PSA: MOPAR is ENDING the sale of Lifetime policies for the foreseeable future, on November 30 2018! More details here.
I’ve talked to multiple colleagues in the car industry that weren’t aware that Chrysler had resumed offering lifetime bumper-to-bumper warranty extensions. They were as shocked as I was. But, it appears that the option came back up around the middle of last year, so it isn’t that old of an option.
Many remember Chrysler, in a desperate effort to stay afloat before the 2009 bankruptcy, offered a standard limited lifetime powertrain warranty on all their cars. It was non-transferrable, but could be upgraded to a lifetime bumper-to-bumper warranty.
Now, it appears, Chrysler is offering it again. This time though, the warranty is strictly an add-on… for Chrysler, Dodge, Jeep, and RAM vehicles. It isn’t standard, however. But, the good news is, the offering is available on both new and used cars this time around.
Today, you can buy a Mopar Lifetime Warranty on any gasoline-powered Chrysler, Dodge, Jeep, RAM or Fiat (yes, Fiat too) that is less than 48 months and 48,000 miles old. You may be able to purchase one on a Certified Pre Owned car after that, at the time the vehicle is purchased. Ask your dealer for details before buying any car, however. Give them the VIN, and make sure you can get the warranty you want… before buying any used car.
Also, Chrysler offers three tiers (of lifetime coverage) that stretch from a lifetime bumper-to-bumper, down to lifetime powertrain-only coverage. I would strongly suggest splurging for the full/comprehensive policy, otherwise you may have a car with a great powertrain… and no air conditioning. Or a car with some blown sensor that isn’t on the powertrain component list, and you’re stuck paying out of pocket for.
These warranties aren’t cheap. I’ve seen quotes as high as $3,700 and $3,900. I’ve also seen them dip into the low $2,000s.
There are a few exclusions, but they are pretty reasonable. Viper, Hellcat, and (sadly, more recently) the Alfa Romeo 4C are excluded. But all other SRT cars are qualify. As mentioned above, gasoline-only. No diesel, hybrid, or electric cars qualify either.
Update: Quick update – FCA has stopped selling lifetime warranties to pre-owned SRT vehicles. Dealers may still be able to write one up on a certified or new car, you’d have to check with them… I’m a bit too busy at the moment. Lifetime remains available for all non-SRT cars aside from the Alfa Romeo 4C. And yes, Dodge R/T’s still qualify, including R/T Scat Pack models, which are basically last generation’s SRT 6.4L V8 in today’s body. Sorry, 6.4L Scat Packs seems to fall under SRT territory – no lifetime for you, either, though I really don’t understand why as that engine is really reliable.
Important: Whatever you do, don’t take your car to the track if you buy this, without explicit written okay from FCA… Racing is excluded from the standard warranty, I suspect any track use at all would give Mopar cause to void the extended warranty.
Is it a good deal?
Actually, it can be an amazing deal. Chrysler is betting that you won’t keep the car and run it into the ground. They’re betting you’ll either sell the car after the average five-to-seven years… or you’ll get it into an accident. If the car is wrecked, Chrysler wins big. And, the average driver gets into an accident every seven years. If the car is written off, so is the warranty.
But, there is the potential for a major payoff. If you drive the car more than the average driver, let’s say 20,000 miles per year, you hit 100,000 miles within five years. 200,000 miles within ten years. And, you will be well up there in miles if you buy a car with 30,000 miles on it to begin with.
But, there’s the rub. Cars are lasting a lot longer today… Chrysler knows this. The only major components that really break down often (and are expensive) are the transmission, water pumps, air conditioner, etc. Most of the components that break are actually not that expensive to fix, especially with Mopar’s negotiated rates that dealers have with Mopar to begin with. You think Mopar pays the same you do at the dealership for repairs? Nope…
Finally, the last picture of the equation that favors Chrysler, is the writeoff amount. If your 250,000 mile Charger is only worth $6,000… they aren’t going to pay $8,000 to swap out your blown engine. They, at most, will cut you a $6,000 check and send your car to the junkyard.
