DML,
I purchased a 1998 Dakota CC R/T with extended warranty in June.
I made some mistakes (fell for some of the traps) in purchasing the
extended warranty, and I'm telling you all about them so you can avoid
them.
Sometime after I agreed on a price for the truck, I was escorted into a
finance manager's office. This was my first opportunity to discuss
extended warranty options and cost (I tried to get them to include it in
the purchase, but they wouldn't even discuss it).
I agreed to a 7/75 extended warranty with 0 deductible for about $1200. As
I was about to sign on the dotted line, some of the restrictions were
explained to me. This is when I discovered that they were trying to sell
me a non-Chrysler warranty. Probably an OK warranty, but it can only be
used at that dealership. So I balked.
I eventually discovered, almost by accident, that my dealer's practice is
to not even offer a Chrysler extended warranty, unless someone
specifically asks for it. (Apparently, they can make much more profit from
a non-Chrysler warranty.)
Of course, the Chrysler version was available, and was more expensive. But
the dealer offered it to me for $1327, which was under "retail" ($1510),
so I took it, although I now had a $50 deductible. The price was added to
my loan contract.
When my salesman found out I got a Chrysler extended warranty, he pulled
me aside, and asked me how I did it. He was quite surprised - and told me
I "did well."
I was feeling uneasy about it afterwards, though. I wasn't sure how
much it should have cost, or how much I could have gotten them down to.
I started to wonder if I got screwed. (I KNEW I got screwed on the truck,
but the warranty, I wasn't sure about.)
And then I read somewhere that the warranty markup is something like
200-300%, and it is a good idea to shop around for them. So I read
the fine print, which said I had 2 months to cancel it and get a full
refund.
I later found out it can be cancelled anytime, and the refund is
pro-rated. But within 2 months, it's 100%.
So I started calling around, and found that other Dodge dealers were
willing to sell me the Chrysler warranty for less. One even told me that
they charge more to their customers than to non-custmers!
Anyway, the same warranty was $1055 at another local Dodge dealer ($272
cheaper), and they offered monthly payments for 1 year, interest
free, with $50 down (which I believe is a Chrysler program that all
dealers can offer to their customers). This was the best deal I found,
although I wouldn't be surprised if it could be had for less.
I also discovered that the Chrysler extended warranty can be purchased any
time before the manufacturer's warranty runs out. However, it goes up $200
after the first year.
I hope this info helps some of you. If you know of a dealer that sells the
Chrysler warranty for less, please let me know.
Scott L.
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