RE: Chrysler Service Contracts

[BritishNate]

Would you buy one???? Please can someone help me better understand this!

[bklynmag]

Looks like you are modding your ride based on your sig. Is your dealer cool with that?

It would be pointless to pay for a contract if they are going to give you grief for your mods every time you go in.

[MattRobertson]

I did buy one (sort of) and would not do so again. Basically I had the service contract that covered me for oil changes and service intervals up to like 60k miles. Or something. It actually
morphed into a set number of oil changes whenever I wanted to come in for them, with no mileage limitation.

I wouldn't do it again because when you have one of those, it locks you into service at the dealer. If its not convenient to go into the dealer to have this done, it costs you money to go somewhere that is convenient on that given day. Also, if you decide to change how your vehicle is serviced, what was once a good deal can become a bad one. For example I decided to start using Mobil1 in my car, but the contract doesn't include that. The dealer has the option of refusing to perform the service as you would prefer (!) or 'upcharging' you for the increased cost of the oil. The latter sounds fair until you hear a Chrysler dealer's price for a quart of Mobil1.... where they have to 'special order' it because its 5w-20 ... never mind that Pep Boys down the street has it for half the price the dealer wants for it.


Paying in advance for something is never really a smart idea, since you lose the time value of your money. Plus you close yourself off from options that may come up down the road. Strike two. Don't wait for Strike Three. Just say no right here.

[vinny68]

In my opinion, paying up front for something that may happen is never a good idea when you have the choice.

[Fargo59]

i bought the CPOV service contract on my charger when i bought it, and im the head tech at the dealership! labour is no problem, its the cost of parts that is. as for mods, i only do ones that will not void warranty on my vehicle, IE, parts that go on are of equal or better quality than OEM parts, usually with their own warranty against defects. keep it level headed, and nothing goes wrong. as for paying for oil changes, dont try, my parents had that with their lease. the stipulations by chrysler is rediculous. it's not even cost effective for the service department.

[07MAGOWNR]

The following is the atypical reason why someone would purchase an agreement. The area that I live in just instituted a new tax starting January 1, 2008 that adds about a minimum of 5 percent additional tax on all car repairs (supposedly to go towards Transportation). This taxing authority was provided by the VA Government and signed by our wonderful governor to the NVTA (an appointed entity and not elected by the general puplic) which I believe goes against our own state's constitution. This is also why I bought my new car in December 2007 saving an additional 500 or so dollars to avoid paying this new tax. At least, I don't have to pay as much of this new tax with this type of service being procured at the 2007 rate. I am also a family friend of the salesman at the Dealership, so getting a break also helped sweeten the deal no matter if it is a little more inconvenient to get to the dealership. Just have to plan ahead of time for oil changes and other services that are covered with this contract.

[desquirrel]

It is simple math. Extended warranties are tremendously profitable dealer packs, which is why they are sold. They exist in a world where people lease cars, buy a Prius, or trade in a nearly new Hemi for an econobox, to "save money".