In other words, Chrysler is asking you to put up about $3,000 to $3,500 of your money, betting that you’ll either sell or wreck your car with only a grand at the most of repairs redeemed. If not, they’re hoping you’ll junk the car. And, if all else fails, they’re holding their breath that you’ll be one of the few customers that waits until the car is almost worthless to actually tap the full amount.
The big gamble for Chrysler is if many of these cars start to break down, in the 100,000 to 200,000 mile range. That’s where the consumer wins big. Chrysler can’t fall back on the cash-out value since these cars can easily still be worth five figures… such as a loaded Chrysler 300 Hemi AWD or Charger R/T.
Conclusions
So, is it a good deal for you? If you’re a high-mileage driver, if you run cars into the ground, and selling a car is something that never crosses your mind… it’s a great deal. GM and Ford may want to take notice, since this deal is tempting enough to woo me from the competition, over to Mopar.
Full Disclosure
Since writing this article in 2013, I’ve purchased a 2015 Chrysler 200S, and locked in a Lifetime Mopar Maximum Care contract. I paid $2,600 for the warranty, and it was a CPO (so it has a 7 year, 70,000 mile powertrain policy too). I also purchased a wheel and tire policy for seven years from Mopar (far better than the dealer-offered policy).
Had it not been for the Mopar Max Care Lifetime policy, I would have gone with a much older car, probably from GM (either a Saab 9-3, Chevy HHR SS, or a Pontiac G8 GT). I’m very happy with my purchase, and plan to drive the car to 300,000 miles. I may even pay for certain repairs myself if they exceed the write-off amount of the vehicle down the road, but by that point, autonomous driving may take over.
Right now, with the FCA cars beating even BMW cars in the small-offset safety tests (that’s right, a 2015 200S has much better IIHS safety ratings that a BMW 3-series of the same age), my game plan is to lock in cars today… and wait for autonomous driving to truly kick in. The Mopar Lifetime policy is perfect for that plan.
Performance Parts
Mopar replied to a letter of mine confirming that Magnuson-Moss rules do not apply. Adding something as simple as a third-party Cold Air Intake (CAI) can void your lifetime policy.
Florida & North Carolina Residents
Side note for folks living in those two states. Your Mopar Lifetime service contracts can be transferred by state law. It is unclear how many times they can be transferred, as some North Carolina policies say they can only be transferred once. On older cars pre-bankruptcy cars (those with the Lifetime Powertrain Warranty), the powertrain components will be excluded – on newer (FCA) cars, powertrain coverage will be retained.
As discovered on this thread, it is very important if you live in FL or NC, to only buy a policy from a dealership in your home state. This is because it appears that Mopar is only allowing transferability if both the car and the policy, were purchased/transferred in the home state. If you buy from an out-of-state dealer, your policy may not be transferable later.
There are a couple of things I’m not clear on transfers, like how many times they can be transferred, but it is definitely an option only in those states. And, as far as I am aware, it does not appear that you can simply “net” lifetime transferability by purchasing the policy from a dealer in the state… again, the car, and the policy, have to be bought in-state.
Names on Policy
One more important addendum. When you purchase the policy, you have to put names on it. Even if the vehicle is titled to a company for commercial use (which is allowed – with a few exceptions), an actual human being must be on the Mopar lifetime policy.
That said, Mopar does allow you (only at the time of purchase) to place a second individual’s name on the Max Care policy. This person does not have to be on the vehicle title. This is important, because it’s basically life insurance. When you die, the lifetime policy literally dies with you. So you may want to put the policy in the name of a spouse or child, that will ideally take ownership of the vehicle after you pass on.
It’s common for people to pass vehicle’s on to their children after a decade or so of ownership. Even if your child is only a few years old, it’s not a bad idea to put their name on the Mopar policy when you buy it, to make sure they can inherit both the car – and the lifetime coverage someday.
This article has been updated over the years, as the requirements for Mopar lifetime warranties have evolved and simplified a bit.
PSA: MOPAR is ENDING the sale of Lifetime policies for the foreseeable future, on November 30 2018! More details here.