Dealer tries to sell 3rd party warranty

[RebelRam]

When I purchased my Ram the finance guy tried to offer me a third party warranty through Ally I believe. It was a 5 yr/125k mile warranty for $3800.

I asked the finance guy what happened to the Mopar warranty, he said that they still offer that but the Ally is just as good. He quoted me the Mopar warranty for the same terms for around $3600 and looked surprised that it was cheaper (I know he already knew this).

I told him I would pass on it for that price, then he showed me a lower price of $2,600. I passed again and told him I would prefer to do some research and shop around first. He told me to let me know if I find a better price and to please but through them instead of elsewhere.

I ended up finding the 7 yr/unlimited warranty on chryslerwarrantys website for around $2800 which beat out Ziegler’s web site by a bit.

I know some go back to their dealer and ask them to match the price instead of buying online, but why? It’s the same warranty and they tried to screw me three times, so I have no loyalty in that situation. Also, why are Chrysler dealerships offering third party warranties now? Are they given bigger kickbacks? Seems kind of shameful that they would try to push that first and screw over customers rather than offering the known warranty that’s better through their own company.

I don’t mean this to bash my dealer, I like the sales staff and service staff a lot. They run a good operation, and I know they’re just playing the same game that almost all of them do.

 

[riccnick]

bigger kickbacks?

This is it precisely. They push what the warranty companies want them to push. Dealerships have been offering third party warranties for decades now, and most "manufacturer" warranties are through a third party company anyway, just with their own rules. If that dude wants you to call him back so he can price match, call him back and make him price match plus 10% if he wants your business. Just because they play games doesn't mean you can't take advantage of the game when you figure out their M.O.

 

[RebelRam]

This is it precisely. They push what the warranty companies want them to push. Dealerships have been offering third party warranties for decades now, and most "manufacturer" warranties are through a third party company anyway, just with their own rules. If that dude wants you to call him back so he can price match, call him back and make him price match plus 10% if he wants your business. Just because they play games doesn't mean you can't take advantage of the game when you figure out their M.O.

I guess it just kind of surprised me since I’ve purchased three vehicles from this dealer now and it’s the first time they’ve offered the third party warranty first. I’ve actually never known any dealer to do that in all my purchases except VW, because I think they don’t have their own company backed warranty.

 

[brewdad]

Best to purchase FCA warranty, whether from dealer or online; some of these third party warranties require you to pay repair costs out of your own pocket and then request reimbursement from the warranty company and other companies will not authorize repair until they send one of their people to inspect your vehicle to see if repair is needed.

 

[RebelRam]

Best to purchase FCA warranty, whether from dealer or online; some of these third party warranties require you to pay repair costs out of your own pocket and then request reimbursement from the warranty company and other companies will not authorize repair until they send one of their people to inspect your vehicle to see if repair is needed.

No doubt. I learned my lesson from a third party warranty on an f150 I had. Needed a new engine at 84k miles. The dealer I had the service contract with just wanted to keep getting different opinions and replacing different things instead of replacing the engine. Fought them for two months before I just cancelled the warranty and paid to replace it myself.

 

[Tundralag]

GEICO MBI. 36 bucks every 6 months
250 deductible 7 year 100k.

 

[Tom488]

GEICO MBI. 36 bucks every 6 months
250 deductible 7 year 100k.

Any first-hand experience with actually using it? As in, have dealer do a bunch of warranty work, and pay them your $250 deductible for $3,000 worth of work? All warranties are equal until it comes time to actually use them.

 

[Bluesurf]

When I purchased my Ram the finance guy tried to offer me a third party warranty through Ally I believe. It was a 5 yr/125k mile warranty for $3800.

I asked the finance guy what happened to the Mopar warranty, he said that they still offer that but the Ally is just as good. He quoted me the Mopar warranty for the same terms for around $3600 and looked surprised that it was cheaper (I know he already knew this).

I told him I would pass on it for that price, then he showed me a lower price of $2,600. I passed again and told him I would prefer to do some research and shop around first. He told me to let me know if I find a better price and to please but through them instead of elsewhere.

I ended up finding the 7 yr/unlimited warranty on chryslerwarrantys website for around $2800 which beat out Ziegler’s web site by a bit.

I know some go back to their dealer and ask them to match the price instead of buying online, but why? It’s the same warranty and they tried to screw me three times, so I have no loyalty in that situation. Also, why are Chrysler dealerships offering third party warranties now? Are they given bigger kickbacks? Seems kind of shameful that they would try to push that first and screw over customers rather than offering the known warranty that’s better through their own company.

I don’t mean this to bash my dealer, I like the sales staff and service staff a lot. They run a good operation, and I know they’re just playing the same game that almost all of them do.

I bought my Ram 1500 on 5/19/2019 in Houston. My selling dealer offered only 7 years with 100k miles for over a grand more than I paid. Through Ziegler I purchased 8/125 MAXIMUM CARE Effective: 05/20/2019 Expires: 05/19/2027 for $2105.00 with a $200. deductible. This is my third purchase through Ziegler.

 

[Tundralag]

Any first-hand experience with actually using it? As in, have dealer do a bunch of warranty work, and pay them your $250 deductible for $3,000 worth of work? All warranties are equal until it comes time to actually use them.

Yep my wife’s BMW had issues after her warranty ran out. Dropped the car off at BMW I called geico, dealer called in the repair to my claim number. Picked the car up two days later paid 250 and drove away
Not saying it’s the best process or warranty. But I am not paying 2-3 k up front for what if warranty. I did that with my 2005 and 2010 ram. Never used the warranty once. Basically pissed away 5 k for nothing. With geico I am only out36 bucks every 6 months for all my vehicles

 

[Whiskey_tango]

I got hosed by the dealer pushing a 3rd party warranty. Got home and realized it wasn't even FCA. I called to cancel and they wound up switching it to FCA.

Still way overpaid, my fault for not doing homework. Hadn't bought in 10yrs and was blindsided. My rationale was that this is my first FCA and it's the first model year.

Part of me hope it grenades at 90k miles so I can at least feel justified in my stupidity.

 

[troutspinner]

I bought a vehicle once many years ago with an extended warranty that I didn't realize was 3rd party. A few years in, the supercharger on it was having issues and my local Pontiac dealership said it had to be replaced. They said it's going to cost $1200. I said I don't care, it's under warranty. They looked into it and said they cannot honor that warranty as it was 3rd party. Fortunately, while the dealer I did buy it from moved, they weren't "that far" away and they replaced it with me paying just a $75 deductible.

This could have turned into a horror story had the original dealer been across the country or out of business so do always check that you are buying a warranty direct from a manufacturer that is recognized by all dealers.

 

[User_3336]

Bob Cline at Zeigler is awesome. He is usually the lowest price over anyone else.

I bought my Ram 1500 on 5/19/2019 in Houston. My selling dealer offered only 7 years with 100k miles for over a grand more than I paid. Through Ziegler I purchased 8/125 MAXIMUM CARE Effective: 05/20/2019 Expires: 05/19/2027 for $2105.00 with a $200. deductible. This is my third purchase through Ziegler.