Chrysler factory-backed extended warranties at 25% or more off (Group buy)

[fredsmith]

This is a deal for owners of Chrysler Group vehicles that are under the basic manufacturer’s warranty.

We are organising a buyer’s group to lower the cost of entry to purchase OEM (Chrysler factory) warranty extensions. If you were planning to buy an extended warranty (or not) and own a Chrysler group (Chrysler/Jeep/Dodge/Ram) vehicle that is within the basic warranty, then this is the post you were waiting for.

Having experienced it in the past, there is no way I would ever take a plan other than one backed by the factory because, believe me when I say that when it is time to file a major claim the ‘independents’ always have an excuse – I wound up in court against one provider (who was one recommended by the CAA) after they put me through hoops on an engine job (I won, of course, but shouldn’t have had to go that far).

So here goes:

I recently purchased a new Dodge vehicle and was asking about an extended warranty for it. The prices quoted have risen in the 3 years since I bought my last vehicle, but then so has the complexity of today’s vehicles. Just changing a window switch costs $350 because literally every part in the vehicle has a computer – and heaven help you if the computer acts up outside of the basic warranty or even worse, something goes intermittent. Your corner mechanic is not going to be able to do more than just basic maintenance on your new vehicle because of the integration of computers into the mix and dealers are charging $100 per hour for labour.

The point is that I’ve been there and have made money on almost every plan I’ve had – and then sold my vehicles before those plans ended (with the exception of the car my daughter is driving – anyone want to buy a clean 2000 LHS with 150,000 km on it?). Having a warranty makes the sale much simpler and often yields a better price.

I’ve had transmissions replaced. I’ve had engines opened to replace the head gaskets (GM). There have been windshields, window motors, water pumps, alternators and more that have needed post-warranty service over the past 20 years

Yes, I know that there are some who feel that these plans aren’t worthwhile, but then they haven’t had them or the opportunity to profit. Consumer Reports says that the average buyer of these vehicular plans ‘loses’ about $100 – but the average buyer doesn’t get a discount. Also, CR didn’t take the additional benefits (towing, trip interruption protection, free loaner vehicles and so on) that these plans provide into account. If you were a member of CAA then likely you will be able to let it expire and additionally save that cost for having purchased an extended warranty.

The concept is simple: Dealers make a 100% markup on extended warranties which is highway robbery because all they do is to fill in the registration form and file it with the provider - they also make a HUGE killing on replacement cost policies. So I'm organising a buyer's group and plan to approach local (to me) dealers and get them to drop the prices to something reasonable:

For example, I was quoted $2175 for a 7/115 bumper-to-bumper plan (it may have been a discounted amount. I don't really know) - assuming it was MSRP if we buy several it should relatively simple to get the price down to (or below) $1500, which makes it an amazingly good deal - not to mention how it improves the resale value of your vehicle. Because if the average buyer ‘loses’ $100, saving $700 on the purchase means he will ‘make’ $600 on average!

It doesn't matter what plan each person buys - as long as we have 10 or more people committed to purchase we have a lot of negotiating power.

I can't yet say what the net price would be for any particular plan because I have no idea what the MSRP of each plan is, but I expect a discount of AT LEAST 25% from retail, probably more like 35%-40% if I have my way. Your commitment to participate would be based on saving that minimum 25%, though I am confident we can negotiate better than that - that's what I do for a living and I've had quite a bit of success . . . . Anything beyond the 25% should be considered 'gravy', though not unexpected.

Keep in mind, however that your commitment is for up to a couple of thousand dollars (it depends on the plan you choose and your car) and that it needs to be paid for at the time of purchase (though you might be able to tack the cost onto a personal loan or credit card if that's how you fly).

Note that your vehicle has to be less than 3 years old and have less than 60,000 km to qualify. I was told there is a surcharge for these warranties if the car is older than one year and has more than 20,000 km - I seem to recall that they told me it would be $250 - even then, that may be discountable. Your vehicle doesn't need to be any specific model, or even a new vehicle. It can be any product that Chrysler would sell a plan for (including pickup trucks and taxicabs). Manufacturer's plans are head-and-shoulders better than 3rd party ones. So get on board and let's save some serious coin.

You would pay the dealer directly for your own plan, presumably with your credit card. Though I could envision the dealer insisting on checks or adding a fee for using a credit card - in which case you would send them to the dealer (or perhaps to me, though made out to the dealer) for the appropriate amount. Dealers like certified checks or bank drafts for large transactions.

