Ally extended warranty worth it?

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stanthecaddy
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Joined: Sun Jan 27, 2019 10:11 pm

Ally extended warranty worth it?

Post by stanthecaddy »

After my last post here about buying a new family car, I settled on a Chrysler Pacifica Hybrid (loving it so far, thanks everyone for the wonderful responses!).

The dealer is offering me an extended warranty from Ally-https://www.ally.com/auto/vehicle-prote ... racts.html for $2400 (major guard option) that will “extended” the warranty for 10years/100k miles.

Now, I’ve usually steered clear of extended warranties, but my new car seems way more complicated than my 2006/2013 cars. Seems more computer than car. And I got a feeling things are bound to go wrong.

Would you say it’s a worthwhile purchase?
adestefan
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Re: Ally extended warranty worth it?

Post by adestefan »

Nope.
Topic Author
stanthecaddy
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Re: Ally extended warranty worth it?

Post by stanthecaddy »

adestefan wrote: Sun May 02, 2021 7:22 amNope.
Why so? Extended warranties are typically bad because 1) they are peddled by shady companies, which Ally is not and 2) exclusions, which is probably the case. Anything else?
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RickBoglehead
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Re: Ally extended warranty worth it?

Post by RickBoglehead »

If OP must buy an extended warranty (feels they need to), buy a warranty from the manufacturer through a dealer (usually some dealers have low prices online), not a 3rd party warranty.

House wins on extended warranties.

Hybrid features have 8 or 10 year warranties, not 3 year.

For a Ford (for other people's info), Ziegler and Flood Ford offer very low pricing.
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adestefan
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Re: Ally extended warranty worth it?

Post by adestefan »

stanthecaddy wrote: Sun May 02, 2021 7:31 am
adestefan wrote: Sun May 02, 2021 7:22 amNope.
Why so? Extended warranties are typically bad because 1) they are peddled by shady companies, which Ally is not and 2) exclusions, which is probably the case. Anything else?
Why do you feel you need an extended warranty? There’s nothing new or complicated in your vehicle. The hybrid technology is 25 years old at this point and has a 12 year warranty. The electronic entertainment is probably already broken. The rest of the powertrain already has a 5 year/60,000 mile warranty. There’s nothing else to have an “extended” warranty on.
acegolfer
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Re: Ally extended warranty worth it?

Post by acegolfer »

stanthecaddy wrote: Sun May 02, 2021 7:31 am
adestefan wrote: Sun May 02, 2021 7:22 amNope.
Why so? Extended warranties are typically bad because 1) they are peddled by shady companies, which Ally is not and 2) exclusions, which is probably the case. Anything else?
If you are type of person that will claim all the time, then it may not be a bad deal. But only those ppl get this add-on so the price of extended warranty is high for average ppl. It's called "self-selection" problem in economics.

And dealers make big profit from selling these add-ons. What does it mean to the buyer?
teCh0010
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Re: Ally extended warranty worth it?

Post by teCh0010 »

RickBoglehead wrote: Sun May 02, 2021 7:35 am If OP must buy an extended warranty (feels they need to), buy a warranty from the manufacturer through a dealer (usually some dealers have low prices online), not a 3rd party warranty.

House wins on extended warranties.

Hybrid features have 8 or 10 year warranties, not 3 year.

For a Ford (for other people's info), Ziegler and Flood Ford offer very low pricing.
For Honda College Hills Honda is one of the super low price Hondacare warranty dealers.

I brought their hondacare 8yr/120k price with me when I bought our pilot new in 2017. I told the dealer I would buy hondacare from him if he matched, he told me to get it from college hills because he couldn’t get close.

Hondacare is the only auto warranty extension I’ve purchased. It would have paid for itself on our last pilot when the AC went out, so I figured I would give it a try on this pilot.
Topic Author
stanthecaddy
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Re: Ally extended warranty worth it?

Post by stanthecaddy »

adestefan wrote: Sun May 02, 2021 8:19 am Why do you feel you need an extended warranty? There’s nothing new or complicated in your vehicle. The hybrid technology is 25 years old at this point and has a 12 year warranty. The electronic entertainment is probably already broken. The rest of the powertrain already has a 5 year/60,000 mile warranty. There’s nothing else to have an “extended” warranty on.
Some of the things that this car has that none of my previous cars have had- Power doors, around 10 cameras, probably equal number of safety sensors, dozen usb/ other charging outlets, three tablets etc. Feels as much a computer as it does a car. And I don’t know about y’all, but my electronics don’t last for more than 3-5 years.

