manufacturer's warranty? I don't think the government's assurance will include aftermarket service contracts.

The government is standing behind manufacturer's warranties explicitly, but there is also some 'implicit' support for insurance products (which is all extended warranties are). It's definitely not as cut-and-dried as the backing of manufacturer's warranties, though - my guess is that any "too big to fail" companies standing behind the insurance policies will be fine, but the smaller providers are a toss up.

A scenario that is entirely possible, but admittedly improbable, is where a company like Chrysler LLC backs the extended warranty when you purchased it, but then sells it off to another company as part of an asset sale. If the purchasing company isn't sound, you could be SOL. I'd be careful with extended warranties right now.

If anyone out there has definitive advice on who backs a Chrysler extended warranty, and what guarantees they provide to the purchaser that the trustee will indeed be around for the entire term of the contract, I'd be very interested in hearing about it. i got burned bad in the past, so I'm very leery of these things...

 

[Scott_in_FL]

Martin is correct that the first and foremost question to be asked must be "who is the obligor of the extended warranty?" That is, who backs the coverage and pays a claim if one is made. Start there and then determine the viability of that entity.

 

[Viper 55]

I too was assured by my dealer that the government is guaranteeing the warranties. I understood that guarantee to be for ten years and that money has been put aside for such guarantees. I have already bought one extended policy on my 06 and plan on buying another for an RT/10. Anything can happen but I'm trusting all will work out.

 

[Flexx91]

I too was assured by my dealer that the government is guaranteeing the warranties. I understood that guarantee to be for ten years and that money has been put aside for such guarantees. I have already bought one extended policy on my 06 and plan on buying another for an RT/10. Anything can happen but I'm trusting all will work out.

I have yet to hear via the news media of the government backing extended service contracts (warranties past or in addition to the manufacturer's warranty). Can any of the dealership site sponsors verify this?

 

[05CopperHD]

One other thing to remember. Do you have any aftermarket mods or alterations? They can deny coverage if you do. That includes denying to fix a broken door latch (under warranty) if you have aftermarket exhaust, K&n Filters, etc.. Yes, even if the OEM warranty item is not related to your aftermarkert mod. Trust me on this one, I now have a useless Dodge Max Care Plan.

 

[STREET DOC]

Great information,guess I will head over to dodge this weekend and throw some of these questions at them and see what they will put in writing, thanks again for the input.