Jeep Cherokee - Extended Warranty Offer - Need advice!

[Haui]

I am a proud owner of a 1999 Jeep Cherokee. It has around $145k miles with a few problems that I need to get fixed (pinion bearing, transmission problem, manifold collector leak), all of which are very costly.

I just got through a bad experience with a mobile mechanic that completely ripped me off and didnt fix any of my problems. Needless to say, that is why I am here.

A few days ago, I just happened to get a letter in the mail from Service Protection Plan out of St Louis (I am in Dallas). It was a letter advising that even though my original warranty has expired, this letter confirms that I am still eligible for an extended warranty.

They had a number on here, 1-800-981-5095 and gave me a customer ID number. I called and spoke with a guy who explained that this letter was a great deal. He explained that it would cost me around $2300 for 100k more miles or 5 years (which ever comes first) of an extended warranty. He explained that it covers EVERYTHING, except normal wear and tear(oil changes, tires, etc). The thing is, I can pay this off, at whatever I want the installment to be. Once I sign up for this, within 14 days, I would recieve a policy card in the mail and I can take my care to any Jeep dealership and get my car fixed. I would only have to pay the first $100 each time I go to have something fixed (but if I do a lot of things at once, its still $100).

This sounds like a fantastic plan...but I do feel the need to do some research. Has anyone here every had any experience with this company? Do I take advantage of this or is it just a scam?

 

[Scarpozzi]

Engine and Drivetrain problems are the biggest. For a Jeep Cherokee, you can buy a new engine for around $900, as well as $900 for a replacement transmission... (this is the cost that Jeep quoted me a few years back as I used to have a 99 Cherokee as well)

A number of common problems that you may have with the extended warranties aren't covered under the contract. You really need to read the fine print.

I recommend fixing the problems straight up...if you can find a replacement transmission it shouldn't be too costly to get a shop to install it since it's just a swap. You might even be able to do it yourself if you want to learn about engines... It's fun stuff and a Cherokee actually has some space in the engine compartment.

 

[Unheard]

Meh, you've covered a lot of the basic problems you see on higher millage vehicles. I did a quick KBB on a 2D Cherokee from that year w/ that millage, basic options, and the value is only $3100. For only $800 more than that warranty you can replace the vehicle. Plus if you don't use the warranty during that time, you're out $2300. I'd say don't worry about it, save that $2300 to do other things (or save it to pay for repairs).

 

[grohl]

Sounds like a scam, bro.

edit: Sorry, 1st time I read it I thought it was $230

I agree with above. With $3000 being a replacement it might be time to let it go.

I have a 1995 Tahoe with 350 engine - love it but the second it needs major work its gone.

 

[dullard]

So, lets think about this.

You have a vehicle that in Good condition is worth ~$3500 (private party trade value). But since it needs many repairs lets say it is worth $2000. Now you want to spend $2300 + $100/repair + whatever you pay in fine print to repair this vehicle. Even if that warranty covers each and every thing just as you want it to, you still are paying more for the warranty than the vehicle is worth. And that was the best case scenario. Now think about the worst case scenario: you spend $2300 for a warranty with so much fine print that you get nothing for your money.

But for now, I'll assume the best case scenario.

Case 1: You plop down $2300 + $200 (pretend you needed the warranty twice) and you now have a good 1999 Cherokee worth $3500.

Case 2: You sell the 1999 Jeep for $2000. Spend the $2500 in addition to the $2000 you just got, and have a 2000 Cherokee with 120,000 miles in good condition. Result: newer car with lower mileage and needs no repair.

Case 3: Take that $4500 and buy a vehicle that is reliable (hint not a Jeep).

 

[brtspears2]

Usually these guys have you take your car to their mechanic first to make sure it is in good working order. If they see any problems, they will not cover it due to pre-exsisting conditions.

 

[MrBond]

I've heard car extended warranties are as bad or worse than the ones they sell for electronics. You may do some googling about that particular company to see if there's any reports online.

I know a girl who bought one on a used Sebring she bought. She had some transmission trouble (surprise, surprise) and took it in. The extended warranty people jerked her around and told her if the repairs weren't preauthorized, they wouldn't be covered. She ended up paying for the entirety of the work herself and the warranty was useless.

Before you buy anything, I would request the complete details of the warranty in the mail so you can read through them yourself (then actually read them). There may be stipulations on where you can take your car, for example. Just like with a Best Buy service plan, the person selling it to you doesn't have to tell the truth, so you want to make sure you read all the fine print so you don't get ripped off. Make sure "normal wear and tear" doesn't include transmission/shocks/alternator/etc.