For those not subject to HST and out of Quebec I assume there'd be no provincial taxes to pay (not that anyone in Alberta pays PST anyway).

Who is in?

You can post in-thread or you can e-mail me. I created an e-mail address for this buyer’s group because in part my inbox on Redflagdeals is almost full and I don’t need to attract a lot of SPAM to my usual address. Send any e-mails to chryslergroupbuy@yahoo.ca

At some point You’ll need to provide your personal information and that for your vehicle along with the information on which plan you would like to purchase so we can solicit the pricing.

I'd like to move this along before they have their next price increase.

A 7/115 'basic' plan (power train only) would be plan 486 according to the brochure. As a 'Gold' (bumper-to-bumper), it would be plan 419, 7/160 would be the 410 - apparently you can't extend the 'Gold+' (Bumper-to-bumper with maintenance) past 5 years, though it can go to 160,000 km. Here are links to the current brochures (too bad they don't include retail pricing for these plans in them):

http://www.mopar.ca/en/service/max.pdf (Zero dollar deductible plans)
http://www.mopar.ca/en/service/2003SCBEnglish.pdf ($100 deductible plans)
http://www.mopar.ca/en/service/special_use.pdf (Special use plans - commercial vehicles)
http://www.mopar.ca/en/service/Certi...20Vehicles.pdf ('Certified' pre-owned vehicle plans)
http://www.mopar.ca/en/service/Quali...20Vehicles.pdf ('Quality' pre-owned vehicle plans)

If we're going to make this work I figure we need at least 10 participants. For that I expect to negotiate a minimum 25% discount (which would be the target number for a 'go') anything more would be gravy - people would be committing based on receiving at least that 25% discount.

Keep in mind that ANY Dodge/Jeep/Chrysler/RAM vehicle can be included and any mix of plans works . . .

I'd also like to look into whether we couldn't get a number of buyers for 'remise a neuf' (replacement cost) policies for 5-7 years as well - I've had full payoffs on 2 of them over the years and literally multiplied my investment – where else can you have suffered a loss due to an accident or theft and literally erase 5 years of use for the one time price of $1000? Plus you get a reduction in your deductible for accident repairs AND they pay the price to use new OEM parts over the term of the policy in the event of a fender-bender. THOSE are not provided by Chrysler, however.

Yes, I know there are Chrysler-haters out there, but this concept can be applied to almost any brand of vehicle and I have owned many different brands including some that are touted as being the most reliable – and benefitted from having them. However since I am not in the business of selling warranties, if you want to organize one for your particular brand of car you’ll need to do it yourself.

So we don’t need negative comments or brand-bashers. If you have a Chrysler Group vehicle you’ve made your choice. If you want an extended warranty, then that is also a personal decision. In all fairness that is not something worthy of derision. Using e-mail means that participants can communicate privately.

Again:

1. This program is for the purchase of Chrysler OEM extended warranty plans and possibly also for ‘replacement cost’ insurance (if the demand is there).
2. You will not be paying me or any individual for the plan – your agreement will be with the dealer. You can likely pay with a credit card, but I’m certain that they will prefer a check.
3. Your vehicle must be under the existing basic factory warranty.
4. The program will only proceed if we can get at least a 25% discount from the MSRP
5. You can select any Chrysler plan they offer for your vehicle.
6. The purpose is to leverage a volume purchase to save myself money – if that means you save money too, then why not? That is my ONLY benefit.
7. Because these are Chrysler warranties you can have the vehicle serviced at any of their dealers in North America.
8. If you join the group you are expected to follow through if we get the minimum 25% discount.

The e-mail address for PM’s is: chryslergroupbuy@yahoo.ca

[Gutty96]

I am interested in this for my 2010 RAM. However, I would need a quote in writing before I move forward at all.

I would be interested in prices on the 7/115 with or without deductible. Let me know what you need from me to provide me the quote.

[dealsngh]

I would also be interested in 2011 Dodge Caravan 7/115 warranty with no deductible or a $100 decductible

[fredsmith]

I am interested in this for my 2010 RAM. However, I would need a quote in writing before I move forward at all.

I would be interested in prices on the 7/115 with or without deductible. Let me know what you need from me to provide me the quote.

That's the whole idea. We give the dealer a list of vehicles (VINs, mileage and in-service dates) along with the desired plans and they come back with the retail prices.

