Originally Posted by joeboxxer
The online Classic Cars Pricing Guide gives retail values. Say in 20 years NADA says the car is only worth $2000.00 and your engine goes. If the engine costs $5,000 to replace, Chrysler will only pay you $2000 (car's cash value)..but since the original extended warranty cost $2300.00 - you're only out $300 . So assuming that the value of the car doesn't go below what you paid for the extended warranty you won't actually lose if they cancel the policy.
I think I'm more worried that Chrysler won't be around to honor the warranty.
The online price information is not NADA's "official" guide though. I see that they do use "retail" prices online, but the printed appraisal guide refers to pricing as "market reflective" (at least in the sample they provide online). All I'm saying is that the lawyers might have an intentional way out there. If you look at the typical collector/classic vehicle that is decades old and in average condition/value, the prices listed are multiples of the original MSRP (mostly due to inflation). But imagine that in 2040 someone still has their Crossfire and has never had one of these plans canceled, and by some miracle Chrysler and NADA are still around. Let's say the car is valued at $40K and some covered component breaks. The cost of the repair is $20K. Does the plan pay for the repair as seemingly specified in the contract? I bet it won't. But if it would, and one of these contract sellers would put it in writing, then a good strategy for a lifetime plan owner would be to pay out of pocket in an event there is a plan-busting repair in the early years (when the car is not classic/collectible and value is at the lowest). But as you said, what are the odds Chrysler is around in 5 much less 30 years from now?