To answer the other questions, this is through the dealer. And no, I don’t feel compelled to buy the warranty. I’m not a worrier, nor do I have any reason to believe that I will need it. It’s a pure cost/ benefit decision for me. I’ll easily be able to handle expenses without the warranty as well.

Edit: No reason to believe I’ll need to use it, except for two young kids.
Makefile
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Re: Ally extended warranty worth it?

Post by Makefile »

RickBoglehead wrote: Sun May 02, 2021 7:35 am If OP must buy an extended warranty (feels they need to), buy a warranty from the manufacturer through a dealer (usually some dealers have low prices online), not a 3rd party warranty.

House wins on extended warranties.

Hybrid features have 8 or 10 year warranties, not 3 year.

For a Ford (for other people's info), Ziegler and Flood Ford offer very low pricing.
^ Yes. It looks like for a Chrysler the manufacturer-endorsed extended warranty is Mopar Vehicle Protection. I would go with either nothing, or that.
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Nate79
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Re: Ally extended warranty worth it?

Post by Nate79 »

Makefile wrote: Sun May 02, 2021 7:53 pm
RickBoglehead wrote: Sun May 02, 2021 7:35 am If OP must buy an extended warranty (feels they need to), buy a warranty from the manufacturer through a dealer (usually some dealers have low prices online), not a 3rd party warranty.

House wins on extended warranties.

Hybrid features have 8 or 10 year warranties, not 3 year.

For a Ford (for other people's info), Ziegler and Flood Ford offer very low pricing.
^ Yes. It looks like for a Chrysler the manufacturer-endorsed extended warranty is Mopar Vehicle Protection. I would go with either nothing, or that.
Yes, I would only buy the official manufacturer warranty. Ziegler also sells the Chrysler extended warranty with about the best price out there. I bought one for our used 2019 Jeep Cherokee.
Katietsu
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Re: Ally extended warranty worth it?

Post by Katietsu »

You do not need to buy it now. It will provide no protection until the manufacturer’s warranty expires.

Find out the rules for purchasing the Mopar Warranty. Often you can purchase right up until the day the manufacturer’s warranty at no extra cost. Maybe by then you do not even own the car anymore as lifestyle has changed or the car was totaled. Most manufacturers give you a range of time periods and miles to choose from. After owning the car for a few years, you should be able to better judge the best value for how you use the car.
UpperNwGuy
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Re: Ally extended warranty worth it?

Post by UpperNwGuy »

I recommend you self-insure instead of buying a warranty.
Topic Author
stanthecaddy
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Re: Ally extended warranty worth it?

Post by stanthecaddy »

Makefile wrote: Sun May 02, 2021 7:53 pm ^ Yes. It looks like for a Chrysler the manufacturer-endorsed extended warranty is Mopar Vehicle Protection. I would go with either nothing, or that.
This is great, thank you. Also makes sense to wait until the original warranty expires. Thanks all..
CurlyDave
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Re: Ally extended warranty worth it?

Post by CurlyDave »

stanthecaddy wrote: Sun May 02, 2021 1:13 pm
...Some of the things that this car has that none of my previous cars have had- Power doors, around 10 cameras, probably equal number of safety sensors, dozen usb/ other charging outlets, three tablets etc. Feels as much a computer as it does a car. And I don’t know about y’all, but my electronics don’t last for more than 3-5 years...
One of the things most people do not realize is the shocking short use life of a car. If you average 50 mph you will put 100,000 miles on a car in 2000 hours. This is less than 3 months of 24/7 use.

The point is that home based electronics are actually used more in 3 years than during the entire lifetime of a car. Now the car is a harsher environment with shock, vibration and temperature extremes.

We got our money's worth from one extended warranty with a new transmission at 98.000 miles. But they are usually not a good deal.
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TexasPE
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Re: Ally extended warranty worth it?

Post by TexasPE »

I bought my first-ever extended warranty from Subaru on my 1917 Forester. I shopped around and paid ~60% of what my local dealer was asking. Extended warranties from the OEM are the only one that make sense to me. Note to posters: buying one is a personal decision... please don't feel the need to tell me that I "would come out ahead if I put the premium in the bank to use for repairs". :mrgreen:

I learned from this NPR segment that a third-party 'extended warranty' isn't.

https://www.npr.org/2021/03/31/98310973 ... d-warranty

that these are really 'prepaid service contracts', and that the fine print allows them to often claim the problem was normal wear and tear (and thus not covered).

Google 'Carshield ratings' , for example, and you will see from the BBB that, for many customers' repairs were rejected, repair was delayed for weeks (or months), and that supplied parts are often used. Many dealers and independent mechanics will not deal with these companies.
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