Extended Warranty Coverage options?

[1791]

I'd be willing to bet you as well! If it was offered by a finance manager in a dealership and rolled into a monthly payment, I can assure you that was their $$$$$$$ profit center!!!
Personally, I just don't like third party warranties. ALLY might be ok, but I'd say it wasn't cheap! (PLUS, they're getting finance money off your ESP, which, in the end, makes it cost even more!

oh i agree but when i went to ram to get a estimate for extended coverage it only go's back to 2021 i have a 2020. it was the best option for me. that being said my payment went up 60 bucks a month on a 5 year note with the coverage. i'd rater have it and not need than need it and bot have it.

 

[Darksteel165]

Zeigler is making next to nothing on these deals initially. A dealer can sell you a Mopar service contract for what the want to. Most dealers are banking on the consumer to return to them for their repairs, this is where the dealer will make its profit. It's not a huge gain on the contract, it's the payment from the service contract.

Our door rate starts* at $160/hour. Warranty/maxcare rate is $120/hr, they pay Warranty time. That time is much less than customer pay book time.Our 3rd party service contract rates(contracts we sell) start at $140/hr. Other service contact pay $175/hr.

A Warranty/maxcare time for a searches reseal on a 6.7 Cummins pays 9.7 hours. A customer or 3rd party warranty pays 20.2 hours. That is a huge difference.

Dealing with maxcare to get large repairs covered can take upwards of 2-3 weeks. Yes it can take weeks. Most 3rd party is days, to a week depending if an inspector is needed.

I believe what you are saying but that shouldn't be the consumers (or the employee's) problem.
The job is what it is, should be 1 rate for everyone and the mechanic should be paid for what the job is. No more making 6 hours of pay on a job that you only spent 2 hours on, and also not getting paid for 6 when it took you 12.
Ratebooks should be used as a guideline and for some reason the auto repair industry just want to do things really weird.

This is right next to waiters and waitresses getting paid below minimum wage and require people to "tip" for them to just get normal wages as everyone else.

I might be billing a business $440/h for work but unless it's a new setup or something completely scoped out 100% they just pay whatever the job takes. Or a 50% deposit on an estimate and pay the rest after. If anyone gets upset about the price I can just open up the book and show here's my time here's what I did peroid. Estimates are fine and not to exceed but book time is just stupid for everyone as a whole. Wonder if/how it could ever get unfu*k'd

 

[Cbty2050]

I believe what you are saying but that shouldn't be the consumers (or the employee's) problem.
The job is what it is, should be 1 rate for everyone and the mechanic should be paid for what the job is. No more making 6 hours of pay on a job that you only spent 2 hours on, and also not getting paid for 6 when it took you 12.
Ratebooks should be used as a guideline and for some reason the auto repair industry just want to do things really weird.

This is right next to waiters and waitresses getting paid below minimum wage and require people to "tip" for them to just get normal wages as everyone else.

I might be billing a business $440/h for work but unless it's a new setup or something completely scoped out 100% they just pay whatever the job takes. Or a 50% deposit on an estimate and pay the rest after. If anyone gets upset about the price I can just open up the book and show here's my time here's what I did peroid. Estimates are fine and not to exceed but book time is just stupid for everyone as a whole. Wonder if/how it could ever get unfu*k'd

I wasn't saying it is a problem, I am stating the dealers that sell the service contracts will make way more on the service side than the initial sale side, especially on a Stellantis product.

The auto industry and how it operates is a joke, you are one stripped bolt, broken bolt, or rusted part away from a blown estimate. This is especially true in the dealer setting, the dealers are worried a slararied or hourly tech won't be efficient/productive.

 

[1791]

i was a dealership mechanic in 1996 and sometimes i made out sometimes i lost. they have to have a guide. if you have a new tech that's slow and takes a long time you would get screwed or a old guy that's fast drags it out to make more $$$. do you pay a doctor for his time or his knowledge? a mechanic makes a fraction of that labor charge. back in my day i got 17 a hr the shop charged 90. think about that if i did a 10 hr job i only made $170. needless to say i left the trade in 2000 but now i save mad money on labor because i do everything myself if it's not covered under a warranty.