Chrysler files for bankruptcy

[Osahar]

I don't know if I agree with the low quality..I have a 22 year old dodge,and a 12 year old dodge that I've had less problems with than my gm owning friends have had.

I would have to say that you were incredibly fortunate then. Chrysler products have been at the bottom of the barrel lately. If you look at last year's 2008 JD Power Initial Quality Survey, Jeep was rated the WORST build quality of any vehicle brand sold in the US. The rest of Chrysler was also in the bottom 1/4 of all brands.

Chrysler is also the ONLY major manufacturer that has not had a single model chosen as an IIHS Top Safety Pick with current offerings.

The 2009 JD Power Dependability Survey (3 year old models) had Dodge and Jeep in the bottom half of all brands and well under the industry average, with Chrysler just above the halfway point and industry average. On the 2008 Dependability Survey, all 3 were in the bottom half and well below the industry average.

 

[Osahar]

Self-insurance? It just means you take on the risk of major repairs, instead of paying up for the dealer to do it. They offer you those things because they're very profitable! Most folks overinsure the wrong stuff.

They are profitable - but if you are unfortunate enough to have a major repair outside of warranty would you rather have paid $1500 for the extended warranty that you can roll into your payments, or $3000 for a new transmission all at one time?

To me, the extended warranty is buying piece of mind. If you plan to keep your car well past the standard warranty coverage, you are taking the gamble that nothing serious ever happens to your car mechanically or electrically.

Another item to look at is the Extended Service Plans that several manufacturers offer. It's a very worthwhile plan that people actually should be purchasing. You're covered for all maintenance on the vehicle for the length of the plan - ie every oil change, tire rotation, wiper blade replacement, filters, 30K maintenance, etc. Just make an appointment at a dealership when a maintenance visit is due, drop it off, and pick it up when done with no additional out of pocket expense. On the one's I've done the math on, the cost is usually either the same or a touch cheaper if you add up the cost of paying for each of the visits yourself as you go.

 

[ClairefromClare]

We do belong to our dealer's discount club, or whatever. Mostly because it comes with free loaner cars, and that's key. The discount pays for the annual fee. I will admit I just spent $2,300 on my nine year old minivan. If I'd taken that $1,500 cost of an extended warranty nine years ago and invested it, I'd have... well, not $2,300.

 

[Osahar]

Agreed. But most car purchasers aren't paying cash for their extended warranty, it's getting rolled straight into their loan. So even taking the money and investing it isn't a possibility. Like I said, it's buying piece of mind at a cost of under $10/month on your payment.

 

[Smallville]

A couple of things on extended warranties, from my point of view: Oshahar, you it the nail on the head. Peace of mind. That's all it is. Insurance. As log as you know you'll likely never need it, then fine I guess. But if you are getting it because you have a feeling you are going to need it, then get another vehicle. And paying it as part of the loan? OMG, now you are paying interest on it too!

I do not buy extended warranties. I look for items that have long manufacturer's warranties. Claire's example (I know you weren't saying you wish you had gotten the extended warranty) wouldn't have been covered under an extended warranty either. It's gotta happen within the time frame or mileage range of the warranty for it to do any good. If you take care of and keep your vehicle serviced, that's a whole lot better than any extended warranty. (And a WHOLE lot cheaper, since you should be keeping your vehicle maintained anyway). If a company doesn't have the confidence in its product to give it a good warranty, then why should I buy it? If it needs an extended warranty, then I'll spend the extra money on something that has a better manufacturer's warranty.

Extended service plans? If you are taking it to the dealer to be worked on, it's costing a lot more than taking it to a mechanic you trust. I will have our guys out in the field take their trucks in to the dealers only because if there is a problem with it in the next town they are working in, it will be covered. You couldn't get any help from Joe's auto repair in Boise, Idaho when you are in Fresno, California.

This is from Consumer Reports, April 2008:

Extended warranties: A high-priced gamble
Our survey of 8,000 new-car buyers shows they are usually a poor deal

Most people don't buy a new car without hearing the dealership finance manager warn about "how foolish it would be" not to protect your investment from unexpected repairs as you put on the miles. What comes next is a persistent sales pitch for a solution to your new fears: an extended warranty. "You could save the amount of the plan cost with just one covered repair!" says a brochure for Ford's Extended Service Plan.

But extended warranties sell costly "peace of mind" for repair nightmares that probably won't occur, according to a survey of more than 8,000 readers in December 2007 by the Consumer Reports National Research Center. We have long advised that extended warranties are a poor deal for almost every product. Now we have the first data showing that this advice applies to most new cars as well.

The survey included buyers of extended warranties for cars in the 2001 and 2002 model years. That allowed sufficient time for the factory warranties to expire, as well as several years of extended coverage. The chart on Costly contracts lists results for makes for which we have sufficient data; note that models within a make may vary. Some owners in the survey might have had coverage remaining, but our analysis shows that the need for serious repairs is uncommon.

The main reason is that automobiles today are more reliable than ever. "The odds are that what's covered won't fail," says Terry Wynter, who owns Terry Wynter Auto Service Center in Fort Myers, Fla., and is helping to write an extended-warranty guide for the Automotive Service Association (ASA). The sellers of extended warranties know what parts tend to break within the coverage time and mileage, so buyers are betting against the house.

In fact, that's a lesson many people already know. About 75 percent of all respondents in our initial screening did not buy extended warranties, with more than two-thirds saying they didn't think it was a good value for their money.

The best course of action for most consumers is to buy a car that gets top reliability scores in our Vehicle Ratings (accessed by pulldown menus on major pages within the Cars area or through our interactive New Car Selector, available to subscribers), and you probably won't need an extended warranty. But if your heart is set on a car with a below-average reliability record, it's more of a toss-up. You can decide for yourself how much "peace of mind" is worth. For example, the highest usage claims were for Mercedes-Benz, for which we have no recommended models due to below-average reliability. But only 38 percent of those owners said they saved money with the extended warranty; the average loss was $100.

The experience of our readers who bought extended warranties and a closer examination of how they work (available to subscribers) show why the odds are stacked against you.

 

[Badger_Golfer]

I don't know if I agree with the low quality..I have a 22 year old dodge,and a 12 year old dodge that I've had less problems with than my gm owning friends have had.

Everyone uses that excuse to defend their favorite brand. They cite some example of a vehicle that ran 200,000+ miles and supposedly never broke down.
Look up the quality ratings on J.D. Power sometime. Chrysler gets HORRIBLE ratings. Look at the resale value. Dodge has TERRIBLE resale value. Look at the fact that Dodge had to offer a lifetime powetrain warranty in order to convince people to take a chance on a Chrysler.
No offense, but those are the facts...
Ive owned Toyota and Fords and earlier this year I was dating a girl whose family is big into Chryslers (and Im mean BLINDLY loyal to Chrysler) and a couple times I helped her family out on the farm and they had to me driver to town to pick stuff up and run errands and let me use their vehicles.
Her dad has a fairly new Dodge Ram and her mom has 5 year old Jeep Grand Cherokee. Honestly, those Dodges were 2 of the biggest pieces of crap Ive ever driven. Ford's quality isnt grade a #1 either, but they were way better than those Dodges I drove and a Chrysler could NEVER compare to a Toyota. LOL
So, while I respect your opinion, I strongly disagree.