Warranty and extended warranty

[1BAD383]

If Chrysler goes belly up, would our warranties be any good? When I picked up my 08 Challenger in July 08, I also purchased an extended warranty for $1,500. Will that $1,500 lost?

[TheBeastMaster]

Most likely yes. Dealers do the work, and get repaid by the manufacturer. If Chrysler goes out of business, there's no one to reimburse the dealer. Since you paid the 1500 to the dealer, they may be nice and use that towards the cost of any repairs, but there's no guarantee of that. And that assumes that the dealer doesn't go under as well. I'm in the same boat, i also bought an extd war. I don't think they'll go under. Something will come along and save them, it always has in the past.

[ujokin2]

Well some of the extended warranties are purchased outside of Chrysler like GE for example.

[done]

Most likely yes. Dealers do the work, and get repaid by the manufacturer. If Chrysler goes out of business, there's no one to reimburse the dealer. Since you paid the 1500 to the dealer, they may be nice and use that towards the cost of any repairs, but there's no guarantee of that. And that assumes that the dealer doesn't go under as well. I'm in the same boat, i also bought an extd war. I don't think they'll go under. Something will come along and save them, it always has in the past.

The extended waranties are "insurance policies". They are underwritten by specialized insurance companies, not the manufacturer or dealer.

[Impfan]

I decided to wait on buying extened warranty until I see what direction the company goes.

[Keir]

The extended waranties are "insurance policies". They are underwritten by specialized insurance companies, not the manufacturer or dealer.

That is the same information that was explained to me by one of Chryslers District Reps when I asked him the same question. He was at my dealership last month, just before I bought my Maxi-Care policy.

[stevesrt8]

like Done said, no worries. It's not Chrysler who administers them.

They are just like mortgages, often bundled and sold to others.

Just watch they don't try and use outsider parts to repair. We had a Ram and suffered multiple trans replacements due to warranty sending their own trans rebuild to the dealer for swapping. If we had got genuine Mopar parts we would have gotten the TC update and never been back!

[CHARGERSHED]

The extended waranties are "insurance policies". They are underwritten by specialized insurance companies, not the manufacturer or dealer.

Not entirely accurate; Chrysler Service Contracts admins. the extended warranties for Chrysler dealers... They rely heavily on the income streams produced by the F&I departments to offset claim costs, If Chrysler LLC were to go out of business, CSC would probably look to bankruptcy protection, as their revenue steam would be severed and with it, the abillity to pay claims...Also, the Mechanism used to pay the dealer would also be gone; currently all Chrysler warranty claims, factory or extended, are submitted to corporate for payment the same way( via warranty administrator and on-line claims proccesing).

To summerize, If Chrysler LLC goes under, it will take your max-care contract with it. You might see some money back if CSC goes into BK, but it will be substantially less than what you paid.

[rsmith63]

I sure hope they don't go under, and if they do I hope our vehicles are covered for the lifetime power train warranty!

[fuzzycali]

not entirely accurate; chrysler service contracts admins. The extended warranties for chrysler dealers... They rely heavily on the income streams produced by the f&i departments to offset claim costs, if chrysler llc were to go out of business, csc would probably look to bankruptcy protection, as their revenue steam would be severed and with it, the abillity to pay claims...also, the mechanism used to pay the dealer would also be gone; currently all chrysler warranty claims, factory or extended, are submitted to corporate for payment the same way( via warranty administrator and on-line claims proccesing).

To summerize, if chrysler llc goes under, it will take your max-care contract with it. You might see some money back if csc goes into bk, but it will be substantially less than what you paid.

^^^^^true.u will most likely receive a pro-rated check in the mail or it will be credited to chysler financial so u will see ur pay off amount credited that amount.u can always call ahead and terminate it and recieve that credit anyways or a check in the mail if it is paid off.