To all who are asking, you can get an idea of the cost based on my previous experience . . . it may well be that the price was already discounted, so the assumption may be off base . . . they quoted me $2145 for a 7/115 zero deductible plan for my 2011 Dodge Journey - so if the numbers quoted were 'retail', you would figure on spending $1,500 if your vehicle is new. Perhaps $250 more if it is on the road more than a year and has more than 20K on the odometer.

Some of these plans stretch to above $5K and more for longer term and high mileage programs for some vehicles - so don't expect to pay $300 for this type of deal - a typical long term plan (7/160) is likely $4K at retail and we'd get the discount on that number ($3K). Then again, just troubleshooting a computer problem and replacing the BCM can cost more than the this.

Unfortunately they do not publish a price list and my sales rep says that he has to ask the F&I person at his shop for quotes each time.

I would like to collate a list of interested individuals with their vehicles, mileage, service dates, VINs and the plans they are interested in and submit the list to them for pricing . . . . . I want to do this once and once only.

Send your details to the e-mail address and I'll make up the spreadsheet.

Include:

1. Your name
2. What province you live in (for sales tax calculations)
3a. Year
3b. Make
3c. Model
3d. Trim level (SE/SXT/R/T/SRT8 and such)
4. VIN
5. Present mileage
6. In-service date
7. Which plan number(s) you are interested in (check the online brochures for these - they define the term, amount of coverage and deductible).

Later on you can provide your address and other information.

[nsx]

Moved from "Hot Deals" to "Buy, Sell, and Trading Post > Group Buys."

[jbad]

Are Fiat's included in this ?

[euphoria18_79]

I would be interested. I have a 2009 Jeep Wrangler currently with 72000 km. Would like something like the 160000 km warranty.

[fredsmith]

Are Fiat's included in this ?

I suspect the answer is yes, but why not send your details and when we submit we'll get the definitive answer.

[fredsmith]

I would be interested. I have a 2009 Jeep Wrangler currently with 72000 km. Would like something like the 160000 km warranty.

I don't believe that your vehicle qualifies because the basic warranty has expired - but again, why not include your details in an e-mail and I'll include it in the submission.

[euphoria18_79]

Gonna send you an email... but the warranty on it is still in tact, i believe it is 5 years 100000 km. Will email you in a bit.

[fredsmith]

I've sent you a PM, but note that the basic waranty is 3/60 - the 5/110 year is power train only. I'm not sure you qualify, but when we have enough participants I will include your vehicle on the list.

This post motivated to get the thread some visibility. We need more participants.

[fredsmith]

We have a few takers for the deal, but not enough (I think) to move it to where I'd like.

However I will be waiting one more week and then will try to see what I can do.

If we get 25% off, then the deal will be a 'go'.

[dishguy1977]

I've sent you a PM, but note that the basic waranty is 3/60 - the 5/110 year is power train only. I'm not sure you qualify, but when we have enough participants I will include your vehicle on the list.

This post motivated to get the thread some visibility. We need more participants.

I'm in the same boat as a previous poster...past my 3/60 but still in my 5/100 powertrain - did you ever figure out if it was possible to extend in this scenario?

[fredsmith]

I have not called yet because of extreme demands on my time these days (but I will). In the meantime, this is what the zero deductible plan brochure, under 'eligible vehicles' says:

"Chrysler Canada Inc. vehicles that have 3/60 Basic and 5/100 or 2002 model year with 7/115 Powertrain Warranty and are less than four years in service, and have accumulated fewer than 60,000 kilometres"

Interesting enough, the one for the $100 deductible plan says that it has to have less than 3 years in service - which makes more sense to me personally - so it would need to be within the 3/60 basic warranty in the case of a $100 deductible plan, less than 4/60 (and that could be an error, even though the brochure is more recent, and was released almost 5 years ago) for the zero deductible one.

The used car plans allow for up to 8 year old vehicles with up to 200,000 kilometers on them at the start of the contract, though I'm not certain whether you could purchase one for a car you already own - that's another question I can ask.

I suggest clicking the links to read the brochures yourselves.

[golfman_ott]

I just bought a Caravan today and was looking at the price list for the extended warranties. I passed on them today but told him I would think about it and get back to him.

5yr 100k was in the ballpark of 2100
7yr/115 was 2865
7yr/160 was about 3500... talked him down to 2800 but decided not to take it

6yr/120 was offered to me for 2500 tax in

I am interested in the 7yr/160k. Can't imagine keeping it under 115 in 7 years. I would like to get it well below $3000 tax in.

I would be interested in a group buy