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Lifetime powertrain warranty buyout

Anybodyhome

USN Retired (1973-1993)
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I've never heard of such a thing, but I can see why the warranty company is wanting out of the deal. So, they've made you an offer, which is clearly just a starting point, because they are in no position to do anything but negotiate a settlement that is money friendly on their end.
So, my counter-offer would be an either/or proposition:
1. Either pay me full market value for my JK and you can have it, or...
2. Pay for a completely new engine install and I keep my JK

In either case you're going to need a number for each of above scenarios. Look up 5 JKs similar to yours on Auto Trader or something, within 100 miles of your home, and average the asking price for the 5- that's your market value for option 1.

Get 2-3 estimates to replace the motor, and make sure they all have the same scope of work. This is your number for option 2.
 
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Scott W

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They come out smelling like a rose in each scenario. They are already obligated to fix my jeep under the warranty. If I just sell it to them for market value, again, they are just gonna put in a motor and sell it for what they bought it for. Either way they are out of the warranty at no cost to them other than to replace the engine
 

Anybodyhome

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They are already obligated to fix my jeep under the warranty.
However, they cannot under the terms of the warranty if the parts don't exist to make it happen, correct? So this is not an option.
And, if you don't want to sell them your JK, just tell them to pay you what it's going to cost to replace the motor. They get what they want (out of the warranty) and you get what you want (new motor and your JK).
 
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Scott W

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No. I want my motor and to keep my warranty. They already owe me the motor. So they get to just drop my warranty because they chose to stop making the parts ? How convenient for them. They owe me the motor and a warranty. If they can’t do that , they own me market value for my jeep and compensation for my lifetime warranty in a buyout form. Or a new after market reman motor and compensation for the warranty.
 

Cobriscus

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Having dealt with warranty claims, in another industry, Jeep's position is going to that the LPW has zero monetary value. It was provided to you free of charge and, thus, there is not depreciation schedule to show future (current value). You are an anomaly, in their minds, as the warranty was not transferrable and folks just don't keep vehicles for long periods anymore. Kudos to you!

Be sure to read the paperwork carefully, there are likely clauses for this situation. Also, I know Jeep says Lifetime means Lifetime, but in my industry Lifetime mean the average lifespan of the product. If Jeep defines "Lifetime" as 15 years, the cliff could be coming.

Google lawsuits related to this warranty, there are several. If you sue them, a Judge is going to use these prior cases as basis for how you should be compensated, if you win.

In my mind, Jeep owes you one of two things, either a Jeep in good running order or the monetary value of parts & labor required to repair the Jeep. If they repair, your warranty should continue. If they give your the cost of repair, you keep the Jeep, but your warranty is void (because they didn't do the repair). Another option is for Jeep to work with the dealer to get you into another Jeep at no cost to you. That would be a stretch, but I think all cards are on the table.
 

Anybodyhome

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In my mind, Jeep owes you one of two things, either a Jeep in good running order or the monetary value of parts & labor required to repair the Jeep. If they repair, your warranty should continue. If they give your the cost of repair, you keep the Jeep, but your warranty is void (because they didn't do the repair). Another option is for Jeep to work with the dealer to get you into another Jeep at no cost to you. That would be a stretch, but I think all cards are on the table.
That's what I think.
Because Jeep cannot provide either the motor or the labor to install a new motor, they won't issue a warranty. However, keep in mind that a new engine will have a manufacturer's warranty.
 

Speartip

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May 8, 2022
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Victoria BC , Canada
I feel some clarification from the OP is in order .
Your original post you typed "blown head". What exactly is "blown" on your head ?

You also mention in the "shop for months ". That honestly doesn't make a lot of sense. It would take shop couple days to diagnose problem. A few days searching & waiting for replies from Mopar parts distribution centers . Why wait months to speak with inquire on here looking for ideas ?



As far as "free" legal consult . That's just to get you in the door to see if you have a case . Taking a major automobile manufacturer to court is going to cost big money . A heck of a lot more than what your Jeep is worth. You could probably buy a new Jeep with what legal costs would set you back. If not more. Seriously .

This warranty wasn't free. They back door'd you into paying for it
How much did you spend over the years keeping up with reg scheduled maintenance? I'm guessing 2-4K? If not more over the years. So no not "free".


You will not get a new engine or Jeep. The warranty is worth nothing .
The best you will get is the 7K they offered you . I understand people here are trying help and giving hopeful options.

The reality is Chrysler /Jeep is not a charity. As another poster mentioned your a bit of a anomaly . As people switch vehicles or they don't keep up with reg scheduled maintenance and the Big Three know this.


So Jeep will drag this out till you accept offer.if I'm wrong will be the first one here admitting I was wrong . But as my first paragraph mentions . Something doesn't seem straight with original post .
Cause why wait months to speak with "regional guy from Chrysler ".
Not judging just saying .


