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Extended warranty from FCA

GregHBNA said:
that's logic. Higher mileage, more years to cover, higher price (especially on a 0 ded).
Click to expand...

$0 deductible is about $2k more and $100 deductible is about $450 more (when comparing to a $200 deductible). Obviously the price is all relative to the plan you pick, but the cost increase between the three deductible options is about the same percentage wise when eyeballing it. A smaller plan that difference may be a $200 and $1k difference.

The point was the $100 really doesn't cost much more, but to take it down to a $0 deductible is much more epensive. To me if one is worried enough to shell out four figures for a warranty they might as well shell out a few extra hundred dollars to reduce their bill $100 every time they go in. Obviously if you are getting a warranty you are probably expecting to hit up the dealer more than once or twice after the original warranty expires.
 
Erickr123 said:
Went with $100 deductible. Worked allot of different sources and Clay Robbins beat them all. He also did not charge any tax which the next lowest price wanted out of state 6.5% tax. There was a $90 fee to finance for 12 months. I would definitely recommend Clay. [email protected]
Click to expand...
Clay is often one of the lowest priced.

5thgenrams.com

Get the Best Price on a Factory Extended Warranty

Get the Best Price on a Factory Extended Warranty Who better to protect your vehicle than the company who built your vehicle? Mopar Vehicle Protection is the only service contract provider backed by FCA and honored at all Chrysler, Dodge, Jeep, Ram and FIAT dealerships across North America...
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Most states require sales tax if you live in the same state where you are purchasing from.

Do you have to pay sales tax on an extended warranty?
Yes. The sale at retail or use of maintenance, service and warranty contracts constitutes prepayment for services to tangible personal property and is subject to tax. Pennsylvania Department of Revenue

Are service contract or warranty sales to the end customer subject to sales tax at the time of sale?
Yes. Retail sales tax applies to a service contract or warranty sold to a consumer. Washington Department of Revenue

Are sales of warranty contracts that cover tangible personal property subject to tax?
The sale of a warranty or service contract covering the repair or maintenance of tangible personal property is subject to sales tax at the time of the sale of the contract. Tennessee Department of Revenue

Sales of extended warranty agreements or service plans are taxable, and tax must be collected at the time of the sale of the agreement. https://blog.protectmycar.com/auto-warranty-taxable-utah

What items are included when determining the sales tax?
Extended warranty charges
New Jersey Sales & Use Tax Guide for Automobile Dealers

Sales of extended warranties, service agreements, and maintenance agreements ("service contracts") for appliances, electronic products, and other property are taxable.
Kansas Department of Revenue

When a motor vehicle dealer sells a warranty, extended warranty, or service contract, the sale is generally taxable at the tax rate in effect where the customer is a resident. See Publication 838, A Guide to Sales Tax for Automobile Dealers.
New York Department of Taxation and Finance

It looks like Maine and Florida are also supposed to charge sales tax.


Michigan appears to be different.

Extended/Optional Warranty:
An extended warranty that is offered as an option and separately stated on an invoice is not subject to sales tax.
Michigan Department of Treasury
 
TravisJ said:
$0 deductible is about $2k more and $100 deductible is about $450 more (when comparing to a $200 deductible). Obviously the price is all relative to the plan you pick, but the cost increase between the three deductible options is about the same percentage wise when eyeballing it. A smaller plan that difference may be a $200 and $1k difference.

The point was the $100 really doesn't cost much more, but to take it down to a $0 deductible is much more epensive. To me if one is worried enough to shell out four figures for a warranty they might as well shell out a few extra hundred dollars to reduce their bill $100 every time they go in. Obviously if you are getting a warranty you are probably expecting to hit up the dealer more than once or twice after the original warranty expires.
Click to expand...
I got the 8/125 $200 deduct. It was $2350, I hope it is a wasted $2350, I hope to never take it for warranty. I look at the $200 deduct as fine unless the warranty issues start coming regularly. If that happens, time to upgrade. $200 a pop doesn't bother me, If it happens more than 4 times, I should have opted for the $100, but if it happens more than 4 times it's getting traded anyway.
 
TravisJ said:
On the Zeigler site the difference between $100 and $200 isn't much. It would pay for itself after about 2-5 visits depending on how expensive the plan you get is. $0 does create a huge jump in the price. On a 8/125k the price is nearly $2k more compared to $200.

I am guessing it factors in the fact someone on a $0 deductible is going to come in weekly with their newest complaint, where someone with a deductible is only going to come in with major complaints.
Click to expand...

8 year 125,000 Mile Deductible Example
$2,350.00 $200
$2,880.00 $100
$4,265.00 $0

The $100 deductible plan is 22.55% more than the $200.
To break even you would need to use this warranty more than five times during the last five years of the contract, only three of which apply to the power train. Obviously you also have mileage to factor in as well.

That's the gamble. The odds are partially unknown.

Original Warranty
5-year/60,000-mile Gas Powertrain Limited Warranty. Plus, the 3-Year/36,000-Mile Basic Limited Warranty
 
Last edited:
alow said:
I'm pretty sure you get the remainder prorated back to you if you sell or cancel.
Click to expand...
I didn’t. Still trying to get them to honor their own contract language for the truck I traded in.
 
Silent Bob said:
Clay is often one of the lowest priced.

