Joined: 08 Jul 2007 Posts: 4 Location: Baton Rouge, LA
Posted: Thu Aug 30, 2007 1:27 pm Post subject: Chrysler Unlimited Warranty impact on industry
Last month, Chrysler implemented an unlimited powertrain warranty for new vehicle buyers. This is generally known to the industry. What is not known is that there is a wrap insurance (maintenance) policy availabe to make the warranty extend the normal 3 year/36,000 mile warranty to unlimited as well. This covers all the other mechanical components including brakes, A/C, electrical, suspension, cooling. power steering, etc.
This wrap policy is $1995. About the price of one extensive A/C repair. It lasts as long as the original owner has the vehicle. Also, for a nominal fee ($150) it is transferable!
What impact do you think this will have on the industry as a whole....Will the other manufacturers follow suit?
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Fri Aug 31, 2007 9:09 am Post subject: Re: Chrysler Unlimited Warranty impact on industry
Hi Scot,
scotbyrd wrote:
Last month, Chrysler implemented an unlimited powertrain warranty for new vehicle buyers. This is generally known to the industry. What is not known is that there is a wrap insurance (maintenance) policy availabe to make the warranty extend the normal 3 year/36,000 mile warranty to unlimited as well. This covers all the other mechanical components including brakes, A/C, electrical, suspension, cooling. power steering, etc.
This wrap policy is $1995. About the price of one extensive A/C repair. It lasts as long as the original owner has the vehicle. Also, for a nominal fee ($150) it is transferable!
What impact do you think this will have on the industry as a whole....Will the other manufacturers follow suit?
It's hard to say what the impact might be, Americans are the most insured and least covered people on the planet. There seems to be a fascination with paying for repairs up front and then fighting with a company to try to receive service?
Rather than build a better product that doesn't break and then naturally offer a longer warranty, the trend is to try to figure how much can be added to the cost to cover the repair. Charge this up front and then "contain cost" to earn additional profit.
My thought is, it will be as poorly administered as all of the previous attempts and ultimately fail, leaving a bunch of folks with an even worse attitude toward the companies.
What I see is Chrysler [or whoever] getting a bunch of money up front. They quickly squander this, much like most large entities [Governments?] Now as claims start to roll in, pressure is put on the poor stiffs that have to repair them to "contain cost." Flat rate times are cut, used, rebuilt parts substituted. Corners cut, the letter of the contract used to avoid claims, etc.
In the end the client feels beat up, abused and ripped off.
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