Nothing is ever free.
Trust no one
 
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Scott W

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They were actively looking for Mopar parts to repair a cracked manifold. The couldn’t locate one. Finally they found one that was not an Mopar part but allowed it with the warranty. The service guy at the dealership told me that I needed a new engine but that Mopar was gonna try everything they could do to just repair it until it went out. I got it back and it was still running hot and leaking water into the engine. I brought it back to them and they determined that it was then time to get a new engine(unsure of what the exact diagnosis is). This was in late February. They have kept me in a rental or loaner since that time as they have been looking for an engine. It took them over a month to determine that. Evidently the communication between the dealership and Mopar is slow. Mopar makes them jump through several hoops in order to diagnose the issue. They have been looking for a new engine since. Finally Mopar decided to offer a buy out. So you feel like that I should take a low end trade in value for my jeep because they decided to stop making my engine or parts for it ? Are you kidding? The markel value for that jeep right now is upwards of the 12k range with a running engine (which is their responsibility). They are wanting to get out of these warranties and this is their plan to do so. It’s not fair to those of us who have kept the Jeeps and maintained them for Mopar to do this. I want them to either fix my jeep and maintain my warranty or compensate me for both. I don’t think that is being unreasonable. They alone caused this mess
 

JerryD

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I sympathize. However, any warranty has to comply with the Magnuson-Moss Act. Chryslers lifetime warranty is actually by definition a limited warranty per this act. Chrysler can call it whatever they want, but per the language of the Act, it's not a full warranty.

Counter offer as others have said. I fear it's unlikely you'll get the results you're looking for.
 
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Speartip

JK Enthusiast
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Thank You for a bit of clarification . Well, first thing , was it exhaust or intake manifold that was replaced and why?
These are questions you must be asking so as a consumer can make educated and informed decisions .
It sounds like you have a blown head gasket .
Now if over heated enough can also cause the head to warp.
It doesn't necessarily mean you need an entirely new engine . Head gaskets and heads are replaced all the time on this and other engines.
I would be asking what exactly leads them to believe the entire engine needs replacing . Did they take head off and see cylinder wall scoring ? Did they drop the oil pan and see damaged crank or connecting rod bearings ? You see what I'm getting at. Basically explain what their saying as to how they come up with diagnosis.
I would make an appt or better just drop in with all your paper work to speak with General Manager of the dealership . Go over everything with him.
Show them warranty documentation, all your receipts from required maintenance,.Ask where on warranty document does it state that they will not repair engine regardless of issues or parts availability .
See if that will get you anywhere . I would have done this early on myself . But be cool about it . Just present the facts.
Manufacturers Warranties on brand new vehicles or any other products are solid . They will fix or replace anything to make it right .
Extended warranties, especially on vehicles are questionable at best . As previous poster mentioned more like limited warranties .
And I said in previous post , worthless. Sorry but it's just the way dealerships operate . Hard to trust when they have scammed so so many . Anyways hope it works out. Def talk to GM of dealership , that may get you somewhere .
If not take the 7K and move on with your life. Use as down payment for another vehicle
 
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kk2010jk

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Dec 2, 2020
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86
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Milford NJ
Coming on here to get legal advise is not going to get you far. Afraid you're going to need to lawyer up. Problem is that Chrysler knows that and it's $$$ so they can make the offer they did. So you have to decide, take the offer or get a lawyer who may or may not get you additional $$$ that would just cover the cost of the lawyer.
Good luck with your fight
 
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cbarry

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Jul 27, 2022
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2
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New York
I think they’re screwing with you. From what I can tell Jeep still makes heads for the 3.8. You can even get the full rebuilt engine - R8144470AD. They just don’t want to cover the cost and labor associated with the fix. They are not listed as discontinued on any dealer site I’ve searched. Availability could be an issue as it took two weeks for me to get a clockspring recently but I’m not seeing anything about end of life. Right now I am waiting on my second head for an 09 Commander. I have the same lifetime power train warranty on that vehicle. The first head was replaced due to faulty valve seals - I was burning about a quart of oil every hundred miles. They don’t bother with rebuilding anything. The replacement head just dropped two valves so I am waiting on replacement #2.

When they did the first head they had to get approval from Chrysler corporate to use a new head instead of a remanufactured one because no remanufactured ones were available. This time they are trying to get approval to purchase an oem replacement from rock auto because of no mopar/dealer availability. We’ll see what happens - I told them I didn’t need it immediately because it’s my second car.

At least your car has some residual value - if they paid me blue book on an 09 Commander with 200k miles and a 3.7 I think I would get a check for $9.99. The free lifetime power trains are hard because if you are actively using them you don’t want to give them up. To me the warranty is worth way more than the car is at this point but I didn’t pay for the warranty. Just keep pushing them to fix it and don’t be afraid to escalate to corporate yourself. Also - even though it’s on them try and be as agreeable as possible and corporate will try and help you out. Tell them you love your Jeep, brand loyalty, blah blah blah.

With my ‘12 JK they were still selling stupid warranties with terms like lifetime. I ended up buying one when I bought the vehicle. It has paid for an ECU/wiring harness swap, an oil pressure sensor I was going to replace myself until I realized I would have to pull the manifold, about four sets of seized calipers, and a few other items already. This warranty (unlike the free lifetime) has a provision in it where if the repair is greater than the blue book they can pay the blue book and cancel the warranty. Luckily JKs hold their value a lot better than Commanders. Jeep has already offered me $3000 towards a new car if I would cancel the warranty. They can pry it from my cold dead hands.

I get that I’m in the minority but I don’t need new/shiny and will gladly hold a warranty without limitations long enough that it’s been worth it.

So no - no recommendations on what your warranty/Jeep are worth in terms of buyout but keep pushing for them to fix it. It’s not like they’re going to stop making parts for the 3.8 when people are still buying them.
 
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