5thgenrams.com

Get the Best Price on a Factory Extended Warranty

Get the Best Price on a Factory Extended Warranty Who better to protect your vehicle than the company who built your vehicle? Mopar Vehicle Protection is the only service contract provider backed by FCA and honored at all Chrysler, Dodge, Jeep, Ram and FIAT dealerships across North America...
5thgenrams.com 5thgenrams.com


Most states require sales tax if you live in the same state where you are purchasing from.

Do you have to pay sales tax on an extended warranty?
Yes. The sale at retail or use of maintenance, service and warranty contracts constitutes prepayment for services to tangible personal property and is subject to tax. Pennsylvania Department of Revenue

Are service contract or warranty sales to the end customer subject to sales tax at the time of sale?
Yes. Retail sales tax applies to a service contract or warranty sold to a consumer. Washington Department of Revenue

Are sales of warranty contracts that cover tangible personal property subject to tax?
The sale of a warranty or service contract covering the repair or maintenance of tangible personal property is subject to sales tax at the time of the sale of the contract. Tennessee Department of Revenue

Sales of extended warranty agreements or service plans are taxable, and tax must be collected at the time of the sale of the agreement. https://blog.protectmycar.com/auto-warranty-taxable-utah

What items are included when determining the sales tax?
Extended warranty charges
New Jersey Sales & Use Tax Guide for Automobile Dealers

Sales of extended warranties, service agreements, and maintenance agreements ("service contracts") for appliances, electronic products, and other property are taxable.
Kansas Department of Revenue

When a motor vehicle dealer sells a warranty, extended warranty, or service contract, the sale is generally taxable at the tax rate in effect where the customer is a resident. See Publication 838, A Guide to Sales Tax for Automobile Dealers.
New York Department of Taxation and Finance

It looks like Maine and Florida are also supposed to charge sales tax.


Michigan appears to be different.

Extended/Optional Warranty:
An extended warranty that is offered as an option and separately stated on an invoice is not subject to sales tax.
Michigan Department of Treasury
Click to expand...
You only included a few random states. No Tax in TN.
 
GregHBNA said:
You only included a few random states. No Tax in TN
Click to expand...
I included the first ten states that came up the last time I did a Google search for this information. Please feel free to find the list of all 50 states. (y) ;)

Are sales of warranty contracts that cover tangible personal property subject to tax?​

The sale of a warranty or service contract covering the repair or maintenance of tangible personal property is subject to sales tax at the time of the sale of the contract. Any subsequent repairs performed that are covered by the warranty or maintenance contract are not subject to tax.
However, if the repair is not covered by the warranty or maintenance contract, the seller must collect sales tax on the repair. Additionally, the seller must collect sales tax on any minimum fee or deductible charged the purchaser that is not covered by the warranty or maintenance contract. The total sales price of warranty or service contracts is subject to the 7% state rate plus the local tax rate. Tennessee Department of Revenue

 
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Silent Bob said:
I included the first ten states that came up the last time I did a Google search for this information. Please feel free to find the list of all 50 states. (y) ;)

Are sales of warranty contracts that cover tangible personal property subject to tax?​

The sale of a warranty or service contract covering the repair or maintenance of tangible personal property is subject to sales tax at the time of the sale of the contract. Any subsequent repairs performed that are covered by the warranty or maintenance contract are not subject to tax.
However, if the repair is not covered by the warranty or maintenance contract, the seller must collect sales tax on the repair. Additionally, the seller must collect sales tax on any minimum fee or deductible charged the purchaser that is not covered by the warranty or maintenance contract. The total sales price of warranty or service contracts is subject to the 7% state rate plus the local tax rate. Tennessee Department of Revenue

Click to expand...
If I had purchased the ESP from a dealer in TN, then I would have paid tax.

I purchased my ESP from Zeigler, which is in Michigan. It was an online purchase.

If anyone here purchased an ESP from Zeigler and paid sales tax, PLEASE COME FORWARD.
 
GregHBNA said:
If I had purchased the ESP from a dealer in TN, then I would have paid tax.

I purchased my ESP from Zeigler, which is in Michigan. It was an online purchase.

If anyone here purchased an ESP from Zeigler and paid sales tax, PLEASE COME FORWARD.
Click to expand...

I think the seller only collects the sales tax if you buy it in your home state, according to that states rules.

Because Michigan does not collect sales tax on extended warranties I suspect no one has paid sales tax from them.

Technically, if you are out of state, you are supposed to voluntarily pay the sales tax to your home states department of revenue. I am sure we will all get right on that.
 
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Silent Bob said:
Technically, if you are out of state, you are supposed to voluntarily pay the sales tax to your home states department of revenue. I am sure we will all get right on that.
Click to expand...
Yeah, let me get my checkbook out right now..... NOT!
 
+1 For Clay Robbins. Nice guy. Just got my 8yr/100k from him.
 
GregHBNA said:
Interesting. What online seller of ESP's Charges sales Tax? Its an exempt purchase.
Zeigler did not charge any sales tax, it even says on the quote "tax exempt".

If you were in the same state as the online dealer, then yes, sales tax would apply.
Click to expand...
Bonham Chrysler Dodge Jeep Ram in Texas. I sent allot of e-mails to allot of states. "Tax rate for out of state purchase is 6.25%"
 
yes..it's something several local dealers offer customers
 
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